In Africa, Forex is going strong. Even before the COVID-19 outbreak, Nigeria came second in terms of daily FX volume. Now, when the lockdown has undermined conventional employment, online trading is even more popular. Residents can earn a living from the comfort of their homes, regardless of the restrictions.
While companies are closing down, and lay-offs are inevitable, you can always make money on global financial markets. But what Forex trading software should you use? These terminals are the cornerstone of every trader’s arsenal. Here is what Forex experts in Nigeria recommend.
Why You Need a Platform
Trading platforms connect users to global foreign exchange. It is the largest and most liquid market. The daily volume reaches a whopping 6.6 trillion US dollars! Forex is accessed by major banks, hedge funds, and other big players. Individuals use software to place trades and profit from currency trends.
The most popular systems come in three forms: desktop, mobile, and web-based. Traders can access the market from any device 24/7. They use price charts and news to predict where the market will move and capitalize on their foresight. These comprehensive systems help a trader at every step, from analysis to withdrawals.
As platforms and apps use the same servers, data is shared instantly. The same position may be opened via a laptop and closed via a smartphone, which is known as cross-platform functionality. Web-based versions are opened in popular browsers, so no downloads are necessary.
Fundamental and Technical Analysis
Top systems are useful for both technical and fundamental traders. These represent two major schools of thought in Forex. A trader’s goal is to predict market trends by looking at available data. This may be done in different ways.
Technical analysts examine price charts to spot patterns. They rely on indicators that guide them in the right direction. There is no shortage of such aids on MetaTrader: MT4 offers 30 technical indicators and 24 graphic objects.
Advocates of the second approach monitor news events that may sway the value of their instruments. For instance, someone trading EUR/USD should keep an eye on the health of the EU economy and the financial system of the USA. The platform gives access to relevant news, so they are always aware of what is happening.
International Forex brands recognize the potential of the region. Today, they render special services catering to the population. For instance, ForexTime now offers accounts in the Nigerian Naira that can be used on MetaTrader platforms. This allows locals to save on conversion fees. Entry is also affordable. Special cent accounts may be opened with just $10.
The best Forex trading software also supports VPS or virtual private servers. These are especially important with areas where the internet connection is unstable. System crashes and power outages may also disrupt trades.
Leading brokers copy their client’s machines onto cloud-based servers. These copies are always running, regardless of any glitches. This way, traders need not worry about technical interruptions.
MetaTrader 4 and MetaTrader 5 can be enhanced with so-called Expert Advisors. These are pieces of software that can give prompts or execute trades automatically. EAs may be bought or rented. Some may be available for free.
MetaTrader 4: Leading Choice
MetaTrader 4 is a popular system for online trading, which is offered by many brokers around the world. It is packed with charting aids, risk management features, automated tools and other features necessary for trading online. This virtual environment is compatible with any device, and it covers the whole spectrum of needs. From preliminary market analysis to executions of trades, everything is quick and easy.
The product has a newer, more advanced version — MetaTrader 5. This system covers a broader range of instruments, which is ideal for traders with diverse portfolios. They can manage currency pairs, stocks, spot metals, and derivatives from one place. As the terminal has sophisticated features, it is used by more experienced traders in Nigeria.
Trading During the Pandemic
Lockdown measures imposed to fight COVID-19 have caused substantial economic damage. Bottom lines are shrinking, businesses are downsizing, and lay-offs are massive. As Nigeria is so dependent on its oil exports, the crisis was exacerbated by the falling Brent price. Experts agree that recovery will be long and painful. However, consumers need financial support today, so they are seeking new ways to earn a living.
Before the outbreak, Nigeria already had a robust Forex market. It came second after South Africa in terms of daily FX volume. COVID-19 has triggered digitization and fuelled interest in internet-based trading. Through a platform or app, individuals can work from the comfort of their homes, and access the system wherever they are, 24/7.