This analysis and list of forex trading companies in Nigeria were made using Google Trends and brokers’ annual reports.
The forex currency trading boom started in the 2000s. Today, there are as many 300,000 individual forex traders in the country, according to estimates from FinanceMagnates.com. Such high popularity is attributed to the low entry norms such as low minimum deposit, free trading platform, to mention a few.
Forex trading has been accepted as a financial instrument, but only a handful of broker operates in Nigeria. The Central Bank of Nigeria or other government agencies have little or no access to the very few brokers in Nigeria, making it vulnerable to trade with them. It would be best to consider a foreign exchange broker that will accept Nigerian clients and is authorized by a few regulatory boards. If you are a Nigerian and willing to invest in stock markets, ensure that the forex brokerages are not the same everywhere.
The best forex broker in Nigeria video is below:
Forex Trading In Nigeria
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 regulatory.
This new law ensures that brokers doing business in Nigeria have to manage public money in separate accounts. Therefore when there is a bankruptcy or other absurd situation, the fund will not be hampered.
Forex Investment in Nigeria
Traders and investors in Nigeria can invest money in the long term or short term period of time using regulated forex brokers. For Nigerian traders, brokers usually offer high leverage up to 1:1000 ( generate greater returns on assets or greater losses). Moreover, Nigerian investors and traders can trade stocks, ETFs, commodities, indices, etc., using the same trading account.
Things to Watch for In a Forex Broker in Nigeria:
The below-mentioned things must be covered:
A reputed forex trader. It has to be an oversight by a regulatory authority. Flexibility to open and start trading in any account of your choice. An affordable lowest deposit. It gives them the freedom to invest in any forex pairs and other assets. Providing the highest leverage ratio, big enough for trading. Aggressive dealing spreads. Providing safety in opposition to a negative balance. Keeping the slippage and lowering the re-quotes. Manage client funds in segregated accounts. Deposit and withdrawals that suits your need.
Forex Trading has already gained quite a popularity among many. When done correctly, it can really yield good profits in no time. Nevertheless, it’s important to find out the right forex broker so that you can generate lucrative profits. Needless to say, 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. At the same time, a good number of these brokers are running a scam business. Hence, you need to carefully pick a trusted and regulated Nigerian forex broker before investing and avoiding scams.
Forex trade plays a significant role in a country’s economy. However, how effective it is depends on the institutional setup and the diverse policies put into force. In Nigeria, similar trends have been witnessed over the years. Many middle-income group people are interested in foreign trade and are looking for the best forex broker in Nigeria.
With the local currency trading getting deeper and mature, several renowned forex trading brokers have set up their local offices in the capital of Nigeria (Abuja). The best forex brokers in Nigeria include XM.COM, HotForex, IQ OPTION; we’ll discuss each briefly.
For your reference, this article will now help you reveal the six best forex brokers in Nigeria for 2020. So, please keep reading the following sections and know more about them before you start investing.
The six best forex brokers in Nigeria for 2022 are:
# 1 — Hotforex
Hotforex has the best forex trading platform in Nigeria based on the latest research.
This is another low-cost forex broker for Nigeria. The platform is 100% safe and reliable. Kindly note that Hotforex 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 that they have a shallow minimum deposit requirement, $5. Additionally, it’s worth mentioning that the fees of Hotforex are even lower compared to FXTM. It’s around 0.3 pips for EUR/USD with Zero Account, 0.6 pips for GBP/USD, and 0.8 pips for USD/JPY.
Hotforex 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, Hotforex can be easily accessed via it. Plus, the site can also be accessed via desktop too. Hotforex 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.
Where to learn forex trading in Nigeria? Hotforex offers free educational webinars, and Nigerian traders (beginners and advanced traders) can watch them every day. You can visit the Hotforex website and watch webinars for free.
# 2 — Forextime
When it comes to finding a good forex broker, multiple factors need to be considered, such as promptness in deposits & withdrawals, spreads and fees, deposit bonus options, customer support, and trade execution. In terms of all of these aforementioned factors and parameters, Forextime features to be one of the best forex broker platforms in the market. The best part of this platform is that Forextime is absolutely safe and reliable. It’s a trusted and reputed platform that’s ideal for all Nigerian traders. The platform is associated with various trusted authorities of the UK, Belize, and Cyprus. This platform’s key features are an easy withdrawal facility, a low deposit option, and instant order execution.
It is one of the best forex brokers in the country, with oversights from many different countries’ regulations. With 5 US Dollars, you can open a micro trading account with high leverage. Moreover, it pays attention to customer needs.
The minimum deposit requirement for FXTM or Forextime is? 2000. What’s more, FXTM has a live chat support option where you can directly contact the customer care executives at any time for 24*5. Coming to the fees, it’s 2.0 pips for EUR/USD with a Standard account, and it’s 0.4 pips for an ECN MT5 account. The platform is not currently offering any deposit bonus to new customers.
# 3 — 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 a good number of active forex brokers. This is also a trusted and regulated platform with approvals from two well-known regulatory authorities, including CySEC and FCA. Exness gives you the option to choose from more than 120 major and minor currency pairs. Their deposit requirement is also quite 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 for 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 for 24*5 for a total of eight languages. Furthermore, there is additional customer support, which is available 24*7 in three languages. Instant withdrawal options are too available, which are applicable for e-wallets.
# 4 — XM Forex
This forex broker platform is definitely recommended to Nigerian traders. The platform has been operating since the year of 2009. Rest assured that it’s a trusted and regulated platform that’s 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 types of accounts, and all of them have a very deposit requirement. The fees associated with this platform are also quite 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 around 1.7 pips. Another unique and interesting 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 ensures to offer prompt, responsive, and knowledgeable chat support that’s 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.
# 5 — Avatrade
If you are looking for one of the best forex brokers in Nigeria for 2019, then Avatrade can also be one of the good recommendations for you. The platform is well-known to be a trusted and reliable forex broker site. Two renowned authorities regulate it, like ASIC and FSCA. The greatest 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 an absolutely 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.
# 6 — Alpari
This forex broker platform was founded and established in the year of 1998. Needless to say, it’s one of the oldest forex brokers that has more than two million active customers. The platform supports many different account types. Their minimum deposit value can be as low as zero for the Nano Account. On top of that, the platform also supports trade in cryptocurrencies. For example, you can trade with this platform with cryptocurrencies like Bitcoin and Ethereum. Alpari’s spread is also quite low, i.e., it’s as low as 0.6 pips for EUR/USD.
Additionally note, 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 easily and conveniently reach out to this team at any time whenever you need help.
With an amount of 50 US Dollars, you can open a trading account with FXCM. In addition, micro lot trading facilities, along with other trading options, are available.
8. Easy markets:
It is the most popular forex broker in the country and started trading in 2003. It has served above 160 countries and gives 175 different trading options on commodities, including Bitcoin. You can open a trading account with a deposit of 100 US Dollars.
9. IQ Option
IQ Option is the best for beginners, thanks to its simple and easy-to-understand interface. It is formally regulated by CySEC (Cyprus). The broker offers protection against negative balances and has safe bank accounts. Along with this all, a range of assets makes it a great choice for beginners in the forex trade.
10. IC Markets Nigeria
IC Markets is a regulated forex broker (ASIC license), a famous Forex CFD provider. It is favorited in Nigeria by high-volume traders, scalpers, and robots. IC Markets offers an average spread of 0.1, and it is one of the best in the world. This broker offers ECN accounts as well.
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)
- 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 need to pick a forex broker, make registration, and make document verification. Then, open a demo account and start to practice. Would you please read trading books and watch trading lessons on youtube?
The final verdict:
With this, you have revealed the six best forex brokers in Nigeria for 2019, such as Forextime or FXTM, Hotforex, Exness, XM Forex, Avatrade, and Alpari. Each of these platforms has its own sets of benefits and advantages. So, based on your preference and requirement, you can pick any of them and start trading right away!
These platforms have one particular thing in common, i.e., regulation. To be a trusted forex broker platform, it has to be regulated by authoritative agencies, i.e., FCA and CySEC. This ensures that the platform is safe and it’s not engaged in the scam and illicit activities. These regulations also ensure that your invested money is safeguarded in their trading accounts.
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 platform will upfront declare their trading fees, and there won’t be any hidden charge at all. Please make sure to choose such 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.