What is a Pip in Nigeria?
What is a Pip in Nigeria revealed. We tested and verified pips in forex trading for Nigerian traders.
This is a complete guide to pips in Nigeria.
In this in-depth guide you’ll learn:
- What is a pip?
- How many dollars is 1 pip equal to?
- Our recommended forex brokers with the best pips?
- How to compare forex trading brokers against each other?
- How to calculate pips as a Nigerian trader?
- How much are 100 pips worth?
- What is the difference between pips and pipettes (BPS)?
- How to calculate pips with lot sizes?
- Which forex brokers offer a low minimum deposit of $5 (2 092 NGN)?
- Which brokers offer a signup bonus for first-time traders?
And lots more…
So if you’re ready to go “all in” with pips for Nigerians…
Let’s dive right in…
- Louis Schoeman
What is a Pip in Nigeria? (Updated 2023)
What is a Pip?
👉 Prices of currencies usually change in such minute amounts that they are measured in “pips” or “percentage in point” rather than just “points.” A pip is often understood to refer to the fourth decimal point of a price and is equivalent to one one-hundredth of one percent.
👉 For instance, if NGN/USD moves from 0.0024 to 0.0025 the 0.0001 USD rise is equal to a single Pip.
What is a Spread?
👉 In the world of finance, the term “spread” could have several meanings. The term “spread” refers, in general, to the disparity that exists between two different prices, rates, or yields.
👉 The spread in forex trading can simply be described as the difference between the bid (sell) and ask (buy) prices of a currency pair.
👉 The “Spread” is a term that Nigerian traders will learn exceedingly early when they start trading forex. The bid and the ask prices are always provided in a currency pair.
👉 For example, if you were selling the base currency, your bid price would be lower than your offer; this is known as a “bid-ask spread.”
👉 There are two currencies in a currency pair namely a “base currency” and a “quote” or counter currency. Using the currency pairing, you can determine how much of the variable currency is equivalent to one unit of the base currency.
👉 It is always going to be more expensive to purchase than to sell, with the underlying market price somewhere in the middle.
👉 Uniquely, the price of a security represents the market’s view of its worth at any given moment. To comprehend why there is a “bid” and an “ask,” one needs to consider the two key market participants namely the price taker or retail trader, and the market maker, broker, or the overall counterparty.
👉 Market makers, many of whom may be hired by brokerages, offer to sell assets at a certain price (the ask price) and bid to acquire securities at a specified price (the bid price).
👉 When initiating a transaction in forex trading, an investor will accept one of these two prices, depending on whether they desire to purchase (ask price) or sell (bid price) the investment.
👉 The spread, which is the difference between the bid and ask prices, is the primary transaction cost of trading (outside of fees) and is collected by the market maker via the normal processing of orders at the bid and ask rates.
👉 This is what financial brokerages mean when they say that their money comes from “crossing the spread” The bid-ask spread could be interpreted as a measure of the asset’s supply and demand.
👉 The bid indicates the demand for a security, while the ask represents the supply; thus, when the bid and ask prices diverge, the price movement reflects a shift in supply and demand.
👉 The bid-ask spread may be significantly influenced by the depth of the “bid” and “ask.” If fewer market participants issue limit orders to purchase an asset (thus producing fewer ask prices) or if fewer sellers put limit orders to sell, the spread may widen dramatically.
👉 Therefore, it is essential to consider the bid-ask spread when placing a purchase limit order to guarantee its execution.
👉 Market makers and experienced traders who perceive impending market danger may also increase the spread between the best bid and the best ask price they are ready to provide at a particular time.
👉 If every market maker does this for a particular asset, the stated bid-ask spread will be higher than normal. Some high-frequency traders and market makers seek to profit by exploiting bid-ask spread fluctuations.
How do Pips work in Forex Trading?
👉 A pip is used to signify the amount of change in a currency pair’s exchange rate, which is calculated using the fourth decimal. When JPY is included in the currency combination, however, the pip is computed using the second decimal.
👉 It is essential to understand that pips do not represent any actual monetary value; the pip value is decided by the size of the trader’s position.
👉 The pip value is the price ascribed to a one-pip change in a foreign exchange deal. Subsequently, it can often be used to indicate the gains or losses of a position.
👉 Because of the negligible value of pips, foreign exchange is exchanged in nano lots, micro lots, mini lots, and lots, otherwise expressed as 100, 1,000, 10,000, and 100,000 currency units.
👉 When leveraged, a pip may represent a significant exposure and have a considerable influence on your open position. The pip value is determined by the following:
➡️ The currency pair that is currently being exchanged
➡️ The transaction amount
➡️ The exchange rate of the currency pair
👉 To get the pip value, Nigerians can divide one pip (usually 0.0001) by the current market value of the currency pair. Then, multiply this figure by the position size, or the number of base units being traded.
👉 Subsequently, this indicates that the value of a pip will fluctuate between currency pairs due to variations in the exchange rate.
👉 When the quote currency is the US dollar, the pip always has the same value; if the lot size is 100,000, one pip is equivalent to $10. Although traders seldom need to calculate the value of a pip since their online trading broker does it automatically, it is a good skill to have.
👉 A ‘tick’ is sometimes related to a pip; nevertheless, it cannot measure all increments precisely. For instance, a tick on a financial instrument or asset may be measured in increments of 0.0001 but increments of 0.25 on another instrument.
👉 A tick is the smallest possible movement of an asset, and the term is most often used in stock and index trading.
👉 A point is another unit of measurement used when the dollar’s value fluctuates. For instance, if the price of a stock climbed from $25 to $30, dealers would signal that the price grew by five points. In addition, this word is also used in forex rather than ‘pipette’ to refer to the movement of the fifth decimal point.
👉 A pip represents motion to the fourth decimal place, whereas a pipette represents motion to the fifth decimal place. Since a pipette is equivalent to one-tenth of a pip, it is referred to as a fractional pip.
👉 When comparing pip and pipettes in forex currencies including the Japanese Yen, the pip corresponds to the second decimal place, while the pipette corresponds to the third.
How Leverage Can Affect the Pip Value in Forex Trading
👉 The lots and pip units of a basic forex account are predetermined. When it comes to trading currencies, one pip is the smallest amount by which a currency’s value could fluctuate.
👉 For currency pairings involving the US dollar, a pip unit is equal to $0.0001 for each lot valued at $100,000, which is why most currency pairings utilize this as their standard pip unit.
👉 It is the impact of one pip change on a dollar amount that determines pip value. The pip value does not change based on the ratio of leverage being used. Instead, the pip value is affected by the leverage you have.
👉 Most brokers provide Nigerian traders with a leverage ratio of up to 1:100, which means that the broker requires you to have $1,000 in your account for every $100,000 in transactions that you execute.
👉 In addition, for the US dollar, 100 pips are equal to one cent, and 10,000 pips equal one dollar, in terms of pip value. The yen in Japan is an exception to this rule where each pip is worth 1 percent of a yen, attributable to the value of the yen being so low that it is not worth a thousandth of a unit.
👉 The more leverage Nigerians use when they trade forex, the greater the chance of losing everything in their account.
👉 For example, if each pip is worth $150 it means that 67 pips might wipe out your whole $1.5 million accounts. It is therefore exceedingly dangerous to utilize the full $1.5 million that you have available.
👉 Pips are the currency unit of choice for most forex calculations. Subsequently, if you want to know whether you have made any money, you can do the necessary conversion.
👉 To get the total pip difference between a trade’s open and closure, multiply the pip difference by how many units of currency were transacted. In USD, the pips are represented in dollars. Convert the pip value to USD if the USD is the base currency.
Fixed Spreads vs Variable/Floating Spreads
👉 In forex trading, there are two types of spreads that Nigerian traders will observe from different forex brokers, namely a fixed spread and a floating spread.
Fixed Spread
👉 As implied by its name, a fixed spread does not alter over time or in response to broad market movements and volatility. When there are instances of low liquidity and high volatility, the spread could be temporarily modified where it is moved to a new fixed spread level.
👉 However, when market conditions return to normal, the spread reverts to its regular level. Despite these few occurrences, trading with a set spread is easier and more advantageous for Nigerians since it is more predictable and, thus, less dangerous.
👉 In recent years, under conditions of intense competition, brokerage firms have endeavoured to provide clients with innovative services, including spread. a growing number of businesses are using floating spread.
Floating Spread
👉 In both the Forex and CFD markets, a floating spread is a fluctuating value between the Ask and Bid prices. Floating spread is often considered a market phenomenon, and it mostly characterizes interbank contacts.
👉 Consequently, in addition to the conventional trading accounts with a floating spread, several brokers offer Nigerians ECN accounts (Electronic Communication Network).
👉 An ECN Forex broker offers a trading platform enabling participants such as banks, market makers, and individual investors, to trade with one another by entering buy and sell orders into the system.
👉 However, while customers trading on the ECN platform enjoy reduced spreads, they must pay a fee to the broker for each transaction that is executed.
👉 The advantages and disadvantages of Fixed Spread vs Variable spreads can be viewed side-by-side as follows:
| 📊 Fixed Spreads | 📉 Variable Spreads |
| Nigerians could experience some requotes on trades they make with a fixed spread broker | Traders are not exposed to the risk of requotes |
| Traders can calculate their trading costs, profits, and/or losses more accurately | Nigerians can expect narrower spreads and even negative spreads |
| Trading accounts have smaller capital requirements | Variable spreads are indicative of true market liquidity |
| Fixed spreads are better for beginner Nigerian traders | More experienced traders prefer variable spreads |
| The market conditions do not adversely affect the spread | During volatile market conditions, variable spreads can turn a winning position into a losing one |
| Traders could face slippage when brokers struggle to keep the spread steady | Traders are exposed to slippage in their trades |
| Fixed spreads are ideal for short-term traders such as scalpers | It could be time-consuming to calculate variable spreads |
How to read Pips
👉 To save traders the time and effort of figuring out the spread, the pips are usually displayed next to each financial instrument the forex broker offers.
👉 However, understanding how to read and compute a security’s pip value is essential information for traders. For this example, the NGN/USD currency pair may be utilized, making it easier for Nigerians to grasp.
👉 Traders use the NGN/USD currency pair to compare the value of the Naira to the US dollar. One lot of NGN/USD is listed at 0.0024, which indicates that one Naira may be traded for 0.0024 USD.
👉 To make a profit, traders must terminate their long position on NGN/USD when the exchange rate is 0.0024 and the currency pair is appreciating. A 2-pip rise in the price indicates that the trader will make money based on their position size if the price moves to 0.0026, for example.
👉 To figure out how much a pip is worth, traders must first compute the decimal value of a pip and then divide that number by the current exchange rate.
👉 When multiplied by 100,000 normal lots, this is 4,100 NGN per pip. In this case, the trader would make a profit of NGN 8,200.
👉 This can then be translated into USD based on the exchange rate at which the trader closed their position after the 2-pip rise, which means that 8,200 x 0.0024 = $19.68 overall profit that the Nigerian trader made on the trade.
How can you determine the Pip Pricing if you do not have a trading calculator?
👉 PIP value is the amount a forex trader pays for a one pip shift, and it is often used in discussions about a trade’s profits or losses.
👉 As most major currency pairings are priced to four decimal places, the value of a pip is typically equal to the fourth decimal place after a decimal point. For example, 0.0001 represents one pip in the NGN/USD currency pair.
👉 Because a single pip is worth just 0.00001 of a cent, forex is traded in lots of 1,000, 10,000, or 100,000. A single pip may seem little, but via leverage, it may have a tremendous impact on your open position.
👉 The currency pair being traded, the volume of the deal, and the exchange rate of the currency pair all go towards determining the pip value. To get the value of a pip, divide the current market value of the forex pair by one pip (typically 0.0001).
👉 Subsequently, you double that amount by the number of base units you are exchanging. Because of the fluctuations in currency exchange rates, the value of a pip will alter across currency pairings. A pip is always worth $10 if your lot size is 100,000, even if the currency of choice is the US dollar.
👉 Although your forex broker or service provider will usually compute the value of a pip for you, it is always advisable to become acquainted with the process.
👉 An example of pip value, for instance, is if NGN/USD trades at a market price of 0.0025 and you currently hold a micro lot of 1,000 units in the base currency (NGN), you can therefore calculate the pip as follows: (0.0001/0.0025) x 1,000 = 40.
👉 This means that for every pip movement in the market, you can either earn or lose 40 Naira. According to the quotation currency (USD in this example), the pip value is typically specified by this. The formula for determining the value of one pip in the quotation currency is 1,000 x 0.0001 = 1.
👉 In this example, your transaction would yield $1 in profit or loss for every pip of movement. It is also possible to use the current exchange rate of NGN/USD to double your quotation currency pip value.
What Pips can I expect when I trade Forex in Nigeria?
👉 There are currency-specific pip values due to the way money is exchanged. It is not unheard of, but certain trading systems allow for price fluctuations to be recorded in half-pip increments; as a result, most interfaces utilize one pip as a standard.
👉 Some systems show four pip values while others show five, therefore it depends on the platform and price feed (pipettes).
👉 It is the Japanese yen (JPY), the British pound (GBP), US dollars, Euros (EUR), and Canadian dollars (CAD) that investors and dealers exchange most often. These primary currencies can be used in combination with other currencies that are less well-known.
👉 While trading forex, Nigerians must keep an eye on currency trading daily average ranges to gauge market movement. You will miss your profit goals if the pairings do not fall within the predicted ranges, and lower targets will have to be created.
👉 According to the major forex pairs that are traded the most, the following spreads can be expected from three of the most prominent financial hubs in the forex market:
| 📊 Currency Pair | 🗽 New York | 🇬🇧 London | 🗼 Tokyo |
| ➡️ EUR/USD | 92 pips | 114 pips | 76 pips |
| ➡️ GBP/USD | 99 pips | 127 pips | 92 pips |
| ➡️ USD/JPY | 59 pips | 66 pips | 51 pips |
| ➡️ AUD/USD | 81 pips | 83 pips | 77 pips |
| ➡️ NZD/USD | 70 pips | 72 pips | 62 pips |
| ➡️ USD/CHF | 93 pips | 102 pips | 67 pips |
| ➡️ EUR/JPY | 107 pips | 129 pips | 102 pips |
Low Spread Strategies and Tips for Nigerians
👉 The spread is the fundamental expense of forex trading; thus traders must always be aware of it this and remember that the cost of trading will rise as the gap widens.
👉 A forex trader’s career could end swiftly if they use leverage on volatile or illiquid currency pairings. Remember that the spread cost increases according to your account equity the more leverage you use, so use as little as possible.
👉 Variable spreads and high leverage ratios should be avoided at all costs by new traders. Small account sizes may lead to widening spreads, which may result in an increased margin call or potentially the closing of your trade if you hold a big position.
👉 You can master the fundamentals of spread trading by following these three tactics and strategies:
➡️ Stay updated on the factors that can affect your spreads
➡️ Always consider forex pairs with high liquidity
➡️ Be mindful of the time of day that you trade
Stay updated on the factors that can affect your spreads
👉 Traders should be mindful of the following considerations to prevent excessive spread expenses associated with a growing spread:
➡️ Spreads may expand because of market volatility brought on by economic data releases or breaking news events.
➡️ Spreads can often widen when there is not enough liquidity in the market. Volatility and liquidity go hand in hand. Spreads on currency pairings with significant levels of illiquidity, such as those of developing market currencies, are common. Volatility may also be caused by a lack of liquidity in the market.
➡️ Spreads and the news: Liquidity providers may expand their spreads before a big news event, such as the announcement of the NFP employment statistic.
➡️ Traders must practice patience and discipline to only trade once the spreads narrow since the spread usually reverts to its mean within a few minutes.
Always consider forex pairs with high liquidity
👉 Choosing high-liquidity forex pairings is a common spread trading technique among novice traders. The higher liquidity a currency pair experiences, the lower the spread will be. Therefore, major currency pairs are an ideal starting point for beginner Nigerian traders, including:
➡️ EUR/USD
➡️ USD/JPY
➡️ GBP/USD
➡️ USD/CHF
👉 These currency pairs are known for their inherently low spreads. The following currency pairs, however, do not trade at low spreads and they can easily be influenced by volatility, liquidity, and news, which can result in wider spreads. These include, but are not limited to:
➡️ USD/ZAR
➡️ USD/NGN
➡️ USD/MXN
➡️ USD/RUB, and other exotic pairs
👉 Nigerians are always urged to either use the lowest leverage ratios, or no leverage at all, when they trade these currency pairs.
Be mindful of the time of day that you trade
👉 Forex spreads are affected by the time of day and therefore it is a clever idea to keep this in mind while planning your strategy. Forex spreads are typically at their lowest throughout prominent market trading periods, such as London, New York, Sydney, and Tokyo.
👉 Nigerians are urged to trade during these times as the spreads are likely to be narrower. In addition, between 8 am and 11 pm Eastern Time (EST), London and New York’s sessions overlap. According to local time in Nigeria, this is between 2 pm and 6 pm.
What to consider when practising Low Spread Trading in Nigeria
👉 When Nigerians decide to use strategies to harness low spreads, they must consider some of the following factors:
➡️ Average True Range (ATR)
➡️ Stop-Loss Levels and Stop Grab
➡️ Correlation
➡️ Margin Benefits
➡️ Spread Percentage
Average True Range (ATR)
👉 A financial instrument’s volatility may be measured using the ATR indicator. Based on its calculations, it also provides high and low range projections. The higher the volatility becomes in the forex market, the higher the ATR will be.
👉 For instance, during high volatility periods in the market, the EUR/USD moves 90 pips to 120 pips instead of a daily average of 60 pips, which means that the ATR of EUR/USD is subsequently greater.
👉 In terms of low-spread trading higher volatility can often compensate for a wider spread. However, a more ideal situation is where volatility is high while the spread remains narrow.
👉 For instance, if you trade AUD/NZD and the pair moved 60 pips during a day, it means you pay a 6-pip spread while making a profit of 54 pips. Thus, if EUR/USD’s price moved 100 pips on a one pip spread, the profits could be based on 99 pips.
Stop-Loss Levels and Stop Grab
👉 You must also examine what occurs when your stop-loss order is triggered on high-spread currency pairings. When the stop-loss order reaches the market, you incur a substantial spread cost.
👉 This can subsequently produce a pattern that aggregates all stops above and below it. The greater the number of hit stops, the greater the price movement. This might even drive the price to the next level of support or resistance, causing a false breakout due to a stop grabber.
Correlation
👉 The numerical measure of the link between two variables is referred to as correlation in the context of the finance industry. The correlation coefficient has a range that goes from -1 up to +1.
👉 A correlation of +1 indicates that both currency pairings will move in the same direction during the next period. A correlation of -1 suggests that the two currency pairings will always move in the opposite direction, which is the only possible interpretation of this value.
👉 However, a correlation of 0 indicates that there is no discernible pattern to the connection between the currency pairings.
Margin Benefits
👉 Before issues with margins become apparent, the trader’s account should be in a better position to manage setups that include bigger drawdowns. Therefore, there is less of a limit placed on the number of deals that traders may participate in.
👉 This could be especially helpful to Nigerian traders in situations in which the price movement of the market is moving quickly, and the trader is suddenly presented with numerous possibilities to trade.
Spread Percentage
👉 The variation of the spread could also be dependent on a market component, namely liquidity. A market is liquid if it experiences a high volume of deals daily and is comprised of many active traders.
👉 Because of the daily participation of millions of people in addition to the daily activity of hundreds of institutions, the foreign exchange market is exceptionally liquid. After then, the spread is split by the typical daily range of the currency pair being traded.
👉 This provides Nigerians with a percentage that shows them how much the spread will cost in a more specific manner. This translates to more ideal situations if the number is on the lower side.
👉 The spread can be seen as an opportunity cost since it has the potential to lower the amount of profit earned from the daily range that is computed by the ATR. The larger this opportunity cost is, the greater the likelihood that it will translate into lost transactions and, therefore, actual monetary losses.
How to Choose the Right Low Spread Forex Broker in Nigeria
👉 Nigerian traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
👉 This is the first vital component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Nigerians must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
Account Features
👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
👉 Nigerians must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Nigerians must consider what they wish to trade and what is available.
Customer Support
👉 Customer Support is another crucial factor and Nigerians must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
Trading Platform
👉 A trading platform is the Nigerian trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
➡️ eBooks
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ Commentary
➡️ Status of International Markets
➡️ Price movements
➡️ Market sentiments
➡️ Whether there is a volatile market
➡️ Exchange Rates
➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Low Spread Forex Brokers in Nigeria
👉 In this article, we have listed the best Forex brokers which charge the lowest spreads in Nigeria. We have further identified the forex brokers that offer additional services and solutions to Nigerian traders.
Best Low Spread MetaTrader 4 / MT4 Forex Broker in Nigeria
Overall Rating
- 4.8/5
Total Pairs
50+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, HF Markets is the best Low Spread MT4 forex broker in Nigeria. HF Markets provides Nigerians access to MetaTrader 4 across devices. The spreads that Nigerians can expect on major forex pairs start from 0.0 pips with a small commission charged.
Best Low Spread MetaTrader 5 / MT5 Forex Broker in Nigeria
Overall Rating
- 4.1/5
Min Deposit
USD 300 / 124350 NGN
Regulators
FSCA
Trading Desk
MetaTrader 5
Crypto
Yes
Total Pairs
60
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Global GT is the best Low Spread MetaTrader 5 forex broker in Nigeria. Global GT only offers MetaTrader 5 and provides high leverage ratios to Nigerian traders. Global GT charges zero-pip spreads on major currency pairs such as EUR/USD which can be traded with 1:1000 leverage.
Best Low Spread Forex Broker for beginners in Nigeria
Overall Rating
- 4.1/5
Min Deposit
400 Nigerian Naira equivalent to $1
Regulators
FCA, ASIC, CySEC, EFSA, JSC
Trading Desk
• MetaTrader 4
• MetaTrader 5
• Admirals Mobile App
Crypto
Yes
Total Pairs
35 Forex Currency Pairs
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Admirals is the best Low Spread forex broker for beginners in Nigeria. Admirals is a multi-regulated forex and CFD broker. With a deposit of 400 Naira, Nigerian traders can trade an enormous range of financial instruments that feature zero-pip spreads.
Best Low Spread Islamic / Swap-Free Forex Broker in Nigeria
Overall Rating
- 4.9/5
Min Deposit
USD 10 / 4145 NGN
Regulators
CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA
Trading Desk
MT4, MT5, MT4 WebTerminal, mobile (iOS & Android, Exness Trader)
Crypto
Yes
Total Pairs
97
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Exness is the best Low Spread Islamic / Swap-Free forex broker in Nigeria. Exness records more than 15,000 accounts which are registered monthly. Nigerians can participate in trading over 200 financial instruments that feature low spreads from 0.0 pips.
Best Naira Trading Account Forex Broker in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 10 / 4146 NGN
Regulators
FSC
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Tifia is the best Naira trading account forex broker in Nigeria. Tifia is locally based in Nigeria and offers commission-free trading and zero-pip spreads. Tifia does not charge any deposit fees and there is a low minimum deposit required when Nigerians register a trading account.
Best Low Spread Volatility 75 / VIX 75 Forex Broker in Nigeria
Overall Rating
- 4.1/5
Min Deposit
USD 10 / 4145 NGN
Regulators
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Crypto
No
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128
👉 Overall, Pepperstone is the best Low Spread Volatility 75 / VIX 75 forex broker in Nigeria. Pepperstone is ideal for both beginner and institutional Nigerian traders.
👉 Pepperstone offers VIX as a tradable financial instrument under its list of indices. Nigerian traders can expect low and competitive spreads with Pepperstone.
Best Low Spread Sign-up Bonus Broker in Nigeria
Overall Rating
- 4.5/5
Min Deposit
USD 1 / 415 NGN
Regulators
IFSC
Trading Desk
Metatrader 4
Crypto
Yes
Total Pairs
300
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, SuperForex is the best Low Spread sign-up bonus broker in Nigeria. SuperForex offers more than 400 tradable products to Nigerians. Of the 11 trading accounts that SuperForex offers, several feature zero-pip spreads.
Conclusion
👉 Pips play a key role in forex trading and Nigerians must ensure that they know what Pips are, what their function is, and what their relation is to profitability.
👉 Nigerian traders can use several low-spread trading strategies that can maximize their profits while minimizing their overall risk.
FAQ
How is a pip calculated in forex?
To determine the value of a pip, divide the standard value of one pip, which is 0.0001 of the currency pair’s current market value.
After that, multiply that amount by your position size (in lots), which is the number of base units that you are exchanging. This will give you the total value of the trade.
At how many pips should I take profit when trading forex in Nigeria?
Overall, the ideal is 1:3, which indicates that the profit should be three times greater than the loss. Therefore, if your Stop Loss is set at 50 pips, the appropriate amount for the Take Profit is 150 pips.
How many pips should I aim for per day when I trade forex in Nigeria?
This will depend on your exposure and level of trading knowledge and experience. If you are a beginner trader, you should aim for 10 pips a day.
How can you win consistently in forex?
There is no guarantee that traders will make consistent profits every time that they trade. However, to profit consistently you must pay attention to pivot levels, preserve, and protect your capital, use simplified market analysis, and use stop-loss and take profit orders at reasonable levels.
How long will it take to learn forex?
To learn how to trade Forex or other markets, it can take up to a year for traders to start understanding the forex markets.
Traders never stop learning and therefore there is no maximum time that can be tied to learning forex and mastering it fully as the markets constantly change, forcing traders to adapt and learn new skills and strategies.
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