Selecting your first, or new forex broker is always a big moment. Depending on your trading style, there may be a number of brokers who are the best fit for you as a Nigerian trader.
Here we have gathered 10 of the best forex brokers in Nigeria to choose from. This should mean there is something to suit everyone.
Is Forex Trading Legal in Nigeria?
Forex trading in Nigeria is legal, however in actual fact there are no regulations in place.
This puts it in a sort of ambiguous place of not being specifically legal or illegal. The word that we can use to describe forex trading in Nigeria best would be to say it is accepted.
While there is regulation on Nigerian traders that comes from the CBN (Central Bank of Nigeria), this regulation does not extend to online forex trading.
How to trade forex in Nigeria
Since forex trading and online forex brokers in Nigeria do not come under any form of regulation, Nigerian traders are free to open accounts with their international fx trading platforms of choice and follow the regulations that this broker has put in place from their own regulatory body.
In that case, you will typically need to provide some confirmation of your ID and proof of residence in line with your brokers regulatory requirement before funding your account.
With that said, since the CBN regulates other exchange trading activities, there is an annual limit of 50,000 NGN that you can send to overseas investments. This means that if your broker of choice keeps your funds overseas, you will have to follow this regulation with the amount your transfer outside the country.
Top 10 Best Forex Brokers in Nigeria
Having considered all factors, here is our listing of the best forex brokers Nigeria has to offer.
The first broker we have chosen to start our best broker in Nigeria list is FXTM. They are renowned in the industry for being well-regulated and highly compliant around the world. This regulation comes from top bodies CySEC, FCA, FSCA, and the FSC. They have also been awarded the best broker in Africa 2018 award by International Business Magazine.
Trading with this broker you can expect to find 6 account types in total. Three of these are ECN account types while three ae standard types. This also includes a cent and shares account and an FXTM demo account is easily available as well as an Islamic account where needed.
FXTM is the only broker that specifies its minimum deposit in NGN and this is 2000 NGN for a cent account, 40,000 NGN for standard and shares accounts, and 80,000 NGN for an ECN account.
When it comes to making your deposit, you can do so through eWallets or credit cards with no fees in the majority of cases. Neteller and local bank transfer deposits in NGN are both available too. Although no NGN base currency is available, you can choose USD, EUR, or GBP and spreads start from 0 pips with ECN, or 1.3 pips on standard accounts.
Finally, although there is no FXTM bonus available, there is a dedicated loyalty program that can help reduce trading costs.
Next on the Best forex broker in Nigeria list is OctaFX. They are again well-regulated by both the FCA and CySEC and are known to offer one of the best swap-free broker services in the industry.
You will have 3 accounts to choose from and each with a different top trading platform available. The Micro account uses MT4, the ECN account uses cTrader, and the Pro account uses MT5 so there really is something for every forex trader.
They have a minimum deposit of $100 for a standard account, or $500 for a pro account to get involved in forex trading and deposits are accepted by bank transfer, Visa, eWallets and even Bitcoin. NGN deposits (2000 NGN minimum) are accepted with GTBank only and no NGN base currency is available although USD, EUR, and GBP all are.
Spreads start from a great value 0 pips with all the top trading platforms mentioned being available. OctaFX also offers a 50% deposit bonus on each deposit.
The next top broker in Nigeria featured is FBS. They are a globally regulated broker through both CySEC and the IFSC in Belize and are one of the few brokers to offer a fixed zero spread account.
At FBS as a forex trader you can choose from 4 account types which come with a varying minimum deposit. This is $1 for the cent account that is ideal for new traders, $100 for a standard account, or $1000 for an ECN account. The Zero account is also available for a $500 minimum deposit. As with most top brokers, a full demo account is easy to open and an Islamic account is available.
You can deposit here through wire transfer, credit cards, or eWallet, and all are typically fee-free. NGN may be accepted when depositing through local exchanges although no NGN base currency is available. USD, EUR, and GBP are though.
Spreads start from 0 pips on the fixed-zero account, and both MT4 and MT5 trading platforms are available as well as Webtrader. The FBS bonus structure provides for a 100% deposit bonus as well as trading contests and possible rebates for forex trading.
HotForex is another of the top Nigerian forex brokers and is regulated by a host of top bodies including FCA, CySEC, FSCA, DFSA, and FSA. They have won dozens of awards and are globally recognized as a top broker.
Here you can choose from the micro account with a $5 minimum deposit, the premium account for $100, or the zero spread and auto trading accounts that have $200 minimum deposits. Copy trading is also available with a deposit of $100 if you wish to copy others or $300 if you wish to be copied. Again, full feature demo accounts are available as well as Islamic trading accounts.
Deposits can be made here through wire transfer, credit cards, and eWallets and are for the most part free of any fees although NGN deposits are not accepted and only USD, EUR, and GBP base currencies are available.
Trading is through MT4 and MT5 with spreads starting from 0 pips and the broker makes available an excellent bonus structure with a 100% credit bonus as well as rebates, increased leverage and rewarding trading contests for all.
Next in our top forex broker Nigeria collection is XM. Again they are multi-body regulated through IFSC, CySEC, and ASIC and highly compliant. They also offer fixed spreads to forex traders.
Here you will have a choice between 4 account types, Micro, Standard, Ultra Low, and Shares. Both the Micro and Standard accounts are available for a $5 minimum deposit, the ultra low has a $50 minimum, and the shares account $10,000. Demo and Islamic accounts are available across the board.
With XM again you can deposit through wire transfer, credit cards, and eWallets with most being fee-free. NGN deposits are no available nor is an NGN base currency although USD, EUR, and GBP are all catered for while spreads start from a great value 0 pips trading on MT4 or MT5 trading platforms.
Considering bonuses, they offer a $30 no deposit bonus that can be great for new traders. Both 50% and 20% deposit bonuses are also offered as well as a rewarding loyalty program and trading contests.
AvaTrade are another of the very best brokers in Nigeria and worldwide. They are regulated by CBI, ASIC, FFAJ, and the FSCA of South Africa and also offer only fixed spreads to traders. If you are a forex trader with this broker you will find they offer a retail, options, and spread betting accounts.
Making a minimum deposit with AvaTrade you will need $100 and Islamic accounts are available on request while a demo account is easy to set up and try out risk-free. No NGN deposits are catered for at the moment though you can fund your account by wire transfer, credit card, or eWallet to start trading with USD, EUR, or GBP base currencies.
When it comes to cost, the fixed spreads here start from a value 1.3pips and you can avail of MT4, MT5, Webtrader, and AvaTrades own proprietary trading platform. They also provide forex traders with a 20% welcome bonus when you deposit 1,000 USD/EUR/GBP/AUD or more. This bonus is effective until January 31st 2020.
FxPro is again featured as a top broker and one of our best choices for Nigerian forex trading. They are regulated thoroughly by the FCA, CySEC, FSCA, DFSA, and SCB around the world and are again one of the most decorated brokers in the sector.
You will have 3 account types to select from here and a minimum deposit of $100 to start. Both fully functioning demo accounts and Islamic trading accounts are available and easy to access where needed.
When it comes to funding your account, you can do this through wire transfer, credit card, or eWallet and in most cases this will be fee-free. No NGN deposits are available and nor is an NGN base currency although USD, EUR, and GBP are all provided for. Traders can avail of all the top trading platforms MT4, MT5, and cTrader with FxPro spreads starting from 0 pips.
There is unfortunately no FxPro bonus available at this time.
XTB is the nest on our list of top brokers and they too are comprehensively regulated by both the FCA and IFSC in Belize. They stand out for their top trading academy and education at all levels that is ideal for new trader in particular.
With trading, both standard and pro accounts are available with no minimum deposit to worry about and your account can be converted to an Islamic account if needed. You can also easily try out the XTB demo account before you commit.
Funding your account is easy through wire transfers, credit cards, or eWallets although no NGN deposits nor base currency are available. Base currencies do include USD, EUR, GBP, and several others though.
Considering costs, you can utilize MT4 or the brokers own platform when trading, and spreads typically start from 0.2 pips. At this moment there is no trader bonus provided by the broker.
Pepperstone is another top broker for Nigerian traders and is well regulated by both the FCA, and ASIC. They are well recognized for their top notch ECN execution in trading forex. With Pepperstone you will have the choice of a Standard or the Razor account type.
There is a minimum deposit of $200 to get started and although NGN base currency or deposits are not available, you can select from USD, EUR, GBP, and more with a spread that can be as low as 0 pips. Demo accounts are fully realistic and easy to open, while Islamic accounts are also available and your account can be funded through wire transfers, credit cards, or eWallets with most being fee-free.
Trading is done through all of the major forex trading platforms in the shape of MT4, MT5, and cTrader depending on your account type and while a direct bonus is not available, they do have and active trader program that can be beneficial.
Last but not least for top Nigerian forex brokers is eToro. They are globally known and regulated by CySEC, FCA, and ASIC around the world. They are a kingpin of social trading in particular and offer one account type that you can open with a $200 minimum deposit.
You can fund your account through wire transfer, major credit card, and some eWallets with many being fee-free. Great demo accounts are also available to try risk-free and an Islamic account can be requested.
With eToro, NGN deposits are not yet accepted and you must use the USD as your base currency. Trading takes place on the eToro proprietary trading platform and spreads typically start at 2-3 pips.
Nigerian trader? Here’s what to look for in a forex broker
As a Nigerian trader getting into forex trading, as with every other trader, there are a few things to be mindful of when searching for a new forex broker. These tips can help ensure the best experience for you:
1. Look for top-tier regulatory bodies:
As mentioned, the Nigerian forex market is not directly regulated. This means you should exercise some caution when choosing your broker. To avoid a fraudulent situation, you should always choose a well-regulated broker with oversight from some of the top bodies like CySEC, ASIC, FCA, and other as listed above.
If you want to stay within African regulation, the FSCA of South Africa is also a much-respected regulatory body of choice.
2. Look for Naira Accounts or NGN deposit methods:
For your convenience, you should try to choose brokers who allow for NGN accounts and deposit methods. When you open an account and deposit in another base currency, you will typically be faced with conversion fees.
These fees can be avoided if your broker accepts NGN deposits and base currencies, though these are tough to find although we have featured some.
3. Need to be Sharia compliant? Look for Islamic Accounts:
If you are an Islamic trader then you will need a fully compliant Islamic trading account. This account will help you avoid interest in the form of overnight fees which is considered Haram under Sharia law.
These accounts are generally available free on request from all the broker we featured and where some may charge and admin fee, most provide for the exact same trading conditions. You can read our guide if want to know more about swap free forex brokers.
How to verify if a forex broker is regulated in Nigeria
Since the CBN only regulates exchange trading and not the online forex market in Nigeria, your broker will not be regulated by them. This does not mean it is a scam. In fact, you can easily check your broker regulations around the world depending on the regulatory body, through some of the following links.
With regard to ESMA, you will first need to know which exact regulatory body covers yoour broker, though if that body is a European regulator like CySEC, then your broker will automatically be ESMA compliant.
Is forex trading taxable in Nigeria?
The simple answer here is that yes, it is.
Your forex trading profits will be treated as capital gains and, in Nigeria, this tax rate is 10%. Unlike some other countries, if you do lose money in forex trading, there will be no tax deduction and you will have to file annual income tax as Nigerian residents do.
- [Disclaimer: we are not accountants, we have done internet research. We strongly suggest you contacting Nigerian local authorities if you’re not sure how to manage this aspect]