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5 Best Forex Trading Strategies in Nigeria

The 5 Best Forex Trading Strategies for Nigerians revealed. We tested the best forex trading strategies for Nigerian Traders.

This is a complete guide to forex trading strategies in Nigeria.

In this in-depth guide you’ll learn:

  • What are Trading Strategies in Forex Trading?
  • How to develop an effective forex trading strategy?
  • How to compare the best forex brokers for Nigerians?
  • How to use these strategies as a part-time trader?
  • Which methods and tips do top Nigerian forex traders use?
  • Which broker offers a sign-up bonus to first-time traders?
  • Which forex brokers offer a minimum deposit of $5 (2076 NGN) to start trading?


And lots more…

So if you’re ready to go “all in” with the best-tested forex trading strategies

Let’s dive right in…

Updated : May 30, 2022

Forex Trading Strategies in Nigeria (Overview)

  1. Scalping – Best for Nigerian Day Traders
  2. MACD Forex Strategy – Best for Mobile Traders on MetaTrader 4
  3. 00 Pips a Day – Best for MetaTrader 4 and 5 Mobile app
  4. Position Trading – Best for mid-to-long-term Nigerian traders
  5. Trend Trading – Best Trading Strategy for Beginner Traders

👉 Definition: Day trading is the act of buying and sellingfinancial instrument within the same day or even multiple times over the course of a day.

1. Scalping – Best for Nigerian Day Traders

👉 In the forex market, a method known as forex scalping is popular since it targets minor price changes. Many transactions are opened to make little gains on each one. To make more money, scalpers focus on making a high number of small earnings.


👉 Liquidity and volatility in the forex market make scalping a popular strategy. Investors choose markets with a high degree of price volatility so they may profit from modest price changes. It is common to see this sort of trader concentrating on a profit margin of 5 pips for every transaction. If a big percentage of deals go their way, traders can make steady gains that are easy to come by.


👉 However, scalping has its drawbacks, including the fact that you cannot remain in the trade for too long. It also takes a lot of time and attention, since you must keep an eye on the charts continually to locate new trading possibilities.

2. MACD Forex Strategy – Best for Mobile Traders on MetaTrader 4

👉 Moving Average Convergence Divergence, also just known as MACD, is a strategy that follows trends and tries to capture them within the momentum. The MACD indicator shows the existing relationship between two moving averages between prices on financial instruments.


👉 The 26-day Exponential Moving Average (EMA) is subtracted from the 12-day EMA to arrive at the MACD indicator calculation. On top of the MACD, the signal line (a nine-day EMA) serves as a guide for determining whether to buy or sell.


👉 This is how things are usually established. As a trend-following indication that has survived the test of time, the MACD is a lagging indicator. To use a basic MACD trading technique, you need to know the ideal MACD indicator settings for day trading.


👉 The MetaTrader 4 (MT4) platform already has the MACD indicator, so you do not have to download it individually. The finest day trading MACD indicator settings allow you to make significant adjustments to your various day trading techniques.


👉 In addition, Nigerian mobile forex traders can also use the 2-line MACD, or the 2 MACD trading strategy. The difference between the 2 MACD strategies and MACD is that the default MT4 indicator does not show the fast signal line instead, it shows traders a histogram of it.


👉 However, it does not matter if you utilize it in combination with other instruments that function in tandem with the MACD. A unique characteristic of this that Nigerians will see is that it is like the red MA line that crosses the green histogram on the MT4 MACD, especially when the two MAs cross on the 2-line MACD.


👉 Crosses between the two indicators occur at the same moment, thus there is no latency. In addition, using a ‘2-line MACD’ indicator in conjunction with the optimal MACD settings for day trading may enhance various trading methods.

3. 100 Pips a Day – Best for MetaTrader 4 and 5 Mobile app

👉 A trend momentum technique for MT4 and MT5 mobile apps generates 100 pips per day using Forex mobile approach. Envelopes and the Relative Strength Index form the basis of this trading strategy.


👉 The primary function of envelopes is to produce in space very accurate and dependable dynamic price resistance and support levels. In other words, the restoration of the price in the envelopes, the rebound, the violation, or any of these events is noteworthy.


👉 The time frame that must be used with this strategy is 15 minutes or higher and in addition, Nigerian traders can perform the following actions to set this strategy up on any given instrument.


👉 The trading rules for this strategy are as follows:

➡️ Buy/Go Long – The region between the lower envelope bands waits for the orange fast-moving averages to pass the slow purple one upward when the price bounces on the envelope or penetrates. However, the oversold territory must first be reached by the moving averages (the level below 20).

➡️ Sell/Go Short – The orange fast-moving averages cross the purple one down when the price bounces on the envelope or breaks through the top envelope bands. However, the moving averages must first have entered the oversold area (level above 80).

➡️ Exit the Position – Start with a stop loss just above or below the preceding peak or low of the swing. If the profit-to-loss ratio is less than 1:1.3, the stop loss should be at the opposite of the band preceding it.

4. Position Trading – Best for mid-to-long-term Nigerian traders

👉 We have already covered scalping and determined that it is a great way to learn about forex trading, but it requires a lot of time and works to master. Long lengths of time spent in front of the computer are required during scalping.


👉 Using positional trading is a fun approach to trading the foreign exchange market online. Even while it may only take you a few hours a week, it can provide substantial returns.


👉 Considering these factors, let us explore how to position trading works in practice

➡️ There are several advantages to positional trading, such as the ability to take advantage of major market movements. As a general guideline, stay away from employing large levels of leverage and pay particular attention to currency swaps.

➡️ Your real profit may be offset by the costs of these exchanges.

➡️ To become a good Forex trader, you will need to master not just trading tactics but also the necessary abilities. It is a terrific way to make a lot of money, but it may put your emotions to the test as well.

➡️ Short-term market movements may cause anxiety for traders who have invested large sums of money. When a deal is losing ground, traders must overcome the impulse to exit their position.

➡️ When you trade using this strategy, you must devote your efforts to analyzing the market and foreseeing future market developments. However, it is important to remember that the actual implementation of your trading plan takes very little time.

➡️ Start with the instrument with which you are most familiar. Calculate your transaction’s potential volume, understand the swap and how to break even, and analyze the optimal time to join the deal.

5. Trend Trading – Best Trading Strategy for Beginner Traders

👉 In forex trading, a trend trading technique is the most popular option for Nigerian beginner traders. In this strategy, the direction of market momentum is identified using technical indicators and long or short positions are taken appropriately.


👉 It assumes that currency markets are anticipated to act in a specific manner, and that previous patterns and movements may be used to predict future outcomes. A robust risk management approach is necessary, however, since the previous performance of a currency pair does not predict any future price movements for that currency pair.


👉 A few of the most often utilized forex trading technical indicators are MAs, the RSI, and the average directional index (ADX).


Moving Averages

👉 Forex traders use moving averages to identify the price of a currency pair over a certain period and to create a single trend line for them to follow.


👉 Moving averages (MAs) come in a variety of forms, including Simple Moving Averages (SMAs) and Exponential Moving Averages (EMAs).


👉 The mean price of a collection of values for a certain period is easily calculated with an SMA, while the most recent prices are given greater weight with an EMA, making the data more sensitive to fresh information.


Relative Strength Index (RSI)

👉 Price changes can be classified as positive or negative based on their average gains and losses over a specific period. Meaning that price momentum and overbought/oversold indications may be detected.


Average Directional Index (ADX)

👉 Using the average directional index, traders can estimate the strength of an upward or downward trend in the forex market. Anything over 25 indicates a significant trend, according to the indicator line. The tendency is more pronounced when the number is greater.


👉 Trading strategies form part of the daily lives of forex traders, regardless of whether they are full-time or part-time forex traders.


Top 10 Brokers in Nigeria




Min Deposit


Sign Up Bonus








0.1 pips






40 USD

0.91 pips






30 USD

0.07 pips






30 USD

1 pips






20 USD

0.9 pips



FSA, CySec



30 USD

0.3 pips






100 USD

0 pips







0.4 pips






1000 USD

0.2 pips



CySec, FSC, FSA, BaFin, NFA




1.5 pips

Top 10 Brokers




































👉 The foreign exchange market may seem like a daunting place, especially for unseasoned Nigerian traders. Therefore traders need to develop an effective trading strategy that can signal when they should buy and/or sell a financial instrument.

What is a forex trading strategy?

👉 A forex trading strategy can be defined as a technique or a method that is used by Nigerian traders to determine whether they must sell or buy a financial instrument at a specific time.


👉 When establishing a trading strategy, traders can use technical analysis or fundamental, news-based events as a foundation. The Nigerian trader’s strategy is made up of indications that prompt them to either purchase or sell a financial instrument.

➡️ Trading systems for the forex market can easily be found online, where they can be downloaded for free or purchased, or they could even be created by traders themselves.

➡️ There are both manual and automatic approaches for creating trading signals in the forex market. Automated methods, on the other hand, do not need a trader to sit in front of a computer and monitor the market for trading indications.

➡️ When a trader develops an algorithm that identifies and executes transactions on its own, it is known as an automated system. A key characteristic of this is that human emotion is removed from the equation by the latter systems, which may lead to improved performance.

➡️ When buying off-the-shelf forex trading techniques, traders should proceed with care since it is impossible to evaluate their track record and many effective trading systems are kept hidden.

How can Nigerian traders develop an effective forex trading strategy?

👉 The first step is to gain enough knowledge about forex trading and how trading strategies work, how they can be applied, and when, and how traders must backtest them for their effectiveness. The most important thing for Nigerian traders to remember is that no two traders are the same, even if they employ the same strategy.


👉 There is no holy grail or fail-proof trading strategy that can guarantee profits, and Nigerian traders who believe that forex trading is a get-rich-quick scheme are setting themselves up for failure, and significant loss of capital.


👉 When they start trading, most forex traders use a basic and very general trading technique. For example, techniques that show how a currency pair tends to recover from a certain support or resistance level.


👉 As they gain more confidence in the market, traders opt to include more components to make the trading signals even more precise overall. For example, a certain percentage of retracement on pips, derived from a certain support level, could be required.


👉 Nigerian traders must consider that a successful forex trading strategy consists of several key elements:

➡️ Market selection – Nigerian traders must choose the financial instrument that they want to trade and spend time learning all that they can about their instrument, whether it is forex trading in the Nigerian market, trading the Nigerian Stock Exchange, or any other instrument.

➡️ Position Size – The size of a trader’s position is critical in determining the amount of risk they are willing to take on in each transaction.

➡️ Entry points – Rules for when to initiate a long or short position in a particular currency pair must be developed by traders.

➡️ Exit Points – Long and short positions, as well as losing positions, need certain guidelines for traders to follow.

➡️ Overall Trading Tactics – When it comes to trading currency pairs, traders should have a plan in place that includes everything from how to purchase and sell the currencies to which execution technology to use.

➡️ Subsequently, traders can consider implementing automated trading systems in programs like MetaTrader. In addition, traders may use these tools to analyze how their trading tactics have fared in the past.

Examples of a Simple Forex Trading Strategy

👉 Now that we know what a forex strategy is and you know how you can start developing one, we can consider a simple example of a forex trading strategy in action below.


👉 An investor who believes that interest rates in the United States will increase when the exchange rate (AUD/USD) is at 0.71 (i.e., it costs $0.71 to purchase AU$1.00) is an example of this. The trader thinks that when interest rates rise in the United States, demand for the USD will rise, and as a result, the AUD/USD exchange rate would decline.


👉 The AUD/USD exchange rate is expected to fall to 0.50 if the trader is accurate and interest rates increase. In other words, it costs $0.50 to purchase AU$1.00 in the United States. To benefit from the currency’s depreciation, an investor may have taken a short position in AUD and a long position in USD.

Change is as good as a Holiday, even in Forex Trading – but timing is key

👉 The markets will always change and thus, Nigerian traders must learn to adapt. However, the magic is knowing when it is time to change. Typically, when traders adhere to the guidelines of a forex trading strategy, it performs very effectively, especially if traders have back tested their strategy.


👉 When it comes to implementing a single strategy that works for everyone, it is important to remember that it may not always be the best option. Before altering a strategy because it is not working, traders should think about the following before making a change:

➡️ As a rule, if the risk-to-reward ratio is not right, it is time to switch up your approach.

➡️ Changes in the Nigerian forex market and other financial markets can affect trading strategies, which may no longer be relevant if certain market patterns shift. This might be a hint that something needs to be adjusted or changed.

➡️ If a trader does not comprehend the approach, there is a considerable probability that it will not pay out for them. The method loses its efficacy if a problem arises if a trader does not understand the guidelines.


👉 However, Nigerian traders need to remember that changing a forex trading strategy too often might be detrimental. You might lose out if you change your plan too often.

Best Trading Strategies for Part-Time Nigerian Traders

👉 Only a small percentage of the population has the time or inclination to trade forex full-time. Traders who must make their transactions at odd hours of the day, such as lunch or after work, may discover that in such a volatile market, they are missing out on valuable buying and selling chances. For the part-time trader, these missed chances might mean catastrophe.


👉 Despite the risks involved with missing out on chances, some ways may work even if you only work part-time. According to the 24-hour trading cycle, people who trade at night may be restricted in their choice of currencies.


👉 They should use a technique of trading currency pairings that are most active at night to make money.


👉 Part-time traders in Nigeria may face several challenges because of a lack of available time. Here are some tips for trading part-time if you have a fluctuating schedule.


Know your Financial Markets Inside-Out

👉 Choosing the most active currency pairings is the best approach for these periods (those with the most price action). Selecting major currency pairings is easier if you know when the main markets are open.

➡️ The New York Session starts at 8 am and ends at 5 pm Eastern Standard Time (EST).

➡️ The Toyo Session starts at 7 pm and ends at 4 am EST.

➡️ The Sydney Session opens at 5 pm and ends at 2 am EST.

➡️ The London Session opens at 3 am and ends at noon EST.


Always use Stop-Loss Orders

👉 Allowing your computer to act as your “trading buddy” could be the most effective technique for part-time traders. As the forex market is so dynamic and tough to keep track of, the option to use trading software that allows you to rely on information technology might be advantageous.


👉 The use of stop-loss orders is another frequent method, which means that your money is safeguarded if the market suddenly moves against your position.


Use Price Action Strategies

👉 Using a price action trading method can be more suitable for part-time traders. A currency pair’s technicals or charts may be used to guide price action trading.


👉 Up bars (a bar with a higher high or lower low than the preceding bar) and down bars (a bar with fewer bars in between) may be analyzed by traders (a bar with a lower high or lower low than the previous).


👉 Outside of bars, different price action indicators may be used to indicate an up or downtrend based on the direction of movement. Trading off a chart period that best suits your schedule is critical to the success of this technique.


Take fewer positions and hold them for longer

👉 Investing in the right currency pairings requires a thorough knowledge of the underlying factors and a thorough understanding of your market. If you have studied the market and narrowed down your choices to a few currency pairings, you may then choose a few positions and hold them for some time.


👉 Using stop-loss orders to limit your losses in the event of a market move against you is another smart step.


Seek Long-Term Trends

👉 As opposed to hourly or even four-hour charts, looking at longer-term trends (daily/weekly) has its advantages. You will be able to trade while just having to glance at your computer once a day using this method.


Use the Technology that is available to you

👉 Nigerian traders have access to several innovative mobile trading apps that let them set automated and personalized alerts. In this way, you can be notified of any movements in the market when you are not actively trading.

Best Brokers and Mobile Apps For Nigerians

👉 We have tested and thoroughly reviewed 8 of the best forex brokers for forex trading strategies and mobile apps in Nigeria.

➡️ Exness – Best MT4 Broker and Instant Mobile Withdrawals

➡️ OANDA – #1 Forex Trading App for Nigerians

➡️ XM – Best MetaTrader 5 Mobile App

➡️ AvaTrade – Overall Best Trading Strategy Forex Broker in Nigeria and Top Recommended Algorithmic Trading App in Nigeria Today

➡️ TD Ameritrade – Most Resourceful Technical Analysis Broker for Nigerians

➡️ FXTM – Most Reliable Scalping Broker in Lagos

➡️ Pepperstone – Best News Trading Broker in Africa

➡️ Trade Station – Most Versatile Day Trading App for Nigerian Professional Traders


Best MetaTrader 4 Forex Broker for Nigerians

Best MetaTrader 4 Forex Broker

👉 Exness is our top choice as the best MetaTrader 4 broker for Nigerians who want to use a range of trading strategies. Nigerian traders can register a selection of account types on MetaTrader 4, allowing them to use advanced desktop, web, and mobile trading options.


👉 Another benefit of trading with Exness is that Nigerians can register a trading account with the Nigerian Naira as the base account currency, exempting them from currency conversion fees.


#1 Forex Trading App for Nigerians

#1 Forex Trading App

👉 Our top pick for the #1 Forex Trading App for Nigerians goes to OANDA, with a high trust score and the use of an award-winning mobile trading platform that is easy to use, versatile charts with over 33 technical indicators, 13 drawing tools, and several timeframes.


Best MetaTrader 5 Mobile App

XM 3

👉 We chose XM Metatrader 5 mobile because Nigerians can download it on either iOS or Android devices such as smartphones and tablets. In combination with an XM account, Nigerian traders can discover all the benefits involved with trading forex in Nigeria using different trading strategies.


Overall Best Trading Strategy Forex Broker in Nigeria

Best Trading Strategy Forex Broker

👉 AvaTrade is our top choice for the overall Best Trading Strategy Forex Broker in Nigeria. AvaTrade not only supports a wide range of trading strategies, but offers Nigerian traders the resources, tools, and platforms that they need to develop an effective trading strategy.


Most Resourceful Technical Analysis Broker for Nigerians

Most Resourceful Technical Analysis Broker

👉 thinkorswim from TD Ameritrade is our choice as the most resourceful Technical Analysis Broker in Nigeria. A trade ticket and favorite tools are available to traders on thinkorswim, so they may tailor the platform to their needs.


👉 Forex, crypto, equities, and other Nigerian traders have access to many of the same analytical tools that options traders have. Drawing tools, technical indicators, and data visualization tools can all be found on the thinkorswim platform


Most Reliable Scalping Broker in Lagos

Most Reliable Scalping Broker

👉 The most reliable scalping broker in Lagos is FXTM because of the tight spreads, reliable trade execution, and selection of retail trading accounts, providing Nigerian scalpers with a variety of options that suit their unique needs and objectives.


Best News Trading Broker in Africa

Best News Trading Broker

👉 News Trading is a popular trading strategy for Nigerian traders and our best trading broker for this is Pepperstone. Nigerian traders have unlimited access to market reviews, company news, and press releases through Pepperstone, allowing them to carry out in-depth fundamental analyses on the Nigerian forex and stock market.


Most Versatile Day Trading App for Nigerian Professional Traders

Most Versatile Day Trading App

👉 Our top-rated Day Trading App for Professional Traders in Nigeria is Trade Station. Trade Station offers well-tested trading technology along with in-depth research resources. With Trade Station, day traders can easily back-test, optimize, and automate their day trading strategies.


Top Recommended Algorithmic Trading App in Nigeria Today

Top Recommended Algorithmic Trading App

👉 AvaTrade is our best choice where automated trading platforms for MT4 Robots in Nigeria are concerned. With AvaTrade and MT4, Nigerians can use Expert Advisors (EAs) to follow a set of advanced trading rules to make trades quickly, accurately, and consistently.


Best Instant Mobile Withdrawals for Nigerians

Best Instant Mobile Withdrawals

👉 The best instant mobile withdrawals can be done through Exness, one of the best forex and CFD mobile brokers for Nigerian traders. Another benefit is that Nigerians can use the proprietary Exness trader app to make instant deposits and instant withdrawals in Naira.

Frequently Asked Questions

What is a forex trading strategy?

It is a technique that Nigerian traders can use to determine whether they should buy or sell a financial instrument, and when.


What are the most popular forex trading strategies for Nigerians?

Automated or algorithmic trading, scalping, day trading, trend trading, range trading, and position trading are some of the most popular trading strategies.


What are the most common ways that Nigerian traders lose money?

Most traders lose money by not ensuring that the trading account is funded to cover margin requirements, over-leveraging with margin, trading with emotions, not using a trading strategy, and not using risk management tools like stop-loss and take-profit orders.


How can I choose the right trading strategy?

The first step is to understand what type of trader you are, what level of risk you can tolerate, and which trading strategy fits into the time that you have available to trade daily.


Why is it important to have an effective trading strategy?

Forex trading gives Nigerian traders exposure to global marketplaces that have great potential for profits. However, forex and CFD trading is complex and risky and to succeed, Nigerian traders must have a trading strategy that limits their losses while allowing them to profit consistently.


What does it mean to backtest a trading strategy?

It refers to the process of testing a trading strategy or a system using historical market data to determine how the strategy will perform in live market conditions.


What is algorithmic trading?

It refers to using forex trading robots that trade on behalf of the trader, using predetermined trading rules that make choices according to the market conditions. These forex trading robots open and close positions without the trader having to perform any action.


👉 Now it is your turn to participate:

➡️ Which broker from this list do you intend to test out?

➡️ What was the determining factor in your decision to engage with a certain broker?

➡️ Was it because of the minimum deposit or because of leverage?

👉 Regardless, please share your thoughts in the comments below.


👉 No matter how diligently we strive to maintain accuracy, the forex market is a volatile environment that may change at any time, even if the information supplied is correct at the time of going live.

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