Forex Trading in Nigeria
Forex trading has increased substantially in recent years, especially in African countries that were previously granted minimal access due to the availability of brokers that allowed these countries to register accounts.
As more brokers have started offering Nigerians with ample opportunities to trade in one of the largest financial markets in the world, Forex trading has expanded resulting in Nigeria becoming one of the fastest growing Forex Markets.
The Impact of the Covid-19 pandemic
With the emergence and spread of Covid-19 on a global scale, a substantial amount of countries saw the crippling of economies as local currencies battled to maintain their position against a strengthening dollar, which remans the strongest global currency.
As countries around the world implemented national lockdowns around the globe in an attempt to curb the spread of the virus, and more people were confined to their homes, some with the ability to work remotely, and others who were less fortunate.
During this time, numerous individuals took to exploring the Forex market and the potential that it may hold for additional or alternative income in uncertain economic and employment circumstance.
Nigerian traders have taken the opportunity to explore the various offers from reputable and well-known brokers who have extended their offers to various African countries to explore Forex trading and join the Forex Market.
With more parts of the worldwide economy phasing out of lockdown and economic activity returning, weaker currencies have shown improvement against the dollar, opening up more opportunities for African countries such as Nigeria.
The Nigerian Naira has seen exponential strength against the US Dollar when viewed historically from 2019 until March 2020, with the value thereof declining from March until July, but it is forecasted to strengthen as more economic activities resume.
Accessibility of the Forex Market in Nigeria
The Forex Market is one of the largest, most liquid markets in the world due to the substantial volumes of trading activities it experiences on a daily basis resulting from the ease with which it can be accessed by traders from around the world.
Nigeria has experienced a stable growth in internet providers who offer their services to more homes each day, with a list of providers focused on providing fibre connection which is advantageous to Nigerian Forex traders who rely on adequate connection to trade.
Some of the best rated internet service providers in Nigeria include:
- CityFibre – which is powered by Syscomptech
- Cobranet Limited
- Spectranet Nigeria, and
- Smile Nigeria
Despite the various and numerous challenges that economies have faced since the emergence and spread of Covid-19, industries such as Forex trading have remained strong and have seen an increase in activity despite the fluctuation in the exchange rates.
Nigerian Forex traders who have entered and remained in the Forex market have made it one of the fastest growing markets in Africa, with stable and continued increases as more traders are able to join the Forex market.
Interesting related article: “What is the Foreign Exchange Market?“