The Forex trading boom started in the 2000s. Today, FinanceMagnates.com estimates that there are 300,000 individual Forex traders in the country. Such high popularity is due to low entry rules such as minimum deposit, free trading platform, etc.
Forex trading is recognized as a financial instrument, but only a small number of brokers operate in Nigeria.
Forex trading in Nigeria
The country's national currency, the Nigerian naira, is divided into miniature denominations called kobo. According to the BIS, this currency is not among the major trading currencies.
Due to the regulation of the financial sector, the CBN (Central Bank of Nigeria) has set strict guidelines for the stock market and foreign exchange brokers.
According to the new law, brokers doing business in Nigeria must manage public money in separate accounts. This way, in case of bankruptcy or other ridiculous situation, the fund will not be hampered.
The top 5 Forex brokers in Nigeria
Hotforex has the best trading platform in Nigeria according to recent surveys.
It is a low-cost Forex broker for Nigeria. The platform is 100% safe and secure. Hotforex is affiliated with various regulatory bodies such as FSCA, FCA and CySec. This is why the platform is considered reliable and recommended for choosing Forex brokers in Nigeria. Another advantage of this platform is the extremely low minimum deposit requirement, which is $5. It is also worth noting that Hotforex commissions are around 0.3 pips for EUR/USD with zero account, 0.6 pips for GBP/USD and 0.8 pips for USD/JPY.
For all Nigerian traders, Hotforex supports local bank deposit and withdrawal methods. In addition, there are several wallet options available. The Hotforex trading platform can be accessed through your smartphone. No matter what kind of smartphone you have - Android or iOS - you can easily access the Hotforex platform using it. In addition, the site can also be accessed through a desktop computer. Hotforex offers 100% signup bonus for new clients. For existing clients, the platform offers a good loyalty program.
When it comes to finding a good Forex broker, you need to consider several factors such as deposit and withdrawal speed, spreads and commissions, deposit bonus opportunities, customer support and trade execution. According to all the above factors and parameters, Forextime is one of the best brokerage platforms in the market. The best thing about this platform is that Forextime is absolutely safe and secure. It is a reliable and reputable platform that is ideal for all Nigerian traders. The platform is affiliated with several reliable authorities in the UK, Belize and Cyprus. Other key features of this platform are easy withdrawal facility, low deposit size and instant order execution.
It is one of the best Forex brokers in the country and is supervised by many regulatory authorities in various countries. With an amount of $5, you can open a micro trading account with high leverage. The company pays attention to the needs of its clients.
In addition, FXTM has a live chat support option where you can directly communicate with the support staff anytime 24*5. As for commissions, they are 2.0 pips for EUR/USD with a standard account and 0.4 pips for an ECN MT5 account. Currently, the platform does not offer any deposit bonuses to new clients.
This trading platform is also quite popular among Nigerian traders. It was founded in 2008 and has quickly gained a large number of active Forex brokers during its existence. It should also be noted that it is a reliable and regulated platform that has the approval of two renowned regulatory bodies including CySEC and FCA. Exness provides a choice of over 120 major and minor currency pairs. The deposit requirements are also quite low. For example, for Mini and Cent accounts, the deposit is only 1 US dollar.
In terms of deposit options, the platform allows deposits through local banks (for Nigerian traders only). Other deposit options include e-wallets and credit/debit cards. Exness customer service is very fast, responsive and responsive. For example, the support team is available 24*5 in eight languages. There is an additional support team that works 24*7 in three languages. Instant withdrawal options to e-wallets are also available.
4. XM Forex
This brokerage platform is definitely recommended to Nigerian traders. The platform has been in operation since 2009. Rest assured that it is a reliable and regulated platform, certified by ASIC 443670 and CySEC. As of today, XM Forex supports about fifty-five different currencies. What makes this site unique is that it frequently organizes and hosts free training sessions, live webinars and instructional videos so that you can learn the art of successful Forex trading.
XM.COM is popular among entry-level and intermediate traders. The broker is regulated by ASIC Australia.
The minimum first deposit must be $5. The maximum leverage allowed is 1:88.
XM Forex offers three different account types and all of them have deposit requirements. The commissions associated with this platform are also quite low. For example, for Ultra-low type accounts, the commission is around 0.8 pips per EUR/USD. While for Standard and Micro accounts, the commission is around 1.7 pips. Another unique and interesting feature of this platform is the support of instant order execution guarantee. 99.35% of XM Forex orders are executed within one second. Other features of this platform include negative balance protection, fast withdrawals and fast order execution. In addition, the platform guarantees fast, responsive and competent live chat support that is available 24/7.
The only drawback of this platform is that XM Forex does not have a local office in Nigeria and does not accept deposits from local banks.
If you are looking for one of the best Forex brokers in Nigeria for 2019, Avatrade can also be one of the best recommendations for you. This platform is known as a reliable and trusted Forex broker website. It is regulated by two reputable bodies such as ASIC and FSCA. The biggest advantage of this platform is that Avatrade is a fixed spread brokerage platform, which means the spread is always the same regardless of time and market conditions. The platform charges absolutely zero processing fees for all deposits and withdrawals. In addition, the platform has a local support number where you can contact Avatrade support staff (for any urgent help and assistance).
The live chat support option for Avatrade is only available during the company's business hours. Although the platform is characterized as a fixed spread broker, the spread may be slightly higher on some minor and exotic currency pairs.
Thus identified are the five best Forex brokers in Nigeria such as Forextime or FXTM, Hotforex, Exness, XM Forex, Avatrade. Each of these platforms has its own set of advantages and merits. Depending on your preferences and requirements, you can choose any of them and start trading right away.
All these platforms have one thing in common - regulation. To be a reliable Forex broker platform, it must be regulated by the authorized bodies i.e. FCA and CySEC. This ensures that the platform is safe and not involved in fraud and illegal activities. These regulations also ensure that your invested funds in your trading accounts are protected.