Nigeria is the richest country on the African continent and has a leading economy amongst other countries. This has driven many international investors that want to expand their business on the African continent. A lucrative business enviroment had also motivated Forex brokers to expand in Nigeria and offer their services to locals. Besides that, like elsewhere in the world, Forex trading is getting more and more popular in the country and many young people are eager to study currency trading. However, the increase in the number of Forex brokers does not mean that all the brokers in the list of FX brokerages in Nigeria are reliable. While the country attracted many good international brokers, they were also followed by less trustworthy brokerages that could potentially scam Nigerian traders.
AvaTrade
Starting Capital
$100
Financial License
FSA, FFAJ, CySEC, CBI, BVI FSC, FSCA, FSRA
Promotion
Financial Leverage
1:400
Established
2006
Trading Software
MT4, MT5, WebTrader, AvaTradeGO
XM
Starting Capital
$5
Financial License
CySEC, FCA, ASIC
Promotion
$30, 50%+20%
Financial Leverage
1:1000
Established
2009
Trading Software
MT4, MT5, WebTrader
Plus500
Starting Capital
ZAR 1,500
Financial License
FCA, CySEC, ASIC, FSCA, FMA
Promotion
25%
Financial Leverage
1:300
Established
2008
Trading Software
MT4
RoboForex
Starting Capital
€/$ 10
Financial License
FSC
Promotion
30%
Financial Leverage
1:2000
Established
2009
Trading Software
MT4, MT5
CM Trading
Starting Capital
250$
Financial License
FSCA
Promotion
Financial Leverage
1:200
Established
2012
Trading Software
MT4, Sirix WebTrader, Copykat
Exness
Starting Capital
$10
Financial License
FCA, CySEC, FsA, FSCA
Promotion
10%
Financial Leverage
1:2000
Established
2008
Trading Software
MT4
IQ Options
Starting Capital
$10
Financial License
CySEC
Promotion
Not Available
Financial Leverage
1:30
Established
2013
Trading Software
WebTrader
EagleFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
OspreyFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
AMarkets
Starting Capital
$/€ 100
Financial License
FSA
Promotion
15%
Financial Leverage
1:1000
Established
2007
Trading Software
MT4
Forex.com
Starting Capital
$50
Financial License
FCA
Promotion
Not Available
Financial Leverage
1:200
Established
1999
Trading Software
MT4, WebTrader, custom
FXRoad
Starting Capital
250 EUR
Financial License
FSA, Seychelles
Promotion
None
Financial Leverage
1:200
Established
Unknown
Trading Software
FXRoad web and mobile platform
HotForex
Starting Capital
5 USD
Financial License
FCA, FSA, DFSA, FSCA
Promotion
100%, 30%, 100%
Financial Leverage
1:1000
Established
2010
Trading Software
MT4, MT5, WebTrader
ForexMart
Starting Capital
15 USD
Financial License
CySEC
Promotion
30%
Financial Leverage
1:500
Established
2015
Trading Software
MT4, WebTrader
Tickmill
Starting Capital
100 USD
Financial License
FSA, FCA, CySEC, FSCA, FSALM
Promotion
30% Welcome Bonus
Financial Leverage
1:500
Established
2014
Trading Software
MT4, WebTrader
FXOpen
Starting Capital
1 USD
Financial License
ASIC, FCA
Promotion
10 USD
Financial Leverage
1:500
Established
2005
Trading Software
MT4, MT5, WebTrader, TickTrader
FXTM
Starting Capital
$50
Financial License
CySEC, FCA, FSCA, FSC Mauritius
Promotion
N/A
Financial Leverage
1:2000
Established
2011
Trading Software
MT4, MT5
Oinvest
Starting Capital
$250
Financial License
FSC
Promotion
Financial Leverage
1:400
Established
Trading Software
MT4, WebTrader
FxPro
Starting Capital
$100
Financial License
FCA, CySEC, FSCA, DFSA, SCB
Promotion
Not Available
Financial Leverage
1:500
Established
2006
Trading Software
MT4, MT5, Ctrader, Custom
IG
Starting Capital
£250
Financial License
ASIC
Promotion
Not Available
Financial Leverage
1:250
Established
1974
Trading Software
MT4, custom
24Options
Starting Capital
$250
Financial License
IFSC Belize
Promotion
up to 50%
Financial Leverage
1:500
Established
2010
Trading Software
MT4
FBS
Starting Capital
$1
Financial License
IFSC Belize
Promotion
100% deposit bonus
Financial Leverage
1:3000
Established
2009
Trading Software
MT4,MT5
PrimeFin
Starting Capital
$250
Financial License
LFSA
Promotion
Financial Leverage
1:400
Established
Trading Software
WebTrader
Novox FX
Starting Capital
$200
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
N/A
Trading Software
MT4
As a Forex trader in Nigeria, you need to consider several important things. First things first, you need to ensure that you are not the next victim of a Forex Ponzi scheme, that is very common in Nigeria. Therefore, it is important to learn about the regulation of the broker before you start trading with it. Online Forex brokerages in Nigeria should be regulated by the local financial authority – Central Bank of Nigeria (CBN). Trading with the best forex broker in Nigeria that is regulated by CBN will keep your funds safe. If you have any issue with the licensed broker the regulator will be able to take needed measures. Otherwise, you will not be able to do anything about it.
However, the regulation is not the only thing you need to take into consideration. Another crucial thing to look after is the currency. It is logical that as a trader in Nigeria you want to have a trading account in local currency – Naira. While generally, the brokers offer trading accounts in USD, EUR, GBP, some of them who are also registered in Nigeria can offer opening an account in Naira. This way, you can avoid fluctuation in the exchange rate, you will not have to exchange the money to deposit your funds. The other thing to consider is what are the currency pairs that Nigerian online Forex brokers offer for trading. Since Nigerian currency is not considered as a major or minor currency and falls under the category of exotic currencies. Therefore, if you plan to trade with the currency pairs that include Naira, you need to check the currency pairs list with the broker before you decide to open an account. There are some other things to consider when you want to choose the best Forex broker in Nigeria but before I discuss them, let’s take a look who are the best Forex brokers you can trade with as a Nigerian trader.
Top Forex brokers in Nigeria you can trade withWhen searching for the broker to trade in Nigeria you might come across with international and local brokerages. Local Forex brokers are regulated by the CBN and have a license for providing their services to the residents of the country. As for the international brokerages, they have several regulators from the countries they are operating in. They might or might not have the license from the CBN. List of best Forex brokers in Nigeria consists of international brokers that are also regulated by the CBN. Here are some brokerages that can be the best choice for you to trade with.
AvaTrade
Starting Capital
$100
Financial License
FSA, FFAJ, CySEC, CBI, BVI FSC, FSCA, FSRA
Promotion
Financial Leverage
1:400
Established
2006
Trading Software
MT4, MT5, WebTrader, AvaTradeGO
XM
Starting Capital
$5
Financial License
CySEC, FCA, ASIC
Promotion
$30, 50%+20%
Financial Leverage
1:1000
Established
2009
Trading Software
MT4, MT5, WebTrader
Plus500
Starting Capital
ZAR 1,500
Financial License
FCA, CySEC, ASIC, FSCA, FMA
Promotion
25%
Financial Leverage
1:300
Established
2008
Trading Software
MT4
RoboForex
Starting Capital
€/$ 10
Financial License
FSC
Promotion
30%
Financial Leverage
1:2000
Established
2009
Trading Software
MT4, MT5
CM Trading
Starting Capital
250$
Financial License
FSCA
Promotion
Financial Leverage
1:200
Established
2012
Trading Software
MT4, Sirix WebTrader, Copykat
Exness
Starting Capital
$10
Financial License
FCA, CySEC, FsA, FSCA
Promotion
10%
Financial Leverage
1:2000
Established
2008
Trading Software
MT4
IQ Options
Starting Capital
$10
Financial License
CySEC
Promotion
Not Available
Financial Leverage
1:30
Established
2013
Trading Software
WebTrader
EagleFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
OspreyFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
AMarkets
Starting Capital
$/€ 100
Financial License
FSA
Promotion
15%
Financial Leverage
1:1000
Established
2007
Trading Software
MT4
Forex.com
Starting Capital
$50
Financial License
FCA
Promotion
Not Available
Financial Leverage
1:200
Established
1999
Trading Software
MT4, WebTrader, custom
FXRoad
Starting Capital
250 EUR
Financial License
FSA, Seychelles
Promotion
None
Financial Leverage
1:200
Established
Unknown
Trading Software
FXRoad web and mobile platform
HotForex
Starting Capital
5 USD
Financial License
FCA, FSA, DFSA, FSCA
Promotion
100%, 30%, 100%
Financial Leverage
1:1000
Established
2010
Trading Software
MT4, MT5, WebTrader
ForexMart
Starting Capital
15 USD
Financial License
CySEC
Promotion
30%
Financial Leverage
1:500
Established
2015
Trading Software
MT4, WebTrader
Tickmill
Starting Capital
100 USD
Financial License
FSA, FCA, CySEC, FSCA, FSALM
Promotion
30% Welcome Bonus
Financial Leverage
1:500
Established
2014
Trading Software
MT4, WebTrader
FXOpen
Starting Capital
1 USD
Financial License
ASIC, FCA
Promotion
10 USD
Financial Leverage
1:500
Established
2005
Trading Software
MT4, MT5, WebTrader, TickTrader
Obviously, there are local brokerages that can offer good service. However, I would advise you to trade with international, locally regulated brokers that also have a local office for several reasons:
You can also come across international brokers that are not regulated by the CBN. You can trade with them if they are regulated by other regulatory bodies, however, it is always better to have locally regulated brokers.
Forex Regulations in NigeriaAs mentioned above, the Forex trading market in Nigeria is very attractive for medium and large-sized Forex brokerages. The number of traders in Nigeria is increasing each year. In 2005, there were approximately 500,000 traders in the country. Taking the economic development, an increase of online Forex trading popularity and accessibility of the internet into consideration the number of traders should be much more in 2019.
At the same time, it is relatively easy and cheap to register local offices. It attracts a lot of Forex brokerages to Nigeria. This is why the best Forex brokers in Nigeria are international.
As mentioned above, the financial authority that oversees the Forex trading market in Nigeria is the CBN. Previously the regulations were looser, however, increased interest in Forex trading made the CBN adopt tighter ones, but they are not tight enough. As you could guess already, Forex trading in Nigeria is completely legal. However, brokerages that want to provide with investment and financial services to the Nigerian populations need to register with the authority and get a license. The brokerages that are not regulated by the CBN are not reliable for a simple reason. The license protects the customers from losing capital because of the broker. Meaning that if for some reason, you lose capital because of the broker, the regulator will hold the company accountable to pay you back, or they will cover the losses themselves.
Despite the lack of regulations in Nigeria, there is one strict rule you should be aware of. Your ability to transfer money overseas using debit and credit cards is limited. Before 2015 the limit was $150,000. However, since April 2015 the CBN had lowered the cap and set it at $50,000 per person per year. It means that if you are trading with the broker oversees you cannot transfer more than $50,000 per year. It can be a real problem for the investors that trade often and with high investments. At the same time, the rule also tackles the limit of withdrawal. A trader cannot withdraw more than $300 in a day. This rule is another reason for you not to trade with the brokers overseas and choose the best Forex broker in Nigeria that has a local office instead. This way you can avoid the limitations and trade freely with as many investments as you like.
You already know that it is important to choose the broker that is regulated by the CBN. However, this is the first step only. Once you have the list of Nigerian FX brokers that are locally regulated – you need to choose the right one amongst them. Here are some tricks that will help you make the right choice.
See how much it costs to trade with the broker-Wherever you are trading you need to consider the costs of trading with a certain broker. Some brokers might take a considerable amount of your deposit or profits when you are trading. Make sure to check how the broker makes their money before committing to them. In the best case scenario, the broker should make money via spreads. If the broker is making money through commissions make sure they are reasonable. At the same time, check if the brokerage is charging commissions on deposit and withdrawals if it has inactivity fee, account maintenance or any other fees. The top Forex brokers in Nigeria should not have such fees and commissions.
Always check the reviews of the brokers. There are many small details you need to know about before you start trading. Forex broker reviews let you know all of them in detail and help you make a well-informed choice. Of course, reading all reviews will take a lot of time, hence, only choose several brokers you think are good.
See what others have to say about itBesides reviews, check what other traders say about the broker. After all, they know the best as they have already had personal experience. It would be best for you to check the reviews made by Nigerian traders. Sometimes the service of the broker is different based on the countries simply because of the regulations. While one country may allow various features from the broker, another may have stricter regulations and make the broker cancel it. Therefore, the opinions of Nigerian traders will be more informative for you and help you choose the best Forex broker in Nigeria.
Check out our top Nigerian Forex Brokers reviews:
Forex scams in NigeriaThere is no place that is safe from scam brokers. Even in countries such as the United Kingdom, Germany or the United States, where Forex regulations are very tight. Even compared to other countries, forex scams are relatively high in Nigeria.
Just in last year two young men – brothers were found to be leading a Forex Ponzi Scheme. 24-year-old Bowofade Adewuyi was running a company called BTD Multi-Global Company with his younger brother, 22-years-old Adedotun. The brothers set up the company in 2015 but started their scheme only in 2017. They were promising 20 percent return on investments to their customers and were ensuring them that the company was registered and authorized – which obviously was not true.
The brothers were offering investments in binary options, they were letting some of the customers get some “profits”, as it usually happens in Ponzi scheme, to keep the scheme unrevealed. However, after some time, they contacted the customers and requested not to make any withdrawals in a six-month period as the market was very low. The investors believed them until they saw they could not withdraw any money and the office of the company was closed. With this Forex Ponzi scheme, the company managed to lure over 3.500 customers and get approximately 2 billion nairas – nearly five and a half million US dollars until their scam was revealed.
How to avoid Forex scamsThis was one of the latest and most famous Forex scams in Nigeria, there are many more frauds that have been uncovered in the past. Believe it or not, some of those fraudsters were calling themselves the best Forex brokers in Nigeria. It is getting harder to understand that the broker is a scam today since the fraudsters are trying to look like legit companies. However, there are several ways to protect yourself from them.
To choose the right broker from the top Forex brokers in Nigeria you need to be aware of the Forex regulations and trade with the broker that is regulated by the CBN. See the reviews of the international brokerages that are locally regulated as well. Check what their customers are saying about the broker and how satisfied are they. This way you will make sure that your funds are safe and sound!
