In the past two years, the forex market in Nigeria has increased in both interest and trade volume. It has a total value exceeding $1.9 quadrillion, more than two-and-a-half times the world’s GDP. Most traders trade in EUR/USD, USD/JPY, and GBP/USD, though USD still dominates the market. Indeed, USD trades account for as much as 90% of all activity in the country.
CMTrading is another broker offering a range of trading platforms that are suitable for the Nigerian market. Its advanced trading technology makes it the perfect option for Nigerian traders. The company’s proprietary apps let you keep track of your preferred asset classes, conduct technical analysis, and keep up-to-date on current market trends. The company is regulated by the FCA in the UK, the Financial Sector Conduct Authority in South Africa, and the Dubai Financial Services Authority in the UAE.
Moreover, forex trading in Nigeria is not welcome in all countries, particularly those that have strict Sharia laws. Therefore, it is crucial to be cautious before investing in any new investment. Nigeria has one of the highest proportions of beginner investors in the world. However, despite the low level of regulation, there is a growing number of foreign brokers operating in the country. It is important to note that forex trading is not available in all countries of Africa. The regulatory authorities of these countries will enforce a number of rules, including a maximum balance for trading accounts.
The evolution of the Nigerian Forex market was shaped by institutional changes, structural shifts in production, and new Forex trends in Nigeria. Before 1958, foreign exchange was earned by the private sector and held by commercial banks, which acted as agents for local exporters. The bulk of foreign exchange receipts came from agriculture. In addition, the Nigerian pound was tied to the British pound sterling at par. These restrictions delayed the development of an active foreign exchange market.
The most optimal time to trade forex in Nigeria is during the time difference between the New York and London sessions. Trading in Forex in Nigeria during this period is likely to be profitable because of the increased liquidity and price movements. A major reason why this time is ideal for trading is that the country’s currency is more stable than the dollar. This is the reason why the currency is more liquid in Nigeria than in the rest of the world. That way, investors and exporters can benefit from high liquidity and higher price movements.
Aside from these new Forex trends, Nigerians can expect a more diversified economy. The country’s large informal economy is expected to generate $24 billion in remittance receipts this year. Most people send money to Nigeria using international money transfer operators, which typically charge anywhere from one to five percent of the transaction value. With the advent of eNaira, remittance transfer costs should decrease. The country is expected to introduce a new currency, the eNaira, which will allow its citizens to transfer money to Nigeria for free.
