Forex trading in Nigeria became popular in the 2000s, now it has grown to a point where Nigeria is one of the fastest-growing forex trading nations in the world. Yet, a lot of Nigerians still find it difficult to find good forex brokers in Nigeria. As there are a lot of scam platforms and entities fronting as legitimate forex investment platforms and even forex investment companies.
Forex trading or Foreign exchange trading can offer a path to financial freedom. It allows investors to exchange several national currencies against one another and make money off the margins if done properly.
Getting a legitimate forex broker in Nigeria that you can start trading with can be sometimes difficult.
Atimes people know enough genuine forex brokers in Nigeria they can use, but atimes they dont know which one to pick. As they don’t have enough information to weigh the pros and the cons of each forex broker in Nigeria.
That’s why we’ve made this resource. To help you know each forex broker as well as their disadvantages and their advantages. But before we get into this list of the best forex brokers in Nigeria, let’s take a look at what a forex broker is.
- 1 What is a Forex Broker?
- 2 List of Forex Brokers in Nigeria
- 2.1 1. Pepperstone – Top Forex Broker Platform in Nigeria
- 2.2 2. Octa Fx – Top Islamic Forex Broker in Nigeria
- 2.3 3. Markets.com
- 2.4 4. Hotforex
- 2.5 5. FXTM – Popular Forex Broker in Nigeria
- 2.6 6. Avatrade
- 2.7 7. IC Markets – Low Spread Forex Broker
- 2.8 8. Alpari – Legit Forex Broker in Nigeria
- 2.9 9. IQ Option –
- 2.10 10. FPMarkets
- 3 Is Forex Trading Legal in Nigeria – Is forex trading banned in Nigeria?
- 4 How Profitable or Lucrative is Forex Trading in Nigeria?
- 5 How to make money from forex trading in Nigeria?
- 6 How much do you need to start trading forex in Nigeria?
- 7 What is CFD?
- 8 Do Forex traders pay tax in Nigeria?
- 9 How can I trade Forex in Nigeria? How Forex Trading works in Nigeria?
What is a Forex Broker?
A forex broker is a financial company or platform that provides people access to buy and sell foreign currencies. Forex brokers are also known as currency trading brokers or retail trading brokers.
The forex market is a global 24-hr market where large institutional finance firms, investment banks and traditional banks also speculate on the direction of currencies. Then there are the retail currency traders like you and me.
Forex brokers serve all these customers, allowing them to trade pairs of currencies of Nations. As a forex trader, you use a forex broker to buy a currency pair like say GBP/USD. This translates to buying Pounds (GBP) using dollars.
If you want to end the trade you sell the pair, which means buying U.S. dollars with Pounds. If the exchange rate is higher when you close the trade, then you make a profit. Otherwise, it’s a loss for you.
Note: To avoid forex scams and avoid losing your money, it’s important to choose a forex broker that is regulated.
List of Forex Brokers in Nigeria
1. Pepperstone – Top Forex Broker Platform in Nigeria
Pepperstone was founded in 2010 and has grown into one of the biggest forex brokers in the world by offering tech-based trading. That allows traders to embrace the challenge and opportunities available in the global market. Pepperstone has also been decorated with several awards like the investment Trend awards, Deloitte awards, and compare forex brokers’ award.
Pepperstone provides three top forex trading platforms available on desktop and mobile platforms to their traders, they’re;
- MetaTrader 4
- MetaTrader 5
Each of these trading platforms comes with a free demo account with as much as $50k in virtual funds for forex traders in Nigeria for 30 days.
Pepperstone also provides third-party tools alongside their trading platforms to give traders an advantage. Some of these third-party tools are MetaTrader 4 smart trader tools, cTrader Automate, Autochartist, and API trading.
Pepperstone isn’t one of the best forex brokers in Nigeria because of the platforms and tools they offer to traders but because of their fees as well. Forex brokers make money through deposit and withdrawal fees but Pepperstone doesn’t require these fees.
This forex broker offers two types of trading accounts; a Standard account and a Razor account.
The standard account doesn’t have any commissions but has higher spreads, which is how forex brokers like Pepperstone make money. This standard account is available with MetaTrader 4 and MetaTrader 5 to Forex traders in Nigeria, especially beginner traders.
The Razor account, also called an ECN forex account, has commissions but the spreads are determined by the forex market and not by Pepperstone. The Razor account has some of the tightest spreads of any forex account in the world. This account was created with algorithmic and experienced traders in mind.
Pepperstone is one of the top forex brokers in Nigeria to use if you want to keep things simple and use a no-commission account with tight spreads
- Pepperstone Minimum Deposit in Nigeria: $200
- Customer Service: Top-Notch customer service with global call centres, live chat and e-mail.
- Regulated: Yes. By FCA – UK’s Financial Conduct Authority, ASIC – The Australian Securities and Investments Commission, CySEC – Cyprus Securities and Exchange Commission, BaFin – Federal Financial Supervisory Authority of Germany, DFSA – Dubai Financial Services Authority, CMA – Capital Markets Authority of Kenya, SCB – Securities Commission Of The Bahamas. Pepperstone is also in the process of receiving regulatory approval from the Financial Services Conduct Authority of South Africa.
2. Octa Fx – Top Islamic Forex Broker in Nigeria
Started in the year 2011, Octa Forex or Octa fx is now considered one of the best STP forex brokers. This forex broker aims to provide a cost-effective trading experience for both beginner and experienced forex traders. They claim to have over 1.5 million traders registered with them.
Octa Forex is also one of the few forex brokers in Nigeria that offers a trading account to Islamic traders looking to comply with sharia law. Considering Nigeria has a large population of Muslims in West Africa.
Octa Fx trading account for Islamic traders has certain features like swap-free trading account, choice of fixed or floating spreads (MT4 Micro account only) as well as the cTrader trading platform which comes with cTrader copy. This trading account doesn’t also charge swaps or interest for active positions held overnight (there are no overnight or rolling fees). Instead, this broker charges a fixed fee depending on the trader’s currency pairs.
Just like Pepperstone, Octa Fx offers traders a choice of 3 trading platforms. They are:
- MetaTrader 4
- MetaTrader 5
OctaFX also offers a feature few other cTrader brokers offer, which is cTrader Copy. This feature allows you to follow and copy the trades of other brokers by using the signals they provide.
OctaFX also offers 3 types of trading accounts. They are:
- MT4 Micro Account
- MT5 Pro Account
- cTrader ECN account.
The MT4 Micro account is a good choice if you’re big on a low minimum deposit, no commissions, and want to trade small amounts. You can also choose between floating and fixed spreads with this trading account.
Fixed spreads are great if you’re not an experienced trader, it gives you an element of protection if the market climate is volatile. The MT4 Micro account uses MetaTrader 4.
The MT5 Pro account is for the more invested trader. This is a spread only account but it has a higher minimum deposit. This account uses MetaTrader 5 trading platform. If you’re looking to trade large volumes due to the lower cost. Then this account is very suitable for you.
While the cTrader ECN account uses the cTrader trading platform and has commission costs over the spread.
- OctaFx Minimum Deposit in Nigeria: $50 (₦18,000)
- OctaFx Mininmum withdrwal in Nigeria: ₦1,750.00.
- Customer Service: Top-Notch customer service with global call centres, live chat and e-mail.
- Regulated: OctaFX is regulated in only one tier-2 jurisdiction (Cyprus). CySEC – Cyprus Securities and Exchange Commission
One of the best forex brokers globally, Markets.com features include low spreads that are commission-free. This forex broker also offers 4 trading platform options to traders as well as a diverse range of 2,200 different CFDs that are derived from 8 different asset classes that include forex, indices, commodities, shares, ETFs, cryptos, bonds and blends.
These are some of the features that make markets.com one of the best forex brokers in Nigeria for traders. They are great for any trader regardless of their trading experience.
The trading platforms that markets.com offer to traders are: MetaTrader 4, MetaTrader 5, Marketsx or Marketsi.
Markets.com is a desk-dealing broker that offers 24/5 customer service and support via live chat, phone or email.
- Markets.com Minimum Deposit in Nigeria: $250
- Regulation: Yes, by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Sector Conduct Authority (FSCA) in South Africa as a Financial Services Provider.
HotForex is one of the top forex brokers in Nigeria as they offer high leverage of 1:1000 than most other brokers who offer a maximum of 1;500. HotForex also offers a choice of trading accounts as well as bonus offers.
Leverage trading which is also called margin trading is a great way to increase your profits with little capital if it is done successfully. But it comes with its risk as well, when movements don’t go in your favour.
With HotForex, a trader has a choice to choose between 5 trading accounts. Which are:
- Zero Spread
- AutoHFCopy Accounts.
The Micro, premium and Zero Spread accounts are suitable for traders that want to manage their trading activities themselves. While Auto and HFCopy accounts are for traders that want to use automation trading or copy trading.
One of the best things about HotForex is the bonus offers they give. Traders using HoTForex can have extra cash to trade with. Some of the bonus offers the broker gives are:
- 100 % supercharged bonus which lets you earn $2 cash rebates per lot each time you deposit $250 or more into your account
- A 30% rescue bonus
- And a 100% credit bonus which increases your account leverage provided you meet trading volume requirements.
- HotForex Minimum Deposit in Nigeria: $5
- HotForex Mininmum withdrwal in Nigeria: $100
- Customer Service: Top-Notch customer service with global call centres, live chat and e-mail.
- Regulated: By the St. Vincent & the Grenadines regulatory authority, CySEC (Cyprus Securities and Exchange Commission) in Cyprus, and the FSC of the Republic of Mauritius.
5. FXTM – Popular Forex Broker in Nigeria
One of the most popular forex brokers in Nigeria, FXTM was founded in 2011 and has gone on to become one of the global leaders in online forex trading. FXTM or Forex time is quite known for its good customer support and diverse withdrawal options which is due to the fact that it has a local telephone and office line that customers can reach them on.
FXTM has over 19 deposit and withdrawal options for its Nigerian traders.
You can start trading forex on FXTM with as little as $50. It also offers a demo account for beginner traders.
Most available forex brokers in Nigeria don’t offer local Nigerian Naira ₦ (NGN) funding on their platforms because of the increasing exchange costs of currency trading. But FXTM offers two NGN account funding methods through bank wire transfer or Neteller.
FXTM standard trading account requires a minimum deposit is $100. This forex broker also offers social trading (copy trading) to its Nigerian traders.
- FXTM Minimum Deposit in Nigeria: $50
- FXTM Mininmum withdrawal in Nigeria: None
- Customer Service: FXTM offers cusoer support through a customer care phone line, live chat and e-mail.
- Regulated: By the FSC (Financial Services Commission) of the Republic of Mauritius.
One of the forex brokers in Nigeria that offer fixed spreads, which gives some predictability and a layer of protection to traders in a volatile market. Avatrade offers a range of currency pairs and CFDs to traders that use its platform. This broker is multi-regulated as well.
Avatrade uses the MetaTrader 4, MetaTrader 5 and AvaTradeGo as its trading platforms.
Avatrade doesn’t charge any commission fees but they’ve general trading and account cost that traders pay for using them.
If you’re using AvaTradeGO app for android and iOS mobile, you will get access to AvaTrade’s exclusive risk management tool known as AvaProtect. Which will help you to buy back time to decide if you want to reverse your trade. This is useful for when an event price movement goes against you for a set amount of time after your trade.
You also get negative balance protection with Avatrade.
Avatrade is also great for Islamic traders as it offers a swap-free account type, where they pay a daily flat rate administration fee for forex positions held overnight instead of interest-based payments. However, these swap-free accounts can’t trade cryptocurrencies and certain forex pairs that include the ZAR, RUB, MXN or TRY.
- Avatrade Minimum Deposit in Nigeria: $100
- Avatrade Mininmum withdrawal in Nigeria: Webmoney-$120, Moneybookers/Skrill-$10, Payoneer/Debit card-$20, Bank wire$400.
- Customer Service: You can call, live chat and e-mail the Avatrade’s customer support.
- Regulated: AvaTrade is regulated broker in the EU, Japan, Australia, South Africa, UAE and the British Virgin Islands.
7. IC Markets – Low Spread Forex Broker
This is one of the other legit forex brokers in Nigeria that offers a wide array of trading options to all types of forex traders in the market.
Their technology is great and they are also backed by some of the world’s most reliable liquidity providers.
IC Markets is a broker headquartered in Australia, and they offer some of the lowest spreads in the market. As well as low brokerage fees.
They don’t charge deposit or withdrawal fees either. Their trading platforms include MT4, MT5 and cTrader.
They are also great for Islamic traders too.
- IC Markets Minimum Deposit in Nigeria: $200
- IC Markets Mininmum withdrawal in Nigeria: None.
- Customer Service: IC Markets is available 24/7 to customers via phone calls, email support and live chat.
- Regulated: IC Markets is regulated by the FSA (Financial Services Authority) in Seychelles
8. Alpari – Legit Forex Broker in Nigeria
Alpari is one of the biggest forex brokers in Nigeria and globally when it comes to daily trading volumes on different types of trading instruments. Their 2 million customer base is a testament to this.
Forex traders in Nigeria who use Alpari have a range of withdrawal options like Local Bank transfer in Nigeria, Credit/Debit Card, Bitcoin, Skrill etc. For deposits on Alpari, Nigerian traders can add funds via bank, Cards & E-wallets.
Alpari International is a legit forex broker in Nigeria that has been existing over 20 years. They are in 8 global locations, with a local office in Abuja. They operate a 24 hours customer service, a local deposit option, and good promotions.
- Alpari Minimum Deposit in Nigeria: $5
- Maximum Leverage: 1:1000
- Regulation: FSC (Mauritius)
- Trading Instruments: 60 Currency pairs, 30+ CFDs on Metals, Cryptocurrencies
- Trading Accounts: Micro, Standard, ECN & Pro AccountsTrading Platforms: Web, Desktop, Mobile (MT4, MT5) & Alpari Invest App
9. IQ Option –
Launched in 2013bas a binary options broker, IQ Option has now gotten bigger and better as they’ve added other instruments like stocks, forex, ETFs, Commodities, and Cryptocurrencies. IQ Option offers CFDs on all the afore-mentioned instruments.
IQ Option offers different deposit and withdrawal options to traders. Its deposit methods include:
- Visa/Master Card ( Debit or Credit card)
While it’s withdrawal methods are:
- Visa/MasterCard (only initial deposit)
- Bank Transfer
The minimum amount that can be deposited at once on IQ Option is $10.IQ Option offers 3 types of trading accounts. They are:
- Demo account: This is a demo account that comes loaded with $10,000 preloaded for you to practice with at no risk. But you cannot withdraw this money or the gain from it, as it’s not “real money”. The Demo account is essential if you’re a beginner trader because it will help you practice at no risk.
- Real account: This is the main account for trading. You need to deposit a minimum of $10 to activate this account and start trading on IQ Options.
- VIP account: This account requires you to deposit up to $3,000, after which you become a VIP member. This means you get access to all the benefits of the real account owners and other benefits such as a personal manager, monthly trading record, feedback etc.
It is important to note that withdrawal with this forex broker in Nigeria may take up to 3-9 working days, depending on the withdrawal method used. And that IQ Option is only regulated in Europe.
- IQ Option Minimum Deposit in Nigeria: $10
- IQ Option Minimum Deposit in Nigeria: $1
- Regulation: CySec (Cyprus)
FP Markets is one of the safe forex brokers in Nigeria to trade with. They offer STP trading with tight spreads and fast execution speeds.
FP Markets was Founded in Australia. It is authorised and regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission, and is registered in St Vincent and the Grenadines.
FP Markets offers in-depth education and market analysis sections for both beginners and more experienced traders alike.
FPMarkets offers two account types:
- Standard Account: spreads from 1.0 pips with no commission fees.
- Raw Account: ECN spreads starting from 0.0 pips and USD $6 commission fee per side, per 100k traded.
Both these FP Markets account types require a minimum deposit of AUD $100 and are available on MetaTrader 4 and MetaTrader 5.
FP Markets also offers several excellent trading tools to traders. Like the Autochartist which can be accessed for free. But tools such as VPS services and the Traders Toolbox require a minimum deposit of at least 1,000 USD.
FP Markets is a well-regulated STP/ECN broker that offers trading on different instruments like shares, metals, commodities, cryptocurrencies, indices, and over 60 Forex pairs.
Forex traders can perform all types of trading strategies on FP Markets, including hedging, scalping, and copy trading.
- Minimum deposit: $100
- Funding Fees: No
- Swap Account: Yes
- Regulators: ASIC, CySEC
Is Forex Trading Legal in Nigeria – Is forex trading banned in Nigeria?
Forex trading isn’t banned in Nigeria. it is very legal to trade Forex in Nigeria i as long as it does not contravene money laundering laws in the country. Just make sure you’re using one the the legit forex brokers in Nigeria and that you’re trading for yourself alone.
How Profitable or Lucrative is Forex Trading in Nigeria?
Yes, forex trading can be profitable to forex traders that are very skilled, knowledgeable about markets. A lot of people have made a tonne of money from trading forex so it is a profitable venture for anyone with the right level of skills and capital.
There is a statistic that says that 80% of all retail forex traders are losing money. This is because a lot of these forex traders carry the wrong mindset with them. They Think They can make easy money using the most minimal investment.
While forex trading is a very lucrative venture, it is not a get-rich-quick scheme. But if you take time to learn the ins and outs of forex trading, you can easily become rich from trading.
As a trader, you also don’t want to use excessive leverage, especially with small capital. Else you may enter a position where small losses can easily wipe out the capital in your account.
To trade forex profitably here are a few steps you can follow:
- You need to invest time and focus in learning the required skills. Learn the basics. There are a ton of resources out there like Youtube, ebooks and even courses.
- Start trading using a demo account and develop your trading strategies. After you’re sure that these strategies work, you can go ahead and open a live account and start trading with your money.
- You also need a significant amount of capital to open positions where you dont over leverage.
How to make money from forex trading in Nigeria?
Forex involves trading one currency against another. And you make a profit on the exchange rate differences of these currencies. You can make money in forex on both the rising and falling prices of the currency pairs.
Once the demand for a currency increases, that currency becomes more valuable. Accordingly, when the demand for a currency decreases, it becomes less valuable.
How much do you need to start trading forex in Nigeria?
You need at least $100 to start trading forex in Nigeria. While some forex brokers might tell you you can start trading forex in Nigeria with a lesser amount. You want to have enough cpital that gives you just about enough leverage to reach your goals.
What is CFD?
You need to understand what a CFD (Contracts For Difference) means.
A CFD is an agreement to exchange the difference in the value of a particular asset from the time the contract is opened, until the time it is closed.
Let’s say John wants to buy a piece of property with the intention to hold on to it and sell it after a month no matter the market value.
He might sell it at a profit or at a loss depending on how it swings. However, to enter this trade, john will have to cough up $100,000 for the property.
A third party might want to participate in this trade but he does not have $100,000. He has $20. How does he participate?
What he can do is trade his $20 in a CFD company stating that he believes the property will appreciate with a time frame. If the property appreciates within the time frame, he will be paid his $20 plus the increment proportional to the appreciation of the property. But if it depreciates he will lose the fraction of his $20 proportional to the depreciation.
Do Forex traders pay tax in Nigeria?
Do traders in Nigeria pay tax? This is hard to ascertain. Are forex traders meant to pay tax? Yes they are meant to pay tax in Nigeria since online forex trading profits are treated as Capital Gains Tax chargeable at the rate of 10%.
Earnings from forex trading in Nigeria are taxable, but not subject to any specific withholding tax deductions. But it’s expected that every Nigerian should file an annual Personal Income Tax Return.
How can I trade Forex in Nigeria? How Forex Trading works in Nigeria?
Currently, trading forex is a legitimate way of making money online in Nigeria. Using just a smartphone, laptop or internet-enabled device, anyone with significant knowledge of forex trading can start to make money.
So how does forex trading really work? Forex trading is simply about the buying and selling of currencies around the world. Since the value of the currencies around the world is constantly changing, the purpose of trading forex is to trade one currency against it by timing the buying and selling of said currencies in a bid to benefit from the currency swings.
What is the best time to trade forex in Nigeria?
There are major trading sessions/trading hours for Nigerian traders that provide the best time to trade in the forex market in Nigeria. They are:
|Session||Nigeria Time (GMT +1)|
|New York session||02:00 AM to 11:00 PM|
|Asian session||12:00 AM to 09:00 AM|
|London session||08:00 AM to 05:00 AM|