Investors have been warned not to delve into Foreign Exchange (FOREX) trading without adequate knowledge of the market to avoid losing their money as was the case in the Nigerian capital market during the global financial meltdown.

The advice is coming barely two years after the Nigerian stock market crashed leading to the loss of   over N8 trillion from a market capitalisation of all time high of  N13.5 trillion in March 2008 to less than N4.6 trillion in March 2009.

Speaking to newsmen in  Lagos, weekend, Mr. David Ademoh, Director, Alpari Trading West Africa Limited said, “ Nigerians are advised not to go into FOREX trading without learning the principles of its operation so as not to get their fingers burnt as was the case when the stock market crashed.

I have been hearing several messages in the radio and newspapers that FOREX trading is a quick way of making money. It is not exactly true that you put in $100 and get a return of over 300 per cent. FOREX business goes with risk and you must understand how it operates before you can make any meaningful impact”.

He disclosed that in Nigeria , FOREX trading is still at its infancy stage as the market is currently not being regulated by financial regulatory authorities.

To this extent, Ademoh called on the government “ to create a formal learning for FOREX business, saying, “ in the next 5 to 10 years, FOREX trading will be the focus of most Nigerians”

According to him, “ There is need to inculcate the study of FOREX market in our school. We at Alpari Trading Nigeria have been holding workshops and interactive sessions with people that have shown interest in the market. The FOREX trading has the potential of reducing the rising rate of  unemployment in the country. As you can see from the training we are having today ( Friday) you can see that there are over 700 participants.

So if we can have this number in a single training then it means that the FOREX trading if well organised and developed will go a long way in giving jobs to several thousands of people in the country. We don’t place value on education and that is why people are losing money than they gain. You have to build passion for the job before you think of making huge money”.

“Alpari came into Nigeria in 2009 and our role is to link clients with brokers who will help them do the FOREX transactions. In fact, Alpari makes its easier for clients to have access to their funds and when they have problem with their trading transactions they come to us and we help them do the follow up until it is sorted out. We do not manage clients funds but help to serve as links to their brokers overseas. We are looking forward to spread in other parts of the country as we presently operate in Lagos and Abuja” Ademoh noted.

Mr. Sergey Ryzhavin, Percentage Allocation Management Module(PAMM) of Alpari, said “ with PAMM, clients will have access to liquidity pool from over 60 global banks via the largest Electronic Trading System. There is also a minimal pin spread from 0.5 pins and you will have instant credit in trading account.