Forex is one of the most popular ways to get rich in developing countries, you can invest a few hundred and get a few thousand at one deal. Let’s follow a short guide about what is Forex in Nigeria and how to become a Forex trader here.
Forex in Nigeria
Forex or foreign exchange market is a currency market, where people trade currency pairs, people change one currency for another, and get money from differences in values. FX trading in Nigeria is not regulated by any state agency. So as a broker or trader you won’t have any special restrictions, but also you won’t have the protection as brokers and traders have in other countries.
There are more than 200 000 FX traders in Nigeria, it is the second highest in the continent. Another important thing to know is that the income from FOREX trading in Nigeria ought to be taxed as Capital Gain, so the tax is equal to 10%. There are very low initial capital requirements, you can start with 1000 Nigerian Naira, which is less than 3 US dollars, but the recommended amount to start is 50 000 Nigerian Naira.
How to become a trader in Nigeria
To begin trading follow these instructions:
- Find a stable internet connection. Use the suitable device (it can be a phone, tablet, or laptop, advanced traders often use multiple screens to ease the perception of information, but previous variants will be acceptable too.);
- Choose the broker, and be careful, because as we mentioned previously FX market is not regulated by any authorities;
- Create your trading account, follow your broker’s instructions;
- Open a margin account, deposit in the appropriate way for your broker;
- Download the trading platform, most brokers have their platforms, and some of them use third-party providers.
- The end. You can start your first trade.
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How to choose the proper broker in Nigeria
Here is a guide on how to choose a trustworthy broker in Nigeria:
- Broker license. To entrust someone your money, you need to know if it is a verified person or organization, so you need to check the broker license. Since Forex trading is not regulated in Nigeria, you need to choose a broker with an international license FX. The list of reliable brokers.
- Brokerage fees. Different brokers take different payments for their service, which affects the size of your profit.
- Deposit and withdrawal. Reputable brokers offer a variety of ways for payment, so you can choose the most comfortable one for you. It is the same thing with withdrawal, an honest broker allows you to withdraw your money in many ways without commission.
- Trading platform and interest in your success. If a broker is reliable and wants you to have a profit, it definitely will have a platform with a convenient interface, and sources, where you can get knowledge and news about that market.
- Awards. It is a way for checking broker international recognition.
- Customer service. Check if the broker provides 24/7 support, answers emails, and how fast customer support responds. It is a sign of a good broker.