By Moses Nosike
The partnership between Mr. Oyeleke Toye of Cyber Konsult Ltd and its foreign partner, Mr. Ildar Nailevich, gave birth to InstaForex in Nigeria, a forex trading company aimed at enlightening Nigerians on the techniques and success of forex trading while ameliorating major challenges confronting industry players in Nigeria. Mr. John Igwe of InstaForex speaks to Saturday Vanguard Business on the rudiments of trading forex, among others. Excerpts:
InstaForex trading, what value is it adding to forex trading in Nigeria?
InstaForex, as the name goes is a trading forex company that is established in Nigeria for the success of its players and to add value to the Nigerian economy. Again, InstaForex in Nigeria, has reduced a lot of challenges associated with forex trading almost to nothing. For instance, when we started it in 2006, we had several challenges in terms of funding our accounts because brokers are not indigenous but foreigners and for that, you need to send money to countries where they are located.
Also, it was difficult to approach banks because of stiff conditions when creating forex account with them. Brokers also have their own requirements which was difficult to provide. But today, it is no longer like that. These days, you can fund your account easily within ten minutes, a process that used to take a week before you achieve result. Likewise, you can make withdrawal in less than 24 hours because the system has made it easy by providing you a withdrawal card that once you have registered for training or you have funded your account up to hundred dollars, you can also fund your account through our office or bank.
What are the techniques of forex trading and how does the trading benefit industry players?
We have two methods of forex trading which include, technical and fundamental trading. The technical trading is that system of trading that is based on the trading chart where you have various indicators which you can use to trade in the market. While fundamental trading has to do with the economic reports, factors that affect the economy of a country. And we understood that no matter how developed an economy could be, such economy has one challenge or the other.
Such policy or currency variation provides an opportunity for traders to make money. So, these changes that occur from time to time is called fundamental trading in forex market. While those that focus on the chart is called technical trading. In technical we have indicators as mentioned earlier, the moving average, RSI, Pivot Point etc. And some people trade on a pure chart, using the candle stick pattern to trade, that is what we call one of Price action trading system.
On the benefits of forex trading, it has made players in this industry look like micro economists, especially the fundamental trading because through studies they have been able to understand forex trading as they can now predict or forecast what may likely happen in any given economy because they follow the trend either through the media or web pages.
How does InstaForex handle training?
We provide training for interested persons (in fact training is the major forex business we do here), because one needs training for understanding before you can trade on forex. Reason is that, generally, businesses you don’t have good knowledge of, you are advised to undergo training before you can succeed. However, we package series of trainings for a better understanding of forex market for beginners as we teach them basic things about forex. We also train people on advance courses on forex.
These courses, no doubt, should position them to be disciplined while trading forex as they develop their own trading system that could help them succeed. In addition to that, they need what is called, money management skill. One should understand here that the market is not a get-quick-rich approach, it’s not gambling, but you need to run it like a business, set up long term goals for your achievement. If your aim and approach is to invest today and reap tomorrow you would get your fingers burnt as many did.
How conducive is Nigerian business environment for forex trading?
Some people would tell you that Nigeria is not conducive, but personally I say yes. I have come across articles where even the whites have testified that the best place for forex trading is West Africa and Nigeria is there. The reason is that major active time of trading falls in our day time; 7 am – 5 pm. This particular period is the best time anybody can trade.
We have four sections in the market, basically three; the Asian, London and New York sections. The most active sections of this market is the London and New York. These sections fall on the time when Nigerians are awake, actively working. So other countries that want to trade at that particular time need to remain awake to follow the market. Therefore, the Nigerian environment is very conducive for forex trading .
What are the challenges of trading forex?
The major challenges of trading forex is understanding the techniques and developing interest to follow a particular trading method. Secondly, the challenge of power supply. Power supply is very essential in almost every business enterprise especially in trading forex. In Nigeria there is no constant power supply that enables people trade all the time. You need to make provision for that in order to trade normally.
Access to internet is another challenge, because it is difficult to trade forex without the use of internet. A particular internet might be working or service provider on the other side and it might not work here. But with the introduction of universal model you can swap your sim card. We achieve this through the service of mainly four internet providers in Nigeria, MTN, Airtel, Glo, Etisalat etc. If one can get all or some of these, forex trading will be easy.