7 Best Algorithmic Trading Platforms in Nigeria
The Top 10 Best Micro Currency Trading Platforms in Nigeria revealed. We tested and verified the best trading platforms with a minimum deposit for Nigerian Traders.
This is a complete list of the best algorithmic trading platform brokers in Nigeria.
In this in-depth guide you’ll learn:
- What are algorithmic trading platforms?
- Who are the top NGN algorithmic trading platforms?
- How to choose a forex broker – Compare them side by side by tightest spread, best scalping conditions, and lowest minimum deposits.
- Which brokers are best for beginner traders.
- Which brokers offer a sign-up bonus to first-time traders?
And lots more…
So if you’re ready to go “all in” with the top algorithmic trading platforms for Nigerians…
Let’s dive right in…
7 Best Algorithmic Trading Platforms in Nigeria
- eToro – Overall, Best Broker with Algorithmic Trading Platform
- E*TRADE – Best MT4 and MT5 Trading Accounts
- MetaTrader 4 – Top Platform in Nigeria
- MetaTrader 5 – Best Platform for NGN accounts
- IG ProRealTime and ProOrder – Best Trading Strategy
- cTrader – Best Education for Beginner Traders
- Webull – Commission-Free Online Stock Trading
What is a Algorithmic Trading Platform?
👉 Algorithmic trading is when you use computer codes and software to open and close trades according to set rules such as points of price movement in an underlying market.
Best Trading Apps in Nigeria (2023) – Comparison
|🥇 Broker||✔️ Algorithmic Trading Platform?||💳 NGN Deposits/Withdrawals||💵 Micro Account Offered?||📞 Nigerian-Based Customer Support||👉 Open An Account|
|1. eToro||Yes||Yes||No||No||👉 Open Account|
|2. E*TRADE||Yes||No||Yes||No||👉 Open Account|
|3. IG||Yes||Yes||Yes||No||👉 Open Account|
|4. Webull||Yes||Yes||Yes||Yes||👉 Open Account|
|5. RoboForex||Yes||Yes, AstroPay||No||No||👉 Open Account|
|6. XM||Yes||Yes||No||No||👉 Open Account|
|7. SuperForex||Yes||Yes||Yes||No||👉 Open Account|
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👉 More than 12 million people throughout the globe utilize eToro. With a wide range of stock indexes and individual companies, as well as for cryptocurrencies such as Bitcoin, commodities, and ETFs, it has one of the most varied portfolios in the market (ETFs).
👉 However, even if eToro is not a pure-play algorithmic trading platform, it does include the technology to act as an automated trading service. eToro’s Copy Portfolios and Copy Trading enable users to copy the portfolios of other eToro users for free.
👉 Copies of another user’s portfolio can be made in a matter of seconds. eToro customers may also decide how much of their account balance they wish to invest in a portfolio, and the system will make the transactions necessary to build it — just as an algorithmic trading system would.
👉 A variety of investment strategies are available to Nigerian traders, including dividend, growth, value, and commodities investing. In addition, Nigerian traders can even choose to copy another investor’s portfolio.
👉 Some of the fees that Nigerian traders can expect with eToro are as follows:
➡️ Stock Trading Fees – None
➡️ Forex Trading Fees – Spreads from 1 pip on EUR/USD
➡️ Crypto Trading Fees – Spreads from 0.75% for Bitcoin
➡️ Inactivity Fees – $10 a month if the trading account becomes dormant after a year
➡️ Withdrawal Fees – $5
👉 Because of the complex language and technical terms involved with automated trading, Nigerians new to algorithmic trading may find it difficult to familiarize themselves with the process.
👉 The E*TRADE platform is the best choice for you if you want to learn how to trade utilizing algorithmic techniques quickly and effortlessly.
👉 According to E*TRADE’s extensive collection of educational materials, you can use it to understand various methods, their applicability, and the many scenarios under which they can be applied.
👉 This is just one of the many reasons why E*TRADE is a great option for you to explore. You may trade stocks, options, and ETFs with no commissions using their simple tools. A broad variety of services are also available via the smartphone app, which is more sophisticated than most of its rivals.
👉 There is more than one way to use this software, so you may evaluate your performance and configure sophisticated price alerts and unique order kinds. A major downside is that the platform’s simple interface does not extend to its website.
3. MetaTrader 4
👉 Forex trading brokers like Exness, Pepperstone, Plus500, and EasyMarkets use MetaTrader 4 (MT4) as their primary trading platform. A trading robot called an EA (Expert Advisor) can be installed on MetaTrader 4 (MT4) to automatically place trades based on specified rules and market circumstances. MT4 is a popular trading platform.
👉 Robo trading systems use algorithms to trade and monitor the market, searching for trading opportunities for investors. Expert Advisors can notify Nigerian traders of potential gains or losses based on pre-determined trading criteria or regulations.
👉 MetaQuotes Language 4 (MQL4), used by MT4, is a programming language very similar to C. Making your own Expert Advisors is extremely simple once you have mastered MQL4.
👉 As the fifth most popular language on GitHub, C is expected to have a significant number of MQL4 developers that can code in or learn MQL4. MT4 has one of the biggest markets for trading platforms because of its popularity and long shelf life.
👉 EAs, algorithmic tools, and technical indicators are all available in MT4’s wide library of EAs. You will find the following items in the MetaTrader Marketplace:
➡️ Over 1,700 trading robots
➡️ More than 2,100 indicators
4. MetaTrader 5
👉 Improved backtesting and market access to new asset classes make MetaTrader 5 (MT5) an update from its predecessor, MetaTrader 4 (MT4). MT5, in contrast to MT4, is a multi-asset platform that allows users to trade derivatives like shares and futures that need access to centralized exchanges.
👉 MetaQuotes Language 5 (MQL5) is based on the C++ programming language, as opposed to MQL4 (based on the C programming language) in MT4.
👉 Because C++ is an object-oriented language, it is more popular than C (the 4th most popular language on GitHub) and has higher quality than MQL4. It is not possible to utilize EAs created for MT4 in MQL4 code due to MetaQuotes’ choice to provide MQL5 rather than MQL4.
👉 A comprehensive built-in marketplace tab is included in MT5. With MT5, all your applications are in one tab, integrated into the platform, as opposed to MT4, where you must go through various websites to get the MT4 Expert Advisor you want.
5. IG ProRealTime and ProOrder
👉 ProOrder is a backtesting and automated trading technology developed by ProRealTime. A web browser and an internet connection are required to access the platform. The ProRealTime Marketplace, the Wizard, and the Code are all ways to automate trading on the site.
👉 ProOrder’s wizard allows you to establish and specify your own trade criteria without having to write any code. There are drop-down options that allow traders to set conditions, targets, and stop-losses (order entry) with ease.
👉 A code generator creates the code necessary to achieve the goals and specifications that have been specified. The ProBuilder programming language allows you to create your own automation. Visual Basic is extremely like ProBuilder.
👉 Because the ProRealTime user base is smaller than that of other platforms like MT4 and Visual Basic is falling out of favour, you could face challenges locating the correct resources to satisfy your development demands.
👉 cTrader is an electronic communication network (ECN) trading system designed for individual investors. Additionally, the platform’s excellent charting capabilities are cTrader’s main advantages.
👉 Order queues are eliminated, and trading slippage is reduced thanks to cTrader’s synchronous execution (meaning many orders may be completed at once). It is the same algorithmic trading capability utilized for auto trading in cTrader’s cBots and MetaTrader’s EAs.
👉 You may load cBots created by other cTrader users and begin trading right away by pressing the play button on your computer’s Plug and Play function. So, consumers will not have to go through the lengthy installation procedure they had to go through before.
👉 The ‘Automate’ option on the site provides access to these trading robots, and more may be downloaded through cTDN.
👉 Algorithmic traders that want to trade commission-free on various platforms could use Webull. Algorithmic trading may be carried out on a variety of trading platforms using Webull, including MT4, MT5, and others.
👉 Orders can be placed in several ways thanks to their well-thought-out platforms. In addition, the platform charges minimal fees and commissions, resulting in a bigger total profit margin.
👉 Many algorithmic trading techniques could benefit from utilizing Webull’s range of automated platforms, but there are certain downsides to doing so. For starters, they only have stocks, indices, and options to choose from.
👉 This means that you cannot use Webull to trade commodities or currencies if you want to use an automated trading strategy. Webull, on the other hand, exclusively accepts bank transfers for depositing and withdrawing cash, making the procedure of creating an account incredibly quick and uncomplicated.
👉 The core behind Algorithmic Trading lies in the computer software that is used to execute trade orders effectively and accurately without trader intervention. These platforms and strategies use a predefined set of rules and instructions to place or close orders in live financial markets.
👉 Algorithmic trading strategies aim to automatically identify profitable trading opportunities faster than any trader can manually, allowing traders to generate profits quickly, accurately, and consistently.
Top 10 Brokers in Nigeria
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👉 Because of the advantages that algorithmic trading offers, especially where higher accuracy and fast execution speed are concerned, algorithmic trading and trading strategies have gained significant popularity in the forex, crypto, and CFD industry.
What is Algorithmic Trading and How does it work?
👉 An algorithm is a specialized collection of step-by-step instructions for doing a certain job. Whether it is a simple-yet-addictive computer game like Pac-Man or a multi-functional spreadsheet, each program follows a distinct set of instructions based on an underlying algorithm.
👉 In modern times, Nigerian traders can use advanced technology such as mechanical trading systems, algorithmic trading, automated trading, or system trading to allow them to define specific rules for both trade entry and exit. This is all done without much intervention from the trader, and they are applied automatically by a computer.
👉 Automated trading systems allow traders and investors to convert precise entry, exit, and money management criteria into computer-executable and -monitored automated trading systems.
👉 Because trades are conducted automatically when certain circumstances are met, strategy automation is one of its most enticing features. Trade entrance and exit criteria may be as basic as a moving average crossover or as sophisticated as a strategy that needs a complete understanding of the programming language used by the user’s trading platform.
👉 Alternatively, skilled programmers can develop their own systems using some of the most sophisticated technology on the market. A direct access broker is usually required for automated trading systems, and any rules must be developed in the proprietary language of that platform.
👉 The EasyLanguage programming language, for example, is used by the TradeStation platform and NinjaScript is used by the NinjaTrader platform.
Why should you use Algorithmic Trading?
👉 Traders and firms turn towards Algorithmic Trading for some of the following reasons:
➡️ It helps to remove human emotion and error. You can invest without allowing your emotions to get in the way of making money or limiting your losses.
➡️ Nigerian traders can capitalize on rare events. For instance, when the Dow Jones Industrial Average closes 500 points under its 20-day moving average, the auto trading platform can take immediate action.
➡️ Traders can supplement an existing trading strategy. Algorithms can help you fine-tune your risk management by putting in place automatic pauses and restrictions.
➡️ Algo trading strategies are low maintenance. The best way to trade is to let your algorithms trade when you want, without having to intervene.
➡️ It is easy to back-test these strategies. Refine your algorithms using previous data to get the optimal set of parameters for buying or selling
➡️ There is an increased opportunity to use instant trade execution. The underlying market can be maximized by using automated buy and sell orders to trade.
Should I buy software, or create my own?
👉 There are two methods to get algorithmic trading software: design it yourself or purchase it.
👉 Purchasing pre-built software ensures rapid and timely access, whilst developing your own gives you complete freedom to tailor it to your specific requirements.
👉 Automated trading software is sometimes prohibitively expensive to acquire and may have loopholes that, if disregarded, might result in losses. The software’s high cost may also cut into the practical profit potential of your algorithmic trading endeavour.
👉 However, while most traders who have the necessary skills to develop software may prefer this option, developing algorithmic trading software alone requires time, effort, and a high level of understanding, and it is not always failsafe.
How are the Trading Rules established in an auto system?
👉 Automated Trading platforms typically have specialized “wizards.” These “wizards” enable users to pick from a variety of widely accessible technical indicators to develop rules that can then be automatically traded on certain trading platforms.
👉 Additionally, traders can choose to submit their own order type or utilize the platform’s preset inputs. There are a few traders that prefer to write their own bespoke indicators and methods. In many cases, they will collaborate with the coder to create the system.
👉 When compared to utilizing the platform’s wizard, this usually takes more time and work but gives you more control and a better product. Because of this, there is no one-size-fits-all investing plan that will ensure success in a financial market.
👉 The computer can watch the market for buy or sell opportunities depending on the trading strategy’s requirements after the rules have been created. Once Nigerian traders have placed a trade, any orders for stop losses, trailing stops, and profit objectives will be produced immediately.
👉 The difference between a moderate loss and a catastrophic loss in a deal that goes against the trader can be drastic and sudden in fast-moving marketplaces like the stock market, which is why risk management tools such as stop-loss and take-profit orders are crucial.
Advantages of Automated Trading Systems
👉 Automated trading reduces the time it takes to execute a trade while also removing the possibility of human mistakes. It is possible to automate the whole process of trading if you are a trader who works long hours or has tight deadlines.
👉 In addition, using an automated system, traders can make better and more efficient trades.
Emotions are removed from trades
👉 A major problem with human trading is that we might be swayed by our emotions, which can lead to poor judgments and decisions. Automated trading reduces the influence of human emotion, resulting in more lucrative deals with higher accuracy.
👉 Your emotions cannot get in the way of utilizing algorithmic trading software since you specify clear guidelines for the machine to follow.
It allows for comprehensive back-testing
👉 Backtesting is the practice of evaluating your trading strategy’s prior performance using historical data. Trading methods can be tested to see whether they are lucrative via backtesting.
👉 To prevent expensive errors in the future, experts urge beginner Nigerian traders to test their algorithmic trading techniques before implementing them in live markets.
Diversification is increased
👉 Trading several markets with various strategies at the same time is made possible using automation in the form of trading robots. Multiple tactics can be used simultaneously by automated software, so you do not have to rely on one.
👉 Thus, you will be able to take advantage of possibilities in any market or trade, which means more money in your pocket. In addition, diversification also spreads the risks out, allowing you to offset losses.
There is adequate discipline
👉 If you do not have a strategy, you run the risk of losing all that you have worked very hard to achieve. In turbulent markets, automated software makes pre-determined judgments quickly and accurately.
👉 Using an automated trading strategy, you can trade more objectively and consistently if you do it without letting your emotions get in the way of your goals and trading strategy.
Disadvantages of Automated Trading Systems
Heavy Reliance on Technology
👉 Because all deals are carried out by software, automating trading makes it simpler and more accurate, but it also implies that the system could be hacked. Trade orders are stored on your computer, not the server, and this means that they may not be accessible if your computer or technical components fail.
👉 Additionally, there could be a disparity between what a strategy suggests and what an order entry platform component does. When employing an automated trading system, most traders should anticipate a learning curve, and it is best to start with smaller transaction amounts until this process is perfected.
It must be monitored even if it is automated
👉 Algorithmic trading software, while its goal of reducing human engagement, nevertheless needs some level of supervision. When it comes to software, you need to keep an eye on the market and see whether your program is making good judgments or if it needs to be tweaked to stay up with changing market dynamics and conditions.
👉 If you use backtesting approaches, you could end up with a system that looks fantastic on paper but performs poorly in the live market, resulting in excessive curve-fitting results in a trading strategy that is unreliable in real-world trading.
👉 The previous data used to evaluate a strategy, for example, could be used to fine-tune the system to improve overall performance. Traders sometimes make the mistake of thinking that a trading plan must be successful or never suffer a drop to be considered a good strategy.
👉 However, traders can develop a “near-perfect” strategy that fails when applied to a real-world market because the parameters can be tweaked manually, leading to the trader trying to overcompensate to create what they believe is a perfect strategy.
What must Nigerian Auto Traders consider before they use Automation Strategies?
👉 Automated systems may seem like a straightforward solution, but there are a few factors to bear in mind before you get started.
👉 You must consider whether an automated trading system is the best option for your trading strategy. Automated trading techniques can be intricate, accurate, and fast, but someone without the necessary expertise may end up losing money.
👉 Make sure that you understand how auto trading works, what is needed, and what you can expect. Before purchasing or using an automated trading platform, you must comprehend how the system works, and what its advantages and limitations are.
👉 In addition, you must remember that automated trading is not a fool-proof way to make profits. Once you have decided on your chosen method, you will have the option of tailoring it to your own unique circumstances. In the end, the important objective is achieving your desired outcomes.
How to test an Algorithmic Trading Platform
👉 If you feel you have discovered one of the top automatic trading software packages and it is promising, the next step is to test it. Before putting any money at risk, backtesting against historical data will assist you in confirming that the auto trading program acts as you like.
👉 Additionally, you can test the Forex automaton on a free trial account for an extended length of time or with many active automated trades to evaluate its functionality and profitability. A third way to test an auto trading system is to do a manual analysis of your approach using historical course data.
Key Features of a Proper Algorithmic Trading Platform
Company and Market Data Availability
👉 Data and price quotations are the two of the most prominent inputs for any given trading algorithm. A few algorithms are additionally tailored to consider data on the fundamentals of the firm, such as profits and the price-to-earnings ratio.
👉 A real-time market data stream and a corporate data feed should be included in any algorithmic trading program. It should be a part of the system by default, but if not, it should be possible to add it from an external source.
Range of Markets
👉 There are a variety of data feed formats available to traders who want to operate across several markets, such as TCP/IP and Multicast, as well as API FIX. Different feed formats should be supported by your program to ensure that you gain access to several financial markets.
👉 Nigerian traders can also use third-party data providers like Bloomberg and Reuters, which collect market data from several exchanges and provide it to end-users in a standardized way. These aggregated feeds should be processed by the algorithmic trading program as required.
👉 For algorithmic trading, ensuring low latency is the most critical aspect. When data travels from one application to another, latency refers to the lag time between different points in the process.
👉 Nigerian traders can consider that when a price quote is sent to an exchange, the software vendor’s data center takes the following average times to execute an order:
➡️ It takes 0.3 seconds to reach the trader’s screen
➡️ It takes 0.1 seconds for the trading software to process the quote that was received
➡️ It takes another 0.3 seconds to analyse the data and place a trade
➡️ Lastly, it takes 0.2 seconds for the order to reach the trader’s broker
👉 The initial price quotation would have changed numerous times in this 1.4-second timeframe in today’s dynamic trading market. Your algorithmic trading endeavour might be doomed if there is even the slightest delay.
👉 You must try to keep this delay to a minimum to guarantee you are always getting the most up-to-date and correct information.
Customization and Configurability
👉 The trader could be restricted by the software’s fixed functionality if it does not allow for dynamic parameter adjustment. Regardless of whether you purchase or design the trading software, it should be highly customizable and adaptable.
Functionality to create customized programs
👉 Trading software is often written in one of many popular computer languages, including Matlab, Python, C++, JAVA, or Perl. You can develop your own bespoke programs in most trading software supplied by third-party suppliers.
The ability to back-test using historical data
👉 Once a trading strategy has been developed, traders use a process to test it, also referred to as backtesting. This is done using historical data and assessing the strategy’s feasibility and profitability by considering previous results, certifying its success or failure—or any adjustments that could be needed.
Trading Interface Integration
👉 Based on the occurrence of the necessary parameters, algorithmic trading software puts trades automatically. To submit trading orders quickly and effectively, the software must communicate with the broker’s network or the exchange directly.
The ability to Plug-and-Play
👉 Depending on the unique requirements, the algorithmic trading software should be plug-and-play compatible and provide APIs to such widely used trading tools, providing both scalability and integration.
👉 For instance, a trader could use a Bloomberg terminal for price analysis, a broker’s terminal for trade execution, and a Matlab application for trend analysis concurrently.
Independent Programming capabilities
👉 When developing or purchasing trading software, emphasis should be given to platform-independent software that supports platform-independent languages.
Which Nigerian Broker should you use for Algorithmic Trading?
👉 Both platform and broker selection are critical to making a successful trade. Even if you have the greatest automated trading software in the world, if you are not dealing with a recognized, ethical broker, your funds might be compromised.
👉 Nigerian traders must consider the following factors while selecting an Automated Trading Forex broker:
➡️ The Regulation and Licensing, and the validity thereof
➡️ Whether the broker allows the use of Expert Advisors and other Automated Trading Strategies
➡️ Forex Brokers with reliably fast trade execution are the best option for Auto Trading
➡️ Nigerian traders must prioritize the brokers that offer tight spreads and low transaction costs
➡️ Nigerian traders are advised to choose brokers who offer a range of markets and subsequent tradable financial instruments
How Nigerian traders can avoid Auto Trading Scams
👉 Remember that if a deal seems too good to be true, it is not worth your time. It is not hard to find a scam these days. In exchange for a little investment, several methods claim to provide large returns quickly and easily. Nigerian traders can consult the following tips to avoid being caught in an Auto Trading scam:
➡️ Do your due diligence before signing up for a trading account and do not be afraid to ask for clarification. You might wind up losing money if you do not.
➡️ Make sure you familiarize yourself with the system before you begin. Before making a purchase, make sure you have carefully read the terms and conditions.
➡️ Identify a list of endorsements and evaluations on third-party websites and financial regulators.
➡️ Identify whether there is a trial period or demo account offered as scam systems and providers typically do not offer this feature.
The Best Algorithmic Brokers in Nigeria
Best MT4 Broker for Expert Advisors in Nigeria
USD 100 / 41459 NGN
CySec, ASIC, FCA, BVI FSC, FSCA
MetaTrader 4, MetaTrader 5, Markets.com propietary platform
Account Activation Time
👉 We recommend Markets.com as one of the top MT4 Expert Advisor brokers. Additionally, Markets.com provides exclusive trading tools that can be utilized to further improve your automated trades. The platform gives you access to a wide selection of CFD instruments so that you may reap the full advantages of EAs.
Best Overall MetaTrader Algorithmic Trading Broker
USD 10 / 4145 NGN
MT4, MT5, MT4 WebTerminal, mobile (iOS & Android, Exness Trader)
Account Activation Time
👉 Exness is the best overall forex and CFD broker that offers access to both MetaTrader 4 and 5 across devices, allowing Nigerian traders flexibility when they use Algorithmic Trading strategies across several financial markets, using Exness’ dynamic account types and trading conditions.
Best ECN Broker for Algorithmic Trading on MT5 in Nigeria
USD 10 / 4145 NGN
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Account Activation Time
Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128
👉 We recommend Pepperstone as the best ECN broker for algorithmic trading on MetaTrader 5.
👉 The best ECN-style execution is what you can expect when you use Pepperstone’s Razor Account to trade. Thus, automated trading methods and trend analysis tools make the MT5/Pepperstone combo a popular choice for traders.
Best CFD Algorithmic Broker in Nigeria
USD 20 / 8292 NGN
CYSEC, ASIC, FCA and NBRB licence Seychelles coming soon
Account Activation Time
👉 Capital.com is our choice as one of the best CFD Algorithmic brokers in Nigeria, offering automated trading through the popular MetaTrader 4.
Best ProRealTime and ProOrder Broker in Nigeria
USD 0 / 0 NGN
Account Activation Time
👉 We chose IG as the best ProRealTime and ProOrder broker because it is the broker’s proprietary trading software. In combination with an IG trading account, Nigerian traders can participate in several financial markets, allowing them to leverage the power of automated trading to access lucrative trading opportunities.
What is Automated Trading Software?
It refers to sophisticated trading platforms that use computerized algorithms to monitor markets for trading opportunities and to trade on behalf of traders when certain conditions are met. Nigerian traders can use auto trading platforms to enter and exit positions based on predetermined rules without intervention.
Who typically uses Automated Trading Platforms?
It is something that is typically used by large trading firms, hedge funds, proprietary trading firms, investment banks, institutional traders, and retail traders who use automated trading strategies. Beginners who do not have the confidence to trade manually are also typical users of automated trading platforms.
What should I look for in an Automated Trading Platform?
You should consider factors such as access to a range of markets, reduced latency, functional interface, a safe trading environment, and several others.
Are Automated Trading Platforms in Nigeria safe?
The best trading platforms are regulated, or they are through a forex and CFD broker that is regulated by top entities such as the NFA, CBN, CFTC, ASIC, FCA, and other authorities.
Are Automated Trading Platforms Free?
Some platforms, such as MetaTrader 4 and 5 are free to download, but require an account through a supported broker, which means that Nigerian traders will be subject to minimum deposits, spreads, commissions, and other trading and non-trading fees.
Should I back-test my Algorithmic Trading Strategy?
Yes, you must back-test your strategy so that you can evaluate it before applying it in live market conditions where your capital is at risk.
Can I make money with Algorithmic Trading?
Yes, there are many success stories of traders who make significant profits. However, you must remember that it is not a get-rich-quick scheme, and you need to learn about the markets and understand your unique trading objectives and needs.