6 Nigerians Talk About Losing Money To Forex Trading

January 7, 2021

Forex trading is becoming hugely popular in the country. While it comes with its scores of risk, it also promises huge returns. Nigerians either trade themselves or give a capital to “traders” or “investment companies” to trade on their behalf and get a return on investment. Both can go wrong, so we asked 6 people to talk about their experiences.

Kunle

I served in a financial investment firm during NYSC, and I was taught various trading strategies and trained to trade forex. I was retained after my service, and the company gave me my own account with an initial balance of $1000. Now, I started trading with real money.

For 7 months, I hardly made a significant loss. On a good week, I was making between $1k -$3k in profit. Within three months, they increased my trading balance to $18k. But the working conditions got too hard for me, and I resigned from the job. I opened my own account and started trading with a capital of $500. My run continued, and in less than 6 months, I grew my capital to $6k.

There’s this thing called flash crash in forex trading — it happens when the market suddenly becomes volatile, and you can make thousands of pips in profit or loss within seconds or minutes. That happened with some AUD pairs I was trading and changed everything for me. The flashcard went in the opposite direction. Unfortunately. I wasn’t tracking my trades because I was on the profit side the last time I checked, and I had a projected point I was expecting the market to reach before I left the trade. I didn’t use the stop loss feature either — I didn’t think I needed it. When I returned to it, my capital and profit had been wiped out, and I had only $1.40 left. I lost everything I made over 6 months in less than 30 minutes. 

Ifeoluwa

I paid someone ₦15k to teach me forex trading when I was in university in 2010. After trading with a demo account, I figured out that it required more effort than I could give it at the time, so I let it go. In 2018, a guy I met at work training made close to $11k in 30 minutes. Nonfarm payroll had come out that day, and the market swings dramatically depending on if the number is positive (higher than projections) or negative (lower than projections) The guy traded using the data and made more than my annual salary in less than an hour. 

I flipped. I knew I had to get back in. However, he wasn’t taking outside funds that were less than ₦10M. I convinced him to share his trading tools with me and joined his trading community. I practised with a demo account for more than a month before I went to the market. It still ended in premium thousand dollar tears.

The plan was to use $100 for each trading opportunity, so I had only 20 shots at getting it right. I projected a minimum return of $300 in 4 trades. If I got this result, I would have an ROI of $1200 minus $600 depending on my stop loss.

Of course, it didn’t happen. I lost half my capital in little time. But I wasn’t ready to stop. I changed my strategies and continued trading. then I lost the other half. I had only $100 left when I left the market. In hindsight, I could have been less emotional and more patient. But we move.

Olu

Forex trading was the rave in my school in 2019, and I decided to join the fun. All my friends were practically doing it, so what could go wrong? I gathered my savings, including the money I was keeping to buy a laptop, and my house rent, and invested with someone — everything totalled 250k. 

I was supposed to get my capital and 20% returns on investment at the end of each month. I got the first returns without a problem. After that, it started to go wrong. Apparently, the person I invested with was also investing with someone else. It was some sort of pyramid scheme. The person at the top of the pyramid tried to abscond and people caught a whiff of it. They had him arrested, but that was the last I heard of him. I never got my money back.

I gave it another try in October 2020. I was in a weekly contribution program with a few friends, and we decided to invest the ₦150k we had saved. When the first investment cycle ran its course, we reinvested the capital and ROI. Last month, the guy who had our money informed us that they won’t be paying people until March. There is a chance that we won’t get our money back. It didn’t even hit me the way the first experience did. I’ve accepted that this forex thing is not for me. Fool me once, shame on you. Fool me twice, shame on me. There will never be a fool me thrice.

Ope

Last year, a classmate told me about another classmate who had invested in forex trading and was making good returns every month. I called her and she confirmed that it was true. I thought about giving it a try too. The profit margin didn’t seem unreasonable — ROI was 20% at the end of the month rather than the 50-100% everyone else was throwing around. Besides, it seemed like the guy knew what he was doing — he threw words like risk and asset management around. He even sent me a signed ‘Memorandum of Understanding’, stating the capital and expected returns. I invested ₦100k for a start, and I got it back with the promised ROI at the end of the month. A few weeks later, I increased my capital to ₦250k and let it roll over in the following months. I wanted to take my money out in December because I’d started seeing some disturbing signs. But I thought I should chill for an additional month. A week before payout, he informed me that he would be paying only the interest on capital for three months because he’d locked the capital somewhere. My money had grown to over ₦500k, and till today I haven’t gotten it back. 

Temi

My story started in 2018. A friend whose church member worked at an investment company told me about the opportunity. I did my research and went to the company, and everything checked out. The company’s boss is a lawyer and a former judge, so I felt I could trust them.

I told a few friends about it, and together we raised ₦7M and invested with the company to trade for us. We were supposed to get our capital and 50% ROI after four months. 

The payment was due in March 2019, but nothing came. At first, they claimed they were having issues with money transfer. Then I noticed that the owner of this company had turned off his phones and deleted his social media accounts. It didn’t make sense because he’d just completed a state of the art building. I reached out to the company’s lawyer and found out that the man was the only person linked to the company’s account, so nobody but he could authorise payment. This man is still in the wind — he left his wife, children, mother and ran away. Last month, I heard that he owes his investors about ₦7billion. 

Liv

I first heard about Forex trading during a SAED class at NYSC camp, but I didn’t put a lot of thought into it. Later, my mum told me about it — she had a colleague who was into it. Well, it wasn’t illegal, and the source was solid. So, I put ₦100k into it and got ₦36k in returns at the end of each month. 

After a few months, I told some friends about it and brought them on board. Sometime in 2018, the trader warned us that the market was volatile and that he would have to stop the monthly payouts for a few months. But he offered us a chance to take out our money if we wanted to. I don’t know if it was greed or blind faith, but nobody did. And that was the last time we got a payout. 

The timeline he gave passed, and he kept posting us. People tried to track him down, but nobody found him. I wouldn’t have been bothered so much if I hadn’t brought people to invest. Their investment ran into millions of naira. I had gotten more than my initial capital, but my friends had over ₦5M in it and never got a dime back. 


Zikoko Donation Banner

Help Zikoko keep making the content you love

More than ever, people are turning to Zikoko for stories that matter and content they love. But still, we, like many media organisations, are feeling the financial heat of these times. If you find us valuable, please make a contribution to help keep Zikoko zikoko-ing.

Thank you for your support.

We are also cool with Crypto.

Donation Close
Zikoko Logo

Complete Your Commitment

Donation confirm

Your Contribution is confirmed! Amount

Toheeb Lanlehin

Join The Conversation

Bring a friend.

You'll like this

May 6, 2019

Every week, we ask anonymous people to give us a window into their relationship with the Naira. In this story, a lady talks about her struggles and it’s not just with money, it’s at the workplace. Age: 26 Occupation: Customer Support What’s the first time you made money? It was in secondary school. Mumsy bought a lot […]

December 9, 2019

If you’ve been reading #NairaLife long enough, then you probably know I’m currently on the #JollofRoad, our West African road trip. Along the way, I’ve found all kinds of people. And what good is it if I don’t run into people and ask them about their finances? The subject of today’s story lives in Abuja, where […]

Watch

Now on Zikoko

Recommended Quizzes

April 9, 2020

At some point in life, we all learnt that someone can be very intelligent and still lack common sense. That’s the difference between being book smart and being street smart. If you’re not sure where on the spectrum you fall, well, that’s what this quiz is here to tell you. Take it:

March 24, 2020

While we know that a lot of the best Nigerian artists deservedly have fans across generations, that won’t stop us from attempting to guess how old you are based on your taste in Nigerian music. So, take this quiz to see if we got it right:

December 11, 2019

In the past month, we’ve made quizzes that guessed the last time you had sex, how many people you’ve slept with, and just how good you are in bed. For our latest attempt, we will use your taste in Nigerian music from the 2010s to ascertain what you’re like in bed. Take to find out:

November 7, 2019

These days, everyone is always talking about how much sex they’re getting, or how little sex they’re getting, or how disgusting sex is etc. There’s just so much talk about sex, it’s almost impossible to know who’s lying and who’s telling the truth. In anticipation of our new series about the sex lives of young […]

More from Money

January 14, 2021

It’s safe to say that the culture of black tax has caught on. More than ever, young Nigerians are expected to support their families from whatever they earn. It’s a tricky situation to navigate, so we asked 8 Nigerians who’re paying a form of black tax to talk about their experiences.

January 12, 2021

“A Week In The Life” is a weekly Zikoko series that explores the working-class struggles of Nigerians. It captures the very spirit of what it means to hustle in Nigeria and puts you in the shoes of the subject for a week. The subject of today’s “A Week In The Life” is an Alaga Iyawo. These […]

December 29, 2020

On March 10 2020, I published the first-ever “A Week In The Life” story. It addressed the struggles of a female Keke driver who was punching her weight in a male-dominated field while also doubling as a breadwinner. This theme of understanding people’s work struggles set the tone for the rest of the episodes in the series. Since then, […]

December 28, 2020

What’s your oldest memory of money?  I was 5, and my mum gave me money to buy a crate of eggs – ₦1 coin. My own introduction to money was with coins, and this was in 1990. There was the 50 kobo coin. My boxed-up uncle used to give me whenever he visited.  What could […]

Watch

Trending Videos

Zikoko Originals

December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.
March 12, 2020
Life is already hard. Deciding where to eat and get the best lifestyle experiences, isn't something you should stress about. Let VRSUS do that for you.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X