How to start a Dollar Arbitrage Business – Dollar arbitrage is the buying and selling currency pairs from different brokers to take advantage of the mispriced rates.
To start a dollar arbitrage business, here are some certain things you need to know first.
– You need to have a source for your dollar. You need a platform to buy dollar from at a lower price.
– You need a site to sell dollars at a high price.
– You need a phone or laptop.
– You need to have a Payoneer Account or Paypal Account etc.
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Here is how to Start Dollar Arbitrage Business in Nigeria.
To start a dollar arbitrage business, just follow the instructions below.
You will need to open a payoneer account, you will be given a free virtual dollar, euro, pounds account to receive payment from people that will be sending you dollars, euro and pounds to do your dollar arbitrage business.
– Firstly, open a payoneer or paypal account to receive dollar
I recommend Payoneer – Create a Payoneer Account.
After you have created this two account, the next step is how to source for your dollar to do your arbitrage business.
– Buy dollars from people into your payoneer account at a lower rate and sell it on Grey.co at a higher rate.
How You can Source for Dollar for your Arbitrage Business.
Here are different ways to source dollars to start an arbitrage business.
– You can source dollars from friends and family to start an arbitrage business.
– You can source for dollars to start an arbitrage business on freelance websites by rendering people’s services.
– You can source for dollars to start an arbitrage business on an affiliate marketing website.
– You can source for dollar on social media to start an arbitrage business
Here is a List of Services You Can Offer as a Freelancer to Start a Dollar Arbitrage Business.
Social Media Management
Podcast Editing and Production
How to Make Profit From Arbitrage Business in Nigeria
Normally, if you have dollar on a Payoneer account and you want to exchange it to Naira, the rate at which the payoneer will exchange it is at that current dollar rate of the CBN (Central Bank of Nigeria) which might be ₦410.
So in this case if you can offer it to buy from people at the rate of ₦495 then, they will be happy to sell it to you at that rate because they will receive more money from you than the one payoneer will exchange it for them.
Let’s do this calculation:
Let’s assume Paul have $500 and want to withdraw his dollar from his payoneer account into my local bank account, and the rate of CBN that payoneer platform is following is ₦410, that means it will be $500 x ₦410 = ₦205,000 (Two hundred and Five Thousand Naira only), this means he will receive ₦205,000 Only. But if Paul sells it to a buyer at the rate of ₦585, that means, he sold at ₦292,500. He got an extra ₦87,500.
Isn’t that not amazing?
Now, I know you are curious to know how to make profit from this or how you will make profit from Dollar Arbitrage Business. You will find out, just keep on reading
This is how you will make your profit from dollar arbitrage business, let assume you have $200 in your payoneer account, what you will have to do is;
– In your payoneer account, convert the dollars in your payoneer account into GBP (convert the dollars into pounds) on your payoneer account and the dollar will turn into pounds.
– Go to your grey.co account and copy your GBP Account number (Pounds Account Number)
– Then, send the pounds from your payoneer account (GBP) into your Aboki Africa GBP Account, which is also known as Grey.co GBP Account.
– You can check the current dollar rate at grey. co (Aboki. Africa) but Let me assume that in the grey. co platform, 1 dollar is being sold at the rate of ₦585 per $1 but we won’t convert back to dollar because we want to sell at the rate of pounds which might be ₦760 in pounds (GBP).
Now, Let’s do the Calculation for our profit.
Let’s assume you got $200 at the rate of N410 per 1 dollar in your payoneer account, that is ₦82,000 and after you have converted it into pounds – ₦540 ( It becomes 151.85 Pounds) then, you send it from your payoneer account into your grey account, and withdraw the money into my local bank account at the rate of ₦760 x 151.85 pounds = ₦115,407.40.
As you can see, you have made a profit of ₦33,407 on this.
Kindly note that there’s transaction fees that will be charged from this, so make sure you calculate the fees clearly before you do it. If you follow guidelines given in this article, the charges will not be more than $3.