(Newswire.net — June 21, 2023) —
Trading Forex can be difficult to learn, and without a guide, most traders lose money. A guide by Traders Union analysts will help beginners make an informed choice.
What is Forex Trading?
Forex, which stands for Foreign Exchange, is a global currency marketplace. Traders Union experts define Forex as a system of international economic relations between banks of all countries and other people participating through banks. Forex is a virtual market where banks, multinational corporations, brokers, and holding companies are constantly buying and selling currencies, precious metals, securities, and other assets. On the Traders Union website beginners can find a video guide, which can help them learn more about Forex.
Is Forex Trading Legal in Nigeria?
People who want to start trading ask a lot of questions about Forex trading in Nigeria. They are especially interested in whether it is legal to trade Forex in their country. Forex trading is legal in Nigeria, and it is regulated by the Central Bank of Nigeria. Brokers are expected to meet special requirements to operate in the country. In addition, earnings from Forex trading activities are taxed and must be declared. Nigerian residents should trade with trustable brokers in tier 1 regulations like Australia, the UK, and the EU.
How Much Money Do I Need To Begin?
Typically, brokers have a minimum deposit of $10. However, if a deposit is low, you will need a high margin, which might be too risky for a novice trader. When you start trading, you want to avoid using large margins. Also, starting with a large capital is not advisable due to the risk factor and low experience level. Most traders and brokers say the recommended amount of money to start with is $200 – $5000.
TU experts compared minimum deposits of two brokers which operate in Nigeria. FXTM has a minimum deposit of $50. IC Markets’ minimum deposit is $200.
Can I Trade with Internationally Regulated Forex Brokers?
Nigerian residents can trade Forex with internationally regulated brokers. One of the reasons why this is possible is that there is no authority in Nigeria that deals with foreign traders.
While Nigeria is still working on developing regulatory institutions, traders have a chance to work with internationally regulated bodies. The best regulatory bodies come from Europe (FCA UK, CySec Cyprus), Australia (ASIC), and South Africa (FSCA).
You have to find a Forex broker that accepts Nigerian clients to work with. If the broker has an office in Nigeria, working with them will be even easier. Some brokers with offices in this country include RoboForex, IC Markets, InstaForex, and AvaTrade.
Do Forex Brokers Accept Naira (NGN)?
Some Forex brokers accept Nigerian Naira (NGN). Working with brokers who accept Naira is more convenient. This also helps to provide easy transactions.
Nigerian traders do not experience limitations in terms of deposits or withdrawals if they work with a broker that accepts Nigerian Naira. Some brokers that accept Nigerian Naira include FXTM, Alpari, and Exness.
If you work with a broker that does not accept Naira, you will need to convert the currencies and pay the conversion fees.
Can I Trade Forex with Minimum Investment in Nigeria?
You can start trading Forex with minimum investment. The minimum amount to start trading is usually as low as $10. You need to start with low capital that you can afford to lose.
When you have chosen your broker, the next step will be to fund your account. You do not need a large sum for this. You can check the desired broker’s minimum deposit amount.
To sum up, Forex trading is legal and regulated in Nigeria. Moreover, income from Forex trading is taxed and must be declared. On the Traders Union website you can find some information about when it is better to trade and a list of the best Forex brokers in Nigeria.