You can begin currency trading with just a few dollars and the potential for profit is limitless.
People keep talking about making lots of money doing Forex trading or trading forex. A simple Google search will show you the level of interest that people have in forex trading, given the volume of search results that pops up.
There are also tons of Forex trading course on offer to meet these demands. In most cases, people, Nigerians, are drafted into forex trading simply because of the many success stories being told around in the country. This drives their curiosity into also trying it out themselves. I guess you too would like to join the rave and see how to do forex trading successfully, making good money from the venture as well. But, before you do that, it is required that you have a basic understanding of what forex trading entails, by learning the robes of the business via forex trading courses.
You can make huge money from forex trading. There is no doubt about that. So, you need to take actions. It is like the popular learning curve concept.
You need to understand forex trading in relation to other learning packages, else, you may lose your hard-earned money, if you do it the wrong way. Forex trading is not a scam, as many un-informed people would say. If you can invest only 1, dollars, you can't earn much by owning stocks and bonds.
This is why in less wealthy countries people tend to look for alternative opportunities to multiply their money at much faster rates. This is where leverage comes into play. The forex brokers will only require a margin deposit that covers the potential loss of your operation, instead of charging the full amount traded.
For example, an operation that uses a leverage of 1: This means that a deposit of dollars will allow you to buy Euros worth 10, dollars if you are trading using 1: This is why the brokers give leverage to their traders.
The brokers make more money when their clients trade large volumes , because their commissions are proportional to the volumes traded. Because of that, the brokers want to give their clients the chance to trade larger amounts, as long as they can cover their potential losses with their margin balance. Based on historical volatility for various currency pairs, forex brokers have determined what are the leverage ratios that are safe to provide for their clients.
Most forex brokers offer at least 1: This is because they want even their smaller clients to trader high volumes. By using leverage, a trader can decide how much he wants to risk and how much the potential profit will be. You can double your money in a single day, but you can also lose your entire balance in the same amount of time if you use excessive leverage. Nigerian traders are using leverage to their advantage, because they can aim for higher profits without having to deposit large amounts of money.
Because of high leverage, forex trading is accessible to everyone, as you can deposit amounts as low as 10 dollars and experiment with the broker's platform and learn how to become a better trader.
Many Nigerians have started with low amounts and once they mastered forex trading they increased the stakes to increase their profits. High leverage brokers offer an unprecedented opportunity for Nigerians to trade on the forex market even if they lack the money to finance large forex trades. A mobile phone with an internet connection and as low as 10 dollars are enough to test the forex market nowadays. In order to trade on the forex market, Nigerians need to choose a broker.
Currently there are no forex brokers based in Nigeria, but this didn't reduce the appetite of Nigerians for trading forex, as all the major international forex brokers accept traders from Nigeria.
This gives Nigerians a wide range of options when it comes to the broker they want to use. Going with one of the highest rated forex brokers in the world will be a natural choice for most people. Here are some of the most sought after features of forex brokers by Nigerian traders:. Some of the major forex brokers are actively targeting the Nigerian market and have a large number of clients from Nigeria.
Current data shows that the following brokers have the largest number of Nigerian traders, meaning they are the most popular forex brokers in Nigeria:. Forex brokers serve as a medium through which you can trade online.. They are the middle men, between the seller and the buyer.
A forex broker that accept traders in your country. A broker that also accept payments method supported in your country. In fact, your success as a forex trader is directly tied to your forex broker. Good forex brokers see you as a partner, your success is theirs and as thus, they help you in any way possible. Alpari is one of the best with presence in Nigeria. Like I keep saying, you need to know how forex trading works. One of the ways to do that is by opening a demo account on any forex trading platform of your choice.
This demo account is loaded with virtual money and in real-time mode. This is just like playing monopoly. Mind you, you need to be proficient before you start thinking of playing with real money. Make sure you practice and practice till you get a hang of it. Most forex trader prefer to play with every different currency pair. However, I always recommend specialization.
As time goes, you can diversify cause you have amassed great experience already.