The history of CFD trading in Nigeria
Quick link: Just want to find a great CFD broker in Nigera? We recommend IQ Option. Click here to learn more...
Although the method of CFD trading has been popular in Europe, the Middle East and some part of Asia during the last 15 years, it only in the last couple of years that this method of trading derivate products has become more and more popular in Nigeria. In this article we will take a look at some of the history of CFD trading in Nigeria and some of the market conditions and trader expectancies that made this a trending financial service instrument for many investors.
Awareness from overseas brokers
Early Nigerian adaptors of CFD trading found most of the knowledge and insight about how to trade with CFD from broker educational resources and information portals over the internet from overseas providers, mainly based in UK. As many of the early CFD traders in Nigeria can attest to, it was sometimes difficult for Nigerian citizens to open trading accounts with overseas brokers but as more and more traders approach the UK brokerage firms, the acceptance of Nigerian CFD trading accounts grew which in term meant that more and more Nigerian CFD traders gained valuable expose and knowledge towards CFD trading.
Brokers establishing local presence in Nigeria
As CFD brokers from abroad started noticing that more and more Nigerians had an interest in trading with CFD’s, some brokers like Iq Option, decided to open up country offices in Nigeria to cater for the increased demand for the trading product. This meant that local Nigerian support became available and some sign-up, registration and payment features were customised to suit Nigerian clients in a better way.
The role of smartphones and increased internet access
As smartphones and to some extent laptops with Internet access became more common in Nigeria, so did CFD trading as this opened up the market place and anyone with smartphone and a laptop could now open a CFD account and start trading freely. Having the ability to trade basically all financial instruments from one smartphone app was indeed the most significate step to grow the popularity of CFD trading in Nigeria. Some brokers estimate that 76% of CFD trades in Nigeria comes through the use of smartphone trading apps.
Specific CFD and Forex trading schools opened in Nigeria
Although the willingness and appetite for CFD trading could be found among Nigerian investors, the lack of knowledge and training soon became apparent and became the reason why many entrepreneurs and educators started specific class-room based training sessions in large Nigerian cities, often in partnership with a large CFD broker. Having class room experience and access to trading experts further grew the engagement towards CFD trading in Nigeria and trained a new set of talented traders that went on their way to open accounts and start trading.
The increased usage of bank accounts and debit cards
The access to bank accounts, online banking and debit cards during the last 5-10 years in Nigeria also contributed to the increase of CFD accounts being opened as this enabled Nigerian trades to easily deposit and withdrawal funds from their trading accounts. Having this in the ecosystem definitely helped create the demand for derivate trading including CFD.
We hope that this article on the history of CFD trading in Nigeria has given you the information you need. The next natural step is to use the free educational material and free demo account that our recommended CFD broker provides:
IQ Option - The best choice for Nigerian traders according to us - Click here to learn more
