E-Financial
Myths of Online Forex Trading
By Abiola Akinyele, General Manager of FXTM Nigeria
Over my decade-long experience of trading the forex market, I have met many individuals with different ideas of what the market is. This includes both people with firsthand knowledge, as well as those with only a limited understanding of how the market works. It is not only beginners who believe in the myths of the market- surprisingly, some experienced traders do too. In this article, I will share and unravel some of these myths.
The myths are all those rumours that you usually read in online forums. Although it is a golden rule not to believe everything you hear, these types of myths can often take root in a trader’s mindset and can generate fear or distrust of the forex market. Some are misconceptions stemming from mistakes made by beginners who have most probably misused the trading platforms and who therefore spread exaggerated stories based on specific cases. For obvious reasons, they are not representative of how the forex market works. So, let’s explore these myths.
Myth #1: Trading is extremely easy
This is the quintessential myth par excellence and one which many new traders tend to believe. The process of downloading and opening the software to start operating is relatively easy since you can start practicing on a demo account using virtual money.All you need is a computer, internet access and a desire to start. However, earning a lot of money quickly is another story. Although there are some lucky traders who succeed as soon as they start trading, this kind of beginner’s luck does not apply to everyone.
Successful forex trading requires practice and a lot of invested time.You cannot expect to be profitable as soon as you start trading, even if you have been practicing for some time. It is one of the reasons why I would strongly recommend that anyone who intends to start trading or has a desire to learn about the forex market should attend forex training seminars, such as the onesheld in our various offices in Nigeria.Another useful source of information is the FXTM website, where you can join any of our webinars and checkout our online educational materials.
Myth #2: Forex trading is gambling
Although it is quite easy to compare gambling and trading because of the risk factor, they are not the same. Forex traders have access to a lot of macroeconomic information to help them make informed trading decisions. This is why education, understanding the markets and having a suitable trading strategy are so key. While there is always risk involved in trading, these factors make it significantly different from gambling.
Myth #3: You need an economics or finance degree to trade
This myth is one of the most wide spread and it is, of course, false. It is not necessary to be a university graduate or have many degrees to be a trader. The only technical barriers to entering the markets are the need for a computer, internet connectivity and a strong desire to succeed – however, the willingness to learn is vital for anyone interested in forex trading. It’s essential to explore well-grounded education courses before beginning to trade, and I strongly recommend visiting the education section of the FXTM website.
Myth #4: The more complex the strategy is, the more profit it produces
Normally traders start with a simple strategy and only see little performance. Therefore, they assume that if they continue to make an adjustment to their system, taking into account some other variables, they will increase their profitability. But what they do not understand is that this is not how trading works. A winning strategy adapts to both your type of trade and your trading personality.In short, it is not something that depends on how complicated the strategy you use is. In fact, if you use a very difficult strategy that you do not know how to manage, it is likely that you will simply lose money.
Myth #5: Forex is a scam
It is true that there have been cases where individuals have had very negative experiences in the forex market, either due to the broker they have chosen to work with, due to lack of education on the forex market, or due to the wrong trading strategy. But this doesn’t mean that forex as a whole is a scam. Forex is a real currency market where anyone can trade for themselves and also be responsible for their own trading decisions and their losses. Individuals also need to be careful of people who are looking to defraud traders, whether that be by including them in pyramid-scheme businesses that seek to take away profits, or due to them being unreliable and disreputable brokers. However, it is necessary to emphasize that the market itself is NOT, by nature, fraudulent.
Myth #6: Following what other traders do leads to success
DO NOT ever follow what other traders do just because they look like they know what they are doing. A trader must develop their own skills and learn from their mistakes.They can listen to other traders, of course, and even follow the strategy of a trader they trust through copy trading, but keep in mind that every individual’s experience of forex trading is different. You should take your own trading style and goals into account and always carry out your own research before committing your capital. Experienced professionals can greatly help new traders; however, this should be part of an informed and educated decision.Do not simply believe in everything people say, no matter how experienced they may look.
Myth #7:You need to watch your computer all the time
It is humanly impossible for a person to focus on one thing all the time, especially to constantly watch their computer screen. Most professional traders monitor the market movements before closing their positions. Traders could also leave standing orders with forex brokers which automatically close the order for them.
So, no;in order to be a forex trader, you do not have to be stuck onyourPC24/7, but you should be able to devote a considerable amount of time to watching the markets.
Myth #8: Money management means placing a stop
The handling of money is one of the most important factors with regards to the success of a trader. In fact, I consider a proper understanding of money and risk management the most important skill for a successful trader to have. However, money management does not mean just placing a stop order on a trade, it also involves the amount of the total account that will be risked by each trader. When focusing on what money management is, the trader must take his operations to the next level.For that reason, it is something that should not be ignored because if it is done, even using the best strategy, it will fail.
Myth #9: The more pairs you exchange, the better
Trading many pairs at the same time may distract you and that could lead to many losses. Trading more pairs does not always mean that you will have more profits;it actually means more work and less time to think rationally.
Therefore, the best option is to be patient and wait for the pairs you are trading to bear fruit— especially if you are a new and inexperienced trader.
Professional traders already have the currency pairs that they are familiar with and they know how to manage their strategy and their time.
Summary
It is important for a forex trader to do their own research to understand what it really means to work with the fast-moving markets. Much of this learning will come from experience since not everything can be taught through courses, articles and guides.
Myths in the foreign exchange market are very dangerous and harmful for traders. Therefore, you should always fact check everything you read or hear and keep an open mind and try things for yourself.
Flutterwave, Africa’s leading payments technology company, has been named in the TIME100 Most Influential Companies List of 2025, marking its second appearance on the prestigious global ranking.
Previously honoured in 2021, Flutterwave joins industry giants such as Amazon, Netflix, and OpenAI in the TITANS category of the fifth-annual list, which recognizes companies driving significant global impact.
The selection process, led by TIME editors, evaluated nominees based on innovation, ambition, impact, and success, highlighting Flutterwave’s transformative role in the fintech sector.
Founded in 2016, Flutterwave has grown into a powerhouse facilitating seamless payments across Africa and beyond, empowering businesses and individuals in the digital economy.
Its solutions span critical sectors such as cross-border remittances, e-commerce, travel, payroll, and hospitality.
The company’s 2021 TIME100 recognition followed its impactful campaign to help businesses pivot online during the COVID-19 pandemic.
This year’s inclusion underscores Flutterwave’s sustained influence, with its technology now reaching over 34 African countries and expanding into new markets such as Bahrain, Turkey, and Saudi Arabia, supporting a leading global ride-hailing company’s operations.
Flutterwave’s flagship remittance product, SendApp by Flutterwave, has gained significant traction in the US, UK, and EU, offering faster and more affordable money transfers for the African diaspora.
In 2024, the company secured 20 additional licenses in the US, bringing its total to 34 and achieving near-complete coverage through strategic partnerships.
Flutterwave’s focus on profitability and market expansion, coupled with a strengthened executive team, has fuelled its growth, with nearly half of its customers receiving payments in new markets last year.
Olugbenga Agboola, founder and CEO, Flutterwave, expressed pride in the recognition, stating, “Being recognized by TIME once again is a true honour. It’s a testament to our team’s incredible work. We’re shaping Africa’s financial future and connecting the continent to the world.”
The accolade follows other recent honours, including topping Fast Company’s 2024 Most Innovative Companies list for Europe, the Middle East, and Africa, and earning a second consecutive ranking in the FXC Top 100 Cross-Border Payment Companies.
The TIME100 listing solidifies Flutterwave’s position as a global fintech leader, bridging Africa to the world through innovative payment solutions.
As the company continues to expand its reach and refine its growth strategy, its influence in transforming the financial landscape remains undeniable, setting a benchmark for innovation and connectivity in the digital economy.
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said that under the new tax laws, Nigerian households earning ₦250,000 or less per month are classified as poor and exempt from paying taxes.
The former tax leader at PriceWaterhouseCoopers (PwC) stated this on Channels Television’s Politics Today on Thursday, a few hours after President Bola Tinubu assented to four new tax bills.
Oyedele, whom the President appointed in July 2023, described his two-year stint as chair of the tax reform committee as both eventful and challenging.
He said that the objectives of the new laws, which would take effect from January 2026, were not intended to increase taxes but to stimulate economic activity in the country and track tax evaders.
President Bola Tinubu sits as he signs four new tax bills into law at the Presidential Villa in Abuja on Thursday, June 26, 2025 in the presence of top government officials. C
Oyedele stated that the new laws would also protect businesses and ensure that the government doesn’t tax poverty, adding that the new laws are efficiency-driven, growth-focused, and people-centric.
“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor.”
He said nobody earning below ₦250,000 would have to pay taxes because they don’t even have enough.
“We have eliminated the tax component for people at the bottom, we have reduced for people at the middle, and we have increased slightly for people at the top.
“That middle, we estimated it at about ₦1.8 to ₦2m a month. If you are earning that amount and below, your tax will not be zero but it will reduce from what you are paying today,” he stated, noting that those who earn this amount are about 5% of the total Nigerian population.
The tax boss said to arrive at a decision, his committee debated the poverty line of an average Nigerian.
Oyedele said, “We debated this question; we said: ‘Who is a poor person in Nigeria?
“First, we started with data like the World Bank and the UN will tell you two dollars, fifteen cents a day per person means you are at the poverty line but there are people who do not earn two dollars a day but they are not poor because they produce the food that they eat and they do not pay for transportation. I lived and grew up in the village.
“So, we had to factor that in. We drew our own (poverty) line for Nigeria on the basis of an average of five people per family: two people working if they are lucky, taking care of the five.
“When we did the maths, it gave us an amount, and that was what we used in determining the income below which nobody should pay taxes.
“We came up with a ₦120,000 or ₦130,000 per two people working in a household of five. If the earnings are about ₦250,000, they can take care of themselves. Of course, they are not going to have luxury, but at least they can take care of themselves. They are poor, and they shouldn’t pay taxes.”
“When we did the maths, it gave us an amount, and that was what we used in determining the income below which nobody should pay taxes.
“We came up with a ₦120,000 or ₦130,000 per two people working in a household of five. If the earnings are about ₦250,000, they can take care of themselves. Of course, they are not going to have luxury, but at least they can take care of themselves. They are poor, and they shouldn’t pay taxes.”
Oyedele stated that Nigeria currently collects only about 30% of what the country should be receiving in taxes, noting that the objective of the new tax laws is to close the 70% gap.
The Cable NG reports that the market capitalisation of Fidelity Bank has crossed the N1 trillion mark as the share value of the company appreciated by 1.27 percent at the close of trading.
According data from the Nigerian Exchange Group (NGX), the bank’s market capitalisation hit N1 trillion after its share price rose from N19.75 on Tuesday to N20 on Wednesday.
The increase moved the company’s valuation from N991.6 billion to N1 trillion.
With the development, Fidelity Bank joins the list of financial institutions with a market capitalisation of over N1 trillion.
The companies are Zenith Bank, Access Bank, United Bank of Africa (UBA), Guaranty Trust Bank (GTB), and First Bank.
On May 21, Nneka Onyeali-Ikpe, the managing director (MD) and chief executive officer (CEO) of Fidelity Bank, acquired an additional 18 million shares in the bank.
Two days later, Onyeali-Ikpe bought additional 2 million units of shares in the bank.
According to a regulatory filing on the NGX, the shares were acquired on May 22, at N18.6 each — amounting to a total value of N37.2 million.
The acquisitions increased her shareholding in the bank to 114.64 million shares — from 94.64 million held as at December 31, 2024.
In its latest financial performance report, Fidelity Bank said it reported a 167.8 percent year-on-year increase in profit before tax (PBT), which increased to N105.8 billion in the first quarter (Q1) of 2025.
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