Guide to forex brokers and trading platforms in Nigeria
Nigeria is one of Africa’s fastest-growing economies. Initially, this would mostly be attributed to its oil reserves but that is no longer the case. There are several emerging and rapidly growing sectors. One of the most prominent sectors is the financial sector. As it stands, the country boasts of several established financial markets. That makes it a haven for forex brokers and traders. The number of trading platforms currently available here is proof of that.
What Is Forex Trading?
Forex Trading is best described as the speculative trading of currencies much like one would do with stocks or commodities. That makes it a valuable financial tool that many organizations and individuals have been leveraging.
To trade, one must use a trading platform. In the modern era, trading platforms typically refer to digital environments such as websites or software that allow their users to buy and sell currencies. Just like in the case of a brick-and-mortar exchange, forex trading platforms allow people to manage their opening and closing positions on multiple markets.
Is Forex Trading Legal in Nigeria?
Even though forex trading in Nigeria is relatively new, the activity is legal. The Central Bank of Nigeria is responsible for regulating it. The bank has the mandate to ensure that forex trading can only happen through banks or brokerage firms registered in the country. To receive operational licenses, the brokerage firms must meet some requirements. These are mostly meant to ensure that the firms have no links to fraud or other criminal activities.
All revenue made through forex trading in Nigeria is taxable. Everyone who trades is therefore obligated to declare these earnings whenever they do their taxes. This shows just how much the sector has evolved.
Now, it is worth noting that there is still room for improvement when it comes to Nigeria’s forex trading landscape. This rather subtle shortcoming has a huge impact on the activity. There is a need for more clear-cut regulations to make the financial market more robust, safer, and more profitable. Thankfully, several stakeholders are already looking into this.
Forex trading is, of course, a very lucrative space to be in. When done the right way, it can generate decent to extremely good amounts in profits. However, doing it the right way depends on some factors. You will need to get started with the right foundation to pull that off. This means that you will need to pay attention to some of the things that will affect how you trade and the profits you end up making.
Safety and Security. – Every forex trader must be very vigilant of the safety and security of both their funds and data. This can be viewed from different perspectives all of which are vital. One of the things that play into this is the reputation of the brokerage firm or trading platform. Regulated sites will, of course, be the best option available to you. These platforms will also need to integrate the latest encryption technologies as well as fool-proof authentications systems. Trading itself is already a huge risk, you do need any more of that.
Trading Fees. – All trading platforms will have fees of some sort. These range from account fees, transaction fees, currency conversion fees as well as commission and spread fees. You need to make sure that the fees sit well with you. This does not mean that you should opt for platforms with the lowest fees as there may be compromises. Sometimes deciding can be as simple as going for a platform where you do not have to pay conversion fees because it accepts your base currency.
Useful Extra Features. – Such things as ease of use and navigation are very important. Many modern forex trading platforms have switched up to ensure that they remain competitive. That said, the ones that offer other amazing features on top of that are highly desired. Some of the ones most people love include mobile compatibility, real-time alerts, and even educational services. All those combines help one to be a better forex trader and stay in the know of what goes on in the market.
User Support. – Given the amount of money and risk involved it is only fair that trading platforms invest enough in support services. Perfection is hard to achieve and problems may arise from time to time even on the best platforms. Nothing beats having a robust team to handle those issues whenever they come up.
The Best Forex Trading Platforms in Nigeria
The forex trading boom in Nigeria has caught the eye of many exchanges. There are now several local and international trading platforms each offering amazing services to traders in Nigeria. For newbies, picking a trading platform can be a little challenging especially with so many to choose from. So, if you are just getting started, here are the ones you can try out: