9 Best ECN Forex Brokers in Nigeria
The 9 Best ECN Brokers in Nigeria revealed. We tested and verified the best ECN forex brokers with a minimum deposit for Nigerian Traders.
The is a complete list of True ECN forex brokers operating in Nigeria.
In this in-depth guide you’ll learn:
- What are (Electronic Communication Network) ECN Brokers?
- Who are the top ECN Forex Brokers for Nigerians with MT4 / Metatrader 4?
- How to choose the best forex broker for your trading experience?
- Which ECN brokers offer a Naira (NGN) trading account?
- Which ECN brokers offer a low $1 minimum deposit?
- Which ECN Brokers offer trading apps?
- Which ECN Brokers offer a sign-up bonus to first-time traders?
- Best low spread forex broker for beginners
And lots more…
So if you’re ready to go “all in” with the Top ECN Forex Brokers for Nigerians…
Let’s dive right in…
10 Best Forex Brokers in Nigeria for 2023
Rank
Broker
Review
Regulators
Min Deposit
Official Site
- Louis Schoeman
Best ECN Forex Brokers in Nigeria – Comparison
| 🥇 Broker | ✔️ ECN-Broker? | 💰 Nigerian Deposits/Withdrawals | 📞 Nigerian-Based Customer Support | 👉 Open An Account |
| 1. Exness | Yes | Yes | No | 👉 Open Account |
| 2. Plus500 | Yes | No | No | 👉 Open Account |
| 3. FXTM | Yes | Yes | Yes | 👉 Open Account |
| 4. Tickmill | Yes | No | No | 👉 Open Account |
| 5. FP Markets | Yes | Yes | No | 👉 Open Account |
| 6. XM | Yes | Yes | No | 👉 Open Account |
| 7. Pepperstone | Yes | No | No | 👉 Open Account |
| 8. OctaFX | Yes | No | No | 👉 Open Account |
| 9. IG | Yes | No | No | 👉 Open Account |
What is an ECN Broker?
👉 Definition of an ECN Broker: ECN brokers are non-dealing desk brokers, meaning that they do not pass on order flow to market makers.
9 Best ECN Forex Brokers in Nigeria
- Exness – Overall, Best ECN Broker in Nigeria
- Plus500 – Best CFD ECN Broker for Nigerians
- FXTM – Best Local Support for Nigerians
- Tickmill – Best Low-Cost Forex and CFD Broker
- FP Markets – Lowest Spread ECN Broker
- XM – Lowest ECN Minimum Deposit (NGN) Broker
- Pepperstone – Best Scalping Broker in Nigeria
- OctaFX – Best Broker Education for Beginners
- IG – Best Cryptocurrency Broker for Nigerians
1. Exness
Overall Rating
- 4.9/5
Total Pairs
97
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Exness is a multi-regulated Cyprus-based broker that has been in operation since 2008. While Exness does not have an office in Nigeria, it is one of the best brokers in the region for beginners and professional traders. Exness uses reputable liquidity providers such as ADS Securities, FXCM Pro, and several others, offering market execution on trades, with the following spreads and commissions:
➡️ Standard Account – from 0.3 pips EUR/USD
➡️ Standard Cent Account – from 0.3 pips EUR/USD
➡️ Raw Spread Account – from 0.0 pips EUR/USD and commissions up to $3.50
➡️ Zero Account – from 0.0 pips EUR/USD – from $0.1
➡️ Pro Account – 0.1 pips EUR/USD
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | AED, ARS, AUD, AZN, BDT, BHD, BND, BRL, CAD, CHF, CNY, EGP, EUR, GBP, GHS, HKD, HUF, IDR, INR, JOD, JPY, KES, KRW, KWD, KZT, MAD, MXN, MYR, NGN, NZD, OMR, PHP, PKR, QAR, SAR, SGD, THB, UAH, UGX, USD, UZS, VND, XOF, ZAR |
| 📊 Minimum Spread | 0.0 pips |
| 💰 Nigerian Deposits/Withdrawals | Yes |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | Standard Account, Standard Cent Account, Raw Spread Account, Zero Account, Pro Account |
| ⚖️ Regulation | FSA, CBCS, FSC, FSC BVI, FSCA, CySEC, FCA |
| 📊 Leverage | Unlimited |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | Analytical tools, Trading calculators, currency converter, tick history, economic calendar |
| 📚 Education | None |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| Exness offers market execution and has a long list of reputable liquidity providers | There are limited markets that can be traded |
| The broker is multi-regulated in several regions | There are only a few deposit and withdrawal options available |
| There are instant deposits and withdrawals available | |
| Nigerians have access to 24/7 customer support |
Trust Score and Our Rating
👉 Exness has a trust score of 97% and we give it an overall rating of 8/10.
2. Plus500
Overall Rating
- 4.9/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA, MAS, FSA, ASIC, FMA, FSCA
Trading Desk
WebTrader
Total Pairs
70
Crypto
Yes (Availability subject to regulations)
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Plus500 is a multi-regulated CFD broker that offers Nigerian traders access to over 2,000 financial instruments, with the benefit that commissions are not charged on trades. Plus500 charges a variable spread from 0.8 pips EUR/USD and the broker is well-known for its proprietary trading platform and 24/7 customer support.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | USD, GBP, ZAR, EUR |
| 📊 Minimum Spread | 0.8 pips |
| 💰 Nigerian Deposits/Withdrawals | None |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | Standard Account |
| ⚖️ Regulation | ASIC, FMA, FSCA, FCA, CySEC, FSA, MAS |
| 📊 Leverage | 1:30 |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | Economic Calendar, Risk Management Tools, Real-Time Alerts, Price Alerts, Traders Sentiment |
| 📚 Education | FAQ, Trading and Educational Videos, Articles, Trading Guides |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| Plus500 is multi-regulated and offers 24/7 customer support | An inactivity fee is applied to dormant accounts |
| There is a wide range of markets that can be traded | The guaranteed stops are offered at an additional charged |
| Commissions are not charged on trades | Retail trading is restricted in some regions |
| The proprietary trading platform is innovative and provides a range of functions | There are some restrictions on trading strategies |
| There is no desktop trading platform |
Trust Score and Our Rating
👉 Plus500 has a 99% trust score, and we give it a rating of 9/10.
3. FXTM
Overall Rating
- 4.6/5
Min Deposit
USD 10 / 4145 NGN
Regulators
CySec, FSCA
Trading Desk
MetaTrader 4 and MetaTrader 5
Crypto
Yes
Total Pairs
–
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 FXTM is one of the top brokers in Nigeria and holds a significant market share in the region, with offices in Lagos, Abuja, and Port Harcourt. FXTM offers some of the best pricing, with low commissions and both instant and market execution on trades.
👉 FXTM offers a choice between trading accounts and Nigerian traders have the benefit of a low minimum deposit and the option to register an account denominated in Naira.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | USD, EUR, GBP, and NGN |
| 📊 Minimum Spread | 0.0 pips EUR/USD |
| 💰 Nigerian Deposits/Withdrawals | Yes |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | Micro Account, Advantage Account, Advantage Plus Account |
| ⚖️ Regulation | CySEC, FSCA, FCA, FSC |
| 📊 Leverage | 1:2000 |
| ✔️ Micro Account Offered? | Yes |
| 🔧 Trading Tools | Economic Calendar, Forex and Financial News Timeline, Market Analysis Videos, Podcasts, FXTM Invest, Guide to Copy Trading, Video Guides |
| 📚 Education | Beginners Guides to Forex Trading, What is Forex, Forex Trading Strategies, eBooks, CFD Trading Articles, Forex Glossary, Educational Videos, Articles and Tutorials |
| 📞 Nigerian-Based Customer Support | Yes |
| ✔️ PROS | ❌ CONS |
| FXTM is reputable and guarantees client fund security | There are inactivity fees applied when trading accounts become dormant |
| There are dynamic retail investor accounts with a choice between account base currencies | |
| There is a low minimum deposit requirement | |
| There are no deposit fees charged | |
| The overall processing time on withdrawals is fast | |
| FXTM provides a decent selection of educational materials and trading tools |
Trust Score and Our Rating
👉 FXTM has a 93% trust score, and we gave FXTM a rating of 9/10.
4. Tickmill
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA, FSA, FSCA, Labuan FSA
Trading Desk
Meta Trader 4
Crypto
Yes
Total Pairs
62
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Tickmill is a low-risk CFD and forex broker with a decent trust score, with regulations and authorization through several reputable entities. Tickmill is known for its impressive ECN trade execution model, low spreads, and competitive commissions.
👉 In addition to Barclays, Tickmill’s liquidity providers span across several other top-tier banks and hedge funds, ensuring that Nigerian traders receive the best possible pricing on their trades.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | USD, EUR, GBP |
| 📊 Minimum Spread | 0.0 pips |
| 💰 Nigerian Deposits/Withdrawals | No |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | Pro Account, Classic Account, VIP Account |
| ⚖️ Regulation | Seychelles FSA, FCA, CySEC, Labuan FSA, FSCA |
| 📊 Leverage | 1:500 |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | Webinars, Seminars, eBooks, Video Tutorials, Infographics, Forex Glossary, Fundamental Analysis, Technical Analysis, Educational Articles, Market Insights |
| 📚 Education | Access to AutoChartist, Myfxbook Copy Trading, Economic Calendar, Several forex Calculators, Tickmill VPS, Pelican Trading, Advanced Trading Toolkit, Acuity Trading |
| 📞 Nigerian-Based Customer Support | None |
| ✔️ PROS | ❌ CONS |
| Tickmill is a trusted trader that offers flexible trading solutions | There is no Naira-denominated account and NGN deposits are not allowed |
| There are flexible funding options offered | Currency conversion fees are charged |
| Tickmill uses reputable liquidity providers | The spreads charged are not the tightest |
| Nigerian traders can expect competitive trading conditions | |
| Commission-free trading is available | |
| There are no deposit or withdrawal fees charged |
Trust Score and Our Rating
👉 Tickmill has a trust score of 81% and an overall rating of 9/10.
5. FP Markets
Overall Rating
- 4.8/5
Min Deposit
USD 100 / 41450 NGN
Regulators
ASIC, CySEC, FSCA
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader
Crypto
Yes
Total Pairs
63
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 FP Markets is a reputable and low-cost broker that offers Nigerians with access to more than 8,000 tradable instruments across several asset classes. FP Markets may not be regulated by the Central Bank of Nigeria (CBN), but the broker has regulation and authorization from other reputable entities to provide financial products and services.
👉 Some of the liquidity providers that FP Markets uses to provide low, competitive spreads include Barclays, BNP Paribas, Commerzbank, Credit Suisse, and Goldman Sachs. Nigerian traders can expect spreads from 0.0 pips and commission charges from $3.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | AUD, USD, EUR, GBP, SGD, HKD, NZD, CHF, JPY, CAD, PLN |
| 📊 Minimum Spread | From 0.0 pips |
| 💰 Nigerian Deposits/Withdrawals | Yes |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | MT4/5 Standard Account, MT4/5 Raw Account, MT4/5 Islamic Standard Account, MT4/5 Islamic Raw Account |
| ⚖️ Regulation | ASIC, CySEC |
| 📊 Leverage | 1:500 |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | Trader’s Hub, Trading Knowledge, Technical Analysis, Fundamental Analysis, Economic Calendar, Forex Calculator, Traders Hub Blog |
| 📚 Education | Trading Courses Videos, Webinars, Podcasts, Events, Platform Video Tutorials, eBooks, Glossary, Newsletter |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| FP Markets offers true ECN pricing | Withdrawal fees are charged |
| There is a strict no requote policy | There is no Naira-denominated trading account |
| There are several flexible deposit and withdrawal options, with the benefit that Naira deposits are allowed | Additional fees are charged on the Islamic account |
| There are commission-free options offered | |
| FP Markets offers a proprietary trading app for Nigerians |
Trust Score and Our Rating
👉 FP Markets has a trust score of 81% and an overall rating of 9/10.
6. XM
Overall Rating
- 4.5/5
Min Deposit
USD 5 / 2 075 NGN
Regulators
IFSC, CySec, ASIC
Trading Desk
Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform
Crypto
No
Total Pairs
57
Islamic Account
Yes
Trading Fees
No (Just spread)
Account Activation Time
24 Hours
Overview
👉 XM is a popular broker for Nigerian traders, offering CFD and Forex trading instruments with some of the best pricing. XM uses reputable liquidity providers and offers both instant and market execution on trades.
👉 Nigerian traders can expect competitive spreads and commissions on a selection of retail trading accounts, with the advantage that XM ensures that there are no requotes and that slippage is minimal.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR |
| 📊 Minimum Spread | 0.0 pips |
| 💰 Nigerian Deposits/Withdrawals | Yes |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | Micro Account, Standard Account, XM Ultra-Low Account, Shares Account |
| ⚖️ Regulation | FSCA, IFSC, ASIC, CySEC, DFSA |
| 📊 Leverage | 1:888 |
| ✔️ Micro Account Offered? | Yes |
| 🔧 Trading Tools | XM Live, Live Education, Live Education Schedule, Educational Videos, Forex Webinars, Platform Tutorials, Forex Seminars |
| 📚 Education | Trading Tools, MQL5, Forex Calculators, Markets Overview, News Feed, XM Research, Trade Ideas, Technical Summaries, Economic Calendar, XM TV, Podcasts |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| XM is a multi-regulated broker with a decent level of trustworthiness | There is no Naira-denominated account |
| Negative balance protection is offered on the retail accounts offered by XM | There are no fixed spread accounts |
| There are several trading strategies supported by XM | An inactivity fee applies to dormant accounts |
| Nigerian traders can make deposits in Naira, exempting them from currency conversion fees | |
| XM offers a selection of tradable assets |
Trust Score and Our Rating
👉 XM has a trust score of 84% and an overall rating of 9/10.
7. Pepperstone
Overall Rating
- 4.1/5
Min Deposit
USD 10 / 4145 NGN
Regulators
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Crypto
No
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128
Overview
👉 Pepperstone is one of the largest forex and CFD brokers in the world with a high trust score. Pepperstone is multi-regulated and uses liquidity providers such as HSBC, Barclays, and several others.
👉 The execution venues that Pepperstone uses include Sucden Financial Limited, IS Prime Limited, LMAX Limited, GAIN Capital, Jefferies Financial Services, Inc., and several others. Nigerian traders can expect some of the best trading conditions and competitive pricing with Pepperstone.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, and HKD |
| 📊 Minimum Spread | From 0.0 pips |
| 💰 Nigerian Deposits/Withdrawals | No |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | Standard Account, Razor Account |
| ⚖️ Regulation | ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB |
| 📊 Leverage | 1:500 (Professional), 1:200 (Retail) |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | Market Analysis, Smart Trader Tools for MetaTrader, cTrader Automate, AutoChartist, API Trading, Economic Calendar, Meet the Pepperstone analysts |
| 📚 Education | Learn to Trade CFDs, Learn to Trade Forex, Learn to Trade Crypto, Learn to Trade Shares, Trading Guides, Webinars |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| Pepperstone is highly reputable forex and CFD broker | There is no Naira trading account |
| Pepperstone has won several forex awards in its time of operation | There are additional charges applied to the Islamic account |
| Nigerian traders are accommodated and can expect competitive trading conditions | There are leverage restrictions on retail accounts |
| There is a demo and Islamic account option provided | |
| There are no fees on deposits or withdrawals |
Trust Score and Our Rating
👉 Pepperstone has a trust score of 92% and an overall rating of 9/10.
8. OctaFX
Overall Rating
- 4.6/5
Min Deposit
USD 25 / 10390 NGN
Regulators
FCA UK
Trading Desk
None
Crypto
Yes
Total Pairs
28
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 OctaFX is a reliable broker that offers a choice between trading accounts and the benefit that trading costs are low and that 97.5% of all orders are fulfilled using slippage-free STP and ECN execution models.
👉 OctaFX uses reputable liquidity providers and Nigerian traders can expect market execution on trades, with spreads that start from 0.6 pips and commission-free trading.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | USD or EUR |
| 📊 Minimum Spread | From 0.6 pips |
| 💰 Nigerian Deposits/Withdrawals | No |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | MetaTrader 4 Habitual Trader Account, MetaTrader 5 Smart Trader Account |
| ⚖️ Regulation | CySEC, SVG FSA |
| 📊 Leverage | 1:500 |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | Trading calculators, Profit calculators, Live quotes, Account monitoring, AutoChartist Pro, Market information, Proprietary economic calendar, Forex market news, Interest rate information, Holiday calendar, Technical analysis tools, Fundamental analysis tools |
| 📚 Education | Webinars, Forex basics articles, Forex basics video course, Platform video tutorials, Platform article tutorials, Glossary, Comprehensive Frequently Asked Question section |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| OctaFX is a reliable broker that provides Nigerians with the benefit of instant deposits and withdrawals | There is a limited range of tradable instruments |
| OctaFX executes most orders with the guarantee of minimal slippage and no requotes | There is no Naira trading account |
| Trades are commission-free and there is a low, variable spread charged | There is a limited selection of trading accounts |
| There are transparent trading and non-trading fee schedules |
Trust Score and Our Rating
👉 OctaFX has a trust score of 61% and an overall rating of 7/10.
9. IG
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
IGRs
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
80
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 IG has been in operation since 1974 and is one of the oldest forex and CFD brokers with regulations from around the world. IG offers some of the best trading conditions, a range of account types, a choice in trading platforms, and a safe trading environment.
👉 IG obtains liquidity from several tier-1 partnerships with banks, hedge funds, and several other financial institutions. IG offers direct market access, market execution, and several other benefits to Nigerian traders.
Advanced Broker Features
| Feature | Information |
| 💵 Account Base Currencies | Depends on the region |
| 📊 Minimum Spread | From 0.1 pips DMA |
| 💰 Nigerian Deposits/Withdrawals | No |
| ⚖️ CBN Regulation | No |
| 💻 Account Types | United Kingdom Accounts, European Accounts (excluding UK and Switzerland), Australian Accounts, Switzerland, South Africa, Singapore, and New Zealand Accounts, Dubai Accounts, Japan Accounts, US (IG) Accounts, USA (NADEX) Accounts |
| ⚖️ Regulation | FCA, BaFin CySEC, FINMA, DFSA, FSCA, MAS, JFSA, ASIC, FMA, CFTC, NFA, BMA |
| 📊 Leverage | 1:200 |
| ✔️ Micro Account Offered? | No |
| 🔧 Trading Tools | News and Trade Ideas, Trading Strategies, Financial Events, Trade Analytics Tool, Subscriptions and Downloads, Special Reports, Podcasts, Economic Calendar |
| 📚 Education | IG Academy, Risk Management Guidelines, Maximizing Trading Success, Developing a Trading Strategy, Webinars, Seminars, Glossary |
| 📞 Nigerian-Based Customer Support | No |
| ✔️ PROS | ❌ CONS |
| IG is one of the most reputable trading providers in the world | There are high minimum deposit requirements |
| Beginners can expect a range of educational materials | Deposit fees are charged |
| There are several advanced trading tools and research offered to advanced traders | The Islamic account is only for Dubai residents |
| There are over 17,000 instruments that can be traded | There is a limited number of payment methods for deposits and withdrawals |
| Nigerian traders are accommodated and can use different trading strategies | When Nigerians deposit in Naira they can expect currency conversion fees |
| There are transparent fee schedules offered and flexible solutions for all types of traders |
Trust Score and Our Rating
👉 IG has a trust score of 99% and we give it an honest rating of 9/10.
Overview
👉 Many Nigerian traders, even beginners, may have heard the term “ECN” often in the forex market. The term refers to an Electronic Communication Network, which is an integral component in forex trading, and a term and process that Nigerian traders must familiarize themselves with.
👉 The function and purpose of an ECN broker are to match buy and sell orders in the financial markets. ECN refers to a digital trading system that can automatically match different orders between those who buy and sell them.
Top 10 Brokers in Nigeria
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Rating
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Min Deposit
Leverage
Sign Up Bonus
Spreads
Website
Top 10 Brokers
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👉 In addition, ECN also offers the current buy and sell price quotes that provide the highest bid price along with the lowest offer price which is available in the market.
Characteristics of ECN Forex Brokers
👉 An ECN broker acts as an intermediary between buyers and sellers of financial instruments on the ECN. Dealing with ECN brokers also results in reduced expenses and greater trading time due to the way ECNs function.
👉 Orders are not routed via ECN brokers to market makers but external liquidity providers. Thus, these forex brokers electronically match the parties in a transaction and then send the orders to securities market intermediaries.
👉 Because it matches transactions between market participants, it is illegal for an ECN broker to trade against one or more of its customers. Clients of ECN brokers are charged a flat fee for each transaction since ECN spreads are lower than those used by traditional brokers.
What is the difference between ECN and Dealing Desk Brokers?
ECN Forex Brokers in Nigeria are known as Non-Dealing Desk (NDD) Brokers. The order flow is not passed on to market makers because they decide to do so. Instead, they use technology to connect buyers and sellers of a transaction and then route the orders to suppliers of market liquidity.
By establishing the bid and ask prices and then watching for a trader who wants to take advantage of these predetermined conditions, a forex broker, also known as a market maker, acts as an intermediary between traders.
Subsequently, dealing desk brokers make money by purchasing at cheaper prices and selling at higher ones, and by exploiting the spreads between the bid and ask prices. Dealing desk brokers often keep transactions secure inside their own liquidity pools and do not rely on third-party liquidity providers.
Many traders prefer the set spreads offered by this style of brokerage, even though some individuals consider this sort of broker is taking advantage of them.
What Advantages do ECN Forex Brokers have in Nigeria?
Lower Bid/Ask Spreads
👉 There is always a disparity between the optimal purchase and sell prices when trading financial items. To purchase anything, a buyer must pay the best available selling price (the “ask”), and to sell something, a seller must accept the best available buying price (the “bid”).
👉 Trading on an ECN often leads to smaller bid-ask spreads since it instantaneously matches orders from traders with the best available buy and sell prices from all market participants.
👉 Subsequently, traders can join and leave the market at rates that are better than those offered by a dealing desk broker. Brokers that use a dealing desk often have wider bid and ask spreads because they keep a portion of the spread in their own pockets.
Flexibility
👉 The use of ECN Forex Brokers in Nigeria enables customers and investors to engage in market exchanges outside of regular trading hours and to expedite deals.
Trade Execution Speed
👉 Trades are executed instantly and with much narrower spreads. There are a lot of different liquidity providers fighting for your trades. It encourages them to provide the lowest prices possible to compete with the competition and to attract prospective traders in Nigeria.
There are Flat Commission Fees
👉 ECN brokers in Nigeria often charge a set fee rate for each transaction instead of profiting from the bid-ask spread.
What Nigerian traders must be cautious of when they deal with ECN Forex Brokers
👉 Many forex brokers are operating throughout the globe. Many do not have any financial oversight. Despite their claims to be ECN brokers, several of these brokers are really trading desks.
👉 Only by dealing with a licensed broker can you be guaranteed that a forex broker is an ECN broker. The website of any licensed brokerage business will provide information on the firm’s regulated status.
👉 Requotes are another sign that you are dealing with a legitimate ECN broker, so look out for those as well. Dealing with desk brokers’ sluggish performance results in requotes, which can have a detrimental impact on profits.
👉 Instead of having their order immediately filled, a trader can put an order to buy or sell at the current market price and get a new market price instead. A delay in order execution caused by requotes may cost traders a lot of money or prohibit them from making a deal at all.
How to Choose a Forex Broker
👉 Nigerian traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
👉 This is the first important component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Nigerians must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
Account Features
👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
👉 Nigerians must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Nigerians must consider what they wish to trade and what is available.
Customer Support
👉 Customer Support is another crucial factor and Nigerians must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
Trading Platform
👉 A trading platform is the Nigerian trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
➡️ eBooks
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ Commentary
➡️ Status of International Markets
➡️ Price movements
➡️ Market sentiments
➡️ Whether there is a volatile market
➡️ Exchange Rates
➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Nigerian Brokers in 2023 for Nigerian Retail Traders
The Best CFD ECN Broker for Nigerians
Overall Rating
- 4.9/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA, MAS, FSA, ASIC, FMA, FSCA
Trading Desk
WebTrader
Total Pairs
70
Crypto
Yes (Availability subject to regulations)
Trading Fees
Low
Account Activation Time
24 Hours
👉 Plus500 is our choice as the best CFD ECN Broker for Nigerians based on its large range of tradable instruments, competitive trading conditions, and innovative proprietary trading platform.
The Best Cryptocurrency Broker in Nigeria
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
IGRs
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
80
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 IG is our choice for the best cryptocurrency broker in Nigeria as one of the oldest, most reputable trading providers in the forex and CFD trading industry. IG offers cryptocurrency trading alongside 17,000 other financial instruments that can be traded.
👉 In addition, Nigerian traders can expect access to mobile trading platforms that give them access to competitive crypto trading avenues.
Best Naira Account ECN Broker
Overall Rating
- 4.9/5
Min Deposit
USD 10 / 4145 NGN
Regulators
CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA
Trading Desk
MT4, MT5, MT4 WebTerminal, mobile (iOS & Android, Exness Trader)
Crypto
Yes
Total Pairs
97
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Exness is our pick as the Best ECN Broker with a Naira account for Nigerians. In addition, Exness is also known for its low and competitive spreads, range of reputable liquidity providers, and market execution on trades.
The Best Customer Support in Nigeria
Overall Rating
- 4.6/5
Min Deposit
USD 10 / 4145 NGN
Regulators
CySec, FSCA
Trading Desk
MetaTrader 4 and MetaTrader 5
Crypto
Yes
Total Pairs
–
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 FXTM has offices in Nigeria, and it is, therefore, our best choice for this category. FXTM offers local customer support to Nigerians despite their query or issue, ensuring that traders are supported in several languages.
The Best Educational Program for Beginner Nigerian Traders
Overall Rating
- 4.6/5
Min Deposit
USD 25 / 10390 NGN
Regulators
FCA UK
Trading Desk
None
Crypto
Yes
Total Pairs
28
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 From our list of brokers, we selected OctaFX for offering the best educational program for beginner Nigerian traders, consisting of webinars, articles about the basics of forex, video courses, and more.
The Best MetaTrader 4 and 5 Broker
Overall Rating
- 4.8/5
Min Deposit
USD 100 / 41450 NGN
Regulators
ASIC, CySEC, FSCA
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader
Crypto
Yes
Total Pairs
63
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 FP Markets offers MetaTrader 4 and 5 trading accounts that are geared toward both beginner and professional traders. FP Markets offers some of the best trade execution speeds and spreads that start from 0.0 pips.
The Best ECN Execution Broker in Nigeria
Overall Rating
- 4.5/5
Min Deposit
USD 5 / 2 075 NGN
Regulators
IFSC, CySec, ASIC
Trading Desk
Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform
Crypto
No
Total Pairs
57
Islamic Account
Yes
Trading Fees
No (Just spread)
Account Activation Time
24 Hours
👉 XM is our choice as the best ECN execution broker that accepts Nigerian traders. XM fills most orders and guarantees that there are no requotes, no rejections and that there is minimal slippage on trades.
The Best Overall ECN Nigeria Forex Broker
Overall Rating
- 4.1/5
Min Deposit
USD 10 / 4145 NGN
Regulators
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Crypto
No
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128
👉 Pepperstone is not only one of the largest ECN forex and CFD brokers in the world, but one that uses some of the best execution venues and liquidity providers to offer the best pricing possible.
Low-Cost Forex and CFD Broker for Nigerians
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA, FSA, FSCA, Labuan FSA
Trading Desk
Meta Trader 4
Crypto
Yes
Total Pairs
62
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Tickmill is our choice as a low-cost forex and CFD broker that caters to Nigerian traders, providing them spreads from 0.0 pips and competitive commissions.
FAQ
What is an ECN Forex Broker?
They are brokers who automatically match the orders for buyers and sellers through an electronic communication network, otherwise known as a technology bridge, used to link retail forex traders to liquidity providers who can give them the best possible pricing for buying or selling currencies.
What are the trading costs involved with an ECN Forex Broker in Nigeria?
The spread cost charged can be as low as 0.0 pips and there is often a commission fee charged on these trades.
What is a true ECN broker?
They are brokers that have confirmed regulatory status alongside strong, legitimate obligations and who submit frequent reports on their operations.
What must I consider when I choose an ECN Forex Broker in Nigeria?
You must consider factors such as regulation, location, the client fund security and investor protection, website security protocols, commissions and spreads, deposits, and withdrawals, trading platform, and several others.
How does an ECN Forex Broker in Nigeria make its money?
They make money by charging Nigerian traders a fixed amount in the form of a commission fee per trade. They do this instead of charging the broker fee in the spreads that are charged per instrument being traded.
How do Market Maker Brokers and ECN Brokers in Nigeria differ?
When Nigerians use ECN brokers the counterparty in their trade is the liquidity provider from the ECN broker’s network of providers. However, a Market Maker makes the market for their clients and subsequently acts as the counterparty in the trade.
How can I identify a legitimate ECN Broker?
Look for a description in the broker’s execution policy describing its execution model. Look for variable or floating spreads and whether there are any trading restrictions. ECN brokers typically do not have any bans on trading strategies, stop-loss limits, or trade sizes. In addition, true ECN brokers also have both negative and positive slippage and legitimate brokers are honest about this.
