Forex rules in nigeria lagos

The slowness is said to be intentional due to the rationing caused by FX scarcity. He mentioned that the CBN had tested a few strategies that were ineffective or abortive outright, one of them being the e-invoicing platform for import and export businesses to upload digital invoices so the apex bank could monitor logistics. Nigerian banks cut dollar spending limit for naira debit cards Another strategy was the engineered devaluation of the naira against the dollar so that demand for dollars would be unappealing, thus driving it down.

According to Aja, this strategy is hurting the foreign reserve since the CBN continues to leverage it to sell at the discounted official rate. Aja said the statement would only cause a scare in the minds of individuals and business owners who need FX for transactions. The airline operators also accused the authorities of International Air Transport Association IATA of favoritism in the implementation of policy and regulations, alleging that foreign airlines had barred Nigerians from using debit cards to pay for tickets.

It cannot be a one-sided thing. So, we can give ourselves some time so that once you go back to status quo, we will also at this point look into how you can repatriate or how you can get your funds. You did say about an hour ago that yes, under BASA law, they are not allowed to sell foreign currency. So, the question is whether BASA or CBN law, having heard that, let me still maintain my very soft punch to the airlines, please talk to your guys out there that you are breaking the CBN regulations.

Once that is done, it gives us more motivation to try and assist. They know that. Why should they do that? As an operator, as a business man, if you have your money blocked in a system for over a year or two years, will you continue to expose yourself for further money to be blocked?

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While brokers have to get a license, there is no regulatory authority in Nigeria that is concerned with Forex trading, unlike some other countries , including the United States. The Central Bank of Nigeria is the official institution that regulates financial markets, but it is mostly concerned with banks and other large institutions and pays little attention to online retail trading.

The Securities and Exchange Commission is another regulatory body that is established to develop and regulate the capital market. But it warned back in that Nigeria does not have regulations for online retail Forex trading: The public is hereby advised that online retail forex trading is currently unregulated and consequently may be subject to abuse.

But there has been no word from it since then, and it is even unclear whether the group still exists. The lack of regulations can have some advantages for Nigerian Forex traders. For example, brokers are not limited to what they can offer to traders. Regulators in other countries can limit the leverage brokers are able to offer or ban trading of CFDs contracts for differences.

In Nigeria, brokers can freely offer CFD trading and provide leverage as high as Additionally, the lack of regulations can attract a large number of brokers to Nigeria, which can potentially result in a higher competition and better terms for traders. But there are inherent dangers associated with the lack of regulation as was said in the warning message from the SEC mentioned earlier. Unregulated markets attract scammers and fraudsters, making such markets dangerous and unappealing to traders.

That is why professional Forex traders advise choosing brokers that are regulated in some other countries that have official institutions concerned with regulating Forex markets. Many experts talk about the importance of having a regulated Forex market in Nigeria. There is a chance that things will change in the coming years, and Nigeria will establish a regulatory authority that will make the Forex market safer for traders.

But for now, the Forex market remains unregulated in Nigeria, and traders should be cautious when they are choosing a Forex broker to which they trust their money. Problems Forex traders may face While trading on the Forex market can be a very lucrative endeavor, it has its own dangers that prospective traders should be aware of.

Here are some of the potential issues a new trader can face: Scammers and dishonest brokers — one of the biggest problems a Forex trader, especially an inexperienced one, can face. Try to find an established and reputable broker, preferably one that has a registration in a country with a regulated Forex market. You can find a list of recommended brokers at the end of this guide.

Lack of knowledge and experience — another significant problem many new Forex traders experience. Learn as much as you can about Forex trading before you start participating in it yourself. Try trading on a demo account before risking real money on a live account. You will find more information on what a demo account is when we will discuss how to start trading on Forex. Losing all available money — Forex trading is a very risky business that has a high chance of failure.

You should invest in Forex trading only the money you are ready to lose. Following strategies of other traders blindly — this involves listening to advice you find on the Internet without analyzing it, using robots and expert advisors without knowing how they work, and using strategies that you find online, in a book, etc.

You need to understand what you are doing, otherwise, it is extremely likely that you will lose your money. Poor risk management — you need to understand what the risk of every trade you make is and whether the potential profit warrants that risk. You need to risk only a certain preferably small percentage of your overall capital on every trade and learn what is a stop-loss and how to use it to limit the risk. Overtrading — learn not only when to trade but also when not to trade.

One important lesson every Forex trader needs to learn is that you should not trade just to trade. Trade only when you are fairly certain that market conditions are working in your favor. If you are in doubt, leave the market and wait for another opportunity. Also, set a profit objective and do not be too greedy. Not understanding the terms and rules of your broker — every broker has its own terms and rules that you need to learn before doing business with that broker.

Learn what the fees and spreads are, what the minimum deposit is, whether the broker allows keeping overnight and over the weekend, if you can trade around important news, how and when you can withdraw your funds, what are the payment methods, etc. How to start trading Forex in Nigeria To start trading Forex, you need to follow the steps listed below: Ensure that you have a stable and fast Internet connection — to trade Forex you need an online connection.

While in theory you can trade Forex regardless of the quality of your Internet connection, in practice you may encounter situations when you need to act fast. You do not want to pass a golden opportunity or to suffer losses because your Internet connection is slow or you lost connection.

Learn about Forex — you need to learn basics at the very least before start trading. But to be a successful trader, you need to learn much more than basics. We have a lot of guides and other educational material for you to read. Find a good broker — you need to find a broker that has a good reputation and offers terms that are acceptable to you. Read terms and conditions on the broker's site.

If some important details seem unclear or absent, that can be a reason to be suspicious of the broker. Read reviews online. Check whether the broker is registered with regulatory authorities in the countries where the Forex market is regulated. Or just see the list of good brokers at the end of this article and choose the one that looks the most appealing to you.

Open an account with the broker of your choosing — go to the broker's site and open an account, providing all the information required. Download a trading platform — you need a software to trade on Forex. The most popular programs for trading are MetaTrader 4 and MetaTrader 5 but you need to check with your broker what platforms it offers. Choose your strategy — there is basically no chance of earning a profit if you do not have a solid trading strategy.

You can find a plenty of strategies online including our Strategies section or you can devise it yourself. Remember: you need to understand the strategy before employing it! Test your skill on a demo account — do not risk real money immediately.

This may be partially attributed to the fact that it is still a relatively new phenomenon that is steadily becoming popular amongst citizens. Forex trading in Nigeria is regulated by the Central Bank of Nigeria, and brokers are required to meet certain requirements in order to trade on behalf of their clients.

Moreover, earnings from trading activities are taxable in the country , and thus, must be declared accordingly in order to avoid finding yourself on the wrong side of the law. Similarly, stock trading in Nigeria is also governed by certain guidelines and getting started is reportedly a process that can be completed within two days.

Upon completing this process and submitting the required documentation, one can start investing and trading in the Nigerian Stock Exchange NSE , which reportedly boasts approximately listed companies. Given the growing interest in stock trading , it is important to note that it also comes with its fair share of trading and transaction fees, which one must familiarise themselves with. Forex currency pairs and trading hours It goes without saying that as a Forex trader or broker, one of the key things is to understand currency pairs and establish which are the most actively traded.

This particular pairing is one of the major Forex pairs, which is attributed to it offering minimal bid-ask spreads and it being described as a liquid pairing. Its volatility is also a draw card for many traders, as this means that any sudden changes can be capitalised on.