Forex trading is fast becoming a household name in Africa’s largest economy as its oil export earnings and international trade exposure increase significantly.
During that time, Africa’s most populated country developed and grew tremendously, and today it is one of the fastest-growing currency trading countries in Africa.
However, in spite of Nigeria, relatively abundant natural resources and young demographic, millions of its residents have been unemployed partly due to mismanagement and of late COVID-19.
Most recent data retrieved from the National Bureau of Statistics, there are 33% of people unemployed, and 23% of people are underemployed (working 20-29 hours per week). They are higher than for any other age group for those in the 15 – 34 age group (about 50% of the labour force).
In their attempts to earn money, many recently unemployed Nigerians have turned to the forex market, which is the most liquid market in the world, with over $6.5 trillion in daily trading.
A major benefit of the forex market is that it is available round-the-clock during the week, is available all week.
Nigeria’s young demographic has the potential to profit greatly from currency trading, according to Kehinde Adegbotolu – a Research and Market Analyst at Scope Markets Nigeria;
“Nigerian youths have become increasingly interested in Forex trading as a means of passing their idle time and earning some extra income.”
“Youths have the ability to learn quickly if they have access to quality educational trading materials, which Forex brokers make readily available through seminars, workshops, webinars, and offline training once they open and fund their trading accounts. “
With online brokerage sites like Scope Markets bridging the once sizable gap between part-time investors and the execution of real-time forex trades, accessibility has been the primary factor driving growth in the global forex market.
Traders set prices based on what they are currently providing and requesting. In Nigeria, leverage ratios are higher than those in countries such as Europe, thus increasing the chances of enhancing funds.
Market participants have a comparatively low barrier to entry, requiring merely a little capital, as well as a smartphone and a second-hand laptop for accessing third-party trading platforms like MT5 and MT4 as well as other low-cost brokerages.
In addition to its diverse economy, including its energy and crude oil sectors, as well as its agriculture potential, Nigeria attracts large foreign investors from the United States, the United Kingdom, China, and several other countries.
The Nigerian forex market is among the fastest in Africa, but it is unregulated and traders should tread carefully.
Trading in Nigeria should therefore be conducted through a broker who is authorized and regulated so that its clients’ funds are secure. To eliminate the possibility of forex trading scams, traders should choose a broker that offers this service.
Nevertheless, easy access does not guarantee success. Currency experts advise traders to exercise prudence when it comes to forex trading, which may have high risks and rewards. Taking advantage of volatility allows us to make profits.
Traders should trade when there are at least two active markets, as this coincides with most volatility. This isn’t a get-rich-quick scheme – the learning curve is steep.
Trading success awaits only those who have the most perseverance, a good plan, and an approach that is realistic.