In the next few chapters of our ultimate guide to binary options trading in Nigeria, we will be sharing with you a lot more details on what to know and how to maximize your profit potential while you, at the same time, are able to minimize the inherent risks involved by being informed and educated.
Obviously, we will be starting with the most basic things in order to get you familiar with all the specific details that, time and time again, prove to be crucial for Nigerian traders when they are just beginning their journey into the fascinating world of binary options trading. We believe this will be an invaluable source for all traders in Nigeria, and not only those who are just starting out but more experienced traders as well.
Best Time to Trade Binary Options in Nigeria
The basic premise of binary options trading is fairly non-complicated. There are two straightforward options to choose from: up or down, depending on your choice. What binary options trading is based on is the fact that the price of the underlying asset you chose will fluctuate within a certain time frame, and it will either rise or fall. Your ‘job’ as a trader is to successfully predict which direction will the price take in a time frame that is predetermined. This way you are able also to know what you can possibly profit or lose, depending on the outcome of a particular trade.
The outcome amounts are fixed, whether you win or lose, and you are aware of them even before you decide to place a certain trade as the calculations on the possible profits or losses are not complex and are very straightforward.
So, obviously, the main mission for binary options traders in Nigeria is to successfully predict the direction in which the asset price will be moving in a certain time period – will it go up or will it go down, in reference to the strike price. This type of prediction is not just a guessing game, as this would result in complete failure, but there are different analysis, methods, and strategies which include tips and tricks on how to be able to analyze the markets and spot price trends and much more.
Binary Options Trading Nigeria
When it all started back in 2008, binary options trading successfully and rather quickly expanded to encompass many different countries around the world, which included the proliferation of various trading platforms which are now available in Nigeria also. Nigerian binary options traders and those who wish to become one, are now able to enjoy binary options trading with a huge selection of underlying assets to choose from.
The assets available are typically grouped into four different categories: commodities, stocks, indices, and currencies. There are also several trade options and expiry times that needs to be set up in order to place the desired trade. Each broker that is on the list of available binary options brokers for Nigeria has their own custom list of available underlying assets and helpful trading features.
When it comes to various different trading options, traders from Nigeria have the possibility of choosing High/Low, 60 Seconds, Ladder, Pairs and One Touch among others. Expiry times are also very varied as there is a selection of long term and short term expiry times, including 60 sec, 2 min, 5 min, 15 min, 30 min up to 24 hours, one week, one month and more.
When we talk about binary options trading in Nigeria we cannot fail to mention also the inherent risks involved in participating in online financial trading. All the trades are executed on the basis of the market trend that is actually at the time of the trade placement. The great thing about binary options trading is the fact that all potential risks, that is losses, are known in advance before you place the trade. This way there are no surprises when dealing with binary options trading.
Obviously, just like anywhere else in the world, binary options are available in Nigeria completely online, and all you need to have is working internet connectivity and a device from where you can log in to your trading account and place trades.
Options Trading in Nigeria
It is pretty obvious that in order to make successful trades, there are multiple key elements that need to be aligned and functional in order for profit potential to be boosted. Trading tools and features that one chooses to customize are definitely one of those elements that can be crucial for a trader’s journey.
Trading features which include an available and realistic demo account, various different tools and options, mobile apps, analysis tools and trading limits, are all very efficient and easy ways to work towards creating better trading results that you will feel good about and which will drive you to invest more of your time into educating yourself on this industry.
Demo account is one of those features which is very much appreciated by the traders and is simultaneously very beneficial, especially for those traders who perhaps lack the extensive experience that some others might have. By using the demo account, traders from Nigeria can get accustomed to the trading platforms they are working on and gain valuable experience and knowledge in a risk-free environment. Risk-free implies that traders do not have to deposit any money in order to use the demo account, and the account itself has virtual funds you are given.
raders who prefer to trade on the go and not have to worry about being close to their home computer in order to trade can choose to use the ever-so-popular mobile applications that allow for higher level of freedom. Nigerians have the great opportunity to take advantage of this as most of the available binary options brokers for Africa and Nigeria in particular, have trading apps which can be downloaded to smartphones or tablets.
Is Binary Option Legal in Nigeria?
As any other trader, Nigerian traders can choose for themselves if they prefer to trade with a broker who is regulated or with one who is not. This is a completely arbitrary decision and depends solely on the wishes and preferences of the binary options traders in Nigeria. Regulation as such is not mandatory and binary options brokers can choose if they wish to obtain a regulatory license or perhaps they do not think this is crucial for their work with clients.
It is important to note that, while regulatory bodies do make sure that all the processes and contracts which are in motion are being followed up according to a higher legal framework, a regulation license in itself does not guarantee that a broker will be the right choice for your specific needs. Also, not having a regulated status does not automatically mean that the particular broker is involved in fraudulent activities or that they are scamming clients. Like we mentioned, regulated status in Nigeria, is a choice that is entirely up to the broker and does not define their worth.
Considering all this, we recommend that traders carefully read the reviews we have on binary options brokers in Nigeria and decide for themselves what the binary options broker can offer them and if that is something they would be satisfied with. We have reviews on many binary options brokers that will be helpful to traders in Nigeria such as IQoption and Binary.com review.
Binary Options Terms & Conditions Nigeria
Perhaps one of the most important things in any online trading endeavor is the safety with which you can execute your trades and the safety of your trading environment which includes being familiar with all possible scenarios.This is the main reason to make sure that the broker you are choosing for your binary options trading in Nigeria is one you can count on to be transparent and straightforward.
This directly ties to the ability to spot scam binary options brokers as there are so many of them on the market. If you are not careful being able to differentiate between solid binary options brokers and those who routinely practice fraudulent behavior, you can easily fall into their trap.
To start off on the right ‘foot’, the first thing every trader who is interested in trading binary options in Nigeria needs to do is carefully read the terms and conditions of the broker they are considering.
Most of the time, this important page on any brokers website is a vital piece of information that easily gets overlooked as most traders simply skip reading the Terms and Conditions and just click Accept. This is not a good course of action as you are potentially opening yourself to future actions and obligations you are not even aware of.
Terms and conditions are designed to provide a very detailed set of information on everything a trader needs to know that refers to trading conditions and the use of any bonuses, processes, and instruments that might be applicable to a specific situation. This part of the documents also informs Nigerian traders of their rights and how they can protect themselves in the case of any problems.
In case in which traders do not understand something they have read in terms and conditions or have additional questions regarding the content of the document, they are encouraged to contact the customer support team of a chosen broker to clear up all misunderstandings and doubts. Most binary options brokers have customer support service that is available 24/7 via various means of contact so you are able to sort all issues without delay.
Education Center for Nigerian Traders
Apart from terms and conditions mentioned above, traders in Nigeria have a great opportunity to discuss all of their questions and possible issues with the customer support team of their broker of choice. This is a very important feature that any respectable broker needs to have as it is central to having transparent and straightforward trading experience.
While most brokers also feature a FAQ section where most of the very frequent questions are already answered for your convenience, customer support offers a human insight into dealing with a developed issue and also the ability to ask additional questions that cannot be found in the FAQ section which might be pertinent to each individual case.
The most common ways of reaching the help you need from customer support team are by email, direct phone number, webform usually found on the website of the broker, fax and Live Chat. The last option is simultaneously the most used one as it offers traders an instant access to help they need.
Depending on the setting provided by the binary options brokers in Nigeria, the customer support can also be provided in multiple different languages and not just English, which is great news for all traders who do not speak English very well or are more comfortable with articulating their issues and questions in their native language.
Education center on the other hand if focused more on providing great resources for traders who wish to expand their binary options knowledge or assess their current knowledge level. There is usually a variety of educational materials available on the websites of brokers in Nigeria and also a variety of formats in which those materials can be delivered.
Typically, education center includes information on various topics that might be of interest to registered binary options traders in Nigeria such as the economic calendar, charts and graphs, ebooks and videos, guide articles along with many beneficial trading strategies.
Binary Investment Scams in Abuja and Nigeria
Considering the fact that binary options trading falls into the online part of the financial industry in Abuja, the security of the trading platform, trades and transactions is and should be the ultimate goal for every broker, including the Nigerian binary options brokers operating in Abuja
Because of the sheer multitude of various binary options brokers that are present in the online trading industry, it is very important to be able to differentiate between scam brokers and those who are conducting their business in a transparent and straightforward way. There are several ways traders from Nigeria can go about learning to spot scam brokers and we bring you the most important ones:
1. Familiarize Yourself With the Details of a Trading Platform
When going over all the available broker reviews, try and find as much information and details as possible about the security measures used to secure the trading platforms on which the traders are conducting their trades from.
Most available brokers for Nigerian binary options traders apply very high-security standards to make sure their platforms are impenetrable to outside threats. The technology typically used is the SSL encryption which safeguards all the personal and financial details of binary options traders so they are not susceptible to attempt of online hacking and intrusion.
SSL encryption represents the highest level of security available to brokers so that the traders who have chosen to register and deposit with a particular broker who uses this system are safe and relaxed knowing their private information cannot be violated.
2. The Verification of Traders Identity
Many brokers who high on the list of solid, worth-to-do-business-with brokers have a policy which reflects their commitment to the safety and transparent relationship with their clients. The particular policy we are talking about is called the Know Your Customer policy or short KYC.
What this means is that they have put up a requirement for themselves to know the who their clients actually are, that is, the trades need to positively prove their identity in various ways in order to start the process of withdrawing their potential profit. Sometimes, even, this verification process is necessary as soon as you open a trading account with a broker of your choice.
It is true that a lot of traders are annoyed by this very crucial step, but it is important to realize that this exists so the broker can protect your safety and the safety of your hard earned funds. This way there is no possibility for someone other than yourself, to claim your profits and withdraw them to their own account. This is a worthwhile procedure which helps you feel safe and protected.
Although the process is somewhat different among brokers, as there are so many of them so it is to be expected, the general list of documents and details that traders need to provide are the following:
- Bank statement or an alternative proof of residence
- Driver’s license or other some other document issued by your government
- ID card and/or passport
- Recent utility bill
3. A Binary options Broker With Poor Terms & Conditions
As we already mentioned above, the process of going through the broker’s terms and conditions can be tedious work but is an important one nonetheless.
After you have gone through the information listed on the website, make notes on whether or not the terms and conditions content is easily understandable or poorly explained. There might even be cases where the section itself is very hard to find on the platform or website of your binary options broker.
It is always better to err on the side of caution when you encounter hard to understand content as it might conceal other issues. This is, obviously, not always so, in which case, the prudent thing is to contact customer support team and to voice your concerns regarding the issues you believe might pose a problem in the future.
4. Customer Support is Nonexistent or Hard to Reach
A binary options broker in Nigeria with which you might consider depositing with should have an excellent customer support system in place. This is something traders should not overlook or negotiate about. You always want to have the opportunity to get high-quality information on any issue you are facing, or even of you just want additional details on something you are interested in.
Scam brokers will, most often than not, note that they have a customer support system but when you go to contact them they are usually not available or there is a huge delay in the answers you are being given. This is a sure sign that this particular broker is not the one you want to register with even if you do not plan on investing large sums of money.
The right kind of customer support will always be responsive, highly educated and professional. They need to be able to deliver the needed information in a user-friendly manner and be eager to help you with any additional requests or problems you might have. Obviously, even great brokers can sometimes have technical issues and you will have to wait a bit longer to get your response but they will also have other means of notifying you of this.
In our IQ option review, for example, according to the review we did, has an outstanding customer support which is consisted of highly trained and educated professionals who will deliver the necessary information in an efficient yet friendly manner.
5. Guarantee of Profit and Cold Calling
If you run into brokers who are actually promising extremely high profits and are also in the habit of actually contacting their clients to push them to make deposits or trades, be aware that the broker in question is most likely a scam broker.
This is a complete breach of traders privacy as no one should be pressured into depositing or accepting services you have not agreed to beforehand. All binary options traders, including those in Africa in general, and specifically Nigeria, should be aware that this is a possibility and should exercise extreme caution when dealing with this type of broker.
6. Unrealistic Offers and Promises
Most traders you will encounter will have offers for various bonuses. The conditions and terms for those bonuses need to be clearly stipulated and easily understood.
If this is not the case and you find yourself very confused or even think that the conditions are intentionally poorly written, contact customer support and see if they can sort it out and explain why this is so. If their answer is not satisfactory or if they avoiding to address the issue, you can be almost positive that the broker you are dealing with is a scam broker.
Unrealistic offers are also one of the tell-tale signs that this is a binary options broker who you should be avoiding. Promises of 100% winning rates or any other over-the-top amounts that clearly cannot be true means that this is not a good broker and you should not register with them.
7. Inability to Withdraw Your Funds
This is perhaps one of the most troublesome of all problems binary options traders run into. It is important to highlight, that all brokers can sometimes experience technical issues due to which you withdrawal can be slightly delayed. However, if this is the case, the broker in question will notify their clients of this and will assure them that their profits will be transferred as soon as it is possible.
But, if you run into withdrawal issues where the broker refuses to process your funds without a valid reason, or they simply ignore your repeated requests, this is most definitely a red flag. Also, make sure that all the terms and conditions for starting your withdrawal process have been satisfied on your end before you conclude that a broker is simply not willing to give you your profits.
Sometimes traders are not even aware that they have sent insufficient proof of identity or they have not met the required bonus conditions prior to asking for a withdrawal. In this case, the broker should provide you with the necessary information on how to remedy this after which you should be able to get your funds without issues.
Binary Options Robots in Nigeria
When starting to trade with binary options, some traders may come to the realization that they do not have sufficient time to spend on manually tracking and selecting their potentially profitable trades in which case they will opt to use a binary options robot. There are several of these binary options software available for traders in Nigeria such as Binary Options Robot which is perhaps the one of the most popular and reputable binary options software among traders. Read our review on this innovative auto trading software.
Nigerian traders can completely customize their trading platform with Binary Options Robot and make sure that they are placing trades that fall into the carefully selected criteria. The great thing about this software is that it offers an Auto Trade Approval option which places control over the trades completely into the hand of the trader him/herself. Once you get a notification that a potentially lucrative trade has been found, you can opt to accept and place the trade or you can decline it. This notification comes in the form of a pop-up window which delivers the details of the trade. This type of software is inextricably connected to binary options signals which we will discuss in the next section.
Binary Options Trading Signals in Nigeria
Binary options signals are information being sent to the traders which notify them of a possibly profitable trade found by scanning the data on the global markets. In the foundations of these binary options signals are complex computer algorithms which are able to scan the market, pull any relevant information and then analyze to figure out which of trades are potentially worth investing in. In the scenario where all this data crunching process is done manually, it takes a lot of time, knowledge and experience to do so.
Perhaps the most important thing about binary options signals is that they need to be delivered on time so that the traders can use them. If there is a time delay or the signals are being sent after the trades have already passed, which can be the case with trades with very short expiry times, then those signals cannot be effectively used for the trading process.
For binary options traders in Nigeria there are several different options of binary options signal providers to choose from. However we propose that you trade yourself or choose signal providers who actually show their true win rates. You can find many of them on the MQL community, where you can also subscribe. It is very easy to use them via Deriv signals on MT5. This broker starts already from $5 deposit.
Best Binary Option Broker in Nigeria
Although it doesn’t seem like a daunting task at first, the truth is that choosing the right binary options broker is not an easy thing to do. Although this should definitely be one of the most important initial steps when beginning to do binary options trading, there is a distinct possibility that there will be some brokers who you might think are great, but are in fact scam. Seeing if a binary options broker offers a demo account could be a good first step to figuring out if the broker is the right fit for your needs.
Obviously, there are many more criteria which you can set up to see if a particular broker is valid, among which are definitely the binary options broker reviews which are a great thing to read. Also, checking out if there are complaints about the broker you are considering or what exactly does their trading platform offer are all valid ways of figuring out the correct choice for you. Brokers such as IQoption could be very interesting for Nigerian traders as all the available reviews point to the fact that this broker is transparent and available for Nigeria.
Considering that not all brokers have the same trading features or characteristics, it is also expected that they differ in other aspects too. This is directly connected to the differences in the minimum deposit, but the standard for a minimum deposit in the binary options industry is $250 and this is also true for most brokers available to Nigerian traders. However, we do encourage you to check out this information for each specific broker you are considering in case there is a discrepancy, which is always a possibility.
Reading terms and conditions in a thorough manner is another very important aspect of hunting for a binary options broker. There you will find all the small print information that you might have skipped during your research on the general pages of the broker’s website. Make sure you read the all the segments that refer to possible bonuses, check if they have a responsible and available customer support and all the details regarding your deposits and withdrawals, so you don’t run into any surprises later.
Expert Option in Nigeria
There are several characteristics important to look at and review when you are trying to find a binary options broker in Nigeria. Expert Option is one of the brokers that we recommend in Nigeria. Like we mentioned in the paragraph above, this is definitely not an easy task as there are so many variables involved, especially if you yourself are not as experienced in finding the small differences that can prove to be big differences in the end.
IQ option in Nigeria
Here are some of our more detailed tips on what to look out for when you are trying to find a broker such as IQ option, that will be able to deliver on all of those expectations you might have. We do have to highlight that it is important to be realistic when it comes to this as brokers are not going to be able to make you rich in one week nor will they be able to guarantee that you will profit from each and every trade. In that respect, keep your expectations realistic and avoid scam brokers. IQ option is one of the binary options brokers that are most popular in Nigeria.
When it comes to the legal side of binary options trading in Africa in general, and Nigeria specifically, they are completely legal. All Nigerian traders who are interested in trading binary options with brokers which are available for this area can do so without worrying about legal consequences as it is a perfectly legal way of trading assets.
There are various binary options brokers which are available for you to register with them such as IQoption, Binary.com, Ayrex, and others. The mentioned binary options brokers have been gaining a lot of popularity among traders from all over the world and there is certainly a reason for that.
As already stated, the regulatory license of binary options brokers is not mandatory in Nigeria so there is no legal reason for traders not to choose binary options brokers who are not regulated. This is a completely individual choice, both for the binary options brokers and the traders, but it is important to note that regulation does not equal to legality, as binary options are completely legal to trade in Nigeria.
There are certain requirements that need to be satisfied in order for the trader to maximize their profit potential and consequently minimize the risks associated with it. This no easy task as there are quite a few things that traders need to know.
Nigerian traders are highly urged to leave their emotional aside at the door when dealing with binary options. This is true for any type of financial investment as it only makes thing more difficult for the trader if he or she is not able to remain cool headed and rational when investing their funds into the online trading. Make a trading plan or even a broader financial investment strategy and stick to it. Do not let your emotions take the best of you as there is nothing emotional about trading. One needs to invest their effort, time and commitment into it but emotions will only complicate everything and create problems.
Do not fall into the trap of investing all of your funds on one trade, however certain you might feel about it. This is simply not a smart move as it is recommended that you always make sure to split your funds into multiple trades and always leave funds for backup if you ever need it.
Do not rush into trading. This is a slow and delicate process which requires patience and stability. Invest time into education and reading the detailed binry options broker reviews. This will give you the knowledge and insight into what is the best strategy for you as every trader is specific and the needs of every binary options trader varies as much as their personalities do.
Contact the binary options broker customer support for any questions and doubts you are having, regardless of how small you think they are. They will be able to provide you with the relevant information you are seeking while also making sure that they are available for any additional questions that might rise up.