Nigeria, being the world’s 27th largest economy in terms of GDP, has a lenient regulatory framework concerning the scope of forex brokers. According to All Africa, nearly 300,000 people trade forex as retail traders in Nigeria. Owing to the increasing number of traders across the country, many forex brokers have started setting up their regional offices in Nigeria to offer customized services to the local citizens. In this piece, we review some of the best forex brokers in Nigeria.
Read: Forex Trading In Nigeria
Best Forex Brokers in Nigeria
#1 FXCM
FXCM is one of the pioneer forex and CFD brokers headquartered in the UK. With over 30 years of extensive experience, the company serves as the mark of excellence. Traders can access a wide variety of tradable instruments, including forex, CFDs, indices, and cryptocurrencies at competitive prices available around. Providing easy-grounds for trading, FXCM offers its intuitive state-of-the-art trading platforms with exciting trading conditions. In addition to the online trading facility, traders have the flexibility of using the company’s trading platform on desktop computers. Clients can also have the supported versions of trading platforms installed on their android or iOS-based mobile devices.
With advanced risk management strategies and offering a variety of technical tools, the broker makes the forex trading even more simplified. Market analytics, with forex indicators, and round the clock customer support are some of the applaudable features of the broker. FXCM also offers rich educational resources to help clients learn the trading odds and understand different trading terminologies effectively.
- Founded:1999
- Regulation: FCA
- Headquarter: United Kingdom
- Minimum Deposit: $300
- Trading Platforms: Online, Desktop & Mobile
Read: FXCM Review
| PROS | CONS |
| Quick account opening Advanced technical tools Quality content in the educational section FCA regulation | Limited products No 2-step authentication factor High withdrawal fees US Clients are not accepted |
#2 Alpari
Alpari is an online broker known for offering excellent trading services across the globe. The company has been in the business for the past 20 years. Offering more than 250 tradable instruments, including forex, indices, and metals, the broker also facilitates clients seeking copy trading services. Traders can use the world’s most reputable trading platforms such as MT4 & MT5 with Alpari for exploring countless trading opportunities. Offering six types of accounts, the broker keeps the minimum deposit requirement very low. Traders can even get started with a nano account for a $0 deposit at Alpari. For cryptocurrency trading, clients can enjoy direct market access through the ECN trade execution model.
Alpari has competitive pricing schedules and doesn’t charge any fee on deposits and withdrawals. In addition to offering welcome bonuses to its clients, the broker also holds rewards and bounty programs for its clients. Offering the lowest spreads on major currencies, the broker also makes sure to provide excellent customer support to its customers round the clock.
- Founded:1998
- Regulation: CySEC
- Headquarter: Republic of Mauritius
- Minimum Deposit: $50
- Trading Platforms: Online, Desktop & Mobile
Read: Alpari Review
| PROS | CONS |
| Forex signals for auto chartist Financial Commission Membership ECN execution model High leverages Availability of PAMM accounts | Less tradable instruments Variable Spreads No FCA regulation Limited research tools Fewer educational resources |
# 3 Plus500
Plus500 is a renowned forex and CFD brokerage firm providing trading services in multiple financial derivatives for more than a decade. The company offers highly sophisticated trading platforms with the latest trading tools required for purposeful trading. Clients can make the best use of high leverage offers with tight spreads offered at Plus500. Exploring a wide range of tradable instruments, traders can enjoy increased liquidity with instant trade execution. The broker keeps clients’ funds in separate bank accounts. The Financial Services Compensation Scheme offers extensive insurance concerning the safety of clients’ funds. Keeping in view the need for mobility, the broker also offers a supported version of trading platforms for mobile devices.
Signing up with the broker doesn’t take more than a couple of minutes. To facilitate clients in the account registration process and to ensure seamless payments, the broker offers multiple deposit and withdrawal methods. Offering round-the-clock customer support, the company provides a resolution to the issues of clients on a run-time basis.
- Founded:2008
- Regulation: FCA, ASIC
- Headquarter: United Kingdom
- Minimum Deposit: $100
- Trading Platforms: Online, Desktop & Mobile
Read: Plus500 Review
| PROS | CONS |
| Accepts low starting deposits Multiple tradable instruments Low spreads Advanced trading platforms FSCS funds protection | Variable Spreads Fewer research tools Basic customer support Inactivity fee |
#4 HotForex
HotForex is a multi-regulated broker providing low-cost trading services in forex and CFDs to its clients all across the globe. Offering multiple trading tools and market analytics, the broker leverages favorable trading conditions to help clients trade conveniently. The broker has recently inducted the facility of stock DMAs for high volume traders. The company also offers zero spread accounts to enable traders to maximize their trading potential. HotForex has both desktop and mobile supported platforms available. Facilitating clients’ individual needs, the broker offers different types of accounts. Interest-free Islamic accounts are also available for Muslim traders at HotForex.
HotForex offers a quick account opening process powered by multiple funding options to help clients deposit and withdraw funds at their ease. With fast trading execution, low minimum deposit requirement, and competitive spreads, It is one of the best forex brokers available in Nigeria.
- Founded: 2010
- Regulation: Cysec, FCA, FSA, DFSA,
- Headquarter: Cyprus
- Minimum Deposit: $5 for Micro Account, $100 for Premium Account
- Trading Platforms: Online, Desktop & Mobile (MT4, MT5)
Read: HotForex Review
| PROS | CONS |
| Low trading cost Bonus offers Multiple trading instruments Direct market access accounts Straight through processing | Zero account commission Slow customer support Limited educational resources |
#5 XM
XM is a market leader as far as trading forex in Nigeria is concerned. Besides offering user-friendly trading platforms, the broker also ensures fast trade execution, allowing clients to enjoy a rewarding trading experience. Being flexible, XM allows clients to get started with a minimum starting deposit. With micro accounts, traders can realize the freedom of low volume trading. The account opening process at XM is quite fast. To make the payment process convenient for clients, the broker accepts deposits in more than ten (10) currencies of the world. Clients can also subscribe to the broker’s free VPS services and open a virtually funded demo account to practice their trading skills.
XM has recently started offering XM Zero accounts where clients can adore premium services for a reduced fee and commission-free deposits.
- Founded:2009
- Regulation: Cysec, ASIC, FCA, AFSL, DFSA
- Headquarter: Limassol, Cyprus
- Minimum Deposit: $5 for Micro & Standard Accounts, $100 for XM Zero account
- Trading Platforms: Online, Desktop & Mobile
Read: HotForex Review
| PROS | CONS |
| Multiple regulations Swap rates transparency VPS service availability Generous leverages Low minimum deposits | Fewer tradable instruments US Clients are not accepted Average trading services Unresponsive customer support |
How Did I Select The Above Forex Brokers?
I’ve been trading forex for nearly 15 years. Going through my forex journey, I came across dozens of forex brokers, with most of them being good for nothing. I have been a victim of scam and dishonest forex brokers more than often. However, with years of trading experience and learning from my mistakes, I can now easily differentiate between the legit forex broker and the money stealers. After spending countless hours going through nearly 50 brokers, I’ve selected the above listed top five brokers offering premium trading services in Nigeria. My basis for the selection of the above-listed broker include;
- Regulations & Safety
- Trading Platforms
- Broker Types
- Spreads & fees
- Customer Support
Central Bank of Nigeria (CBN)
The foreign exchange market in Nigeria has transformed through many phases, including the Second-tier Foreign Exchange Market (SFEM -1986), the unified official market – 1987, the autonomous Foreign Exchange Market (AFEM)- 1995, and the Inter-bank Foreign Exchange Market (IFEM) – 1999.
At present, the Central Bank Of Nigeria acts as the prime regulator of the financial markets in Nigeria. The CBN operates in collaboration with the Securities and Exchange Commission of Nigeria to monitor all the financial affairs of the country. However, the Nigerian Forex Market is not fully regulated. There are no hard and fast rules that apply to the brokers concerning compliance with the operational framework in Nigeria.
Factors to Consider When Choosing a Forex Brokers
Due to the nature of transactions involved in forex trading, it is a riskier form of investment. Forex trading becomes even more susceptible to a country like Nigeria, where the forex market is sort of unregulated. Therefore, It is imperative to remain cautious while selecting a forex broker in Nigeria. Given below are some factors that might help you search for a good forex broker.
Funds Protection
The first thing comes first, the protection and safety of your funds. You do forex trading on a purpose. None of you would ever want to compromise on the security of your funds. Therefore, the broker you choose for opening an account should have adequate safety measures to safeguard your investment. Brokers that offer investor protections under financial services compensation schemes and insurance funds policies can be the best option to get started.
Regulation
Regulation of a broker is an ultimate indication that a broker is a safe place for investment. Regulated brokers are legally required to comply with the operational framework devised by the respective regulatory authorities. Regulation ensures that the broker has sufficient funds available to remain a going concern even after meeting any unfortunate economic event. Therefore, you should always open an account with a regulated broker only.
Trading Platforms
Most of the time, traders prefer brokers offering user-friendly trading platforms. However, an easy-to-use trading platform should not be the only reason for you to open an account with a broker. There are a few other things that matter. For example, whether your broker has advanced trading tools available that help in purposeful forex trading? Does it offer favorable trading conditions? Most importantly, can you use the charting options with your selected broker? Even if your broker does offer the charting option, it might not be as accurate as it should be.
Often the authenticity of the charting options offered by most of the brokers is affected because of the incorrect price quotations. Sunday candles could be the prime reason for that. Therefore, try to open an account with a broker that is likely to offer New York charting tools.
Fees & Charges
Besides any other factor, the fee has its importance. It can certainly create a big difference between your success or failure. There is no point in making profits if you end up paying excessive fees. Therefore, always make sure that the broker you open an account with, has a competitive pricing structure. You can also cross-check the fee your broker charges you for a specific service with its competitor.
Customer Support
Customer support is also one of the important factors that you must consider before opening an account with a broker. Good forex brokers take pride in serving their customers. On the other hand, a broker who doesn’t pay any heed to its clients can never be trusted.
Verdict
After carefully reviewing various forex brokers, I hand-picked top five forex brokers in Nigeria that are listed above. Among the five brokers, I find FXCM to be the best broker for forex trading in Nigeria. So if you live in Nigeria, then choose FXCM for trading.
