Last Updated on by Patrick Mahinge
It can be difficult to understand how to make money with the foreign exchange market in Nigeria, but many forex trading experts have made a career out of this, and with the right amount of practice, you could do the same. These experts train for many years on the best ways to buy low and sell high.
There are a countless number of seminars and lectures from established successful forex traders on different ways to research the markets and predict a huge variety of trends. These trends are vital to the experts, as they allow them to forecast the stability of a currency and base their trading upon that.
If you are searching for any insider information on the foreign exchange market, you will be disappointed. Changes in the market occur in real-time and therefore you will need a calculation strategy to make the right decision.
For example, if a company purchases a large amount of a certain currency, the value of that currency will increase. This information is then released to everyone involved in the forex market. The trading week resets on Sundays, even though trading can occur twenty four hours a day.
It is definitely a precarious way to earn your main income, but many more people are trying out the foreign exchange market by using a currency calculator to make the right decision, as something to fall back on if the economy takes a turn for the worse.
Personally we have a huge love for trading the forex markets and have been doing so for many years since we were very young. We created this site – 440– to be an honest, informative guide for beginners who want to start forex trading in Nigeria.
How to Start Forex Trading in Nigeria
Where do you start if you want to get into forex trading? Well, the best place to start is by understanding exactly what forex trading is and the players involved. However, don’t feel pressured to learn everything in one go. Learning how to trade is a lifelong endeavor.
This guide assumes that you already have a computer/laptop with access to a reliable internet connection.
Things Needed to Start Forex Trading in Nigeria
Why Do You Want to Start Forex Trading?
The question has a broad range of answers. First, you need to ask yourself, “Why am I interested in Forex”? In other words, what’s your objective?
- I want to get rich so quick. This is NOT Forex. Forex Trading involves a high risk of loss, especially for new market entrants like you. How do I get disciplined and be ready for Forex?
- Understand that there is nothing in the world that grants easy money. And if it exists, No one would tell you its secrets. There however exist businesses that have higher rewards/risks. Forex is one of these!
- Subscribe in Forex forums. See what people are saying about their trades. Ask questions (You can ask us, and we will happily answer within 24 hours for FREE)
- Attend some Forex training sessions
- Buy Forex books. Buy the beginner’s ones, don’t rush to the advanced level before understanding the basics (Below, we will give you some beginner tips)
- I want to work from home. This is a good reason. However, DON’T step into Forex and think of leaving your fulltime job before you really master it. This won’t take less than 12-18 months. I know this might be a long period from your point of view, but this is a short period from my perception which is based on 8 years of trading.
- I like the high leverage involved. I could double my money in a matter of hours. That’s a gambler’s perception. Well, if you want to Forex Bet, you are welcome. But don’t think of steady incomes, its like the casino, you can lose 10 times in a row when you bet for the color “red” in the roulette although the probability is 50%, and vice versa. Even if you made a killing in the beginning, you will lose it faster than you imagine.
- I have a steady income, but I want to increase it. That’s a great answer
- I have some money to invest. That’s a great answer
Now, how to make money with Forex in Nigeria?
- Open a Demo account with any of the Forex Brokers of your choice.
- Understand the following :
- What is a pip? It’s the smallest unit of measuring changes in the values of a currency.
- What is a bid and asking price of currency pairs? One is used for buying and the other for selling
- Why are the bid and asking prices different? The difference between them is called the SPREAD. This is what the Forex Broker gains when you trade (buy or sell)
- What is a limit? It’s the pip that at which, you would like to TAKE PROFIT.
- What is a stop loss? It’s the pip that at which, you would like to STOP LOSING any further.
- How to open a trade? Decide if it’s a buy or a sell trade, and then click on the left side of the currency pair box for selling or right side for buying.
- How to close a trade? In your Opened positions tab, right click on the trade, and choose close position. A pop-up window will appear to confirm, click OK or YES.
- What is an order? It’s a buy/sell order that you give to the trading platform to perform at a CERTAIN UPCOMING/PROJECTED price.
Is this How to make money with forex trading in Nigeria? NOT YET, be patient, read more below
- Start using charts. Open any free Forex Charts provider, and choose the currency pair you wish to see. What do you realize?
- A chart appears with a lot of Forex Candlesticks. (Don’t start reading about Candlesticks until you’re finished reading this article)
- Zoom in, you will see that each bar/candle represent a single price action in a defined time-frame. You can change this time frame to look at different price histories for this currency pair.
- Try to understand the Chart Pattern, and decide if you will trade with the pattern or use a Forex Indicator to signal a reversal
- Once you’ve identified a trade, don’t place it until you identify your Stop Loss. This is more important than the trade itself. NEVER leave your trades floating! This is a big mistake that all forex traders fall within.
Now, that you know How To Make Money in Forex, start trading WISELY and don’t rush. We are here to help you unbiased. So feel free to ask any questions before you shoot for anything new to you.
Choosing a Forex Broker in Nigeria
Looking for the best forex broker in Nigeria? “Best” being relative here. Best in terms of what? Finding the best forex broker for you may be different from the best forex broker for me as our trading goals, systems and strategies differ from each other on an individual trader to trader basis.
For large traders who want managed accounts with an individual assigned forex broker who deals with his account, the “best forex broker” may be the one he personally gets along well with or who responds to his requests for trades or assistance immediately.
For a retail forex trader presumably like yourself, you may define the “best forex broker” as a company that executes your trades accurately via their trading platform. Or as one that pays out your forex account within one day when you request it. Or the best forex broker could be the one that has the nicest trading platform or that gives the best spread.
So finding the best forex broker “for you” is not as easy at is seems albeit it being VERY important to have the best you can get as your forex broker WILL have a determining influence on whether you make money in the forex market or not. They can really give you that extra edge you need in order to be successful in the Forex market or they can break you as many a forex trader will be able to tell you.
Surmising I suppose the best forex broker will be one that delivers a combination of all the relevant factors. Some being more important than others but there are some CRUCIAL things that you should look out for when searching for a forex broker.
These considerations are paramount as there are many rogue forex broking companies online that will take your money and split. Trust me, it has happened MORE than once not just with me but with quite a few traders I know.
When choosing a broker (whether you are new to trading forex or you’re a veteran), there are a number of very important factors you should consider like:
1- Security of your funds.
First and foremost the most important factor you need to consider when choosing a forex broker is how secure your funds are. This may not be something that you think about if you deposit $100 or $1000, but anything above those amounts (and also when you build your account up to these amounts) needs peace of mind, knowing that it’s safe and can be withdrawn at any time.
There are countless examples of scammy forex brokers who refuse to let you withdraw your funds, or brokers who go bankrupt and take your funds down with them. The forex brokers we recommend and review all pass our test of security of funds.
The second-most important factor is the functionality of the broker’s trading platform. You need to have a wide selection of currency pairs, including gold, silver, oil and even various stock indexes to be able to place your trades with.
Functional charts, a wide selection of tools and indicators and fast server execution time also really make a difference to your trading profits.
The third important factor we look at when determining the quality of a forex broker is the cost. This includes spreads of currency pairs, monthly fees or maintenance costs, requotes and charges for services like withdrawals and position holding costs.
There can be a huge difference between brokers in these costs and it’s smart to analyze these costs before joining a broker (as we do for you in our reviews).
Beginner forex traders tend to look for the best ‘spread’ and or for the lowest account opening balances when they start to trade but soon when they have lost a bunch of money through a crooked forex broker, they try to find the best forex broker.
In my mind, the best forex broker is the one that is not going to cheat you out of your money! Other considerations in finding the best forex broker of course are things like :
- Getting continued forex training and advice.
- Getting forex signals and forex outlooks for your chosen currency.
- Providing market intelligence of currency movements.
- Friendly and helpful support
With a little research, you can find the right Forex broker who is the BEST for you and that can be trusted. If you lack referrals for Forex brokers, you can try and do a little research of your own.
The best forex brokers will offer potential clients with a demo account. This will allow you to try out their trading platform without actually risking money. You should look for a demo platform that works just like the real thing and you should also determine if you are comfortable with the trading platform.
This is my final suggestion for you to try out their demo system and find out everything you can about them by having direct contact with them, asking them the hard questions such as “how long do I have to wait for account payouts” etc and see how fast and courteous their responses are. Also read forums and what other say about a particular broker and in the process you will find the best forex broker for you.