How to Open a Forex Account in Nigeria

Opening a forex trading account in Nigeria is no different from opening one anywhere else. You should take some steps before jumping into trading, as you want to get off on the right foot. 

The best thing to do is sign up and open a trading account on oanda.com. Not only will you have everything you need at your fingertips, but you’ll give yourself the best possible chance at success. 

Education 

If you are brand new to the world of forex, the very first thing you need to do before opening an account is to educate yourself. While forex trading can be as straightforward or as complicated as you want, you still need to be aware of a few key aspects. 

You need to understand currency pairings, leverage, and trading strategies. Leverage will be discussed later, but it is something that is unique to forex that can allow those with a small budget to find big success. 

Demo Account 

A demo account is a fantastic way to get into trading, learning how your trading platform works and how and when to buy and sell. The best thing about a demo account is that you don’t have to use any of your own money, and mistakes don’t cost anything. 

There is also almost always more to a platform than just the buying and selling aspect. You can see what currency pairs are offered and how one is affected by another’s performance. 

Types of Trading 

There are two main types of trading that both beginner and expert traders use. Both of these strategies are useful as they work with any size budget and can be adapted depending on your goals and how much trading you want to do every day. 

Forex

Scalpers 

Scalping is a type of high-speed trading. Scalpers will trade every few seconds, skimming a tiny profit from each trade. Instead of making a dollar or two, scalpers take a few cents in profit and go into the next transaction. This strategy is not for someone who can dedicate a few hours of trading every day. 

Day Traders 

Day trading is relatively self-explanatory. It is more of a long-term strategy that sees you putting in your trades in the morning and watching how they do over a few hours. Day trading doesn’t have to last a day either. 

Considering many currencies strengthen over a period that can range from 24 to 72 hours or even longer, day traders are far more patient and usually better understand patterns and know when to buy and sell.  

Choose Your Budget 

Much like buying cryptos or stocks, forex still requires you to have a set budget that you stick to. It is very easy to overspend or let trades run away from you. The best traders understand the balance between spending and profit. 

They also understand that profit is a long-term game, and putting in a lot of money early on doesn’t guarantee a hefty profit. Spending small and making small but consistent profits is the name of the game. 

Leverage

Forex is different from other trading types as it allows for using leverage. Considering you are trading currency, your trading positions can be as small as a few cents, which is almost pointless if you are looking to make a profit. 

Leverage allows you to borrow money from your broker and increase your positions exponentially. Since profits are usually a few cents, getting that profit on $1000 is clearly better than getting it on $10. 

There are risks associated with leverage; however, it is a very common practice in forex trading, and in some cases, it is almost necessary.  

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Pay Attention 

Finally, it is essential that you pay attention to the markets and your trading pairs. Forex prices change very quickly and constantly, meaning you need to stay on top of them on a regular basis. 

While you don’t have to stare at markets and graphs all day, you should make it a habit to check in at least a couple of times a day to see how your positions are performing and if there have been any significant changes that require immediate action.