Forex and trading industry with its growing exposure attracting more and more investors, enthusiasts, and those who just might be interested with its great and very promising opportunities to become a trader or simply to invest into trading.
While trading itself has no borders, particular jurisdiction and obligation towards only one country laws, it undergoes its ‘boom’ in popularity among investors from all over the world. And Nigerians among other Africans appealed to its rows even greater, making Nigerians #1 investors. So let us see here in detail why it is the case, and what is so interesting in trading that it attracts so much into its investment proposal.
Is Nigeria a rich country?
First of all, Nigeria is an African country which is on a second place of the population number among Africans and is officially developed as one of the largest Africa’s economy while relies on upon and directs its investments mainly at the Oil and Gas.
Being a reasonably large country with a large population, Nigeria naturally generates some of the greatest parts in its revenue from energies, which is quite objective since the majority of successful world economies and governments harvests a big portion of earing from this sector.
However, the second main source of Nigeria’s income is Foreign Exchange with expanding financial and technological basis. That was a successful outcome after the 2008 global financial crisis, while Nigeria effectively enhanced its regulations and reshaped its banking segment that drove growth in major sectors including agriculture, services and others.
Even though, Nigeria’s quite strong position and promising figures still consider Nigeria as a middle-income country, yet with effectively high poverty levels, marking over 62% under extreme poverty living conditions.
Why Nigerians are #1 investors
Eventually, the first category which seeks for investment opportunity is those individuals, businessman or companies that already generate sustainable income and looking for liquidity or more opportunities. The second group goes to retail or relatively small size investors that would like to create a passive income or somehow to transform its savings to better possibilities.
That is obvious, that to engage into trading or investing, you should have some capital in order to start, and it is achievable only in case there are spare money. It is, unfortunately almost never a case of the extreme poverty population that most of the time spending for living all its income, despite lack of access to technology even a simple one which requires at least a computer and internet connection.
Therefore, it is logical why Nigerians are Africa’s #1 investors, as being on relatively better living conditions and economy figures compare to its other African neighbours, Nigerians are somehow a step forward since they can look for greater possibilities and magnify income further.
Trading or investing opportunities for Nigerians
Despite, all-natural and obvious conditions, personal motives or so, there are other few reasons why Nigerians investments increasing day by day. One of the main motives is that Forex and investment business undergo its great expansion while being already well-established in Europe, across Asia, the Americas and other regions. Now Forex, investment and trading becoming more achievable, accessible and comparatively easy for signing in even to a very regular Nigerian or African resident.
Therefore, Africa and Nigeria itself attracting numerous well-established, known and developed brokerage firms that expanding beyond, and indeed many of them opening representative offices in Nigeria and other African countries.
• Forex Brokers started not the only popularization of the investment activity itself in a number of African countries, but also invest heavily in education by organizing seminars, webinars and support courses
• In reverse, Brokers offering great possibilities for a population in the field of trading and investing allowing to pen account and trade with relatively small deposit requirements and available for beginners
Is Investment or trading safe?
Nevertheless, together with great proposals, there are always traps, as in the world of trading you should definitely trust only well-regulated and established brokers, like FXTM, Trading 212, CMC Markets. Otherwise, there are too bad and too many scammers around, especially targeting those investors that lack information and financial education.
Along with the inconsistent regulatory environment of Nigeria and the number of African countries, as long as a financial investment is still a new area for them, there are security risks that limit quality investments.
Yet, the good news is there are many brokers that are the one to be trusted, as the mainstay on a solid background, serving thousands of successful traders or investors worldwide and offering some well-established trading proposals. Consequently, there is a great need to rely only on the safe regulated company, reliable information and faithful trading conditions.
Trading and investing opportunities offering thousands of proposals including day trading, manual trading social trading and other fantastic abilities, yet require good understanding as well. Due to the high risks involved always make sure to learn how markets and Forex work, also recognize its risks as a priority before you start investing.
Although with current post-COVID-19 crisis conditions and its impact on high volatility Markets it might not be the best idea for the very beginners, so we recall your attention to smart management of risk to lose as well.
Indeed, potential investment success always walks together with quality knowledge, those who understand markets deeply and having information has much greater gaining opportunity. Trading assets are complex instruments and it is necessary to place your strategy at a test with Demo Trading as well, and of course, trading through only well-regulated brokers.