Today, many individuals in Nigeria are participating in financial trading platforms, with the possibility of enormous returns from various investments. Online trading forex has risen in popularity over the last decade, owing to the simplicity with which it can be accessed. Retail traders from all over the globe are opting to trade forex currency pairs, CFDs and assets, either as a professional career or as a hobby.

Mobile trading platforms generally give users real market prices on which to trade and other trading tools such as graphing packages, news streams, and account management features. Some platforms have been developed to provide consumers with access to financial markets that were previously exclusively available to specialised trading businesses.

Because of the abundance of accessible platforms, choosing an online trading platform on which to trust these days is pretty simple. There are platforms for various assets and instruments, as well as platforms for various personalities and requirements. However, not all platforms are ideal for all traders, and you will need to do some research to discover the best platform for you. The following article gives insight into the top five factors to consider when choosing a mobile trading platform in Nigeria. So, let’s dive into it. 

• Safety and transparency:

The security of your hard-earned money is more important than monetary profits on your assets. Regulation and transparency of the investing platform can assure safety. It is essential to confirm that the relevant financial regulatory bodies regulate the chosen mobile trading platform. Transparency of financial accounts and assets can boost trust even further. 

Although trading forex in Nigeria and CFD brokers are not yet licensed in Nigeria, it is not unlawful. Many Nigerian traders deal with top-tier international regulators such as FCA, ASIC, FSCA, CySEC, and others to ensure their funds’ safety. The majority of African forex traders deal through South African forex brokers that the FSCA licences.

Application for trading crypto must adhere to the Central Bank of Nigeria’s regulatory framework. However, the CBN’s new crypto prohibition puts Nigerian crypto traders in danger, as most of them have now resorted to P2P networks. However, the fact that the SEC is collaborating with the CBN to regulate cryptocurrency trade in Nigeria may be good news.

• Trading fees:

Lower costs can always enhance profits on investing, but they should not be the sole consideration when choosing a trading platform. Platforms that provide extremely low-cost services can deceive traders and investors if regulators do not authorise them in your region. Spreads and broker commissions are included in trading costs in FX and CFD markets. Spreads are generally flexible and vary based on market circumstances, whereas commissions are fixed. Some brokers will also provide fixed and insignificant spreads in exchange for greater fees. Before selecting a broker, the spreads and commissions must be thoroughly examined and contrasted.

When comparing forex and CFD brokers, non-trading costs such as transaction fees, inactivity fees, currency exchange fees, and so on must also be evaluated. The fees charged by bitcoin wallets and trading applications range from 0.1 to 1% of the transacted value. If the 30-day trading volume is larger, the costs may be reduced. For bitcoin trading applications and wallets, deposits and withdrawals are usually free.

• Graphs, charts, tools and features:

This is not a simple task, but whether you are a newbie or an experienced user, we recommend you take the platform for a test drive before deciding on which tools to use. Nothing is more frustrating than joining a mobile trading platform, depositing funds, and beginning your first analysis only to discover that the platform lacks the functionality and graphs you require to trade correctly. If you’re new to trading and don’t know what to look for, the best advice is to read platform evaluations and reviews from more professional ones. It is critical that you study the platform to ensure that it includes all the tools you require for trading.

• Customer support service:

The last item on our list is prompt and committed customer service. Check to see if the platform is accessible when you require it. It’s ideal if your broker provides 24-hour client service. Open a trial account with the platform of interest, then send it an email or a live chat inquiry. Examine how wholly and quickly the customer service representative responds. Eliminate this trading platform from your list of prospective options if the customer support is poor.

• Deposit and withdrawal options:

Withdrawals and deposits that are quick, easy, and seamless are also crucial factors. A reliable trading platform should provide a diverse range of payment alternatives. Bank cards, wire transfers, and different e-payment methods are examples of these. There is no need for an open and transparent marketplace to make profit withdrawal complicated. If the platform offers a variety of payment options, immediate withdrawals, and no commissions, it implies that it is committed to making your transactions as quick and easy as possible.

FINAL THOUGHTS:

Before agreeing to a platform or forex broker, it is critical to understand as much as possible about them by conducting extensive research to decrease the possibility of losing money on your transactions. Learn everything there is about the company and its trading circumstances, and be sure to choose a platform with the functionality, tools and assets you want.

It can be great news that you’ve achieved a six-figure income in your working life, but unfortunately you now face some complex financial challenges. This is certainly apparent when it comes to the amount of tax you pay and the level of pension savings you can accumulate.

On the bright side, there are some simple financial changes you can make to help manage your wealth effectively, including making the most of your tax-free personal allowance and annual allowance.

Read on to find out more. 

What is the tax-free personal allowance?

The majority of people in the UK can earn up to a certain amount before paying any income tax. This is known as your personal allowance. There is an intricate link between the amount of income tax you pay and your personal allowance.

For the tax year 2021/2022, the personal allowance is a total of £12,570 – meaning when you earn between £0 and £12,570 you do not pay any income tax at all. The more you earn, the more income tax you have to pay:

• Earnings of £12,571 to £50,270 — Basic tax rate of 20%
• Earnings of £50,271 to £150,000 — Higher tax rate of 40%
• Earnings over £150,000 — Additional tax rate of 45%

Once your earnings exceed £100,000, the personal allowance you are entitled to also changes. It reduces by £1 for every £2 of income earned. Therefore, by the time you reach an income of £125,140, you will have lost your tax-free personal allowance completely.

This is where you can be caught in a tax trap, as you earn more. When you exceed a six-figure income, not only are you paying a higher tax rate of 40%, but you also lose a certain amount of your personal allowance, meaning more of your income is liable for tax.

However, with some clever financial planning and by simply using your pension, you can make the most of your tax-free personal allowance and reduce your tax bill.

If you contribute a significant amount to your pension instead, you can reduce your income back down to the £100,000 threshold and reclaim the full amount of your tax-free personal allowance. What’s more, you can also benefit from the tax relief you can claim on your pension savings.

Pension annual allowance

When considering using your pension as part of a financial plan and reducing your level of income tax, you will also need to understand the annual allowance, and how this can change for a high earner. This can help to avoid some accidental taxation at the end of the tax year.

The annual allowance is the amount you can pay into your pension pot and benefit from tax relief. This essentially is a bonus from the government for saving for your retirement. You can use an online pension tax relief calculator to work out how much you’re entitled to.

Within a tax year, you can usually pay up to a £40,000 annual contribution into your pension (or the equivalent of your earnings in that tax year, whichever is lower). However, this is tapered for high earners. This means that if you earn in excess of £240,000 – including your employer’s pension contributions – your annual allowance is tapered by £1 for every £2 earned. This goes down to the minimum annual allowance of £4,000, if your income and employer pension contribution total more than £312,000 per annum.

There is also a lifetime allowance of £1,073,100, which is the total amount you can hold in pensions over a lifetime – as the name would suggest. In these financial circumstances when you’re earning a high income, it is essential to work with a financial advisor to ensure that you’re making the most of tax efficient vehicles and managing your wealth effectively. 

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As previously mentioned, when it comes to reducing your tax bill, and making the most of your tax-free allowances, it is always best to consult with a financial advisor. They can help you achieve your financial goals and suggest viable strategies, to suit your particular income and circumstances.

Disclaimer: Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested.

Binary options have become a very popular financial instrument for young traders. It’s obvious why: The so-called all-or-nothing options promise high profits and are rather easy to understand. In contrast to other options, traders only have to state whether the price of an underlying asset will be below or above a certain value once a binary option expires.

While they can be profitable, binary options also pose a high risk: If the trader´s prediction was wrong, the binary option goes valueless. Yet, there is only a 50% chance of making the wrong decision, which leaves 50% for making the right one. For traders, that means that binary options trading can be a fun and lucrative experience as long as it’s done with a regulated online broker like IQ Option. Check out the binaryoptions.com review on IQ Option to understand why the broker is a great partner for binary options trading. Before getting started, you should know the following fun facts on binary options.

Source: https://www.pexels.com/de-de/foto/marketing-geschaftsmann-geschaft-finanzen-7567595/

Traders Often Mix up Licenses with Regulations

We just mentioned how important it is to only trade on regulated platforms. That way, you can avoid fraudulent activities. Some brokers try to lure attentive customers by issuing their license number in a way that gets traders to believe it´s a proof of regulation. When thinking about signing up with a specific binary options broker, traders should always do some research on the alleged regulation number. If it turns out that it’s merely a business registration number, the broker is not a good choice.

Even though the provider might stick with strict intern guidelines that could guarantee a safe trading experience, a regulated broker is always the smarter choice. Traders should also keep in mind that some countries do not allow binary options trading with non-regulated brokers.

Brokers for Binary Options Trading Are Not Necessarily Experts on Binary Options

Most traders assume that an online broker that specializes on all-or-nothing options is an expert in this field – just like a hairdresser is an expert on haircuts, hair colors and hair care in general. But they’re not. In fact, online brokers are mere service providers and an interface between the trader and the exchange market.

Even though some brokers offer you many sources of information on binary options trading, you should always rely on yourself and your own trading skills. It’s up to the traders to learn from and about the market. After all, binary options are financial speculative instruments, and a broker won´t take your task as a trader away from you.

Binary Options Trading is Legal in the UK

Binary options are financial exotic options, which have been subject to fraud in the past. Due to their 50% risk of loss, some governments deem them gambling. That is why there are nations that have prohibited binary options trading. The field is a very controversial one indeed. Still, the UK government has decided to allow binary options trading.

You Do Need Trading Experience in Order to Be Successful with Binary Options Trading

With binary options, there is a 50% chance of making the right decision and making high profits. But that doesn’t mean that it’s easy to win. In order to be successful at binary options trading, it’s essential to inform yourself about the market and about economic as well as political correlations. As a prospective trader, you should also make sure to define your individual trading style and to learn about trading strategies. Only with a diverse basic knowledge will you be able to make good decisions.

And good decisions are more essential with digital options than they are with other financial instruments. Because, if your decision is poor, you´ll lament a high loss.

Traders Can Become Rich with Binary Options

Just like with any other type of investment, it is possible to become rich. But traders should be aware that it can take a long time before trading becomes really lucrative. Investors should also keep track of the underlying assets of their options, for example foreign currencies.