02, 2021 / 7:20 PM / Content/Image by Eagles Global Market
Meet Emeka, a 23-year old Mass Communications student at the University of Lagos. During the day he attends to his studies and once night falls, he reverts to trading currencies (Forex). Bimpe is a 52-year-old retired civil servant who now trades gold online in her spare time. She spends the proceeds on her grandchildren whom she absolutely adores. Then there's Muhammed, an Architect from Abuja who has been trading stocks and Forex for the better part of three years now and just recently quit his job to go into full-time trading.
These people are all case studies pointing to the writing on the wall - that more and more Nigerians are going into the financial markets and for good reasons too.
Nigeria is home to the largest economy in Africa however, millions of its citizens remain without jobs, with the unemployment rate in the country at a draconian 33%. When you consider these figures alongside an inflation rate of around 18%, and an interest rate that keeps skyrocketing year on year, it starts to make sense that Nigerians have set their sights on new, legal avenues to help battle rising costs of living.
Given the profit potential of the financial markets (the Forex market for instance is the most liquid market in the world with over $6.6tr traded daily), it's only a matter of time before they start tapping into the numerous opportunities in the markets especially with the awareness on personal finance growing at an exponential rate over the past year.
Thanks to the lockdown from the pandemic, as the crypto and share dealing markets in Nigeria grew, so did the derivatives market, which continues to do so at a similar pace. While local adoption of Bitcoin, Ethereum, and other cryptocurrencies is hastening, so also is the number of Nigerians who prefer to speculate over the prices of currencies and stocks thanks to the key advantage it holds over the other two options.
Buying and selling stocks (Share dealing) is one way to access the financial market but it leaves one direction of the market wholly ignored, a fact many Nigerians have started considering. With derivatives trading, traders can either go long or short, and profit from either way the market heads next thus giving traders more control, flexibility, and freedom in their positions. Also, by taking positions more often, and not being bound to some time, more money can be made faster.
For a company like EGMarkets that has been disrupting the financial trading scene in Nigeria for five years now, product innovation and expansion are central to further improving numbers. In addition to helping traders better understand the markets with their world-class education, the award-winning platform has all the advanced trading tools anyone needs to maximize their trading including a Naira-based platform, stop-loss orders, and much more. Traders can also go long and short on more than 1000 different trading instruments including Bitcoin and other cryptocurrencies, forex, commodities, metals, stock indices, and more.
EGMarkets which is the first brokerage of its kind in the country is scheduled to spread its wings and expand to other African countries in the second half of the year which will provide access to the markets for EGMarkets participants in these countries. With such projects accomplished and other promising ones in the pipeline, EGM has truly positioned itself as a trading powerhouse, contributing to Nigeria's economic development in its 5 years of existence and hoping to do the same now on a continental stage.