Finding the best Forex brokers in Nigeria is challenging, especially following the boom-and-bust cycle between 2004 and 2010. The demand of Forex traders in Nigeria attracted a wave of Ponzi schemes. Confidence in the Forex market depleted as retail losses mounted. Over the past decade, well-respected international Forex brokers rebuilt trust in the most liquid financial market. Education remains key to protect new traders from frauds and scams. One of the most daunting questions for many is: how to start Forex trading in Nigeria? Forex brokers in Nigeria continue to offer educational resources, and we have researched hundreds of brokers to find the best Forex brokers in Nigeria. Our list of Forex brokers in Nigeria will help new traders get started with a trustworthy partner.
Best all around broker
High floating leverage + fast execution
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
Perfect choice for automated trading
Maximum leverage of 1:500
Leverage up to 1:500 available
Proprietary platform offers a nice alternative to out-of-the box solutions
Marketsi strategy builder helps traders trade smarter
Competitive trade execution with low slippage
Is Forex Trading Legal in Nigeria?
Forex trading in Nigeria continues to expand, driven by millennial traders who wish to diversify their income streams. The Nigerian economy remains dependent on oil exports, the primary source of Forex income for the government. Due to the price volatility of oil, the domestic currency market is equally volatile. Therefore, the government tasked the Central Bank of Nigeria (CBN) to regulate foreign exchange within its borders. Numerous laws and policies exist, granting the CBN powers to regulate the Nigerian Forex market.
Here is a summary of how the Forex market evolved in Nigeria over the past 35 years:
- 1986 – Introduction of the second-tier Forex market (SFEM)
- 1987 – Establishment of the unified official Forex market
- 1995 – Creation of the autonomous Forex market (AFEM)
- 1999 – Availability of the inter-bank Forex market (IFEM)
Here is an overview of some of the most defining laws and policies granting the CBN regulatory powers:
- The Central Bank of Nigeria Act
- The Exchange Control Act of 1962
- Bureau de Change 1989
- Banks and Other Financial Institutions Act 2007
- The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act
- The Money Laundering (Prohibition) Act
While the above cater primarily to professional and offline Forex trading in Nigeria, the rules and regulations also apply to online trading. The Association of Online Forex Trading Agents in Nigeria, recognized by the Nigerian government, works with the CBN to enhance a competitive Forex trading environment. It shows the commitment to avoid the previous boom-and-bust cycle and maintains a financially stable Forex trading environment in Nigeria.
Retail Forex trading in Nigeria is legal provided traders use their capital to trade for their benefit. Nigerian Forex traders must also pay taxes on their profits, and it is best to consult a legal professional for assistance. It follows similar regulations in most countries. Nigerians who wish to raise money from third parties and trade on their behalf require a license. Otherwise, it is illegal. One way to engage in retail account management without a license is via PAMM accounts granted by international brokers. Social trading platforms offer an additional solution for Nigerian Forex traders to earn passive income or for Nigerian followers to place capital with strategy providers. All well-established brokers accept clients from Nigeria, and there are no domestic restrictions for Nigerians to trade with an offshore broker, where the best trading conditions await.
How to Choose a Forex Broker in Nigeria
One of the often-overlooked trading tools separating those who start Forex trading from successful Forex traders in Nigeria is their Forex Broker. New traders often feel overwhelmed by the massive information and victim to marketing gimmicks by brokers. That is why we have done the hard work for you and conducted in-depth research on hundreds of Forex brokers. Our list of Forex brokers in Nigeria will ensure access to a competitive product and services portfolio with an excellent education section. It will help you get started with a reliable broker from where you can grow in a safe and trustworthy trading environment.
Here is a checklist on how to choose a Forex broker:
- Regulation – It is best to avoid unregulated brokers. Profitable Forex traders require a secure trading environment from a business-friendly regulator. It will provide the appropriate mix to grow as a trader. Not all regulators are suitable, but some of the most competitive ones include the ASIC, the FSCA, the BVIFSA, the FSC, the IFSC, the DFSA, and the CIMA.
- User Reviews – While they may provide some insight, I recommend avoiding them. Most are from traders who failed to read the terms and conditions, accepted bonuses, and violated the rules. Brokers also have their staff post fake positive reviews for them and negatives ones for competitors. Some brokers hire third parties to write on their behalf.
- Trading Platforms – The best choices remain an upgraded MT4 trading platform or a proprietary alternative that offers competitive trading tools. The MT4 fully supports automated trading solutions, but traders must ensure their broker offers third-party upgrades to gain an edge.
- Trading Fees – They will have the most visible impact on any trading strategy. I recommend an ECN account with minimum spreads from 0.0 pips to 0.1 pips and a commission of no more than $7 per round lot for active traders. I also suggest trading with a broker offering a volume-based cashback program, which will lower the final trading costs. Less active traders can start in a commission-free account, but the minimum mark-up on currency pairs should not exceed 0.7 pips.
- Customer Support – Most trustworthy brokers will explain their products and services transparently. It reduces the need for customer service to emergencies. Traders should look for brokers with a 24/5 multilingual customer support team, a phone number, and live chat. Both will allow traders to get in touch without delay should the need arise.
- Risk Management – Well-regulated brokers comply with strict financial capital requirements, grant traders negative balance protection, and an automatic stop-out level should the portfolio breach a critical balance. Traders must also deploy risk management, and brokers offer tools for it.
- Traded Currencies – Forex traders should look for brokers offering above 55 currency pairs to gain adequate exposure, diversify their portfolios, and find sufficient trading opportunities.
We reviewed over 100 brokers based on eleven criteria. Each research consists of over 2,000 words and lasted more than ten hours. Over 100 brokers were reviewed in-depth and from a trader’s perspective, ignoring the marketing tactics deployed by some to confuse retail traders. Therefore, we sourced the list of our best copy trading platforms from more than 200,000 words of dedicated research compiled over 1,000 hours, ensuring the most comprehensive approach to identify the best Forex brokers in Nigeria.
The eleven criteria used in our research consist of:
- Regulation and Security
- Trading Costs
- Asset Selection
- Account Types
- Trading Platforms
- Unique Features
- Research and Education
- Customer Support
- Bonuses and Promotions
- Account Opening Process
- Deposits & Withdrawals
Nigeria is home to the third-largest youth population, and with more than 186 million inhabitants, it is the most populous African country and the seventh in the world. Nigeria is also the largest economy measured by GDP in Africa and the twentieth-largest globally. Its tech-savvy young generation represents an enormous growth market for international brokers, which remains untapped. Nigeria is a member of the MINT group and the Next Eleven emerging economies. Forex trading in Nigeria presents opportunities for all market participants amid ideal conditions. With estimated daily trading volumes between ₦300-₦450 million, Nigeria can grow into a regional trading powerhouse and the most significant African Forex market.
Forex trading in Nigeria offers the fast-growing population in the seventh most populous country an unparalleled opportunity for prosperity. Nigerian Forex traders can add an active, passive, or combo revenue stream from the Forex market, the most liquid one globally. Given the size of its youth population, the third biggest among all countries, and the untapped market potential, Nigeria is ripe with opportunities for brokers, traders, and affiliates. It can become the trading hub for the African continent. To accomplish this, numerous trustworthy brokers and extensive education must flow into Nigeria. We have identified some of the best Forex brokers in Nigeria so that new traders can begin their journey with a reliable partner.
Nigerian Forex traders must understand that it requires time to learn how to trade. Patience and discipline remain two of the most defining attributes. Another essential tool is capital. Countless marketing campaigns exist, many sponsored by less trustworthy brokers, promising excessive returns from small investments over a short period. They try to lure new traders into making deposits, often resulting in total loss, scams, or fraud. Forex traders must avoid them, no matter how attractive and well-marketed they appear. They invited the Nigerian boom-and-bust cycle between 2004 and 2010, which eroded confidence in the Forex market. Therefore, opening an account with a regulated and trustworthy broker, as identified by our research, and taking your time to learn how to trade can position new traders in becoming successful Forex traders in Nigeria. All brokers on our list of Forex brokers in Nigeria provide excellent education, competitive trading tools, and an overall superb product and services portfolio.
Is Forex trading legal in Nigeria?
Yes, Forex trading in Nigeria is legal provided traders use their capital for their benefits only. Raising money from third parties and trading on their behalf is permitted but requires a license from the Central Bank of Nigeria. All Forex traders must also ensure to pay their taxes.
How much do you need to start trading Forex in Nigeria?
It is one of the most asked questions from traders all around the world. While there is no correct answer, traders must understand the correlation between capital and percentage gains in the portfolio. The best approach I recommend for new traders is to open a micro account and deposit no more than $100 for learning purposes. Once traders feel comfortable, they can deploy a monthly deposit strategy to increase their balance until it suffices to generate desired annualized returns.
Which broker is best for Forex in Nigeria?
The best broker for Forex in Nigeria will provide excellent educational and trading tools. Other aspects include a competitive pricing environment and sufficient assets. A low minimum deposit and high leverage plus an upgraded trading platform are additional aspects traders should demand from their broker.
How can I invest in Forex in Nigeria?
The most convenient and cost-efficient way is through a well-respected and trustworthy international online broker. Another option is via local banks, where online and offline Forex trading is available. A third one is through exchange offices in a traditional offline exchange. Most new Nigerian traders are tech-savvy millennials who use online brokers.
What is a checklist to choose a Forex broker?
Traders must evaluate regulation and security, trading costs, asset selection, account types, trading platforms, unique features, research and education, customer support, bonuses and promotions, account opening process, and deposits and withdrawals.
What is the best trading platform in Nigeria?
The best trading platform in Nigeria remains the MT4 trading platform with third-party upgrades. Most brokers only provide the out-of-the-box version and refer to it as a leading, cutting-edge trading platform. Traders should understand that the core version is packed with features but is sub-standard. The versatility and upgrade opportunities make it the best choice, with more than 20,000 expert advisors (EAs) and custom upgrades available.