The Best Forex Brokers in Nigeria 2019 Benzinga - Benzinga

Featured Forex Broker: FOREX.com

FOREX.com is one of the largest forex broker for traders around the world. Account holders get access to competitive pricing, award-winning customer service, actionable data, and powerful trading platforms to help you make the best possible trades.

Relatively few online brokers base their operations in Nigeria. Many of the forex brokers based in the country have little or no oversight by either the Central Bank of Nigeria (CBN) or other regulatory agencies, so trading through them would not be recommended. Your best bet would involve choosing an international forex broker that accepts clients from Nigeria and also has oversight by one or more of the major forex regulators.

If you’re based in Nigeria and want to trade through the best possible forex brokerages, bear in mind that forex brokerages are not all created equal. Carefully consider your trading needs and make sure they’re adequately met by a forex broker before you commit any funds by opening a live forex trading account with them.

Quick Look: The Best Forex Brokers in Nigeria

Trading Forex in Nigeria

The Nigerian national currency is the Nigerian Naira ₦ (NGN), which is divided into 100 smaller denominations known as kobo. The Nigerian currency is not among the top traded currencies listed by the Bank for International Settlements (BIS).

With respect to the Nigerian financial sector regulation, the Central Bank of Nigeria (CBN) set forth guidelines for the Nigerian stock market and forex brokers in the Banks and Other Financial Institutions Act (BOFIA) of 2007. Its role is comparable to that of the SEC in the United States.

The BOFIA obligates forex brokers that do business in Nigeria to maintain their clients’ funds in segregated accounts. This means that clients’ deposits must be maintained in separate accounts which protects them in the event of bankruptcy or legal actions taken against the broker.

What to Look for in a Nigerian Forex Broker

Whether an online forex broker is based in Nigeria or somewhere else, the best online brokerage should generally have these 11 elements covered:

Oversight from a reputable regulating agency
A good reputation among forex traders
Allow you to open and trade in the type of account you want
Require a minimum deposit you can afford
Give you access to trade all forex pairs and other assets you may want to trade
Maximum leverage ratio high enough for your trading strategy
Competitive dealing spreads
Provide you with protection against negative balances
Keep slippage and re-quotes on orders to a minimum
Maintain client funds segregated from your own money
Withdrawal and deposit options to suit your needs

One other very important consideration as you choose a forex broker is the trading software it supports. While some brokers offer clients their own proprietary trading platform, many provide market access and platforms from third parties such as MetaTrader 4 and 5 from MetaQuotes, as well as cTrader and NinjaTrader.

The Best Forex Brokers in Nigeria

If you want a reliable online broker, the list below offers some good candidates regulated by reputable financial regulators. These brokers are not based in Nigeria, though they have a presence in and accept clients from Nigeria.

The selection includes brokers based mainly in the U.K. and Cyprus such as FXTM, FXCM, HotForex and easyMarkets, most of which maintain an African presence by their offices in South Africa. The list also includes FOREX.com, which has a good reputation as a well-regulated broker based in the United States.

Deciding on the best forex broker for your particular trading needs depends in large part on your unique situation. You can check out a partial list of some of the top online forex brokerages that allow you to open an account from Nigeria below.

Broker 1: FOREX.com

Best For

Traders of all skill levels
If you need a great mobile experience
Those who like easy-to-consume data and research

FOREX.com is ranked as the number one U.S. forex broker with respect to client assets. The company has oversight from the two main U.S. financial regulators: the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). The broker also has oversight from regulators in the U.K., Australia, Japan, Canada, Hong Kong, Singapore and the Cayman Islands.

Accounts at FOREX.com can be funded with just $250 USD. The broker lets you trade micro lots if your preference is to start trading with smaller amounts and also offers an Islamic account option in addition to keeping client accounts segregated from its own funds.

FOREX.com offers several web-based, desktop and mobile trading platforms, which include the MetaTrader 4 and 5 platforms from MetaQuotes, in addition to NinjaTrader. Clients also have access to the company’s proprietary Advanced Trading Platform for desktop computers and its Web Trading platform if you prefer to trade via a web browser.

Due to U.S. restrictions, FOREX.com has a maximum leverage ratio of only 50:1 available to clients who trade currencies.

Read Benzinga’s full FOREX.com Review

FXCM

FXCM has been established since 1999 and has offices in the U.K., South Africa and Australia. This well-regulated broker has oversight from the U.K.’s FCA, the Australian Securities and Investment Commission (ASIC) and the South African Financial Sector Conduct Authority (FSCA).

You can open up a trading account at FXCM with only $50 USD, and micro lots trading options are available if you’d like to operate using smaller amounts. FXCM keeps client accounts segregated from its own funds.

The broker offers clients forex trading via the MetaTrader 4, Trading Station and NinjaTrader trading platforms, with desktop, web-based and mobile platforms available. FXCM also offers copy trading through ZuluTrade’s web platform.

With respect to leverage, FXCM Australia allows clients much greater leverage than FXCM U.K., with up to 400:1 leverage available on forex trades.

HotForex

HotForex’s offices are located in Cyprus, the U.K., South Africa and the UAE and has oversight from the FCA in the U.K., CySEC in Cyprus, the FSCA in South Africa, and the Dubai Financial Services Authority (DFSA) in the UAE.

In addition to trading in forex currency pairs, HotForex offers trading in spot metals and CFDs on commodities, stock indexes and high capitalization stocks, such as Alphabet (GOOGL), Apple Inc. (AAPL) and Facebook (FB).

The trading platforms supported by HotForex include MetaTrader 4 and 5 (MT4/5), as well as the broker’s own FIX/API platform. The MT4 and MT5 platforms have desktop, mobile and web-based versions.

If you want to trade currency pairs, HotForex offers its clients an impressively large (but risky) leverage ratio of 1,000:1. You can also trade CFDs on shares, indices and commodities.

FXTM (Forextime)

FXTM accepts clients from Nigeria and is one of the most popular forex brokers operating in the country, with oversight from Cyprus’ CySEC, South Africa’s FSCA and the U.K.’s FCA. This award-winning forex broker was named Best FX Broker in Asia and earned the award for Best Trading Conditions from “World Finance” magazine in 2018.

FXTM supports the MetaTrader 4 and MetaTrader 5 platforms for desktop, mobile and web-based trading. You can open an account with as little as $5 USD for a micro account, and the broker offers very high leverage of 1,000:1 on forex currency pair trades with a notional amount of up to $200,000.

FXTM offers its clients trading services in over 240 different tradable instruments, including several CFDs and cryptocurrencies under its FT Global Limited subsidiary. FXTM pays special attention to its customers’ needs and features excellent customer service and numerous educational resources for less experienced traders.

easyMarkets

Another popular forex broker in Nigeria is easyMarkets, formerly easy-forex, which was established in 2003. This broker has its base in Cyprus and has oversight from CySEC and ASIC in Australia.

The broker provides its services in more than 160 countries and offers trading in 175 different products, from options and forward contracts to currency pairs, CFDs on commodities, stock indexes, metals and Bitcoin. easyMarkets lets you open an account with a minimum deposit of $100 USD with a minimum trade size of 0.05 and maximum leverage of 400:1.

easyMarkets also offers its clients negative balance protection, which means that you can’t lose more than the amount you deposited. In addition, the broker features free guaranteed stop loses and “dealCancellation,” which is available on its in-house platform. This allows forex traders to “cancel” losing trades within one hour of opening the trade for a fee of a few pips.

In addition, easyMarkets supports the MetaTrader 4 and MetaTrader 5 desktop, mobile and web-based trading platforms.

Final Thoughts

If you live in Nigeria, the security of your funds should be top-of-mind as you choose a forex broker. Also, make sure that any trading profits you earn can be easily withdrawn upon request.

Select a well-regulated broker that keeps segregated accounts for its clients and holds them on deposit with a top tier bank. Regulation by a strict authority could also save you considerable trouble and money if an issue ever arises with the broker.

It usually pays to do some research on the brokers you think you may want to deal with to find out how they are rated by their clients. Also look out for warning signs, including unresolved issues with brokers as they try to withdraw their trading profits.

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