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Forex Trading Becoming Increasingly Accessible to Nigerians

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  • Forex Trading Becoming Increasingly Accessible to Nigerians

Nigerians are benefitting more and more from improved internet infrastructure, allowing them to access not only a much wider variety of entertainment and communication services but also more income opportunities. Many aspiring entrepreneurs are now able to live out their dream of creating a business in the digital space.

A good example of this can be found in forex trading. Many brokerages are now expanding the availability of their services to parts of the world where they haven’t been seen before. This has made the prospects of earning money on the foreign exchange much higher for Nigerians.

Forex in Nigeria

The Central Bank of Nigeria has set guidelines in the Banks and Other Financial Institutions Act of 2007 for the brokerages that it oversees. This means brokers in Nigeria have to obtain segregated accounts for their client’s funds. Due to funds being maintained separately, the company is protected in the event of bankruptcy.

It’s worth keeping in mind that with any significant earning opportunity, especially those that exist online, there are bound to be people who want to take advantage of the uninitiated. Those who want to get into forex should be wary of dealing with brokers who are not properly registered, as you may be left with no recourse to recover your funds.

Educating Beginners

One of the biggest reasons new traders fall short of their goals is due to a lack of knowledge about the forex market. Even those with prior experience in other stock markets should keep in mind that forex works completely differently. Fortunately, many educational resources exist on forex trading, especially online.

Many brokerages offer educational materials including articles, video tutorials and other resources that can greatly expand the knowledge of new traders. Online brokers usually offer free demo accounts on their websites, allowing aspiring traders to learn the ropes of forex through practice, albeit without having to commit to any real funds.

Brokerages in Nigeria

There are a number of brokerages that Nigerians can use to start trading on the forex market. Some local websites in the country recommend the likes of easyMarkets, IC Markets, Pepperstone, Hot Forex, and FXTM. That said, one should always be wary of any brokerage they choose to deal business with and always do your research.

There are also companies such as ZuluTrade that have more unique, often better approaches to forex trading. For example, ZuluTrade does “social forex trading,” which allows users to copy other traders in the foreign exchange. InvestinGoal has a comprehensive overview of what ZuluTrade does and how new users can make the most of it which you should definitely take a look over.

The Future of Forex in Nigeria

With Nigeria’s undeniable passion for business and innovation, there’s no doubt that forex has a bright future in the African country. As more aspiring Nigerian entrepreneurs establish their digital presence and begin their journey of learning the markets, there’s no telling just how much potential is yet to be unleashed.

Conclusion

Internet access is becoming increasingly accessible and affordable, making online earning opportunities such as forex a great option for money-minded Nigerian entrepreneurs.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.