Fintech is Powering Wealth Generation; Is Online Trading a Viable Way for Growing Wealth Passively?

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 Temitayo Sanusi

Let’s start with the numbers; in 2018, a survey revealed that about 45 per cent of all adult Nigerians had plans to immigrate to a different country for settlement. By 2021 that figure had jumped to 73 per cent

I shudder right now to think what the numbers may look like at the end of this year.

 Whether it’s due to the poor state of the economy, lack of job prospects, the need for better security or all of the above, today’s reality is that the average Nigerian adult is either in the process of relocating abroad or is actively building their career and finances to use as leverage when they are ready to move elsewhere.

 Lucrative labour demands in booming industries like Finance, Fintech, Technology, Engineering and Health Services means foreign governments like the United Kingdom, United States of America, Canada, Germany amongst others have opened their borders to foreigners and Nigerians, especially those who have developed a reputation for academic and professional excellence, have been a big beneficiary of this.

 The sad reality, however, is that not everyone who relocates overseas does so with a job offer in hand. There are those who would have to start from scratch, a group which includes students, wives or husbands who had to relocate because their better half got a job in another country, visa lottery winners amongst many others. In fact, it is quite possible that those who relocate via an employment offer may soon find out after arrival that their income is not enough to offset their bills and may have to take on two, three other jobs to find financial equilibrium.

As a Woman in Fintech who has lived both in Nigeria and the diaspora, I often come across this group of people and if there’s one question they almost always ask, it’s this: How can Nigerians in the diaspora build sustainable wealth passively?

My answer every time? Through Online financial trading. For those who don’t know, trading financial markets allows you to essentially make money from wherever you are located in the world by correctly speculating on the direction of price movement of assets like stocks, currencies (Forex), gold, oil, wheat and so many more.

There are no special requirements to become a foreign exchange or Contract for difference (CFD) or anyone, regardless of gender and geographical exclusions. You can access the markets with just a smart device and internet connection. This skill/hobby can be learned in a matter of days or weeks with many brokers in the country offering comprehensive educational resources and webinars for free.

In addition, most brokerages require no more than $100 for the first trade, and these premium brokers allow even lower first-time deposits to reduce entry barriers for as many people as possible. Compare this to markets like Real Estate–which requires steep capital commitments–and it is evident that the financial markets are more welcoming to most people regardless of their tax bracket.

For a new or aspiring resettler, this may just be the flexible opportunity you’ve been looking for until you find your feet in your new country. Even after landing a good job, trading is flexible and lucrative enough to double as a passive means of income.  In a busy world where time is the most valuable currency, trading offers time flexibility so that you can build your trades around your schedule.

It is true that many Nigerians shy away from online trading because it comes with a level of risk but don’t all good things? Despite this risk factor that comes with trading, there are several ways of fail-proofing the process which is why getting yourself educated is important.

Risk can also be amplified or diminished by the kind of brokerage chosen which is why it is important that when selecting a broker, you choose one that offers great education, negative balance protection, and has an easy-to-understand platform.

Traditional work and the way we think about money and income are changing. Assume you average 10 trades per day, and make $50 on each day, at the end of the month you would have made $1000. If you have a regular job, that’s an extra $12,000 in your pocket at the end of the year. Millions more people are trading online than ever before, and Nigerians make up a significant percentage of that number thanks to the advent of cryptocurrency trading.

According to World Bank, poverty rates are currently over 40 per cent with grim outlooks for the coming years. With such economic hardship posited, some people may travel with limited funds and need to support themselves with supplementary earnings. For this group, online trading is one of the most lucrative stopgaps you can find until you’re fully on your feet. Even beyond that, it remains a viable source of passive income, especially for people going through an in-between phase.

Temitayo Sanusi is the Director of Operations at Egmarkets, the first financial brokerage firm by Africans for Africans with 11 years experience in the finance sector. With over 5 years working in the Fintech space, Sanusi’s sound operational strategies and fresh perspective into the fintech space have been instrumental in transforming the company into offering disruptive, efficient, and reliable online trading platforms. Prior to working at Egmarkets, Temitayo was part of the pioneering team at Heritage bank holding the Security Services Operations position. She’s worked with Lagos State Public Works Corporation (LSPWC) and Zenith Bank where she started her career in the finance industry in Operational Management as a Customer Operations Executive. She plays an integral part in lobbying for the industry to be regulated in Nigeria by Security and Exchange Commission (SEC).