Best Time to Trade on the NGX

Best Time to Trade on the NGX revealed. To find the best time to purchase shares on the Nigerian Stock Exchange, we have done extensive research on several strategies.

This is a complete guide to the Best Time to Trade on the NGX.

In this in-depth guide you’ll learn:

• Brief Overview of the Nigerian Stock Exchange
• Best Time to Trade on the NGX
• How to choose the Right Share Broker in Nigeria
• The Best Share Brokers in Nigeria

Brief Overview of the Nigerian Stock Exchange

Formerly known as the Nigerian Stock Exchange (NSE), the Nigerian Exchange Limited (NGX) is a marketplace where registered stockbrokers exchange the shares, stocks, and securities of publicly listed firms.

The objective of the NGX is to give companies and investors dependable access to cash, as well as safe saving mechanisms and a framework for productive and efficient corporate operations.

To stimulate international investment in Nigeria, the government has repealed laws restricting the entry of foreign money. This has made it possible for international brokers to register as dealers on the Nigerian Stock Exchange, and investors of any nationality could participate.

Best Time to Trade on the NGX

The Nigerian Stock Exchange (NGX) is the continent’s second-busiest stock market, open weekdays from 9:30 am to 2:20 pm. Considering that currency loses buying power owing to inflation, investing is crucial in Nigeria if you want your money to grow and keep up with inflation.

In comparison to other markets, the Nigerian Stock Exchange is only open for 4 hours and 20 minutes every day. Trading in smaller markets is often concentrated in a shorter time frame, creating more liquidity, narrower spreads, and greater market efficiency.

When comparing the Nigerian Stock Exchange’s operating hours with that of prominent exchanges around the world, it will look like this:

Day Trading Stocks on the NGX – Ideal Timing to Buy Shares

Trading is often done with a much shorter time horizon than investing. When a trader buys a stock, they do so to sell it for a profit as fast as possible, often within a certain period such as a few days, a week, a month, or a quarter.

Timely NGX purchases could be most beneficial for day traders, who buy and sell equities inside the same trading day. Watching the market closely during trading hours may seem like a time-consuming chore at first, but it is extremely helpful to gauge the perfect time to buy shares.

Best Day to Buy Stocks on the NGX

Despite the belief of some investors, the evidence over extended periods does not support the idea that days typically provide larger returns than others.

Even today, many people consider Monday to be the best day to kick off the work week. This phenomenon has been called both the Monday effect and the weekend effect. Trader anecdotes suggest a weekly decreasing tendency in the stock market on Mondays.

Some people believe this to be true since so much unwelcome news always appears to come out on the weekend. It has been speculated that this is because traders are in a sour mood on Mondays since they must return to work after the weekend.

Best Month to Purchase Stocks on the NGX

The markets typically deliver healthy returns at the start and finish of each year, as well as in the summer.

You may have heard of the ‘January effect,’ and the theory around it suggests that as the new year begins, investors stream back into the stock markets, pushing up prices for small-cap and value businesses.

Consequently, based on historical trends, the final week of December is a good moment to buy in small caps or value stocks so that you may gain from a probable early-January rally. Moreover, many investors begin selling stocks in bulk towards year’s end to realize capital losses for tax purposes.

By considering everything, following the potentially large effect in January, the final trading days of the year may still present some bargains despite the customary sell-off in December, which lowers the investment value for new investors.

How to choose the Right Share Broker in Nigeria

Traders could not have picked a more favorable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee.

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

The Best Share Brokers in Nigeria

In this article, we have listed the best brokers which offer share trading to traders. We have further identified the brokers that offer additional services and solutions to traders.

Best MetaTrader 4 / MT4 Share Broker in Nigeria

Overall, IG is the best MT4 Share Broker in Nigeria. IG provides traders with competitive spreads, a wide variety of account options, more than 19,000 assets, and a secure trading environment. The trading platforms offered by IG include MetaTrader 4 on all its platforms.

Best MetaTrader 5 / MT5 Shares Trading Broker in Nigeria

Overall, Octa is the best MetaTrader 5 / MT5 shares trading broker in Nigeria. Octa is a well-known name in Nigeria, and even though it is an offshore broker, it offers Nigerian traders trading circumstances that are comparable to those offered to traders in other countries.

Best Share Broker in Nigeria for beginners

Overall, CM Trading is the best Share Broker in Nigeria for beginners. All traders have access to the various trading platforms and liquidity offered by CM Trading.

Beginner traders have access to a variety of instructional tools, including eBooks, trading videos, webinars, and live seminars, via CM Trading. These resources could be used to learn about financial markets.

Best Low Minimum Deposit Shares Trading Broker in Nigeria

Overall, Fidelity Investment is the best Low Minimum Deposit shares trading broker in Nigeria. Fidelity not only gives customers access to a wide variety of tradable assets, but the company also claims an incredibly low minimum deposit requirement of just 400 Nigerian Naira.

Best ECN Share Broker in Nigeria

Overall, Exness is the best ECN Share Broker in Nigeria. Exness is consistently ranked as one of the best ECN share brokers in Nigeria, as shown by the company’s ability to acquire 15,000 new clients daily.

Exness provides Nigerians with innovative and innovative tools to pick which shares to trade on MT4 and MT5 utilizing their platform.

Best Islamic / Swap-Free Shares Trading Broker in Nigeria

Overall, eToro is the best Islamic shares, trading broker. Over 3,000 distinct kinds of financial assets can be accessed through eToro, using its powerful and award-winning social trading platform.

Muslim traders in Nigeria can quickly and easily establish a live trading account with eToro, and then convert it to an Islamic trading account if they so want.

Best Shares Trading App in Nigeria

Overall, FBS has the best shares trading app in Nigeria. There are many Nigerians who do not have access to desktop computers, and FBS is one of the best trading software that provides mobile solutions to these individuals.

FBS offers a very alluring no-deposit bonus, in addition to leverage that may go as high as 1:3000 on primary instruments.

Best Naira Trading Account Share Broker in Nigeria

Overall, HFM is the best Naira trading account Share Broker in Nigeria. Nigerians turn to HFM because it is a reputable and widely used broker. NGN accounts and friendly service in several languages are both offered by HFM.

Best Lowest Spread Shares Trading Broker in Nigeria

Overall, IC Markets is the best lowest spread shares trading broker in Nigeria. Clients of IC Markets have access to an unusually broad set of technology capabilities, as well as superior transaction execution.

Best Nasdaq 100 Shares Trading Broker in Nigeria

Overall, BDSwiss is the best Nasdaq 100 shares trading broker in Nigeria. The NASDAQ 100 is one of the indices that may be traded as a contract for difference (CFD) on the MT4 and MT5 platforms provided by BDSwiss.

When Nigerians trade NAS100, they can expect a spread that starts at 0.65 pip and a commission price of $2 per standard lot.

Best Volatility 75 / VIX 75 Shares Trading Broker in Nigeria

Overall, AvaTrade is the best Volatility 75 / VIX 75 shares trading broker in Nigeria. AvaTrade offers its consumers daily market analysis as well as video material on both its blog and its YouTube channel.

Because there are no costs involved with using the platform and the spreads are minimal, AvaTrade is an excellent choice for trading the VIX 75 and other popular indices.

Best NDD Share Broker in Nigeria

Overall, Capital.com is the best NDD Share Broker in Nigeria. Capital.com offers a unified live account that may be used for a variety of trading products. Capital.com is an ECN and STP NDD broker that does not charge any commissions and has spreads starting at 0.6 pips.

Best STP Shares Trading Broker in Nigeria

Overall, Admirals is the best STP shares trading broker for traders in Nigeria. Admirals give residents of Nigeria access to a variety of account choices, some of which even come with execution alternatives (ECN and STP).

Admirals offer comprehensive research tools, educational content, and some of the most favorable trading conditions that are currently accessible.

Best Sign-Up Bonus Shares Trading Broker in Nigeria

Overall, InstaForex is the best shares trading sign-up bonus broker in Nigeria. If a Nigerian opens a trading account with InstaForex for the very first time to engage in international share trading, they are eligible to get a no-deposit bonus of $1,000.

In addition to this, they will also get a generous welcome bonus equal to thirty percent of the entire value of their very first transaction.

Conclusion

When deciding the optimal time to trade stocks on the NGX, it is essential to research the market and keep an eye on the charts, indicators, and news stories about the firms you are interested in.

More experienced traders could find the trading day’s opening and closing hours to be the most lucrative. The success of the market during any given week, month, or year cannot be anticipated with perfect confidence, but previous trends could offer useful information.

Frequently asked questions

In Nigeria, how could I trade shares?

You must register a live trading account with a stockbroker to help you execute your deal to buy shares that are listed on the NGX.

Which Nigerian stock is the greatest one to purchase right now?

With a market capitalization of 7.16 trillion NGN, Airtel Africa Plc (NGX: AIRTELAFRI) is one of the finest shares on the NGX and the most valuable company, accounting for 26.3% of the total equity market on the Nigerian Stock Exchange.

When are stock prices at their lowest?

Many traders think that volatility tapers down and prices could fall in the middle of the trading day.

Does the afternoon see a decline in stock prices?

By midday, most market-moving news pieces have already been published, thus trading activity tends to slow down, which might lead to a decline in share prices.

How much money must I have to buy shares in Nigeria?

You do not need a lot of capital as some of the least expensive shares start at 0.20 NGN.