Connect with us

Industry News

Which Forex Trading Platform to Choose In Nigeria

In Nigeria, The Forex industry is more robust than ever. COVID-19, detrimental to the economy, has also spurred digitization. As lay-offs continue and incomes shrink, consumers are exploring new methods of earning a living. Forex trading platforms allow them to work from home, as the market is always reachable.

In Nigeria, The Forex industry is more robust than ever. COVID-19, detrimental to the economy, has also spurred digitization. As lay-offs continue and incomes shrink, consumers are exploring new methods of earning a living. Forex trading platforms allow them to work from home, as the market is always reachable.

The foreign exchange is the largest financial market in the world. Its daily turnover is spectacular — over 6 trillion US dollars daily. This is how much traders — institutions and individuals — exchange. Thanks to modern technologies, it is now at your fingertips. Here are a few tips to help you choose the best Forex platform in the region.

Essential tips to help you choose a Forex platform in Nigeria


Essential tips to help you choose a Forex platform in Nigeria

Importance of Reliable Software

#left5::before{
content: “AD”;
font-size: .6em;
text-align: center;
display: block;
color: #bfbbbb7d;
}

A trading platform is a comprehensive system that connects you to the market. Most popular versions can be used on any device. Clients may install software on their computers, and apps on smartphones or tablets. There are also web-based versions that work straight in popular browsers. For example, MetaTrader 4 and MetaTrader 5 work on Windows, Mac, Android, and iOS devices.

A terminal is the main element of a trader’s arsenal. This is where all trades are executed. The best systems are equipped with tools for different methods of analysis. Users can deduce the likely direction of the market by looking at price charts, technical indicators, the latest news, etc. These help them see the best entry points for profitable positions.

Smooth performance of the platform is crucial. Technical glitches and delays may cause unexpected results. The best systems are also compatible with VPS (virtual private servers), which prevents the negative effects of power outages and system crashes. Their features help traders at every stage, from preliminary analysis to the withdrawal of profit.

Overview of Products

Brokers may recommend standard platforms or their proprietary solutions. For example, the ForexTime company has developed its own FXTM Trader app. MetaTrader 4 and MetaTrader 5 are generic choices, and they have been the industry favourites for many years. Here is what the best software can offer.

Demo and Live Mode

Trusted brokers allow clients to learn trading for free. They register demo accounts which unlock terminals in their simulation mode. This way, users can familiarize themselves with the features before putting any money at stake. It is advisable to practise without haste, as mistakes in live trading can be costly.

When used in the demo mode, platforms imitate real market conditions. You can see how trades are opened, managed, and executed. Analyse price charts, play around with time frames, zooming and scrolling. This is a perfect opportunity to learn! The demo is a free feature of the best Forex trading platforms in Nigeria.

Adjustable Price Charts

Traders can rely on different time frames. Some strategies are focused on short-term changes, while others are long-term. For example, MetaTrader 4 has 9 different time frames for each instrument. You can examine its dynamics over different periods — from one minute to one month.

Risk Management Tools

#left16::before{
content: “AD”;
font-size: .6em;
text-align: center;
display: block;
color: #bfbbbb7d;
}

Traders should set Stop Loss for every single trade. This allows them to limit risks, as trades are executed automatically at a predetermined price. They may also collect desired profit using the Take Profit option. Both parameters must be easy to set.

Technical and Fundamental Analysis

These are two possible avenues of market research. Traders may base their predictions on news events (fundamental analysis) or price patterns (technical analysis). Both groups need real-time quotes and special aids to make decisions. These must be accessible via trading platforms.

Those who look at fundamentals need instant access to news that relates to their currency pairs. Both economic and political events may sway exchange rates. Top systems provide push notifications, so you don’t miss good moments for entry.

Technical analysts rely on special indicators and past price data. MetaTrader 4 has 30 technical indicators and 24 analytical objects: lines, geometric shapes, channels, Gann, Fibonacci and Elliott visuals, etc.

Essential tips to help you choose a Forex platform in Nigeria


Essential tips to help you choose a Forex platform in Nigeria

Range of Instruments

Forex platforms allow you to trade Major, Minor, and Exotic currency pairs. The range of instruments depends on the broker and type of your live account. Some systems, such as MetaTrader 4, are perfect for currency traders. Other, more advanced options, such as MetaTrader 5, facilitate the management of diverse portfolios. Traders may add more instruments, such as stocks, derivatives, and precious metals.

#left24::before{
content: “AD”;
font-size: .6em;
text-align: center;
display: block;
color: #bfbbbb7d;
}

A Word of Caution

Nigerians are advised to work through international brokers, as these companies are authorized and monitored by reputable watchdogs like the CySEC or the FCSA. The local market lacks regulation, and the scam is not uncommon.

Continue Reading
Advertisement

Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

Continue Reading

Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

Continue Reading

Financial News

Africa’s first Fairtrade certified gold co-operative offers hope to gold miners living in poverty

Syanyonja Artisan Miners’ Alliance (SAMA) has become the first artisanal small scale mining co-operative in Africa to become Fairtrade certified, bringing much needed hope to impoverished communities who risk their lives to mine the rich gold seam that runs around Lake Victoria.

SAMA is one of nine previously informal groups from Uganda, Kenya and Tanzania which has benefitted from a pilot project launched by Fairtrade in 2013. This innovative program aims to extend the benefits of Fairtrade gold to artisanal miners across East Africa.

In that short time, SAMA has undergone training in business and entrepreneurship, as well as safe use of mercury, internal control systems, labour rights and better working conditions, health and safety and more. Previously, daily contact with toxic chemicals used to process gold meant members risked disease, premature births and even death.  Fairtrade gold was first launched in 2011, and SAMA now joins Fairtrade certified gold mines MACDESA, AURELSA and SOTRAMI in Peru.

The co-operative produces just 5 kg gold per year, but nevertheless has the potential to significantly benefit many people in the local community through better conditions through certification. It is expected that Fairtrade and organizations like Cred Jewellery will support the miners, ensuring their gold can be refined and made available to jewellers in the UK and other markets.

Gonzaga Mungai, Gold Manager at Fairtrade Africa said: “This is a truly momentous and historical achievement and the realisation of a dream that is many years in the making. Gold production is an important source of income for people in rural economies. Congratulations to SAMA, it sets a precedent which shows that if groups like this can achieve certification, then it can work for others right across the African continent.”

The Fairtrade Gold Standard encourages better practice and changes to come in line with international regulation around the production and trade of so-called ‘conflict minerals’. Under the Standard, miners are required to:

  • Uphold a human rights policy preventing war crimes, bribery, money laundering and child labour
  • Clearly represent where the minerals were mined
  • Minimise the risks of conflict minerals through robust risk assessments and collaboration across supply chains
  • Report to buyers and trading partners regarding the risks of conflict minerals

Now in its second phase, the programme will focus on supporting other mining groups in the region to access affordable loans and explore a phased approach to accessing the Fairtrade market, allowing more mining co-operatives across Africa to participate in the programme.

Gonzaga added: “Sourcing African metals from smallscale miners in the Great Lakes Region is the responsible thing to do. For a long time companies have avoided buying gold from this region, with devastating consequences for impoverished communities who were already struggling. It has driven trade deeper underground, as unscrupulous buyers pay lower prices and launder illegal gold into legitimate supply chains. That’s why we have chosen to work with these groups to help them earn more from their gold within a robust compliance system that offers social, environmental, and economic protections.”

The Fairtrade gold programme offers a small but scalable solution to sustainable sourcing of gold from the region in line with Section 1502 of the Dodd-Frank Act in the US, OECD Due Diligence Guidance and recent EU Supply-Chain Due Diligence proposals which could come into effect in 2016. This means that up to 880,000 EU firms that use tin, tungsten, tantalum and gold in manufacturing consumer products could be obliged to provide information on steps they have taken to identify and address risks in their supply chains for so-called ‘conflict minerals’.

Continue Reading

Trending