Previously we highlighted the technological efforts put into
the Forex Industry, which has made it more accessible, flexible, comfortable,
and secured. It was noted that despite these technological efforts, there are
some awkward bottlenecks that makes Forex Trading quite difficult in Nigeria.
These challenges which will be revealed later in this chapter are the unknown major cause of frustration and sudden lack of interest, which leads to failure and early departure from Forex by most participants in Nigeria. Some of these challenges are man-made, while others are caused by the effects of our environment. I’ll be dealing more on the environmental challenges.
These challenges which will be revealed later in this chapter are the unknown major cause of frustration and sudden lack of interest, which leads to failure and early departure from Forex by most participants in Nigeria. Some of these challenges are man-made, while others are caused by the effects of our environment. I’ll be dealing more on the environmental challenges.
What are these challenges? How do they affect Forex Trading
in Nigeria, and how can they be resolved?
The identification of these challenges is the first
solution.
Believe it or not, doing business in Nigeria is extremely
difficult despite the palliative measures put in place by the Government. There
are lots of factors affecting business success in Nigeria ranging from the
hurdles of registration to shop setup, rents, government rates, double taxing,
operating expenses, e.t.c. It’s been observed that a high number of registered businesses
in CAC (Corporate Affairs Commission) are idle, and redundant because
they faded away due to harsh business challenges in Nigeria. Most people opened
shops with high aspirations and now those shops are closed because of these
same challenges. These same challenges hampering the positive growth of business in Nigeria is also affecting Forex Trading in Nigeria.
I’d like to categorize the prevalent challenges of Trading Forex
in Nigeria under two categories namely;
I’ll be more specific about the environmental challenges because it has more prevalent effect on Forex Trading here in Nigeria.
ENVIRONMENTAL CHALLENGES
This has to do with our physical environment (Climate, Beliefs, Economy, Government, Facilities, e.t.c.), and the laws that govern the environment. Every environment has its own challenge, not just Nigeria only. For example there are lots of controversies trailing the U.S Dodd- Frank Act and CFTC’s policy (http://www.cftc.gov/lawregulation/doddfrankact/dodd-frankfinalrules/index.htm), which somewhat restricts non registered brokers in the U.S. to accept U.S. citizens from opening offshore Forex Account and vice versa. Several trading policies affecting Forex Trading where reviewed by this same institutions, which didn’t go down well with most U.S Forex Traders and other non resident Forex Traders who have their accounts with brokers in USA.
In some highly religious practicing countries, their Forex Trading Policies would definitely not be comfortable for Forex Traders who are not of the same faith or belief, and wishes to trade Forex in such regions (see sample of Islamic Trading Condition with Liquid Market).
So every country has its environmental challenges in terms of weather, beliefs, facilities, government regulations, e.t.c.
Nigeria’s environmental challenges with regards to Forex is very unique, and quite different from what obtains in other parts of the world. A good number of Forex Traders in Nigeria fall victim to these challenges due to ignorance. I fell for it too, and this is the reason why i put up this article to reveal these hidden challenges based on my experience in Forex in order to help other fellow traders in Nigeria prepare for and against them.
Now what are these challenges?
- ENVIRONMENTAL and
- HUMAN challenges.
I’ll be more specific about the environmental challenges because it has more prevalent effect on Forex Trading here in Nigeria.
Read more....
ENVIRONMENTAL CHALLENGES
This has to do with our physical environment (Climate, Beliefs, Economy, Government, Facilities, e.t.c.), and the laws that govern the environment. Every environment has its own challenge, not just Nigeria only. For example there are lots of controversies trailing the U.S Dodd- Frank Act and CFTC’s policy (http://www.cftc.gov/lawregulation/doddfrankact/dodd-frankfinalrules/index.htm), which somewhat restricts non registered brokers in the U.S. to accept U.S. citizens from opening offshore Forex Account and vice versa. Several trading policies affecting Forex Trading where reviewed by this same institutions, which didn’t go down well with most U.S Forex Traders and other non resident Forex Traders who have their accounts with brokers in USA.
In some highly religious practicing countries, their Forex Trading Policies would definitely not be comfortable for Forex Traders who are not of the same faith or belief, and wishes to trade Forex in such regions (see sample of Islamic Trading Condition with Liquid Market).
So every country has its environmental challenges in terms of weather, beliefs, facilities, government regulations, e.t.c.
Nigeria’s environmental challenges with regards to Forex is very unique, and quite different from what obtains in other parts of the world. A good number of Forex Traders in Nigeria fall victim to these challenges due to ignorance. I fell for it too, and this is the reason why i put up this article to reveal these hidden challenges based on my experience in Forex in order to help other fellow traders in Nigeria prepare for and against them.
Now what are these challenges?
Watch out for the next release: Challenges of Trading Forex in Nigeria – Challenges Revealed
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See: Challenges of Trading Forex in Nigera - Part 1
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 About Onyebuchim C. Obike
I am an IT specialist in Software Programming, Networking & Telecommunication. My quest for an alternative source of income led me into Forex since 2005. My encounter in Forex over the years made me to develop a site where traders can get reliable and effective Forex Resources & Tools, that would make them successful traders. I prefer combining Technical & Fundamental techniques in trading. Follow me on facebook: www.facebook.com/fxtradecity
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