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What is Day Trading in Nigeria?

What is a Spread in Nigeria revealed. We tested and verified spreads in forex trading for Nigerian traders.

This is a complete guide to spreads in Nigeria.

In this in-depth guide you’ll learn:

  • What is a spread? 
  • What is considered a good spread in Nigeria?
  • Our recommended forex brokers with the lowest spreads?
  • How to compare forex trading brokers against each other?
  • How do spreads affect profits in forex trading?
  • What are low spread currency pairs?
  • What is the difference between low and high currency pairs?
  • What are narrow spreads and why do they matter?
  • Why you should trade with a low spread broker?
  • How to calculate a spread as a Nigerian trader?
  • Which low spread 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 spreads for Nigerians

Let’s dive right in…

Updated : July 21, 2022

What is a trading strategy?

👉 A trading strategy can simply be defined as a methodical approach used by Nigerian traders to buy or sell forex pairs in the forex market.

 

👉 A trading strategy works according to specified rules and criteria that are set and utilized to make trading choices. In addition, a trading strategy can either be simple or sophisticated, and it could include investing style concerns.

The Basics of Day Trading in Nigeria

👉 A trading strategy is a systematic methodology used by Nigerian traders to purchase or sell currency pairs on the forex market. A trading strategy operates according to predetermined rules and criteria that are used to make trading decisions.

 

👉 In addition, a trading strategy may be basic or complex and may include investment style considerations. Day traders are alert to market-moving events with a brief time horizon. Trading based on the news, for example, is a common strategy that is employed by experienced day traders.

 

👉 Economic data, company profits, and interest rates are vulnerable to market expectations and market psychology. When these expectations are not realized or are surpassed, the market reacts with fast, big movements, which may be quite advantageous for day traders.

 

👉 On Wall Street, one of the most often discussed topics is the possible earnings from day trading. Scams involving day trading on the internet have attracted inexperienced traders by promising them big profits in a noticeably short amount of time.

 

👉 Regrettably, the notion that this kind of trading is some sort of pyramid scheme to amass wealth quickly continues to circulate. Some individuals engage in day trading without having enough information.

 

👉 However, there are day traders who can start a career despite the dangers involved, and even more so because of them.

 

👉 A substantial number of professional money managers and financial counsellors avoid the practice of day trading. They contend that most of the time, the potential gain does not warrant taking the associated risk.

 

👉 However, day traders are certain that there is potential for profit in their activity. It is possible to make a profit day trading, but the success rate is fundamentally lower because day trading is inherently dangerous and takes a significant amount of ability.

 

👉 Furthermore, economists and financial practitioners alike say that, over long durations, active trading techniques tend to underperform a more basic passive index approach. This is especially the case when fees and taxes are included in the equation.

 

👉 This is especially true when active trading strategies are compared to passive index strategies. Day trading is not suitable for everyone and is fraught with a great deal of danger.

 

👉 In addition to this, you must have a comprehensive knowledge of how the markets function as well as a variety of tactics for making a profit in the short term.

 

👉 Nigerians must remember that this is not the case for many day traders, even though the media typically gives a lot of attention to the success tales of people who became wealthy via day trading: Many will be unsuccessful, and many others will hardly manage to keep their heads above water.

 

👉 Even though expertise is undoubtedly a factor, even the most experienced day trader may lose it all due to a single unfortunate turn of events if they do not have excellent timing and do not give enough weight to the importance of chance.

Advantages and Disadvantages of Day Trading in Nigeria

Advantages of Day Trading

➡️ Modest-cost trading – The brokerage and commission costs associated with forex trading are often low. Realistically, there are no commissions since most Forex brokers make money from the spreads on currency pairings.

➡️ High Liquidity – Of all financial markets, the Forex market has the greatest number of market participants. Large currency traders’ orders are efficiently completed since it has the greatest levels of liquidity and no substantial price fluctuations.

➡️ No Central Regulator – The Foreign exchange market is OTC (Over-The-Counter), decentralized, and operates globally. Therefore, the Forex market does not have a central authority or exchange.

➡️ Low Capital Requirements – Because there are narrow spreads involved with currency pairing such as EUR/USD, you can quickly begin your Forex trading career.

➡️ Using technical indicators to assess the Forex market is simple since there are tens of thousands available. This makes it easy for traders of all levels of experience and ability to get a foot in the door of Forex day trading swiftly.

 

Disadvantages of Day Trading

➡️ Multiple elements, such as global economics and politics, have a role in determining the forex rates. Subsequently, it can be extremely challenging to sort through the available data and make an educated conclusion.

➡️ Because the Forex market is unregulated and overrun by brokers and large market participants, you will have to compete with the experts and professionals.

➡️ High leverage can cause either or both your profits and/or losses to grow by a factor of ten or more.

➡️ In contrast to the stock market, where you can readily get help from experts, you may often be on your own when it comes to Forex trading.

Best day trading strategies for Nigerians

👉 Having a good day trading strategy for the forex market is essential if you want to increase your chances of profiting from price fluctuations that are both minor and frequent.

 

👉 To be an expert on the price movement in the future, you must learn and use the patterns, indicators, charts, and other aspects of deep technical analysis, among other things.

 

👉 You can accomplish this objective quickly by using a Forex day trading strategy that is reliable as well as efficient. The following is a list of some of the most effective day trading methods for Nigerians:

➡️ Pivot Points

➡️ Momentum Trading

➡️ Scalping

➡️ Reversal Trading

 

Pivot Points

👉 Traders in the equities and commodities markets employ pivot points. Predictions for support and resistance levels in a current or next trading session may be made using the highs, lows, and closing prices from prior days’ trading sessions.

 

👉 In addition to determining stop-loss and profit-taking positions, traders may utilize these support and resistance levels to establish entry and exit locations. One of the most prevalent systems for determining pivot points is the five-point scheme.

 

👉 There are two levels of support and two levels of resistance in this system (totalling five price points) that are used to calculate the pivot point. The following are the formulas for determining the pivot points:

➡️ Pivot Point = Previous High + Previous Low + Previous Close ÷ 3

➡️ Support 1 (S1) = (Pivot Point x 2) – Previous High

➡️ Support 2 (S2) = Pivot Point – (Previous High – Previous Low)

➡️ Resistance 1 (R1) = (Pivot Point x 2) – Previous Low

➡️ Resistance 2 (R2) = Pivot Point + (Previous High – Previous Low)

 

👉 The New York closing time (4 pm Eastern Standard Time) is widely used to compute pivot points in 24-hour markets, such as the forex market, where currency exchange transactions are carried out.

 

👉 Some forex traders choose to conclude a trading session one minute before midnight GMT and initiate a new session at midnight GMT because the GMT is often utilized in forex trading.

 

👉 In addition, the data from the previous day is often used to create pivot points on the chart, but the data from last week may also be used to create pivot points for the week after that.

 

👉 It should be noted that Nigerian swing traders and, to a lesser degree, day traders might benefit from this strategy.

 

Momentum Trading

👉 If you are new to forex day trading but still want to learn the basics, this is the approach for you. It is all about detecting big trends and acting on them with the support of high trading volumes.

 

👉 With this approach, you have a lot of options since all you must do is keep to your trading plan and leave once you see the market beginning to turn against you.

 

👉 Despite its simplicity, this method is phenomenally successful only if you execute it to the letter. Keep an eye out for earnings reports and other impending developments, though.

 

Scalping

👉 Even among day traders, scalping is one of the most extensively used tactics. Price adjustments within a minute when the driving factor considered is quantity, might help you make money.

 

👉 With this strategy, you are looking for chances to get out of the trade once you have made some money. Forex day trading with this strategy is a fast-paced and exhilarating experience. In the same way that every other trading style or method can be risky, this one is no exception.

 

👉 To achieve a good balance between minimal risk and big gain, you will need a lot of trading potential.

 

Reversal Trading

👉 Because of its complexity and risk, this technique is best suited for experienced or seasonal traders. It is one of the most often utilized methods of day trading. Mean reversion approach, pullback tendency, and trend trading are some of the other names for this kind of trading.

 

👉 Trading against the trend by properly projecting strength and precisely pinpointing potential pullbacks is the goal of this forex day trading method. Therefore, thorough market knowledge and expertise are needed with reversal trading.

Top Skills that Nigerian Day Traders must have

👉 Any good Nigerian trader must learn the fundamentals before diving into the realm of complex and highly technical indicators. Although it may seem that day trading forex is straightforward, there are a few key abilities you must master, including:

➡️ Risk Management

➡️ Time Management

➡️ Constant Learning

➡️ Adaptability

➡️ Consistency

 

Risk Management

👉 Managing risk is an essential skill for every aspiring Forex day trader. Ongoing profitability is dependent on continuously mitigating threats to capital. Thus, each deal should have a risk of no more than 1%.

 

👉 For instance, you cannot lose more than 4,000 Naira on each transaction if you have a trading balance of 400,000 NGN. It may seem like a small amount, but the sum of your losses may quickly mount up.

 

👉 Because of this, even if you use the best Forex day trading strategies, you could still end up with a mountain of losses in these scenarios. In addition, the efficacy of a stop-loss order can also help you reduce risk while you day trade forex.

 

Time Management

👉 Another critical ability you must hone is effective time management. It has the potential to make or ruin your day of Forex trading.

 

👉 If you are serious about making money in the stock market, you must devote at least a few hours a day to your trading. You will be able to identify the ideal trade possibilities with its assistance.

 

👉 Consider the fact that the market is volatile when it begins each day. Profit possibilities and trends may be detected if you have experience and an understanding of the signs.

 

👉 Alternatively, if you are a novice, you may want to take your time and monitor the market for 15-30 minutes before making a move.

 

Constant Learning

👉 There is no guarantee that you will be a successful FX day trader if you comprehend the market’s complexity. You must keep up with the newest market developments that might affect your transaction.

 

👉 For forex day trading to be profitable, you must do a lot of charting and technical analysis. In addition, you must be aware of the many day trading methods available in the Forex market so that you can react appropriately to any given circumstance.

 

Adaptability

👉 Regardless of your degree of expertise, no two days of Forex day trading will ever be the same. Forex day traders that rely only on information from a textbook have an uphill battle because of the volatility in the forex market.

 

👉 When it comes to implementation, everything looks different since you must deal with less/more volatility, stronger/weaker trends, and so on.

 

👉 Real-time application of your Forex day trading tactics necessitates a high degree of flexibility. You must know when to enter and when to remain out of the market. Otherwise, your capital will be rapidly depleted.

 

Consistency

👉 Trading is all about using logic and math to figure out what is going on in the market. Subsequently, you must maintain control of your emotions and any psychological issues that could jeopardize your trading.

 

👉 Using this method, you can rely on your strategy and market data that is factual to help you make sound judgments. Furthermore, you must keep your greed, fear, and nervousness under control to maintain reasonable conduct.

How to develop an effective day trading strategy

👉 Most novice Nigerian traders begin by studying the trading tactics used by established traders before they develop their own trading strategies. Nigerians can start developing a strategy by ensuring that they have the right expectations.

 

👉 While it is easy to develop a trading strategy and learn the tools and indicators, it is not realistic to expect your trading strategy to earn you a profit from the start. It is challenging to find an objective trading edge and Nigerian traders will realize that profitable trading involves more than just a good strategy.

 

👉 While Nigerian traders can seek the advice and guidance of more experienced and successful traders, no guarantee following any of this will earn you a profit.

 

👉 Every trader is unique, and their situation is different, thus traders can only benefit when they have a mix of unique and personal trading tools to accommodate this.

 

👉 To develop a unique and personalized trading strategy, Nigerian traders can follow these steps:

➡️ Form a market ideology

➡️ Choose a market in which to use the trading strategy

➡️ Choose your timeframe

➡️ Choose a tool to find the trend or the lack of a trend

➡️ Define the entry trigger

➡️ Plan the exit trigger

➡️ Define your risk exposure

➡️ Write your trading rules down on paper

➡️ Backtest your strategy

➡️ Evaluate how you can improve your strategy

 

Form a market ideology

👉 You must have a general understanding of how the market works before you can even begin to formulate your own trading strategy, and in addition, you must therefore respond to this question:

➡️ “Why do you believe that you can earn money from trading in the markets?”

 

👉 Through extensive reading, you could form your own market philosophy. Learn both technical analysis and fundamental analysis by reading about them. Stay away from promises that might make you wealthy fast and consider the market’s demand and supply.

 

👉 Questions should be raised about the validity of ideas that assert that individuals are completely rational. Your philosophy will determine the course of action that is taken and therefore you must consider it and focus on its need.

 

👉 Maintain as much simplicity as you can because you do not want to be completely flummoxed by an intricate plan just as you are getting started. In addition, it is more difficult to monitor and enhance a trading strategy that has a greater number of moving pieces.

 

Choose a market in which to use the trading strategy

👉 If you decide to engage in foreign exchange trading, it is important to be aware of what you are buying and selling with a currency quotation. You must also educate yourself on the many types of forex brokers and learn the formula for determining the margin.

 

👉 Or, if you want to engage in equity trading, you should be familiar with the concept of a share. In such instances, for instance, one must be aware of the distinction between a blue-chip stock and a penny stock.

 

👉 The idea to take away from this is that there is a great deal to learn about each market. But until you choose a trading market to specialize in, you cannot even begin your in-depth education. The only guideline is that you must have a thorough understanding of the market you want to trade in.

 

Choose your timeframe

👉 It might be difficult to settle on a trading timeframe before you have gained any expertise in the market. You will not be able to determine if rapid scalping or daily swing trading is better suited to your trading style.

 

👉 Therefore, you should begin by thinking about the conditions in which you find yourself. Try your hand at intraday trading if you can keep track of the market for extended periods.

 

👉 When you trade on rapid time frames, you receive feedback quickly, which cuts down on the amount of time you must spend studying.

 

👉 Even if you wind up trading for extended periods, the knowledge you get by studying intraday price movement will still be beneficial.

 

👉 Naturally, if you are unable to keep an eye on the market for extended periods, you should begin with the charts after the trading day has ended. You can study enough about swing trading to determine whether it is right for you if you put in the effort to do it consistently.

 

Choose a tool to find the trend or the lack of a trend

👉 When you notice a pin bar, you should refrain from making any trades. You enter a trade when there is an upward trend in the market, and the trigger for your trade is a bullish pin bar.

 

👉 When you come across a “Gimmee Bar,” you should not engage in trading. When you believe that the market is likely to move in a sideways direction, you should join the market by trading using a Gimmee Bar.

 

👉 Choose a tool that will assist you in evaluating the current state of the market, such as whether it is trending, whether it is going up or down, and so on.

 

👉 Price action tools such as swing pivots and trend lines are available for you to pick from. You might also make use of technical indicators such as moving averages and the moving average convergence divergence.

 

Define the entry trigger

👉 Even if the circumstances around the market are favourable, you still need an objective entry trigger. You will not have to second-guess your decision to join the market because of it.

 

👉 Triggers can be found in bar patterns as well as candlestick patterns. If you prefer oscillators over indicators, the relative strength index (RSI) and stochastics are also excellent choices.

 

Plan the exit trigger

👉 You must have a strategy for how to get out of the situation in case things go bad. The market might turn against you, resulting in losses that are incomprehensible to you at this point.

 

👉 Therefore, whenever you trade, you should always make use of stop-loss orders as well as take-profit orders.

 

Stop-Loss

👉 A stop-loss order is a limit order that reduces the risk of a transaction. It is any Nigerian trader’s closest friend if they want to stay in business and realize the earnings that are potentially available to them over the long run.

 

👉 Stop-loss orders provide most traders with a sense of security and peace of mind. However, they often do not put a lot of effort into the process by which they establish their stop-loss orders.

 

👉 The level of risk that traders are willing to take does not imply a rational stop-loss threshold. It is brought to light by the price activity in the market. Traders control their exposure to risk while maintaining breathing room for our trades by using stop-loss levels that are determined by price movement.

 

👉 Support and resistance levels as stop-loss orders and volatility stop-loss orders are the two basic approaches for locating stop-loss points by using price movement.

 

👉 In a perfect world, we would want the market to avoid our stop-loss point. Therefore, it makes sense to use support levels as stop-loss points when setting up long trading strategies.

 

👉 The same principle applies when determining where to place stop-loss orders for short trading setups based on resistance levels.

 

👉 Minor support and resistance may be seen in the form of candlestick patterns and bar patterns. When trading using price patterns, it is important to set your stop-loss order below (or above) the pattern.

 

👉 In terms of a Volatility Stop-Loss, the perfect stop-loss allows for some wiggle room in a transaction but still prevents it from being exceeded. Thus, what would an acceptable amount of room, or price range be?

 

👉 The answer is going to depend on how volatile the market is. Therefore, considering the volatility of the market price movement is another sensible way of determining where to place stop-loss orders.

 

👉 The Chandelier Stop is regarded as the prototypical illustration of a volatility stop-loss order. As a measure of the volatility of the market, it employs the Average True Range (ATR) indicator. After that, it sets a stop-loss order that is determined by a multiple of the ATR.

 

Take Profit

👉 The practise of “taking a profit” is one of the aspects of trading that is discussed the least. This is the usual progression of the learning cycle:

➡️ The trader believes that the trade entrance is the only important thing, and subsequently, they fail to establish take profit levels.

➡️ The trader exhausts their trading money and then realizes that they have neglected their stop-loss orders, which prompts the trader to start concentrating on their stop-loss orders.

➡️ When the trader watches his fake earnings disappear over and again, he becomes more agitated. Then and only then do they understand that while they have an exit strategy for transactions that are going against them, they do not have one for deals that are going in their favour.

 

👉 Unfortunately, a trader will never be lucrative if they do not know how to properly take profits. You can no longer afford to disregard this essential facet of the trading process as it will lead to great and unnecessary losses.

 

👉 Some of the best techniques that Nigerians can use for taking profits from their trade are:

➡️ Chart Pattern Target Projection

➡️ Fibonacci Extension

➡️ Past Swing Pivot

➡️ Parabolic SAR

➡️ Chandelier Stop

➡️ Reversal Signal

 

Define your risk exposure

👉 After you have determined the criteria for entering and leaving the market, you can next focus on reducing risk. Position sizing is the key method for accomplishing this goal.

 

👉 The amount of money that you are willing to risk in a certain trading scenario is directly proportional to the size of your position. If you increase the amount of your stake, you will subsequently also increase your risk, which is why you should closely monitor the size of your position.

 

Write your trading rules down on paper

👉 Your trading technique is straightforward at this point in the process. While you could commit the trading rules to memory, you should nonetheless write down the trading rules that you aim to follow.

 

👉 Having a trading strategy that is written down is a reliable approach for ensuring both discipline and consistency. Additionally, it offers a record of the trading method you use and when you are attempting to perfect it, you will realize that keeping a trading journal is especially important.

 

Backtest your strategy

👉 You may now backtest the approach once you have the rules laid out. Backtesting might be a laborious procedure if you choose a trading strategy that relies on your own judgement.

 

👉 You must record your transactions manually while replaying the price motion of the market. You could get through this step more quickly if you have prior experience with coding and a mechanical trading approach.

 

👉 However, Nigerian traders who do not have such expertise might utilize tools such as MetaTrader to back-test their approach by making use of a demo account provided by a forex broker.

 

👉 No matter how you choose to back-test your technique, going through each transaction one by one is an excellent method to hone your market sense and improve your trading results. Taking these steps could also assist you in producing ideas to enhance your trading approach.

 

Evaluate how you can improve your strategy

👉 You should not expect to make money with your first trading approach. However, this is not a problem since your trading strategy is a living entity and does not have a fixed form.

 

👉 Your trading strategy will continue to develop along with your experience and expertise as they expand. You can plan how you will enhance your trading strategy by using the feedback you get, and you should also put your trading technique through forward testing.

 

👉 In addition to this, you should make it a point to plan to keep detailed records of your market observations and transactions, as well as to maintain an organized set of chart pictures. In addition, you should avoid making sweeping adjustments to your trading technique.

 

 

👉 Remember that your goal is to obtain positive expectations with each transaction, not positive profits for each deal, even when the last stage seems like it may take and exceptionally long time to complete.

 

👉 However, you should never try to force your will on the market. Instead, you should always let the facts work for you.

How to choose the right Day Trading Broker in Nigeria

👉 Nigerian traders must evaluate the following components of an ideal day trading 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 Forex Brokers for Day Trading in Nigeria

👉 In this article, we have listed the best Forex brokers that offer suitable conditions for day trading for day traders in Nigeria. We have further identified the forex brokers that offer additional services and solutions to Nigerian traders.

 

Best Day Trading MetaTrader 4 / MT4 Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 0 / 0 NGN

Regulators

FSA, FCA, ASIC, DFSA

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

66

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, Axi is the Best Day Trading MT4 forex broker in Nigeria. Because Axi was created by traders for traders, Nigerians can expect tailored trading conditions and solutions.

 

👉 Axi offers MetaTrader 4 and provides both beginners and professionals with a demo account and several educational and research tools.

 

Best Day Trading MetaTrader 5 / MT5 Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 200 / 82900 NGN

Regulators

ASIC 

Trading Desk

Metatrader 4

Crypto

Yes

Total Pairs

65

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, IC Markets is the Best Day Trading MetaTrader 5 forex broker in Nigeria. As one of the few true ECN brokers in the forex industry, IC Markets is hailed for competitive trading conditions and superior trade execution speeds which are ideal for scalpers and swing traders alike.

 

Best Day Trading Forex Broker for beginners in Nigeria

👉 Overall, eToro is the Best Day Trading forex broker for beginners in Nigeria. eToro is the leading social trading platform for day traders in Nigeria. eToro offers Nigerians versatility and innovation with the benefit that traders do not pay any commission fees on trades.

Best Low Minimum Deposit Day Trading Forex Broker in Nigeria

👉 Overall, HF Markets is the best Low Minimum Deposit Day Trading Forex Broker in Nigeria. HF Markets is one of the most popular brands in Nigeria because of the low minimum deposit requirements on accounts.

👉 HF Markets offers unlimited access to several markets and allows Nigerians to participate in several trading strategies, including day trading.

Best Day Trading ECN Forex Broker in Nigeria

👉 Overall, IG is the Best Day Trading ECN forex broker in Nigeria. IG uses some of the most sophisticated trading technology and innovations to offer Nigerians true ECN execution across assets. Nigerians can trade more than 18,000 instruments using any type of trading strategy with IG.

Best Islamic / Swap-Free Day Trading Forex Broker in Nigeria

👉 Overall, InstaForex is the best Islamic / Swap-Free Day Trading forex broker in Nigeria. There are more than 7 million registered traders who use the dynamic trading accounts offered by InstaForex. Nigerian Muslim traders can expect the best trading conditions and over 300 tradable instruments.

Best Day Trading Forex Trading App in Nigeria

👉 Overall, FOREX.com is the Best Day Trading forex trading app in Nigeria. FOREX.com has more than 200,000 active traders.

👉 Nigerians can use the proprietary FOREX.com app to day trade while they are on the move. FOREX.com also offers a proven execution scorecard for the best trade execution speeds for day traders.

Best Day Trading Naira Trading Account Forex Broker in Nigeria

👉 Overall, Exness is the Best Day Trading Naira trading account forex broker in Nigeria. Exness offers high leverage along with the benefit that negative balance protection is available. Exness offers an NGN-denominated account and is a proud MetaTrader 4 and 5 broker.

Best Lowest Spread Day Trading Forex Broker in Nigeria

👉 Overall, XM is the best lowest spread Day Trading forex broker in Nigeria. XM charges zero-pip spreads and applies negative balance protection on accounts. There are several accounts to choose from and XM does not limit Nigerians on trading strategies.

Best Nasdaq 100 Day Trading Forex Broker in Nigeria

👉 Overall, AvaTrade is the best Nasdaq 100 Day Trading forex broker in Nigeria. AvaTrade charges fixed spreads of 0.9 pips EUR/USD. With fixed spreads and transparent fee schedules, it allows Nigerians to calculate their trading costs accurately.

👉 Nigerians have unlimited access to over 1,250 tradable instruments that include Nasdaq 100 as a CFD.

Best Volatility 75 / VIX 75 Day Trading Forex Broker in Nigeria

👉 Overall, Pepperstone is the best Volatility 75 / VIX 75 Day Trading forex broker in Nigeria. Hailed as one of the largest STP and ECN brokers, Pepperstone offers Nigerians unlimited access to indices CFDs such as VIX.

👉 Pepperstone provides award-winning customer support along with low latency, ideal for day trading.

Best Day Trading NDD Forex Broker in Nigeria

👉 Overall, FP Markets is the Best Day Trading NDD forex broker in Nigeria.

Best Day Trading STP Forex Broker in Nigeria

👉 Overall, OctaFX is the Best Day Trading STP forex broker in Nigeria. OctaFX supports a range of trading strategies and applies negative balance protection to retail accounts. Nigerians can expect tight spreads and market execution under 0.1 seconds per trade.

Best Day Trading Sign-up Bonus Broker in Nigeria

👉 Overall, FBS is the Best Day Trading sign-up bonus broker in Nigeria. FBS serves traders in 190 countries worldwide. FBS offers a choice between sign-up bonuses on all trading accounts. FBS offers social trading and accepts most trading strategies.

Conclusion

👉 Nigerian traders in the foreign exchange market are charged a small amount of money for every currency pair they purchase or sell. The spread is what they will earn or pay on a transaction, and it is important to know the diverse types of spreads that Nigerians can expect.

 

👉 In addition, Nigerians must know what affects the spread and which strategies they can use to harness high and/or low spreads in the forex market.

FAQ

What is the best spread in forex when trading in Nigeria?

Typically, the ideal spread is 0.0 pips where traders are only required to pay a small commission to cover the broker fee for facilitating the trade.

 

Why are spreads so high?

Spreads are influenced by several factors including liquidity and volatility. When there is high liquidity, it translates to higher trading volumes and narrower spreads. The opposite is true when there is low liquidity as it means lower trading volume and wider spreads.

 

How do you reduce the spread when trading in Nigeria?

Make sure that the broker you choose is transparent with their prices. Choose the right currency pair to trade and trade when the markets are busiest. For instance, trading EUR/USD between 2 pm and 6 pm local time in Nigeria.

 

During this time, the New York and London sessions overlap, and the forex market is at its busiest, which means high liquidity and lower spreads.

 

What time does the forex market open in Nigeria?

In Nigeria, the forex market opens at midnight with the Asian Session, which remains open until 9 am local time in Nigeria. The London Session opens at 9 am in Nigeria and operates until 5 pm local time. The New York forex session opens at 2 pm in Nigeria and it closes at 11 pm local time.

 

Is forex trading profitable in Nigeria?

Yes, forex trading can be an extremely lucrative activity in Nigeria. However, profitability goes accompanied by skills, knowledge, and experience that have been built up over years. While the forex market is profitable, it is not a get-rich-quick-scheme.

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