There are many reasons why traders choose to trade the forex market. For example, some may choose it for its market access, high trading volumes, and low transaction costs. Others may choose it for its high volatility, and its high potential for profit. In this article we look at the forex market in Nigeria in particular, and the latest facts about local market trends.
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, where the Nigerian Naira (NGN) is often traded against the US Dollar.
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 AMarkets. 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.
Although cryptocurrency trading has been pretty hyped up over the past few years, forex trading remains the more traditional and time-tested way to earn money on the financial markets. As we can see, forex trading is still very popular in Nigeria and, thanks to great forex brokers like AMarkets, it’s now easier than ever for traders in Nigeria to earn money trading forex.