6 Best Naira Forex Trading Accounts in Nigeria

What to look for when choosing a forex broker in Nigeria

Regulation

👉 Brokers who are regulated are frequently overseen and controlled. After locating a licensed broker, ensure that the site is user-friendly and equipped with all the tools you want.

👉 Finally, following all of this, investigate the broker’s account types and the additional features that are offered. Traders must consider the following when they evaluate account types:

➡️️ Micro Account – this is the perfect option for beginner traders, those who want to test trading strategies, and those who have financial restrictions. The account allows for a lower minimum deposit requirement and smaller positions sizes, which subsequently means a lower degree of risk.

➡️️ Mini Account offers lots sizes up to 10,000 units of the base currency. This allows Nigerian traders to trade larger positions sizes and invest more capital.

➡️️ Standard Accounts have standard lots that are 100,000 units of the base currency. This is the typical account type offered by forex brokers. With this account, Nigerian traders must understand that profit comes with some degree of risk when trading complex instruments.

➡️️ ECN Accounts, Professional Accounts, VIP Accounts are typically tailored to advanced traders and professional investors who are experienced and who have effective risk management strategies and protocols in place to minimize the risk of loss.

👉 In terms of safety of funds, traders must ensure that they deal with a forex broker that employs a wide range of security measures, protocols, and policies such as KYC where traders must confirm their email addresses, identity, and their residential address before they are given the option for funding their account.

👉 By employing such measures, brokers instil and increase investor confidence in the firm and create a safer forex market.

Regulation in Nigeria

👉 Nigeria’s currency market is regulated similarly to those of other nations. Numerous brokers provide high leverage at a low margin, while others in some countries offer low leverage at a high profit.

👉 Nowadays, it is very difficult for brokers to do business without a license since they risk prosecution. The Central bank of Nigeria ensures currency’s effectiveness by issuing licenses to both local and foreign traders.

Trading Platform

👉 The trading platform is an important factor that traders must consider before engaging in Forex trading with Nigerian brokers. MetaTrader 4 is the most popular trading platform in the forex market.

👉 If the broker does not provide this platform, or any other known trading platform such as cTrader or MetaTrader, you should consider carefully whether to register an account.

👉 With a licensed trading platform such as MetaTrader or cTrader, Nigerian traders can easily place multiple orders on foreign currencies, precious metals, commodities, digital currencies, and several other instruments.

👉 Brokers often offer proprietary platforms, but traders must ensure that these software applications are licensed before using them.

Commissions and Spreads

👉 When you trade-in financial markets, brokers charge a fee for facilitating the trade. While stock trading typically involves a fixed fee for their services, forex trading works differently. Depending on the broker’s execution model, they can charge either a spread or a flat commission, which covers the broker’s fee.

👉 Traders must pay attention to the commission per trade and calculate their profit and loss accordingly.

👉 Typically, where a tight spread is charged, there will be commissions charged and other brokers may include their fee in the spread by adding a mark-up. Nigerian traders must evaluate the fees that brokers offer to ensure that they gain access to competitive spreads according to their trading plan.

Additional features and services

👉 This includes educational material that covers educational videos, articles, eBooks, Forex courses, and others. In addition, brokers also offer advanced trading tools that help traders refine their trading and improve their trading decisions.

👉 The broker should offer basic information on the financial markets such as exchange rates, market conditions, whether there is a volatile market, forex trading market statistics, and several others. Additional features can also include bonuses and promotions where new and existing traders can benefit from their broker.

Quality of Customer Service

👉 Customer support is another important component, especially when traders run into issues or problems. Traders should be able to contact customer support and get the help they need promptly and effectively. If the broker only relies on automated responses such as chat robots or if customer support is slow and uninformative, this could be a red flag.

👉 Traders must ensure that they have access to support in a language that they are comfortable with communicating, with most forex brokers offering English language customer support.

Deposits and Withdrawals

👉 The ease with which traders can withdraw and deposit funds is another key component to evaluate. The broker should offer reliable deposit options and withdrawal methods. The fees charged should be transparent and the broker must be able to indicate what the processing times are on withdrawal requests. If a broker makes excuses not to pay money owed to the trader, it is a red flag.

👉 Traders must also evaluate the deposit fees and withdrawal fees that are charged, ensuring that this is aligned with their financial plan.