Forex Trading is a popular financial instrument. Choosing the right forex broker can be difficult. The forex market is now worth $1.9 quadrillion. DAILY TRADES: $5.3 BILLION People in Nigeria frequently trade the Naira against other currencies, such as the US Dollar.
Trading forex is legal in Nigeria, but profits are taxable. The Nigerian Central Bank regulates. Because forex trading is new in Nigeria, it is best to look for the best forex broker based on reviews and recommendations.
An online broker is required to trade forex. In the international currency markets, trading with a reliable forex broker is critical.
Finding the Best Regulated Forex Brokers in Nigeria with the lowest minimum deposits can be difficult. We’ve done our homework and found the ten best trading platforms and brokers for Nigerian traders. The brokers listed below are the best forex brokers in Nigeria.
Here are list of the best Forex Brokers in Nigeria.
Exness Group is a UK and EU regulated broker. With a $1 minimum deposit, multiple deposit options, and fast withdrawals, they offer market execution (but it’s quick), competitive spreads of as low as 0.3 pips for EUR/USD (with Pro Account), and local bank deposits in Nigeria. Exness is recommended for fast execution and tight spread.
Exness was founded in 2008 and has one of the largest monthly trading volumes. They are regulated by the Financial Conduct Authority (FCA) in the UK, CySEC in Cyprus, and the FSCA in South Africa.
Exness offers over 100 major, minor, and exotic currency pairs to trade. It’s a lot compared to other brokers. Exness also offers trading on the advanced MetaTrader 5 platform with news feed.
Exness also offers tight spreads on their three major account types. The minimum spread for FX is 0.1, which is quite low compared to other brokers. Two Exness account types don’t charge commissions.
Exness accepts local bank transfers for deposits and withdrawals. Even withdrawals are instant. Withdrawals are made in Naira, while deposits are made in USD (or your chosen account currency). Exness does not currently offer Naira currency accounts.
Exness supports MT4 and MT5 trading platforms, and their webtrader is available on all devices.
To help investors, the broker provides them with current financial news and technical analysis charts. Customer support is also available 24/7 in eight languages. Withdrawals via some methods are also executed instantly upon request.
A brand of FBS Markets Inc., regulated by the International Financial Services Commission (IFSC) of Belize and the Financial Sector Conduct Authority (FSCA) of SA (FSCA). FBS is run by Tradestone Limited, which is regulated by the Cyprus Securities and Exchange Commission (CySEC). FBS is regulated by the Australian Securities and Investments Commission in Australia (ASIC).
To trade on multiple asset classes, FBS offers MetaTrader 4 and MetaTrader 5 trading platforms for PC, Mac, Web, Android and iOS. Clients from IFSC, FSCA, and CySEC-regulated countries can trade in the FBS Trader app, an all-in-one trading platform. Clients from IFSC and FSCA-regulated countries can use the FBS CopyTrade app to copy trade.
OctaFX is a global online broker founded in 2011 that offers Forex trading with a $5 minimum deposit. A demo account is also available for those interested in learning more about OctaFX – both MT4 and MT5 as well as the cTrader platform. OctaFX has Android and iOS apps.
OctaFX has won numerous industry awards in the last 9 years. It doesn’t charge commissions on CFDs.
Benefits of OctaFX Trading:
- Allows hedging STP
- Stop-loss guarantees Balancing the Negative
OctaFX Trading Accounts include demo, Micro, Mini, Standard, zero spread, STP, and Islamic (FCA).
HotForex is a good choice if you want a high leverage broker, as they allow 1:1000 leverage, which is higher than most other brokers. HotForex’s key features are:
- 1:1000 High Leverage
- Trading account options Bonuses
- 1:1000 High Leverage
Unlike most brokers, HotForex allows trading with 1:1000 leverage on their Micro account. While leveraged trading (also known as margin trading) carries high risk, it can be a useful tool to increase profits with little capital when successful.
HotForex provides 5 trading accounts. A majority of retail traders will opt for one of the three micro, premium or zero spread accounts. These accounts can be summed up as:
Micro – For new traders. This account has low deposits, no commissions, and 1:1000 leverage.
It has a higher minimum deposit and lower leverage than the Micro account. Micro spreads are tighter.
Zero Spread – ECN pricing.
Major pairs commission is $6 round turn, minor pairs $4 round turn.
AvaTrade is a 2006-founded online broker that offers Forex, CFDs, Spread Betting, and Social Trading.
Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI)
British Virgin Islands Foundation Year: 2006
over 200,000 traders
AvaTrade is a great partner for all traders, beginner or pro, with over 200,000 active traders on both MetaTrader 4 and Avago. Trading in Forex, commodities, cryptocurrencies, ETFs (exchange traded funds), bonds and equities is easy with AvaTrade.
In terms of broker options, Nigerian traders have many brokers to choose from, regardless of their level of experience.
These brokers above provide traders with competitive and comprehensive trading conditions, as well as popular and reputable trading platforms.
FAQ about Forex trading In Nigeria
The Central Bank Of Nigeria regulates forex trading in Nigeria (CBN). The team searched the CBN website but couldn’t find a list of regulated brokers. Until the Nigerian Central Bank publishes regulated forex brokers, consider one regulated by:
- ASIC (Australian Securities and Investments Commission)
- FCA (Financial Conduct Authority)
- CYSEC (Cyprus Securities and Exchange Commission)
- FSCA (Financial Sector Conduct Authority)
How to Choose a Forex Broker in Nigeria?
Here are three important factors to consider when choosing an online forex broker.
- First, confirm your broker’s license and regulation. Your money is always safe with us.
- Next, compare each broker’s account types, trading platforms, tools, and investment research.
- To compare pricing and product offerings (e.g., number of forex pairs and CFDs available to trade), read detailed forex broker reviews.
Because scams and opportunities abound in Forex trading, Nigerian traders must find a trustworthy broker to protect their funds from scammers, money launderers, and other illegal brokers.
Due to the authorities’ lax regulations and practices, every trader in Nigeria must assess their own risk. While Forex Trading is legal in Nigeria and regulated by the CBN, there is no CBN-approved broker list.
Most brokers allow traders to open a demo account to learn the market system. It is best to test as many platforms as possible before settling on a broker.
Do I need a forex broker?
Yes, a forex broker is required to trade forex. To buy or sell forex, you’ll need to open an account and deposit sufficient collateral (margin).
The forex broker’s job is to execute your orders — either directly (market maker execution) or indirectly (agent execution) (agency execution).
Your broker should be reliable, regulated, and licensed in your country or a major financial center.
What does a forex broker do?
A forex broker is a company that has been licensed (or exempted) by a national regulator to allow you to buy or sell foreign currencies online or over the phone (known in the industry as voice broking).
The underlying currency, non-deliverable spot contracts, or derivatives such as CFDs may be offered by a forex broker, depending on country-specific regulatory restrictions. To avoid being scammed, only use regulated brokers.
Forex Trading Platforms
When looking for a good FX broker in Nigeria, you should also consider the trading platform. Metatrader 4 is currently one of the best platforms available. Any broker should have it, but if not, you should not open an account with him.
An intuitive chartstation allows you to analyze currencies, metals and indexes over a variety of time frames. You can also add popular and custom technical indicators. If you are a skilled programmer, you can create a code for the platform and have it trade for you.
The software also includes backtesting and copying features so you can test your trading strategy and copy any trader who offers his services. You can download a demo version of the platform to see if it has the features you need before trading with real money.
About Commissions & Spreads
Brokers who fill your orders charge commissions. But currency trading is not like stock trading. Brokers typically charge a flat fee per transaction or per share. Brokers are paid in Forex by charging spreads.
A spread is a Difference between buy and sell price. Assume the GBP/USD pair is 1.2869/1.2874. The broker’s commission is five pips between buy and sell prices. Opening a buy or sell position in GBP/USD will result in a 5 pip deficit.
Finding a broker with the lowest spreads will increase your profits and decrease your costs.
Which Forex Accounts types should I use?
You should be able to backtest your trading strategy on a demo account before trading. Those usually expire in a month, giving you ample time to learn the platform’s quirks. To trade real money, a broker should offer you a variety of accounts.
1. Micro account
If your investment budget is limited to a few hundred dollars, you should open a micro account. Then you can trade 1k micro lots with little risk.
2. Mini account
If you want to dive deeper and can afford to invest a few thousand dollars, open a mini account. You can trade 10k lots and make more money than on a micro.
3. Standard account
Lot size is 100k. To trade such huge amounts, you need over $10,000. If you can afford a 20k or 50k investment, a standard account may be a good option. Remember that profits come with risks, and that higher profits mean higher risks.
Additional services include educational video, audio, and text materials. Brokers frequently offer clients e-books on various topics. Most broker websites also provide daily fundamental and technical analysis.
Recruited analysts try to predict changes in Central Bank policy and how this will affect currency exchange rates. Trading forums are commonplace at most brokers. Some even run monthly trading contests with big cash prizes.
So, you can judge a broker’s reliability by the number of services he provides.