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As Forex trading is becoming more and more popular in Africa, many new companies are emerging in this very rich market. One of the richest economies on the market, Nigeria, with more than 200 million population, is working very hard to further develop the field of Forex in the country.
Nigeria is a country with rich oil reserves and by many, it is referred to be a door to the African continent. However, the country is also known to have a lot of scam companies, who are doing their best to get as much many as they can by lying to people. For those living in Nigeria, we have created this very detailed and informative guide, which you can use to start Forex trading in the country.
Follow our tips carefully and you will be able to find the best Forex brokers very easily!
What are the best Forex brokers in Nigeria?
Nigeria is known to have a lot of scam companies, which makes finding the best Forex broker a very hard thing. To make your job easier, we have decided to do research, focusing on the safety and security of your funds, and came up with a list of best Forex brokers that you can access below.
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Min. depo
$5
Leverage
1:888
Platform
MT4, MT5, WebTrader
XM
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Min. depo
100 USD
Leverage
400:1
Platform
MT4, MT5
AvaTrade
What are the regulations of Forex trading in Nigeria?
The main regulatory body of Nigeria is the Central Bank of Nigeria, which oversees the whole Forex traidng field in the country. The main job of CBN is to ensure transparency and efficiency of the Foreign Exchange market. The National Bank of the country issues licenses for Forex brokers in Nigeria, including local and international ones. These brokers have to follow some strict rules that are in place by the bank. CBN also has a consumer protection department, where different complaints are sent by investors and those complaints are carefully analyzed by the professional team of CBN.
If there is some type of activities done by a broker that goes against the best interest of the customers, the CBN has some severe fines and it can go as far as revoking their license to operate. Because of this, you need to always make sure that you are trading with CBN regulated Forex broker.
Is FX trading in Nigeria safe?
We can say that FX trading in Nigeria is safe as long as you are trading with one of the Forex brokers that is regulated by the CBN. The steps that the institution has taken make sure that you and your funds can stay safe at all costs. However, there are some things that you need to do to make sure that the broker is really authorized.
If you are trading with an international Forex broker that owns authorization of one of the international regulatory bodies, makes sure to contact those regulators, in most cases, they have a list of Forex brokers that are authorized by them. If they do not have such a list, you can directly ask them about a certain broker. You can do the same about CBN regulated Forex brokers.
Also, by trusting CBN, you can be sure that the broker will do their job without violating any of your rights because the sanctions of the national bank are very strict and harsh.
What is the national currency of Nigeria and what payment methods are available?
The Nigerian naira is the national currency of Nigeria, with a code of NGN. The issuer of the money is the Central Bank of Nigeria, it controls the volume of money and ensures price stability. CBN has a special department, Currency Operations Department, which is in charge of currency management and takes care of Nigerian naira.
In general, since trading with Nigerian naira means that you are trading with exotic currency pairs, most of the traders around the world are trying to avoid doing so. In Nigeria, if traded, NGN is mostly used in pairs with the USD; however, it is still recommended to trade with FX broker that accepts payments in NGN, to avoid the high exchange fees during withdrawals or deposits.
When it comes to payment methods, there are a lot of them that you can choose from. Nigeria is known for having many local payment methods, which gives Forex broker the ability to have access to a whole new demographic. People in Nigeria are also using credit/debit cards of Visa and Mastercard, which are mostly accepted by many of the international Forex brokers.
So, we believe that while trading in Nigeria, you will not have a problem with payment methods. However, there still are some companies that have managed to offer more diverse opportunities to Forex traders. We created a list of some of the best FX brokers when it comes to payment methods, we recommend these Forex brokers to anyone who wants to trade in Nigeria.
XM
Min. Depo
$5
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Leverage
1:888
Platforms
MT4, MT5, WebTrader
AvaTrade
Min. Depo
100 USD
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Leverage
400:1
Platforms
MT4, MT5
Exness
Min. Depo
$10
Licences
CySEC, FCA, SFSA
Leverage
1:2000
Platforms
MT4, MT5
Deriv
Min. Depo
$5 (e-wallets), $10 (bank cards)
Licences
Labuan FSA, BVI FSC, VU FSC
Leverage
1:500
Platforms
MetaTrader 5, cTrader
What are the pros and cons of trading in Nigeria?
As in anywhere else, there are two sides of trading with Nigerian Forex brokers. As much as it can be rewarding and good, there still are some things that you need to be aware of.
Pros:
- The field is very strictly regulated in the country, resulting in a safe and secure environment
- Many international and local FX brokers are available for Nigerian Forex traders
- When it comes to payment methods, there are many of them you can choose from
Cons:
- There have been many reports in Nigeria that some of the customer service team does not work properly
- The market is ever-changing, and you need to always stay informed
Should you start Forex trading in Nigeria?
We believe that because of the hard work that the government has put into developing the field of Forex in the country, it is worth trying out. The field is very safe, especially compared to some of its neighboring countries and there are many opportunities that the Forex traders can have.
Because of the regulations that are in place by the National Bank of the country, the country is considered to be one of the safest places for Forex trading in Nigeria. However, keep in mind that the regulations are not always enough to stay safe, there still are some scam companies that are trying to lie to people and use their funds illegally, so always make sure that you are trading with a regulated Forex company that can be trusted.