Few online brokers are based in Nigeria, and many Nigerian forex brokers have little or no oversight by either the Central Bank of Nigeria (CBN) or other regulatory agencies.
It's best to choose an international forex broker that accepts clients from Nigeria and has oversight by 1 or more of the major forex regulators.
Carefully consider your trading needs before you commit to a forex broker and open a live account. Get started today with our review of the best forex brokers in Nigeria.
Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.68% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Table of Contents
- Trading Forex in Nigeria
- What to Look for in a Nigerian Forex Broker
- The Best Forex Brokers in Nigeria
- Trade Forex in Nigeria Now
- Frequently Asked Questions
Trading Forex in Nigeria
The Nigerian national currency is the Nigerian Naira ₦ (NGN). It's divided into 100 smaller denominations known as kobo. The Nigerian currency is not among the top traded currencies listed by the Bank for International Settlements (BIS).
With respect to the Nigerian financial sector regulation, the Central Bank of Nigeria (CBN) set forth guidelines for the Nigerian stock market and forex brokers in the Banks and Other Financial Institutions Act (BOFIA) of 2007.
Its role is comparable to that of the SEC in the United States. The BOFIA obligates forex brokers that do business in Nigeria to maintain their clients’ funds in segregated accounts. This means that clients’ deposits must be maintained in separate accounts which protects them in the event of bankruptcy or legal actions taken against the broker.
What to Look for in a Nigerian Forex Broker
Whether an online forex broker is based in Nigeria or somewhere else, the best online brokerage should generally have these 11 elements covered:
- Oversight from a reputable regulating agency
- A good reputation among forex traders
- Allow you to open and trade in the type of account you want
- Require a minimum deposit you can afford
- Give you access to trade all forex pairs and other assets you may want to trade
- Maximum leverage ratio high enough for your trading strategy
- Competitive dealing spreads
- Provide you with protection against negative balances
- Keep slippage and re-quotes on orders to a minimum
- Maintain client funds segregated from your own money
- Withdrawal and deposit options to suit your needs
Another important consideration is the trading software the broker supports. While some brokers offer clients a proprietary trading platform, many provide market access and platforms from 3rd parties such as MetaTrader 4 and 5 from MetaQuotes, as well as cTrader and NinjaTrader.
The Best Forex Brokers in Nigeria
Our recommended brokers are not based in Nigeria, but they have a presence in and accept clients from Nigeria.
Our selection includes brokers based mainly in the U.K. and Cyprus such as FXTM, FXCM, HotForex and easyMarkets. Most of these maintain an African presence by their offices in South Africa.
The list also includes FOREX.com, which has a good reputation as a well-regulated broker based in the United States. The best forex broker will depend on your personal criteria.
Check out our list of some of the top online forex brokerages that allow you to open an account from Nigeria.
Best For
- Trading in the App
securely through OctaFX's website
OctaFX
OctaFX is a multi-platform trading company, allowing for FX trading in the manner you prefer. You can use MetaTrader 4, MetaTrader 5 and cTrader depending on your comfort level, along with web, desktop, Android and iOS versions of each platform. OctaFX even offers a comparison chart so you know what you get with each trading platform.
Featuring negative balance protection and funds security, OctaFX goes above and beyond with several account levels. Moreover, OctaFX offers an Islamic account with no interest and fixed fees.
With contests, giveaways and a robust referral program, you can earn more simply by using OctaFX over other trading companies. You can even join the CopyTrading program where you copy master traders, thus increasing your net worth.
Best For
- Forex Trading in and Outside the U.S.
securely through Forex.com's website
FOREX.com
FOREX.com is ranked as the No. 1 U.S. forex broker. The company has oversight from the 2 main U.S. financial regulators: the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC).
It also has oversight from regulators in the U.K., Australia, Japan, Canada, Hong Kong, Singapore and the Cayman Islands.
Accounts at FOREX.com can be funded with just $250 USD. The broker lets you trade micro lots if your preference is to start trading with smaller amounts. It also offers an Islamic account option in addition to keeping client accounts segregated from its own funds.
FOREX.com offers several web-based, desktop and mobile trading platforms, which include the MetaTrader 4 and 5 platforms from MetaQuotes in addition to NinjaTrader.
Clients also have access to the company’s proprietary Advanced Trading Platform for desktop computers and its Web Trading platform if you prefer to trade via a web browser.
Due to U.S. restrictions, FOREX.com has a maximum leverage ratio of only 50:1 available to clients who trade currencies.
Read Benzinga's full FOREX.com Review
Best For
- Demo Accounts
securely through eToro's website
eToro
eToro is a social trading platform with over 10 million account holders worldwide. It has provided forex products and more to retail clients for over 10 years.
eToro has some impressive features. The most popular include CopyTrader, the Social News Feed and CopyPortfolios.
CopyTrader and CopyPortfolio allow you to locate a successful trader and copy their strategy. You can copy up to 100 traders with this feature.
With the Social News Feed, trader updates from those in your network can be accessed in a Twitter-like thread. Traders are able to get alerts based on certain market factors and can discuss markets and their strategies.
Read Benzinga’s full eToro Review
Best For
- Non US Forex Trading
securely through AvaTrade's website
AvaTrade
AvaTrade has been facilitating online trading since 2006 and has offices all over the world.
With the firm’s intuitive and simple interface and the solid customer support team, you can easily navigate the complex investing world. It also provides specialized educational content for beginners like its Trading for Beginners section.
Avatrade offers multiple trading softwares, including an in-house platform.AvaTradeGO and MetaTrader 4 are available. And you can copy trades of experienced traders with automated trading softwares likeZuluTrade, DupliTrade or MQL5.
Open your account with aminimum deposit of $100 via credit card or wire transfer.
Read Benzinga’s full AvaTrade Review
Trade Forex in Nigeria Now
If you live in Nigeria, the security of your funds should be top-of-mind as you choose a forex broker. Make sure that any trading profits you earn can be easily withdrawn upon request.
Select a well-regulated broker that keeps segregated accounts for its clients and holds them on deposit with a top tier bank. Regulation by a strict authority could also save you considerable trouble and money if an issue ever arises with the broker.
Get started today with our list of the best forex broker in Nigeria.
Frequently Asked Questions
Q
Can you legally trade forex in Nigeria?
A
Nigerians can lawfully trade forex for their accounts.
Q
What should you consider when selecting a Nigerian forex broker?
A
You must look at the account minimums, margin requirements, oversight and access to forex pairs.
