Forex trading has a daily turnover of trillion dollars, whereas, in countries like Nigeria, its turnover is rising each year. If done right, it can offer a high level of liquidity, which means high demand for easy buying/selling without affecting the prices. You can also benefit from the leverage as it allows you to open a high position with a small amount of money.
For successful forex trading, it’s important to choose the best online forex brokers that working in Nigeria. That’s because these professional individuals can help you to buy/sell currency pairs and benefit from leveraged trading.
Speaking of which, if you’re choosing a forex broker for yourself in Nigeria, watch out for these six things:
- Unlicensed Brokers
Probably, one of the most important things to do when selecting a forex broker is to check their license. That’s because forex trading under an unlicensed and non-regulated broker is an illegal act in Nigeria.
As forex trading is regulated by the Central Bank of Nigeria, a broker must meet the requirements to trade on behalf of their customers. They are not allowed to trade with other people’s funds. A regulation under CBN ensures that your interests and money are protected. So, whenever you are choosing a forex broker, keep the unlicensed brokers at bay.
- Lack of Live Chat Support
If your forex broker doesn’t offer 24*7 customer assistance, or atleast some sort of chat support, they aren’t worth choosing. Why, you may ask? Well, there are many reasons. First, you may have some queries or doubts, and customer assistance can be a great way to resolve them immediately.
Second, there could be times when you may see the Nigerian forex rates gap depreciates and need assistance, in that case, these chat support are proven helpful. Third, it could be helpful during internet-related issues and so on.
When a forex broker doesn’t offer such support, you may get clueless and helpless in certain situations. So, always choose a forex broker that at least offers live support when the market is open.
- No Safety and Reliability
Forex brokers should be safe, secure, and reputed, as these are important aspects to consider when dealing with money. You should keep your funds safe from cyber vulnerabilities, cyber bullies, and fraud. That’s why, if you select a forex broker who’s not trustworthy, you may fall prey to these online threats.
Look for brokers who don’t delay for even a few seconds during trading. Also, check for any funds protection they provide. Generally, a renowned and trustworthy broker would be connected to top-tier banks, so check for that as well. You can further read about their safety in the review section, as it features the real-time experience of traders who took their services. If you find multiple bad reviews, it’s a red flag!
- Deposit and Withdrawal Difficulties
A forex broker should ensure smooth and hassle-free money withdrawals and deposits. If they fail to do so, they aren’t worth your time. Imagine you’re in the middle of an interesting trading situation where you need to deposit money, and suddenly things become sluggish. Wouldn’t it be frustrating? That’s why you should always check for the ease of money deposit and withdrawal on a trading platform.
Also, check for their money withdrawal claims. If your forex broker talks about instant withdrawals, but you spend an eternity to receive the money, you shouldn’t go for them.
- Higher Stop-out Level
A higher stop-out level is a big no-no in forex trading. For those who don’t know, the stop-out level means the margin where the broker closes one or all of your open positions automatically. If your broker prefers a higher stop-out level, your position may run unless you have nothing in your account. So, beware of brokers with such stop-out levels.
- Error-prone Website
If your forex trader has an error-prone website, and they haven’t fixed it even after your complaints, that’s a big turn-off. While occasional maintenance and speed issues are acceptable, this repetitive behavior is not acceptable. Instead, it can make your trading experience more troublesome. Whether it’s managing accounts or logging in, you may face issues everywhere. So, take a quick look at the broker’s website and check for these loopholes.
So, these are the six things you should watch out for you in a forex broker. Note these points and stay safe from the red flags.
