Nigeria is a country with a population of 190 million people and is officially the most populous country in Africa. It has a rapidly growing economy, which means an increasing number of Nigerians are investing in Forex trading.
Forex trading has come to stay in Nigeria with Nigeria now having Forex Brokers with Naira Trading Accounts instead of the usual USD accounts that used to be the case.
As such, From currencies to commodities, many traders in Nigeria have found Forex trading to be an exciting and lucrative opportunity. Keep reading for 5 brokers that provide high leverage Forex for Nigerian traders.
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What is leverage in Forex trading?
Leverage is a tool that increases the profitability of trading. Imagine making a purchase with a $500 money in hand, but being able to buy goods with an extra $800. If you have doubled your money, you have gained profits without having to pay for more goods.
In Forex trading, leverage is used as an extension to the principle of using available capital for the purchase. The longer you can hold your positions open and the larger sum of money you can invest, the more profitable your trades will be per unit of time and amount invested.
Advantages and disavantages of leverage in forex trading
Advantages of trading with leverage
When trading Forex with leverage, traders have the potential to access greater trading volume than they would if they were to trade on their own. Leverage has many advantages, but one of the most prominent is that it allows traders to profit from smaller increases in price movements.
You can make more money when you can buy more units at a lower price and/or sell more units at a higher price (the same principle applies for losses). This applies especially for traders who are effectively using various market strategies. With leverage, you can get a better multiplier for your money. The more leverage you have, the higher your profitability will be.
With less capital to trade, traders feel much more comfortable and secure when trading Forex with leverage because they know their losses won’t wipe them out completely, as opposed to using you entire money to open a trade.
Disadvantages of trading with leverage
There are some disadvantages to trading Forex with leverage as well. Traders need to keep in mind that there is no free lunch, and the same applies for Forex trading as well.
One major disadvantage to trading with leverage in the forex market is that larger amounts of capital are at risk for a small move in price, which can result in losses for traders. If you lose more than your account balance, this could lead to bankruptcy because you will not be able to pay off your account with 100% of your money.
Since leverage is used to magnify profits and losses, it is important to choose the right leverage for your trading style.
5 Best High Leverage Forex Brokers in Nigeria
HotForex offers high leverage Forex trading to Nigerian investors. It provides traders both retail and institutional clients with trading services and facilities.
Traders can freely access and trade on HotForex’s robust platform.
They provide two types of accounts: demo and real-time, offering different leverage and fee structures.
HotForex offers a 1 : 1000 leverage account. In addition, this account allows traders to trade in their own country, regardless of the currency. Traders can also invest in FX, CFDs, and binary options on HotForex’s trading platform, offering great opportunities for traders willing to enter the Forex market with a limited amount of money.
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OctaFX is another great forex broker in Nigeria that offers its clients high leverage by providing them with with different lot sizes. OctaFX provide traders with the ability to trade with u[p to 1: 1000 leverage.
For all MT4 accounts, you can manually increase the leverage to 1:1000. For all MT5 accounts, you can manually increase the leverage to 1:500. At the end of the promotion period, the maximum available leverage will change back to 1:500 for MT4 accounts and 1:200 for MT5 accounts.
With OctaFX, you can on your MT4 account manually increase the leverage to 1:1000 while MT5 accounts allow you to increase your lot to 1:500. But this is a promotion because at the end of the promotion period, maximum available leverage will change back to 1:500 for MT4 accounts and 1:200 for MT5 accounts.
Alpari offers its clients a 1: 1000 leverage. The broker provides traders with a 100% bonus for deposits between $ 200 and $ 1000.
Traders have many interesting opportunities to choose from, including the ability to trade on the MetaTrader 4 and MetaTrader 5 platforms in addition to Alpari’s own trading platform, offering them a more convenient way of trading.
FXTM offers high leverage Forex trading to all its clients, offering a 1: 500 ratio. An impressive 100% bonus is available for deposits in the range of $ 200 and $ 1000. With this promotion, traders can enjoy quite a few exciting opportunities.
These include the ability to trade on Alpari’s trading platform, as well as the ability to take advantage of an offer that allows you to win up to 55 bitcoins worth of free cash every month.
FXTM was one of the first brokers to offer Bitcoin CFDs for their clients, offering them a previously unavailable opportunity.
Pepperstone offers a 1 : 500 leverage Forex trading to Nigerian traders. The broker provides traders with the opportunity to start trading with a 100% deposit bonus on the first 5 deposits, allowing traders to trade without risking their own money.
Pepperstone also offers traders a weekly drawdown manager which helps traders prevent losses due to market fluctuations.
The broker provides its clients with the ability to trade on all the MT4 platforms, while MT5 trading is relatively new. The system has been tested successfully and allows traders to trade with up to 1:1000 leverage.
Although Pepperstone offers High-Leverage Forex trading to Nigerian traders, it has a policy of not allowing margin trading for its clients. In other words, traders can open a Forex account but will not be able to trade with leverage.
High leverage Forex trading offers traders the ability to trade with Forex on the basis of the brokers money not their and not risk their own money in the market. This makes it a very attractive offer for Nigerian traders, especially for those who have just started trading.
It is also very important to state that leverage has its draw backs and new traders are advised to do their assignment before taking large lot sizes on huge leverages.