Best Forex Brokers in Nigeria 2023

We have taken these factors into consideration when creating this top ten selection of forex brokers in Nigeria.

• If the broker is regulated
• The minimum deposit of the broker for Nigerian traders
• If NGN base currency is available for Nigerians
• If Nigerian local deposits are available for Nigerian traders
• The spreads charged from the broker for Nigerians
• The leverage provided from the broker for Nigerian traders
• If bonuses or promotions were in store for Nigerians

Round-Up

1. OctaFX: Best for trading tools
2. FBS: Best for account types choice
3. HFM: Best for trading tools
4. XM: Best for Nigerian beginners
5. AvaTrade: Best for fixed spreads
6. FXTM: Best trading overall
7. FxPro: Best for cTrader platform
8. XTB: Best for educational materials
9. Pepperstone: Best for scalping
10. Axi: Best for algo-trading

WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money

Review

1. OctaFX

• Nigerian traders can trade with OctaFX under the global entity, regulated by Saint Vincent and the Grenadines entity (no. 19776).
• Nigerian clients benefit from a 50% deposit bonus and several demo.
• Nigerian OctaFX traders can start with a $25 minimum deposit, though the recommended is $100.
• Nigerian traders find EUR and USD as account base currencies.
• Nigerian local banks for depositing are available.
• Nigerian clients of OctaFX have access to spreads from 0.2 pips on 35 forex pairs, with a max. leverage up to 500:1.

Visit OctaFx
74-89% of retail CFD accounts lose money

2. FBS

• Nigerian clients of FBS can trade with the broker under the IFSC regulated entity (no. 60/230/TS/18).
• Nigerian traders of FBS can benefit from bonuses and promotions including a Level up bonus, Quick Start bonus, and the 100% Deposit Bonus.
• The FBS minimum deposit for Nigerian clients starts from $1.
• The NGN base currency is not accepted for Nigerian traders, but USD and EUR are.
• Nigerian local bank deposits are provided by FBS.
• Nigerian traders find FBS spreads starting from 0 pips (sometimes from -1 pips depending on the account) on 35 forex pairs with a maximum 3000:1 leverage.

Visit FBS
74-89% of retail CFD accounts lose money

3. HFM

• Nigerian clients can trade with HF under the Saint Vincent and Grenadines entity (no. 22747 IBC 2015).
• Nigerian HF clients can benefit from bonuses including a 100% supercharged bonus, 50% welcome bonus, 30% rescue bonus, and 100% credit bonus.
• The HF minimum deposit for Nigerian traders starts from just $5.
• HF Nigerian traders won’t find NGN as a base currency. Typically USD, EUR, and GBP are all available.
• Nigerian clients find spreads from 0 pips on 50+ forex pairs, with a maximum leverage up to 1000:1.
• HF educational center courses for Nigerian traders are available.

Visit HFM
(71.04% of retail CFD accounts lose money)

4. XM

• Nigerian traders can trade under the XM Global entity, regulated by the IFSC regulation (no. 000261/158).
• Nigerian traders find an XM minimum deposit starting from $5.
• NGN deposits are not available for Nigerian clients. Note that EUR, GBP, and USD base currencies, among the others, are accepted.
• XM spreads for Nigerian clients start from 0 pips on 57 forex pairs with a max. leverage up to 888:1.
• XM offers Nigerian traders a $30 no deposit bonus, a 50% and a 20% deposit bonus as well as a rewarding loyalty program and trading contests.

Visit XM
73.57% of retail CFD accounts lose money

5. AvaTrade

• Nigerian traders can find under the BVI regulated entity of AvaTrade (No. SIBA/L/13/10/1049).
• Nigerian clients can start trading with AvaTrade with a minimum deposit of $100.
• NGN base currency is not accepted for Nigerian traders, though EUR and USD are available.
• Fixed spreads from 0.9 pips on 55 forex pairs with a maximum leverage up to 400:1.
• From time to time, AvaTrade bonuses may be available for Nigerian traders.

Visit Avatrade
(79% of retail CFD accounts lose money)

6. FXTM

• Nigerian clients can trade under the FXTM FSC entity (no. C113012295) which has a registered office in Nigeria.
• Nigerian clients can apply for a dedicated loyalty program which allows them to benefit from several perks, including cost reduction.
• FXTM minimum deposit for Nigerian clients starts from 2,000NGN ($10).
• NGN is available as a base currency, as well as Nigerian local bank wire transfers, with no fees on FXTM’s part.
• Spreads from 0 pips on with a maximum leverage up to 2000:1 depending on your position size: 2000:1 is available up to 0.5 lots, 1000:1 from 0.5 to 2 lots, and others following this pattern.

Visit FXTM
81% of retail CFD accounts lose money

7. FxPro

• Nigerian clients can trade under the FxPro entity regulated by SCB Bahamas (no. SIA-F184).
• Nigerian traders find a FxPro minimum deposit of $100, even though the broker recommended is $1,000.
• NGN base currency is not available for Nigerian clients, but they can choose among the others including the USD, GBP, AUD, EUR, and ZAR.
• Nigerians FxPro traders have access to spreads from 0 pips on 70+ forex pairs with a maximum leverage up to 200:1.
• No FxPro bonuses available for Nigerian traders.

Visit FxPro
72.87% of retail CFD accounts lose money

8. XTB

• Nigeria clients can trade with XTB under the global entity, regulated by IFSC (no. 000302/185).
• There is no XTB minimum deposit requirement for Nigerian clients.
• NGN is not available as a base currency, but USD is.
• Nigerian traders find a minimum spread starting from 0.3 pips on 50 forex pairs with a maximum leverage of 1:500.
• Currently, an XTB 50% welcome bonus is offered for Nigerian clients.

Visit XTB
79% of retail CFD accounts lose money

9. Pepperstone

• Nigeria clients can trade with Pepperstone under the global entity SCB (no. SIA-F21).
• No minimum deposit requirement is in place for Nigerian clients, though Pepperstone recommends a $200 minimum deposit.
• NGN base currency is not available for Nigerians, but EUR, USD, GBP, and others are accepted.
• Nigerian traders find Pepperstone spreads from 0 pips on 60+ forex pairs with a maximum leverage up to 200:1.
• Nigerian high-volume traders can qualify for one of the 3 tiers of the Active Trader program. Here, rebates can be earned depending on your tier and on how many standard lots you trade per month on these assets: forex, indices, and commodities.

Visit Pepperstone
(75.9% of retail CFD accounts lose money)

10. Axi

• Nigerian traders can trade under the Axi global entity, regulated by St Vincent and the Grenadines (no. 25417 BC 2019).
• Nigerians won’t find an Axi minimum deposit.
• Nigerian Internet Banking transfers in NGN are available, though NGN is not one of the account base currencies provided by Axi, which are, among others, USD, EUR, GBP, CHF, AUD, and NZD.
• Axi spreads for Nigerian traders are from 0 pips on 40 forex pairs with a maximum leverage up to 500:1.
• Axi bonuses are not provided for Nigerian traders.

Visit AXI
69.6% of retail CFD accounts lose money

Is forex trading legal in Nigeria?

Forex trading in Nigeria is legal, however, 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.

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 others 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 brokers we featured and where some may charge an admin fee, most provide for the exact same trading conditions. You can read our guide if you 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.

• FCA
• ASIC
• ESMA
• FSCA

With regard to ESMA, you will first need to know which exact regulatory body covers your 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?

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]