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.
Importance of Reliable Software
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
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.
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.
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.