The vibrant realm of ever-changing currency rates and stocks offers a real money-making opportunity to all internet users. With a reliable broker, you may venture out into the live trading territory and monetize your skills. Here is how to choose the best provider for CFD trading in Nigeria and the criteria to base the decision on.
Why Caution Is Paramount
Due to the lucrative nature of the market, the number of brokers advertising services online is only expanding. However, some of these companies are pure scams set up for the purpose of stealing traders’ funds. It is essential to check that your chosen company conducts legal business, and it is subject to strict regulation.
What a Broker Does
This entity serves as an intermediary between individuals and the enormous global finance markets. Not only does it register your account, opening access to actual exchange trading, but it also supplies you with the right software tools, so you can work with currencies from the comfort of your home, or even on the go.
Your broker must provide ample educational material to help you grasp the workings of the marketplace. It must also ensure professional guidance is available around the clock. Finally, as you will be transferring real money to and from your live account, all these payments occur through the broker.
Whether you are interested in Forex trading or commodities and stocks, never disregard the importance of the middleman. Consider these other criteria as well to pick the right company in your region.
How Many Instruments Are Offered?
A wise trader seeks to keep a diversified portfolio. This means that you invest in several markets at the same time, which reduces risks. If one asset starts underperforming, these losses may be compensated with gains elsewhere.
Alpari International, a worldwide recognized broker with over two decades of experience, offers much more than currency pairs. With their facilitation, you gain access to stocks, commodities, index trading through CFDs, and even digital currencies.
For instance, the Forex ECN account provides access to almost five dozen currency pairs. These are combined with 14 spot CFDs, 3 spot metals, and 4 cryptocurrencies. Impressive!
What Types of Accounts?
Every rookie ought to start their trading journey with a demo account. This allows testing of all platform functions with no real money put at stake. A credible broker must be able to provide this risk-free mode, and registration should be almost instant.
Different trading accounts come with different conditions and benefits. For example, here are five options from Alpari International, from the simplest to the fanciest:
- Nano,
- Standard,
- Micro,
- Pro,
- ECN.
The differences lie in the software used (MetaTrader 4 or 5), the size of the lowest acceptable deposit, the instruments, and the leverage. The latter determines how much of the broker’s funds you may trade with. This the ratio between own and borrowed money is important, as it allows you to rake in higher profits.
Are Spreads Good Enough?
Although low spreads are attractive, these do not guarantee a permanent advantage. Sometimes, these are only active in the beginning, with no benefits maintained later on. Competitive spreads, however, is something Alpari prides itself on.
What About Leverage?
Naturally, a higher ratio means you could gain higher profits by engaging your broker’s funds. The leverage on the Alpari ECN account is 1:1,000, which is very good.
Other possible considerations include the speed of order execution, availability of scalping, and smaller distinctions. In any case, you should be looking for a reputable provider with years of proven success and millions of clients.