Forex Trading in Nigeria in 2023. – Forex Brokers in Nigeria

Nigeria is one of the most beautiful countries in the world and has an economy that will show its power in the following decades. Like all developing countries, brokerage businesses and trading show growth trends.

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Based on brokerage shared analytics, there are around 400 000 traders in Nigeria. Forex trading is prevalent in Nigeria. However, Nigeria SEC does not regulate the forex trading industry strictly. All major forex brokers that operate worldwide offer forex trading to Nigerian residents. Major world forex brokerage companies are regulated by A, B, and C grade regulation bodies (see our list of regulation institutions and their grade). However, these world-famous brokerage companies are not regulated in Nigeria because the Nigerian SEC didn’t finish the foreign exchange framework.

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Is forex trading legal in Nigeria?

No, forex trading is illegal in Nigeria because there is no foreign exchange regulation framework. However, each Nigerian resident has the right to trade forex because forex trading activity is allowed at their own risk. That means Nigerian residents can not ask for protection from any potential brokerage fraud in their own country but can use a preferred world broker.

Let us discuss this problem deeply.

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From a brokerage company perspective, each forex trading broker is ready to pay for a special license in each continent or big trading market. For example, major brokers will pick one regulation body for Europe, one in the Middle East, one in Australia, etc.  You will see 3-6 licenses if you visit major forex brokers. So, brokers know that one yearly license is costly, and they do not plan to pay for 189 licenses around the globe. That is why major forex brokers are not regulated in Nigeria and do not even have offices there. Even Google does not regulate business in each world country and operates from the US, Japan, and Ireland.

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If Nigeria creates a future foreign exchange regulation framework that strictly regulates forex trading, primary forex brokers will still not buy special licenses. They can operate outside Nigeria using the electronic payments business model.

But no law can prevent you from investing money outside your country. You can invest in stock companies, forex, and gold and use any world broker. However, you should always pick A-grade regulated brokers to avoid potential fraud. In 2022, the Nigerian SEC explained several times their regulation opinion.

On the SEC website, we can see this note related to Proliferation of Unregistered Online Investment in Foreign Markets:

The Commission categorically states that by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.

In this video below, I will explain the main things about the best brokers in Nigeria.

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The best forex broker in Nigeria video is below:

Forex Trading In Nigeria

Forex trading in Nigeria is not regulated by Nigeria SEC. However, Nigerian residents usually invest in major world forex brokers regulated outside Nigeria by FCA, FSA, BaFIN, CySEC, etc.

The country’s national currency, the Nigerian Naira, is further split into mini denominations called kobo. However, as per BIS, this currency is not on the top trading currencies. The CBN (Central Bank of Nigeria) has set strict directives for the stock market and brokers dealing in forex trade because of the financial sector regulations. However, the Securities and Exchange Commission SEC regulates trading in Nigeria.

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Forex Trading has already gained quite popularity among many. When done correctly, it can yield good profits in no time. Nevertheless, it’s essential to find out the right forex broker so that you can generate lucrative profits. Finding an ideal forex broker isn’t an easy task. Especially in Nigeria, there are plenty of brokers operating every day. Some of them are reliable and trustworthy.

Forex trade plays a significant role in a country’s economy. However, its effectiveness depends on the institutional setup and the various policies. In Nigeria, similar trends have been witnessed over the years. Many middle-income people are interested in foreign trade and are looking for the best forex broker in Nigeria. With local currency trading getting more profound and more mature, several renowned forex trading brokers have set up their regional offices in the capital of Nigeria (Abuja).

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This analysis and list of forex trading companies in Nigeria were made using Google Trends and brokers’ annual reports.

Names of the forex trading companies in Nigeria

A list of forex brokers in Nigeria that operates outside of Nigeria and are regulated by A-grade regulation institutions are:

• HFM
• Capital
• Avatrade
• Exness
• XM
• Alpari

What is the best forex broker in Nigeria?

The best forex broker in Nigeria in the last ten years is HFM, based on excellent customer support and a wide range of deposit and withdrawal options. HFM or Hotforex brokerage company offers a 100% bonus for Nigerian traders.

The MT4 and MT5 platforms are safe and reliable. Kindly note that HFM is associated with various regulatory authorities like FSCA, FCA, and CySec. That’s why the platform is considered a trusted and recommended option for forex brokers in Nigeria. Another great facility of this platform is its shallow minimum deposit requirement of $5.

HFM has excellent client area design (see the screenshot of my HFM client area):

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HFM supports local bank deposit and withdrawal methods for all Nigerian traders. Additionally, there are several wallet options too. Hotforex trading platform can be accessed via your smartphone. Whether you own an Android smartphone or an iOS device, HFM can be easily accessed via it. Plus, the site can also be accessed via desktop too. HFM is offering a 100% sign-up bonus to new customers. To avail of this 100% sign-up bonus offer, the minimum deposit requirement is $30,000. For the existing customers, the platform offers a good loyalty program.

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What are the best forex brokers in Nigeria?

Avatrade offers excellent support for the Muslim population in Asia and Africa. The platform is well-known to be a trusted and reliable forex broker site. Two renowned authorities regulate it, like ASIC and FSCA. The most significant advantage of this platform is that Avatrade is a fixed spread broker platform, i.e., their spread is consistently the same irrespective of market time and conditions. In addition, this platform charges a zero processing fee on all deposits and withdrawals. Also, the platform has a local support number, which can be used to reach out to the customer support executives of Avatrade (for any immediate help and assistance).

The live chat support option for Avatrade is available only during their company business hours. Although the platform features a fixed spread broker, their spread can be higher for minor and exotic currency pairs.

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Capital.com is one of the youngest brokers but has rapidly growing new customers. They have the most significant number of crypto coins for CFD trading and an excellent design of the trading dashboard.

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List of other forex brokers that have been most used in Nigeria in the last six months:

Exness

This forex trading platform is also quite popular among Nigerian traders. It was founded in 2008, and since its inception, the platform has rapidly gained many active forex brokers. This is also a trusted and regulated platform with approvals from two well-known regulatory authorities, CySEC and FCA. Exness allows you to choose from more than 120 primary and minor currency pairs. Their deposit requirement is also relatively low. For example, their deposit requirement is only $1 for Mini and Cent accounts.

Coming to the deposit options, the platform allows you to place a deposit via local banks (applicable only to Nigerian traders). Other deposit options include e-wallets and credit/debit cards. The customer support option for Exness is very prompt, helpful, and well-responsive. For example, customer support is available 24*5 for eight languages. Furthermore, there is additional customer support, which is available 24*7 in three languages. Instant withdrawal options are too general, which are applicable for e-wallets.

XM Forex

This forex broker platform is recommended to Nigerian traders. The platform has been operating since the year of 2009. Rest assured that it’s a trusted and regulated platform certified by ASIC 443670 and CySEC. As of today, XM forex supports around fifty-five different currencies. Another unique part of this website is that it arranges and organizes free training, live web seminars, and educational videos frequently so that you can learn the art of successful forex trading.
XM.COM is popular among starter and intermediate segments in traders. Founded in 2009, it’s been considered the top forex trading company based on all criteria. ASIC of Australia regulates the broker. So if you’re looking for profits to earn from the forex trade, xm.com is the best option.

You can earn up bonuses of $4500. The transparent policy, coupled with low spreads (0.1 pip). There are no requotes; it also does not have a slippage policy. Compatible with MT4Your minimum first deposit must be $5. The maximum permission leverage is 1:88

XM Forex has three different accounts, all of which have an exact deposit requirement. The fees associated with this platform are also relatively low. For example, for Ultra-Low accounts, their fee is around 0.8 pips for EUR/USD. Whereas, for Standard and Micro accounts, their fee is approximately 1.7 pips. Another unique and exciting feature of this platform is that it supports an instant order execution guarantee. 99.35% of XM Forex orders are executed within a second. Other features of this platform include negative balance protection, fast withdrawals, and quick execution of orders. On top of that, this platform offers prompt, responsive, and knowledgeable chat support available 24/7.

This platform’s only negatives are that XM Forex doesn’t have a local office in Nigeria and doesn’t accept local bank deposit options.

VISIT XM

Alpari

This forex broker platform was founded and established in the year of 1998. It’s one of the oldest forex brokers, with more than two million active customers. The platform supports many different account types. The Nano Account’s minimum deposit value can be as low as zero. On top of that, the platform also invests in trade in cryptocurrencies. For example, you can trade with this platform with cryptocurrencies like Bitcoin and Ethereum. Alpari’s spread is also relatively low, i.e., as low as 0.6 pips for EUR/USD.

Additionally, this platform accepts a wide variety of deposit and withdrawal options. Being a trusted and regulated platform, Alpari is certified by CySEC or Cyprus Securities and Exchange Commission. However, the platform is no longer approved by FCA or NFA. The platform has an excellent technical support team that is available 24*7. You can quickly and conveniently reach out to this team whenever you need help.

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IC Markets Nigeria

IC Markets is a regulated forex broker (ASIC license) and a famous Forex CFD provider. It is favored in Nigeria by high-volume traders, scalpers, and robots. IC Markets offers an average spread of 0.1, one of the best in the world. This broker provides ECN accounts as well.

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ECN Brokers in Nigeria

ECN brokers use electronic communications networks (ECNs) to give clients direct access to other participants in currency markets because their platform is electronically connected to the network of international banks or liquidity providers.

ECN brokers in Nigeria are:

• Hotforex (ECN and STP broker)
• Dukascopy (only ECN broker)
• Exness
• NordFx
• OctaFX  (offers cTrader ECN account)
• IC Markets

How to trade forex in Nigeria?

To start trading forex, you need to have an internet connection and be above 18 years old; then, you must pick a forex broker, register, and verify documents. Then, open a demo account and start to practice. Would you please read trading books and watch trading lessons on youtube?

Forex Investment Companies in Nigeria

Traders and investors in Nigeria can invest money in a long-term or short-term period using world-famous and outside Nigeria regulated brokers. For Nigerian traders, brokers usually offer high leverage, up to 1:1000 (generating greater returns on assets or losses). Moreover, Nigerian investors and traders can trade stocks, ETFs, commodities, indices, etc., using the same trading account.

Below is a presented list of all brokers in Nigeria that are regulated by the Nigeria SEC:

Conclusion

Nigerian residents usually use famous world forex brokers regulated by A-grade and B-grade regulation institutions. The future of forex trading in Nigeria depends not only on investment size. The major problem in forex trading for Nigerian residents is high-risk trades and overtrading. So, traders need to be careful and not greedy.

Never attempt to deposit in such a forex broker platform that is not licensed or certified. Before you start trading, please make sure to check and validate if there are any associated trading fees. All safe, legal and licensed forex broker platforms will declare their trading fees upfront, and there won’t be any hidden charges. Please choose a platform that offers lower spread and funding fees. If the spread is lower, it will be better as you will have to pay less for broking. The final metric of a good and reputed forex broker platform is customer support availability. If you face any struggle and difficulty, the platform should give you an option to contact their customer support for a prompt resolution.

As a Nigerian, your attention will be related to your funds’ security while choosing a broker. So make sure you have the flexibility to withdraw your profits.

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Fxigor

Trader at Leanta Capital

Igor has been a trader since 2007. Currently, Igor works for several prop trading companies.
He is an expert in financial niche, long-term trading, and weekly technical levels.

The primary field of Igor's research is the application of machine learning in algorithmic trading.

Education: Computer Engineering and Ph.D. in machine learning.

Igor regularly publishes trading-related videos on the Fxigor Youtube channel.

To contact Igor write on:
igor@forex.in.rs

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