The Nigerian economy is in a deep crisis. The devastating effects of COVID-19 are coupled with low oil prices. For a country so heavily dependent on energy exports, this combination is too much to bear. While recovery is going to be painful, residents can still make money online. Forex is a growing segment, and it is more attractive than ever.
A live trading account connects you to international financial markets. The arsenal is not limited to currencies: stocks, spot metals, and derivatives like CFDs are easily accessible online. Here is how to get started in this exciting field.
Regulation in Nigeria
Live accounts are opened by brokers. These companies act as middlemen between clients and the markets. They may charge a commission per trade or profit from spreads - the gap between Ask and Bid prices.
The local market still lacks regulation. This means traders should be alert. Scammers create impostor sites that promise quick profits. Be very careful when you choose your provider. Look for an officially registered and licensed firm.
There are home-grown and global brokers. World-famous brands are more attractive due to their reputation and range of services. Their operations are overseen by industry watchdog organizations like the CySEC (The Cyprus Security and Exchange Commission) or FCSA (Financial Sector Conduct Authority of South Africa).
International brands now tailor the offerings to the region. An important advantage is that you can open live trading account in the Nigerian Naira. Forextime clients can make transactions without conversion fees. This helped the company to be voted the best online Forex trading company in Nigeria in 2017.
Two types of accounts exist: live and demo. The latter is where all newbies must begin. A demo account unlocks the simulation mode of the trading software like MetaTrader 4. Users practice at their own pace and see how everything works.
This is a wonderful opportunity to train safely, and it should not be missed. Through a live account, your platform will communicate to the broker’s servers, and connect to the real market. Live trading puts your own capital at risk, so be prepared.
How to Open an Account
Global Forex brands register accounts for free. You can also download the trading terminal free of charge. Accounts are created via the same brokerage sites.
Newbies should fill out a basic form and check their inbox for demo credentials. Enter the login and password on the platform to unlock it. Now, you can test popular strategies and learn to hedge risks.
When you are ready, switch to live. This requires another online application. The broker will request a copy of your ID to verify identity. As you will be sharing personal information, make sure your broker is legit.
Once your account is active, you can fund it and start real trading. Global brands accept different payment methods. On average, transfers may take up to three business days, depending on the channel.
Overview of Instruments
Most traders begin with Forex, as it is the most popular and straightforward type of trading. Once they achieve mastery, they expand their portfolios with more instruments. The more different markets you trade - the lower the overall risk.
Different types of live accounts allow the trading of different instruments. Here are the most popular choices today:
1. Currency Pairs (Major, Minor, Exotic)
World currencies are priced against one another, forming pairs. Traders aim to foresee trends and profit via buying or selling. This market is the largest in the world. Every day, the foreign exchange sees volumes of up to 6 trillion US dollars. This is how many market participants (institutions and individuals) buy and sell.
2. Stocks
Through stocks, you can profit from the performance of the largest corporations. The days of floor brokers are long gone. Now, everything is done online. Stocks give you ownership of a percentage of the issuing businesses. Shares can be bought and sold for profit. Unlike investors, traders focus on quick changes, rather than long-term trends.
3. CFDs
Contracts for Difference can be linked to various underlying assets. There are CFDs on stocks, commodities, cryptocurrencies, and market indices. In each case, the trader has no ownership of the asset. Instead, they speculate on its price and receive the difference between the entry and exit values.
Conclusion: Start Trading Today
International brokers provide easy access to the financial marketplace. Traders in Nigeria can register accounts and install advanced platforms for free. All they need is to fill in the application form on the brokerage site of their choice.
Remember that live trading puts your capital at risk. Success comes to those who pursue consistent strategies and never stop learning. Their decisions are based on facts and figures, rather than emotions. Take time to learn the rules of analysis before trading live.
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