Although cryptocurrency trading has been pretty hyped up over the past few years, Forex trading is a more traditional, time-tested way to make extra money in the financial market, and it’s still popular in Nigeria as well. More and more people around the world are looking for additional sources of extra income that would allow them to make money online.
The Forex market is the largest financial market in the world, which means that it’s extremely liquid. Greater liquidity means lower transaction costs. This is what makes Forex so attractive to both novice and professional retail and institutional traders. Besides, trading in the foreign exchange market is carried out 24 hours a day, five days a week which opens up unlimited trading and profit-making opportunities.
Forex Trading Stats
The global forex market is worth $1,934,500,000,000 (which is $1.93 quadrillion!). More than $5.3 million are traded in this market every day. Over 85% of the foreign exchange transactions involve 7 major forex currency pairs – EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/CHF.
The US Dollar is the world’s most traded currency and also the world’s primary reserve currency. About 90% of all Forex transactions involve USD, even in Nigeria, with the Nigerian Naira (NGN) traded vs the US Dollar.
Forex Trading Software
Traders on the forex market in Nigeria prefer MetaTrader 4, a trading platform popularized by many traders and brokers across the globe. In second place is its newer and advanced version – MetaTrader 5. Both of these trading platforms are extremely popular because they have a user-friendly interface and offer various tools and indicators that allow you to perform advanced trading transactions and market analysis.
Roughly 35% of traders opt for brokerage firms that offer mobile trading applications, such as A Markets. Most traders prefer Android over iOS. Android supports more devices than iOS. For your mobile trading platform to run seamlessly, you need to have a powerful processor on your phone. The most popular phones among traders are Samsung and Huawei phones.
At the moment, there are about 300,000 active retail traders on the forex market in Nigeria. A substantial rise was registered in female traders, with 46% more women who opened trading accounts last year. Still, women account for only 10% of all traders around the world, 89.1% of all traders are men. More young people (between the ages of 25 to 34) become interested in the financial markets industry.
Nigeria Foreign Exchange Reserves
As of January 2021, Nigeria Foreign Exchange Reserves was measured at $36.3 billion versus $35.4 billion in December, which indicates a significant growth of Forex trading volumes in Nigeria.