Across the world, the rising interest in the Forex market trading has evolved to become a significant driver in the financial sector. Nigeria is no exception to this.
The international Forex broker OctaFX produced a report that discusses the Nigerian Forex trading market, its opportunities, and scams. This report examines the state of Forex trading in Nigeria, focusing on the threats to mainstream participation in it and the ways to avoid them. The dedicated white paper also presents measures to facilitate effective trading decisions, developed by the global Forex broker OctaFX.
Speaking on the launch of the report, the OctaFX press office stated,
‘We decided to conduct this extensive research to learn about the difficulties our clients—and traders in Nigeria in general—face when entering the market. This served as an effort in line with the philosophy of our rebranding, highlighting the focus on our clients' goals as our mission. One of the greatest barriers to Forex trading for new traders are scams. This barrier blocks the way to numerous opportunities of the market. We hope that the report will help both novice traders and more experienced ones, as well as those who are afraid of entering the Forex market yet.’
According to a 2021 report, there are approximately 300,000 retail Forex traders in Nigeria, and there has been a substantial rise (46%) in female traders over the past couple of years. In Nigeria, trading in the Forex market reached an all-time high of 300% growth in March 2020.
Nigeria's internet penetration also supports this growth. This growth in the momentum is considerably due to increased mobile penetration in the country and growing interest from the youth population in Nigeria. There are approximately 84 million internet users in Nigeria, and this figure is estimated to reach 117 million by 2027.
Although given the lucrative nature of Forex, a pool of traders have a minimal level of experience and knowledge. According to the survey by OctaFX, traders in Nigeria were 65% more likely to select a trading platform with tutorial materials and educational resources.
However, fraudulent offers are mostly received via emails, advertising, blogs, and influencers. For instance, according to the survey by OctaFX, 41.9% of the total number of respondents fell prey to fraudulent offerings because of the promise of easy money.
Read more in the report that is now available for download here.
OctaFX is a global broker providing online trading services worldwide since 2011. The company is involved in a comprehensive network of charity and humanitarian initiatives, including improving educational infrastructure, short-notice relief projects, and support of local communities and small to medium enterprises. In Nigeria, it managed to capture the ‘Best ECN Broker’ award by World Finance and the ‘Best Forex Broker Nigeria 2022’ award by Global Banking and Finance Review.