He said to me, “ Do you know that the federal government has also banned forex trading?… He continues, “They have banned cryptocurrency, and now forex trading. These are the major ways the boys seem to earn money legitimately despite the economic situation” he said.

From his countenance, I could feel his pain. I saw a man who had lost hope because of the information he had received. 

Moreover, the internet is redolent with questions like… Is forex trading banned in Nigeria? Is OctaFX banned in Nigeria? Is Forex still working in Nigeria?… And the list of questions goes endless. The desperation is strong in the air, and uncertainty is strong. 

And before you panic, seek to know what has happened, and seek to know what they meant by Forex being banned in Nigeria.

This article seeks to clear the uncertainties and fears about the date of Forex trading in Nigeria. Here you will find all you need to know to make an informed choice.

What has happened in recent times?

In other to stem the continuous depreciation of the naira, the Nigeria Apex Bank has sought to initiate and implement several measures. The most notable was the banning of cryptocurrency exchanges by the NCC.

On that note, several crypto exchanges were affected, the likes of Binance, ForexTime, Crypto, FXTM OctaFX, coinbase,  and a list of others.

It said that the government in collaboration with regulatory bodies decided to move against Binance and other crypto exchanges due to reports that currency speculators and those laundering money were using them to execute fraudulent activities. The government have made it clear that these  so-called criminal activities going on on crypto platforms are helping to depreciate the naira

But again, what does this have to do with Forex trading, and how does this mean Forex has been banned in Nigeria? But before making your conclusion, he is another side to the fear of many.

It was reported a month ago that the EfCC raided those selling forex in the street in Lagos. Again, does this constitute the banning of Forex in Nigeria? And here is all you must know below. 

The Truth about the  Fate Forex in Nigeria

When it comes to forex trading in Nigeria, there has never been any legislation, policy or regulation for or against it. Again this means as a Forex trader, you do that at your own risk as there is no law backing you up or prohibiting you from doing such.

But then coming to the news of the government banning Binance, OctaFX and other exchanges, the average Forex trader needs to be concerned. 

But here’s the truth. Binance and most of these popular exchanges are also Forex brokers,  so banning them in Nigeria means a ban not just for those trading crypto, but also for those using them as Forex brokers But the good news is that while these exchanges might be popular, many other Forex brokers were not banned.

Then, talking about the news of the EfCC clamping down on forex traders on the street, this refers to those selling dollars on the black market, who are not recognized by the government. These are measures to mitigate the further falling of the naira.

Having said this, it will interest you to know that Forex trading itself was never bound. And there is no legislation or policy prohibiting the online trading of forex in Nigeria. And with some of these popular exchanges banned, there are a host of other brokers one can use as a trader.

List of trusted forex brokers

Deriv

In Nigeria, Deriv is the leading and number one forex broker. Deriv is a cutting-edge online trading platform that has over 1,000 trading instruments in forex, stocks, indices, commodities, and synthetic indices. Deriv uses an intuitive platform, advanced tools, and security protocols, allowing traders from around the world to trade over 100+ major, minor, and exotic currencies. They are regulated by the Malta Financial Services Authority (MFSA) and the Labuan Financial Services Authority (Labuan FSA), allowing you to trade with safety and ease.

Exness

Exness is a global financial forex broker that provides access to trading various financial instruments including Forex pairs, CFDs on Stocks, Indices, Commodities and Cryptocurrencies. The broker was founded in 2008 and since then, it has attracted clients from all over the globe. Exness has an estimate of more than 1.8 registered customers.  

HotForex

This list of forex brokers in Nigeria includes HotForex as the primary low-cost broker. It is the perfect option for local traders because it has offices around the nation and offers local service. It is highly regulated; some of the regulatory bodies that keep a watch on HotForex are the CySEC, the FSCA in South Africa, and the FCA in the UK.

VT Markets

Sydney, Australia is home to VT Markets, a multi-asset broker. The broker has been in the business for over ten years, and leading regulatory agencies including ASIC, the UK’s Financial Conduct Authority, and the Cayman Islands Monetary Authority (CIMA) closely monitor it. Serving over 70,000 client accounts, VT Markets is an international company. with trading deals of around $100 billion every month.

XM

Established in 2009, XM is a highly regulated broker within the Forex market, providing CFD trading on a variety of assets including shares, commodities, stocks, equities, precious metals, and energy. A large selection of CFD assets accessible on the MT4 and MT5 platforms, low trading costs, swift execution, and a multitude of account options are just a few of XM’s well-known features. Algorithmic trading, scalping, and hedging are all allowed.

Conclusion

While the government seek to curtail money laundering and the free fall of the naira, they have sought to implement several measures. Ban on some of these exchanges are some of them. But there has never been a time when forex trading itself was banned. It will interest you to know that not only individuals trade forex. Retail trading of forex is just a minute fraction of the Forex market. The major traders of the forex, which are called the whales are the commercial banks, multinational companies and a host of others. 

How do I begin Forex as a Nigerian

Trading Forex as a beginner may seem vague, but if you’re willing and determined, you may learn the several steps that will be required to start Forex trading in Nigeria. The first step you must take is to learn the basics of Forex. Then find a Forex broker in Nigeria. You can choose one from the list above. After you have chosen a broker that suits you, you may continue by depositing funds. Having deposited funds and created a live trading account, you should then download a trading platform and start opening and closing trading positions. Getting started in Nigeria is simple, but profiting from the trade consistently requires that you master the act.

However, one will suppose that by these metrics, the average Nigerian should be living a modest life in all ramifications. But the situation in Nigeria and for Nigerians has proven to be to the contrary. Nigeria’s currency, the naira is currently in a quagmire and has experienced an astronomical fall against the dollar in recent years. 

However, this year alone, the forex market has experienced a volatility that has never before seen. thanks to the floating exchange rate that was implemented by the Tinubu regime which has made the dollars depreciate at a very spontaneous rate.

This problem and its cumulative effects owe its root to the dollar deficit in Nigeria, which again is caused by several factors, among which are the depletion of our forex reserve, fall in oil revenue, corrupt practices in the government and among corporate entities, and over-dependence on the dollar.

The American dollar is in high demand, scarce, and difficult to get by. And by simple economic principle of demand and supply, the naira will continue to fall rapidly against the dollar unless this deficit is curtailed, and the dollar is brought in abundant supply in circulation.

But how do we solve this forex deficit, and how do we make the dollars to be in abundant supply in Nigeria?  What policies do we implement and what measures must be put in place to ensure a smooth and steady appreciation of the naira? 

This article provides true and tested methods and recommendations on how the forex deficits and all their effects can be mitigated.

A brief history of the Nigeria forex policies

It will interest you to know that the naira has struggled against the dollar since the 80s. Before the General Ibrahim Babangida (IBB) era, the naira was about 90 kobo to 1 dollar, but by the time he left office, it was exchanged for N17 t0 $1. 

This coincided with the era when Breaux de change was introduced.

The fact remains that for every successive administration that existed, and no matter the policies that were initiated by CBN of that administration, they have always left the naira worse than they met it beginning from 2003, the oil prices began to rise, and its peak was in 2008 when the price was at $140 per a barrel. This was the time of Chukwuma Soludo as the CBN governor under President Olusegun Obasanjo. This was the oil boom and it was also the period the naira gained about 20 percent against the dollar, without any intervention.

However, it is worth stating that when Soludo took office, the naira was trading at N127 TO $1, and by the time he left office, it had fallen to N147And by the time Godwin Emefiele left office in 2023 as the CBN governor under Buhari administration, the naira has been devalued to about N500 to a dollar. Today, with the introduction of the floating exchange system, the naira now stands at about N1500 to the dollar. 

The naira is experiencing a free, astronomical fall until something drastic is done about it.

Also Read: How to make money from forex trading online

The solution to the forex deficit in Nigeria

Having stated the obvious, we must not shy away from the fact that these seeming challenges have solutions. Let’s examine some of them, and I hope the government and the citizenry will work together to implement these recommendations

1. Increase the forex reserve in the event of oil boom

One of the reasons for this deficit in the forex is the fact that we have little or almost nothing in our reserve. The forex reserve ought to serve as the last resort to mitigate any forex scarcity. But because of the lack of discipline and corruption that has eaten into the fabric of governance, our foreign reserve has been so depleted.

Again, during the oil boom, we ought to have saved more in our forex reserve, but rather, we increased spending and inflated the cost of governance. The time of the oil boom as experienced in the Obasanjo regime ought to be a period of saving and prudent spending.

2. Initiation and implementation of policies that will drive indigenous production

Nigeria, with a population of over 200 million people can be so prosperous if we can turn the tide and become a production-based economy. As such, to curtail the dollar deficit, the government to look at areas where imports must be discouraged and implement policies that will drive the production of locally made goods. This will drastically reduce our dependence on the dollars

Also Read: 5 Ways To Earn Money With Ethereum

3. Boost agriculture and encourage the export of locally-made goods

The agricultural sector alone can offset this current dollar shortage. If the government can become involved and harness the vast arable land that Nigeria is blessed with, cash crops and other agricultural produce, will become one of our major exports apart from the oil

4. Diversification of the economy

When the oil was at its peak per barrel, the government being myopic and corrupt couldn’t save and was not prudent so it fell drastically shortly. However, the effect on the naira would have been mitigated if our economy was diversified.

For example, countries like the UAE were quick and prudent enough to see that the oil boom wouldn’t last. Rather than spending the money and inflating the cost of governance, they invested the money and developed several sectors. This is the Dubai we see today.

Also Read: How to invest in cryptocurrency

5. Solidifying the current CBN policies

While the floating exchange rate is good for a democratic Nigeria, I will suggest that those individuals and entities hoarding the dollars must be checked. Most of these individuals and cooperate entities create artificial scarcity of the dollars.

The government should, as a matter of urgency create a window period for which any forex holder, or cooperate entity should hold the dollar. This means at a certain time, your dollar must be sold and converted to naira.

Also Read: Understanding the Blockchain: A beginner’s perspective

Conclusion

Nigeria can be great again. our naira, more than the dollar can be trusted again. This is not a wish, but a reality we all must pursue. It’s a collective effort, and not just the role of the government. However, the government remains a key player in this regard.

From the recommendations above, if implemented, Nigeria will certainly solve her forex problems, which in turn will lead to the naira appreciating Against the dollars gradually, but steadily.This will in turn have a positive effect on the economy, leading to more creation of jobs, and increasing the overall well-being of the economy.

A lot people believe forex trading  to be difficult to learn and so on. Others, usually fear risking their money in this trade. However, if you are a beginner, you should do your own research and know what this it entails. This can help you have the know-how of how this trade is carried and the risks involved.  In this article, we will try to help you but do know that knowledge is not exhaustive. Learn more. Read more. Research more.

How you can make money from forex trading online

There are several ideas that can make you succeed in forex trading and make money. They include the following:

Choose a reliable broker

It is important that you choose a reputable broker in order to be successful in this trade. You should know the policies of different brokers and how they go about this trade. You should ensure that the broker’s trading platform is suitable for the analysis you want to do. You should choose a reliable broker who has a good platform. This can increase the chances of making money.  We recommend Etoro because it has over 4 million users and offers opportunity to trade beyond forex.

Begin with a small amount of money

Some people normally get tempted to invest huge sums of money all at once. If you are new to this business, you need to start with a small amount of money. Remember that there are risks that are involved. You should start with small amounts and then increase the amount gradually. You should add up your account as the profits increase. This can help prevent loss of money and frustrations.

Restrain your emotions

You might get overexcited after making your first profits. This can make you think of investing more money without studying the market. This can be detrimental. You should restrain your emotions and invest wisely. If you make losses, you might get discouraged and so on. You might fear to invest again. This is the reason why you need to be objective and invest wisely.

Profits are not always guaranteed

A lot people normally get into Forex trading with the mentality of making profits all the time. However, this is not the case. There will be instances when you will be making losses. However, this should not prevent you from investing. You should always be prepared for anything. You should ensure that you maximize your profits all the time. Minimizing your risks can help you make money.

Share your experiences with others

This can help you know where to improve so that you can increase your profit margins. However, you will note that some people might try to make decisions for you. This should not be the case. You should make independent decisions. This can help you make more money and minimize risks.  It is important that you remain patient and avoid giving up.

You will note that there are moments that you will make huge profits. There will be other time when you will make huge losses. You should be self-determined and focused all the time. Consider these ideas today and you will be successful in this forex trading.

We will be updating this page. Bookmark and keep coming back for more tips. You can also learn about other ways to make money online right here.