With the ease of internet availability and mobile devices, Africa has witnessed a remarkable surge in the number of online traders. The dynamic young population in Africa has shown keen interest in making a side income from financial markets. After the covid 19 pandemic, the work from home culture has further augmented the number of participants in the capital markets.
Africa witnessed a growth of more than 50% in the number of retail online traders since mid-2020. Among the African nations, online trading activities have grown the most in Nigeria due to cheap mobile data, mobile devices, resourceful features offered by the online brokers. The sizable young population in Nigeria has taken a keen interest in online trading. Eagerness to participate and desire to get rich quickly has made online trading trendy in Nigeria.
Online trading has several advantages over traditional brokers used for trading. However, there are always two sides to a coin as there are some drawdowns to choosing online trading over traditional trading mechanisms.
The online mode of trading has dramatically increased the reachability of capital markets. Following are the major reasons why online trading can be a better alternative than choosing traditional brokers.
The traditional brokers charge a much higher amount as commission to execute trade orders. Generally, a licensed stockbroker can charge 2% to 4% of the trade amount in Nigeria. Compared to this,…