How much Money do You Need to Trade Forex in Nigeria?
How Much Money Do You Need to Trade Forex in Nigeria revealed. We tested and verified spreads how much money Nigerian traders need to trade forex.
This is a complete guide to how much money you need to trade forex in Nigeria.
In this in-depth guide you’ll learn:
- How much money do you need to trade forex in Nigeria?
- How much money do you need to start with forex trading in Nigeria?
- Our recommended forex brokers?
- How to compare forex trading brokers against each other?
- How much profit do you make from forex trading per day?
- Do you need money to start trading?
- How to start with forex trading in Nairaland?
- How to make money from forex trading?
- Which forex brokers offer a low minimum deposit of $5 (2 092 NGN)?
- Which brokers offer a signup bonus for first-time traders?
And lots more…
So if you’re ready to go “all in” with how much money you need to trade forex for Nigerians…
Let’s dive right in…
How much Money do You Need to Trade Forex in Nigeria? (Updated 2022)
- ✅ What is capital in forex trading?
- ✅ What are the trading costs of trading forex in Nigeria?
- ✅ Minimum Capital and Managing your risk exposure
- How much money do you need to trade Forex in Nigeria?
- How can you use leverage to open larger positions in Nigeria?
- Risk Management for Leveraged Trading in Nigeria
- How to choose the right Forex Broker in Nigeria
- The Best Low Capital Forex Brokers in Nigeria
What is capital in forex trading?
👉 If you want to start trading forex you will need some capital first. When you make a minimum deposit to a broker it will allow you to open positions that can be profitable.
👉 Many forex brokers have low capital requirements because they can offer higher leverage levels. With leverage applied Nigerian traders can subsequently open larger positions.
What are the trading costs of trading forex in Nigeria?
Broker Service Levels
👉 No two brokers are the same and therefore Nigerian traders must consider several factors when they weigh the most advantageous choice in broker for their account. Not all brokers can make a market equally and the reason for this is simple.
👉 Banks are the primary market makers, which means that they create a market where currencies can be bought and sold. These banks are in close partnership with other banks along with several price aggregators, who are the brokers.
👉 These relationships are determined by the capitalization and overall creditworthiness of each brokerage firm. In the forex market, there are no guarantors or exchanges because the market is decentralized, and this means that there is only a credit agreement between participants.
👉 Where an online market maker is concerned, for instance, the effectiveness of a broker will be determined by their relationship with banks, and the overall volume that the broker trades with them.
👉 Subsequently, brokers who have higher trading volumes will be first in line for tighter spread quotes from these liquidity providers.
👉 The brokerage business may pass on the average bid and ask prices to its retail consumers if its market maker has a good connection with several banks and can aggregate, for example, 12 banks’ price quotations.
👉 The dealer can then pass on a more competitive spread to you than less well-capitalized rivals, even after widening the spread to account for profit. This may be something to check for if you are working with a broker that can provide assured liquidity at competitive spreads.
👉 However, you may choose to pay a set pip spread if you know that you will always obtain at-the-money executions. Because slippage happens when your deal is performed outside of the price you were quoted, it is a cost to avoid.
👉 Whether you should pay a small charge to a commission broker depends on what else the broker is providing. You could get something extra, such as access to a proprietary software platform that is better than most online brokers’ platforms, in return for a little fee.
👉 Forex brokers do not all charge the same minimum deposit, and therefore some are more popular than others. Typically, brokers who have larger minimum deposit requirements tend to have lower leverage ratios because traders must have more capital to allow them to start trading.
👉 The opposite is true of brokers who have low capital requirements as they allow traders to use higher leverage ratios, allowing them to open larger positions and giving them smaller margin requirements.
👉 There are a few forex brokers who allow traders to start trading without making a minimum deposit. These brokers offer what is known as either a “No-Deposit Bonus” or a “Welcome” and “Sign-Up” bonus.
👉 With these bonuses, traders register a live trading account, complete the account verification, and are given a certain amount of trading credit. This trading credit can be used in the same way as a minimum deposit, and traders can carry out trading activities without committing capital first.
👉 However, because these funds are not real, they cannot be withdrawn from the account, and traders must trade using the credit and make a profit to be able to withdraw funds from the account.
👉 The spread is the most well-known charge associated with trading foreign exchange. A Forex trader must be aware of additional charges that may or may not be obvious.
👉 Most traders who have a basic understanding of forex trading know that the spread is the difference between the ask and bid prices for a currency pair. You can see this in action with the USD/NGN (US Dollar/Nigerian Naira) pair, which is trading at 414.850/415.580 at the current exchange rate at the time of writing.
👉 This implies that the buy and sell prices are 414.850 and 415.580, respectively, which signifies the price at which your broker will buy from you.
👉 Most brokers will always offer tighter spreads on forex major pairs because they have high liquidity and higher trading volumes, these currency pairs include EUR/USD, GBP/USD, and several others.
👉 Minor forex pairs are those that do not contain the US dollar as either the base or the quote currency. There are also exotic currencies such as the Turkish Lira, Mexican peso, and the Nigerian Naira that are traded less frequently, if at all, and thus have higher spreads because of their low liquidity.
👉 The actual spread that Nigerians can expect will depend on the size of their position, whether their broker charges floating or fixed spreads and the overall market conditions on the day that they trade. Most brokers also charge different spreads according to the account type the traders use.
👉 Other trading charges, such as commissions and fees, may also be imposed by your broker. Due to the intense competition among brokerages, most brokers have stopped collecting trading charges, although you may still come across a few who do.
👉 Typically, trading fees are based on the amount of money that is exchanged on either side of the deal. There are two types of currency pairs namely those that can be bought and those that can be sold. “Per traded side” refers to the kind of currency pair you are trading.
👉 According to your total trading volume, “per traded lot” is a fee that is levied for each traded lot (100,000 units of the base currency.) Brokers who promote zero-spread trading accounts sometimes provide trading fees based on the number of traded lots.
👉 Even though you will not be charged any spreads, the trading commissions you will have to pay more than make up for the savings in spreads.
👉 Many brokers still charge their customers an “inactivity fee.” This means that your broker may charge you an inactivity fee if you do not meet a minimum trading volume, such as 10 deals in three months. For stockbrokers, inactivity fees are more frequent than for CFD and Forex brokers.
👉 Checking your broker’s website under the “Trading Costs,” “Product Specification” section or contacting the broker directly through email or live chat is the safest approach to find out whether your broker is charging any trading commissions or fees.
👉 Slippage is distinct from spreads, commissions, or fees in that it is not a fixed cost. You do not benefit from slippage if your broker (if it is honest and/or well-regulated) is honest and/or well-regulated.
👉 The term “slippage” has been thrown about a lot recently. Simplified, slippage is a price disparity between what you saw on the screen before making a transaction and the price at which the deal was performed.
👉 This is because all you are doing with your broker when you click the ‘trade’ button is placing an at-market order. However, your broker may not always be able to get you exactly what you thought you were trading at.
👉 If you wanted to purchase USD/NGN at 414.85015 but the order was filled at 414.85000, it is a 1.5-pip difference. This is not the spread, but the difference between the projected bid or ask price and the actual bid or ask price at which the order was completed.
👉 There is often a price mismatch between buyers and sellers that is the most typical source of slippage. A currency pair’s current exchange rate indicates the most recent exchange rate at which a transaction happened, for instance, a buyer and seller agreed to exchange currencies at a specified rate.
👉 Nigerian traders must remember that the Forex market is the world’s most liquid financial market, buyers and sellers may be found at any price level.
👉 However, unanticipated market situations, such as the publication of unexpected market reports, political and social unrest, and unexpected natural disasters, may cause this equilibrium to be thrown off course.
👉 Even the time of day when you wish to trade might influence whether slippage occurs. Afternoon trading is at its busiest between London and New York City. During this time, the London Market and the New York market are both open and this happens around 4 pm GMT.
👉 Slippage is normally negligible at this time of day, particularly in the event of unexpected market news. Avoid trading during periods of low liquidity to avoid slippage and maximize your profit potential.
Overnight Rollover Costs
👉 Rollover costs are another form of expense that is widespread in the foreign exchange market. These costs become more significant the longer you hold your transactions for than a single day.
👉 This is because the rates that are given for an FX pair are usually for the pair’s spot market, which is typically for settlement on a T+2 basis.
👉 The reason you get charged this is because of this. If you keep the transaction open overnight to bring this forward by one day, then the settlement date will also be brought forward by one day because of your action.
👉 Since you altered the foundation of the deal, you will be charged a fee to consider this development. The fees for rolling over your position are determined by the currency pair that you are trading.
👉 Nigerian traders may be undoubtedly aware of this fact, but central banks across the globe levy interest rates on customers who keep their national currencies.
👉 The only exception where overnight fees are concerned involves Muslim traders who follow Sharia law. To accommodate all traders, many forex brokers offer an Islamic or Swap-Free account option, allowing Muslims to convert their accounts into a Sharia-compliant option.
👉 When Muslim traders use these accounts, they are not subject to any interest, which is typically considered exploitive or wasteful by Sharia.
👉 However, while some brokers do not apply any additional fees such as commissions or wider spreads to offset the absence of overnight charges, others will apply wider spreads or an additional admin fee when traders keep their position open for longer than a certain period.
👉 Because such commissions or wider spreads are not considered interest, they are legal and can therefore push up the trading costs of Muslim traders in Nigeria.
👉 Financing expenses are often included in the rollover fee, and they are an essential cost to consider while trading on the Forex market. Due to the tremendous liquidity of the Forex market, currency pairings tend to move in tight ranges.
👉 Subsequently, Forex brokers provide traders with remarkably high leverage, allowing them to benefit from even little price swings. While most stockbrokers provide 1:5 leverage, Forex brokers often provide leverage of up to 1:500.
👉 Therefore, Nigerian traders can handle a position that is 500 times greater than their trading account.
👉 It does, however, come at a price and financing expenses are represented in yearly interest rates, which are taken from the current market interest rate plus a modest markup charged by brokers.
👉 Financing expenses are applied to the notional position daily. While these expenses are often little, they may quickly add up as your overall position size grows.
Deposit and Withdrawal Fees
👉 Deposit and Withdrawal fees are common fees that are charged by many brokers in the industry. When Nigerians make deposits to their account or withdraw funds from the account, they could face a deposit or withdrawal fee, which is often a certain percentage of the total amount deposited or withdrawn.
Currency Conversion Fees
👉 Brokers will offer Nigerian traders a choice between a few currencies as the default currency of the trading account. When Nigerians trade financial instruments in other currencies or deposit/withdraw in another currency other than the base currency of the account, they could face a certain percentage conversion fee.
Trading and Non-Trading Cost Summary (Example)
👉 It is simple to compute your overall cost per transaction now that you know the primary charges of Forex trading. Here is an illustration. Brokers do not offer USD/NGN because of its low liquidity and thus, we will use AUG/USD as an example to indicate some overall costs.
👉 Assume you purchased the AUD/USD pair with a 1 lot position size (100,000 units of the base currency, in this case, AUD). These are your trade’s average expenses:
➡️ Spread – if AUD/USD trades at 0.7050/0.7052, the spread is 2 pips. If you purchased a single standard lot of AUD/USD, 2 pips translate to a $20 fee.
➡️ Commission fees – there are only a few brokers that will charge a spread and commission fees, with most brokers charging either the spread or commissions. For instance, if your broker charges you $7 per round turn, this means you are paying one fee for opening and closing a trade. If you purchased a single lot in AUD/USD, you would only pay this $7 for your trade. However, it will depend on your broker’s unique fee structure.
➡️ Slippage – if you employ news trading strategies and you purchase AUD/USD after a major news release, slippage could be a large threat to your capital. When there are prevailing high volatility market reports, slippage can increase by dozens of pips, which could lead to great losses.
➡️ Overnight Fees – These fees will depend on the interest rates of AUD/USD, with AUD (for example) known to have a higher interest rate than the United States dollar. Thus, the broker could add the difference between these rates to the trading account for every day that you hold your AUD/USD pair open.
➡️ Financing Fees – If you have a leveraged trade open, your broker will apply a financing fee. If your trading account balance is $10,000 but your overall position size is worth $100,000 it means that you need at least 1:10 leverage. However, most brokers offer more than this, from at least 1:33 or higher, which means your margin requirement is $3,000. In addition, this also means that you will need to borrow the remaining $97,000 from your broker to execute the trade, subjecting you to a financing cost.
➡️ Withdrawal fees – If you close your position on AUD/USD and you have made a profit, you can decide to reinvest the profits or you can withdraw it from the account. If your broker applies fees for withdrawals, you could face additional fees. This fee is flexible and can differ between brokers.
Minimum Capital and Managing your risk exposure
👉 If you must begin trading immediately, you can start with $100. However, $500 may result in higher income or returns for more flexibility and freedom.
👉 A trading account balance of $5,000 may be the ideal starting amount, as it may allow you generate sufficient revenue to compensate for the time you spend trading. Set quantities do not assist you to comprehend the least amount necessary based on your trading goals, life circumstances, and risk tolerance.
$100 Trading Account Balance
👉 If you register an account with a broker and you pay a $100 deposit, you must consider limiting your risk per trade to $1, which is 1% of your $100 initial deposit. When you trade with low capital, you can consider trading one micro lot, which is 1,000 units of the base currency.
👉 If you were to trade EUR/USD, you must place a stop-loss order within 10 pips where you entered the trade. On a Micro trading position, every pip is worth $0.10 and if your stop-loss is 11 pips away from this, you are risking $1.10.
$500 Trading Account Balance
👉 When you deposit a minimum of $500, you can push your risk up to $5 per trade, allowing you to buy more lots than with a $100 balance. If you set your stop-loss 10 pips away and purchase 5 micro-lots (50,000 units of the base currency), you will remain within your initial risk limit.
👉 If you change your strategy and place your stop-loss 25 pips away from your entry price, you can buy two micro-lots, allowing you to maintain your risk below 1% of the overall account balance. This shows that depositing $500 provides Nigerian traders more flexibility while they can keep a solid risk-reward ratio.
$5,000 Trading Account Balance
👉 If you start trading with an account balance of $5,000 you will increase your flexibility. In addition, it will allow you to start trading mini and micro-lots. If you purchase EUR/USD at 1.3025 and you insert a stop-loss at the 1.3017 mark, it translates to 8 pips of risk, and this allows you to buy at least six mini lots along with two micro-lots.
👉 On a trading account balance of $5,000, you have a risk of $50, which is still only 1% of your overall account balance. Because you can risk more, you can subsequently increase your profit potential, which means that you can make more than $50 per day according to your trading strategy and overall market conditions.
How much money do you need to trade Forex in Nigeria?
👉 You can start trading forex from $1 in Nigeria if you use leverage up to 1:1000 and your broker supports micro-lot trading, which is 1,000 units of the base currency that you can trade.
👉 However, there are more considerations than providing a definitive answer to the question that Nigerians can explore in the sections below.
Typical considerations for trading with a smaller account
👉 There is no safety net to protect a small account from errors or unexpected losses, thus traders must exercise extreme caution while trading with such a limited account.
👉 For instance, if a trader’s account has a $500 margin requirement and loses $600, the account will become inaccessible until more money is placed. Investing with a little amount of money is more challenging than investing with a huge amount of money.
👉 Unlike smaller accounts, which have little protection against blunders, unanticipated losing streaks, or even terrible traders, large accounts can withstand these occurrences. A small trading account has psychological concerns that make it more difficult to trade successfully, even if you can handle losing streaks.
👉 When a trader realizes that they can only afford one bad deal before their account is rendered unusable, for instance. There are also legal distinctions in what a small-cap trader may accomplish.
👉 Trading on large accounts is possible on all accessible markets. However, smaller accounts could be limited to select marketplaces and trading methods. In contrast to small accounts, which may be restricted to long positions that may be supported by cash, large accounts can trade more contracts and short positions.
👉 With all the drawbacks, it seems impossible to successfully trade a small account. This is not the case, and even skilled traders have profited from modest accounts. Nigerian traders can therefore consult the next few sections to find out how they can start trading forex with less funding.
👉 Leveraged trading enables traders with tiny accounts to trade markets on which they would otherwise be unable to do so with cash. It is customary to trade up to four times the amount of cash in your account when day trading specific currencies.
👉 However, before engaging in any trading, it is important to have a firm grasp of the concepts of leverage and margin. In this case, investors should only use leverage to lower the trade’s margin needs, not to expand the trade’s size.
👉 Traders with well-funded accounts may take high-risk bets, such as those with big stop losses compared to their goals. A trader with a smaller account must exercise more caution and ensure that their risk-to-reward and win-to-loss ratios are calculated and applied effectively.
Use the 1% Risk Rule
👉 Trading with a 1% risk rule gives a small account the same level of protection (against errors and unexpected losses) as a significant one. Because it is an extraordinarily successful risk management approach, many expert traders use the 1% risk rule regardless of the size of their trading accounts.
How can you use leverage to open larger positions in Nigeria?
👉 Leverage refers to the practice of investing using money that has been borrowed to purchase a certain currency, stock, or investment. When dealing with foreign currency, the term “leverage” comes up often.
👉 Borrowing money from a broker allows investors to take larger positions in a currency so they may trade more often. Because of this, the profits made from favourable shifts in the exchange rate of a currency are magnified when leverage is used.
👉 Leverage is a strategy used by investors to increase their profits from forex trading. The forex market provides investors with one of the greatest levels of leverage accessible. The term “leverage” refers to a loan given by a broker to an investor.
👉 The FX account of the trader is set up to facilitate trading on margin or with borrowed cash. Some brokers may restrict the amount of leverage utilized by beginner traders at first. Traders can usually modify the amount or size of the deal depending on the leverage they want.
👉 However, the broker will want the initial margin, which is a proportion of the trade’s notional value stored in the account as cash. Depending on the amount of the deal, the initial margin needed by each broker might vary.
👉 If an investor purchases USD/NGN for $100,000, they could be obliged to maintain a margin balance of $1,000. In other words, the required margin would equal 1% or $1,000 / $100,000.
👉 The leverage ratio indicates the extent to which the deal size is multiplied by the margin held by the broker. If Nigerians use a leverage ratio of 1:100, this means that they can trade a $100,000 position on a currency pair with a deposit of $1,000.
👉 Examples of margin requirements and their accompanying leverage ratios are shown below.
➡️ Margin requirement of 2% = Leverage ratio up to 1:50
➡️ Margin requirement of 1% = Leverage ratio up to 1:100
➡️ Margin requirement of .5% = Leverage ratio up to 1:200, and so on.
👉 Typically, the smaller the margin requirement, the more leverage may be used for each transaction. Nevertheless, depending on the currency being traded, a broker may impose larger margin requirements.
👉 Some brokers can request more collateral for currencies that are inherently more volatile during times of high market volatility.
The relationship between Leverage and Position Size
👉 A broker might need differing margin requirements for bigger deals vs smaller ones. As indicated in the preceding table, a 1:100 ratio requires the trader to hold at least 1/100 = 1% of the entire value of the deal as collateral in their trading account.
👉 A standard lot is 100,000 units of the base currency and for such a large trade, typical leverage is between 1:50 and 1:100, with higher leverage such as 1:200, is reserved for positions of $50,000 or less.
👉 While many forex brokers today can allow Nigerians to execute much smaller trades, such as mini or micro-lots (10,000 or 1,000 lots, respectively), it is unlikely that a brand-new trading account will qualify for leverage of 1:200 or higher.
Risk Management for Leveraged Trading in Nigeria
👉 Although investors may achieve enormous profits by using leverage, leverage can also work against them.
👉 For instance, if the underlying currency of one of your transactions swings in the opposite direction of what you anticipated, leverage would magnify the possible losses significantly.
👉 Forex traders often use stop-loss orders to limit losses and so avert disaster. A stop-loss is a trading order placed with the broker to close a transaction at a specified price. A trader may limit their losses in this manner.
How to choose the right Forex Broker in Nigeria
👉 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 key 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 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 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.
👉 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:
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ 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 Low Capital Forex Brokers in Nigeria
👉 In this article, we have listed the best Forex brokers that allow low capital trading for traders in Nigeria. We have further identified the forex brokers that offer additional services and solutions to Nigerian traders.
Best Low Capital MetaTrader 4 / MT4 Forex Broker in Nigeria
👉 Overall, Axi is the best low capital MetaTrader 4 forex broker in Nigeria. Axi is well-regulated and award-winning forex and CFD broker that accepts and accommodates Nigerian traders.
👉 Axi is a Metatrader 4-only broker that offers Nigerians access to a broad range of markets and comprehensive trading solutions.
Best Low Capital MetaTrader 5 / MT5 Forex Broker in Nigeria
USD 100 / 41450 NGN
Meta Trader 4
Account Activation Time
👉 Overall, Tickmill is the best low capital MetaTrader 5 forex broker in Nigeria. Tickmill provides Nigerian traders with the best of both worlds through MetaTrader 4 and MetaTrader 5.
👉 As a MetaTrader 5 forex broker Tickmill also offers additional financial markets, low minimum deposits, and a choice between deposit and withdrawal options.
Best Low Capital Forex Broker for beginners in Nigeria
👉 Overall, RoboForex is the best low capital forex broker for beginners in Nigeria. RoboForex is geared towards beginner traders in that the broker offers a wide range of educational materials along with a ProCent Account.
Best Low Minimum Deposit Forex Broker in Nigeria
👉 Overall, TD Ameritrade is the best low minimum deposit forex broker in Nigeria. With TD Ameritrade Nigerian traders can start trading and investing from 400 NGN.
👉 TD Ameritrade offers restricted leverage but still offers a chance for Nigerians to be profitable while protecting their capital.
Best Low Capital ECN Forex Broker in Nigeria
USD 200 / 82900 NGN
Account Activation Time
👉 Overall, IC Markets is the best low capital ECN Forex Broker in Nigeria. IC Markets is one of the largest ECN brokers in Nigeria and while the minimum deposit is a bit higher than other brokers it still falls within a low capital range.
👉 IC Markets is dedicated to helping its clients succeed and offers them a range of trading tools and resources.
Best Low Capital Islamic / Swap-Free Forex Broker in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 Overall, AvaTrade is the best low capital / swap-free forex broker in Nigeria. AvaTrade is the best Islamic account broker because of the halal trading conditions that are offered on Gold and Silver Trading along with Oil, Indices, and Forex.
Best Low Capital Forex Trading App in Nigeria
USD 1 (415 NGN)
IFSC, FSCA (south africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading pltform, CopyTrade
$140 (58 116 NGNFind out More)
Account Activation Time
👉 Overall, FBS is the best low capital forex trading app in Nigeria. The FBS Trader is one of the best mobile trading apps for Nigerian traders. The app allows Nigerians to stay updated with market news, monitor their trading positions, and manage their trading account.
Best Low Capital Naira Trading Account Forex Broker in Nigeria
👉 Overall, SuperForex is the best low capital Naira trading account forex broker in Nigeria. SuperForex offers Nigerians three dynamic trading accounts that can be registered as NGN-denominated accounts.
👉 SuperForex is known for its tight average spreads, competitive commissions, and range of trading and broker bonuses.
Best Low Capital Lowest Spread Forex Broker in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5
Account Activation Time
👉 Overall, FP Markets is the best low capital lowest spread forex broker in Nigeria. FP Markets charges zero-pip spreads on the Raw and Islamic Raw Accounts. FP Markets also charges low commission fees of $7 per round turn on these accounts.
Best Low Capital Nasdaq 100 Forex Broker in Nigeria
USD 100 / 41459 NGN
CySec, FSC, FSA, BaFin, NFA
MetaTrader 4 , MetaTrader 5
50 Forex Pairs and 20 Crypto Pairs
Account Activation Time
👉 Overall, BDSwiss is the best low capital Nasdaq 100 forex broker in Nigeria. BDSwiss is a NAS100 broker that charges spreads from 0.01 pips and allows Nigerians to trade Nasdaq commission-free, with a margin requirement of 1%.
Best Low Capital Volatility 75 / VIX 75 Forex Broker in Nigeria
USD 5 / 2073 NGN
CySEC, FSC, FSCA
MetaTrader 4 and MetaTrader 5
Account Activation Time
👉 Overall, HF Markets is the best low capital Volatility 75 / VIX 75 Forex Broker in Nigeria. HF Markets is a popular broker that offers VIX.F as a Futures Contract on Indices.
👉 When Nigerians choose to trade with HF Markets, they can expect spread charges from 0.14 pips on VIX and leverage up to 1:100.
Best Low Capital NDD Forex Broker in Nigeria
10 USD / 4145 NGN
IFSC, MFSC and FSC
MetaTrader4, MetaTrader5, CopyTrade and cTrader
Account Activation Time
👉 Overall, Axiory is the best low capital NDD forex broker in Nigeria. Axiory is a well-known and reputable broker that operates a No-Dealing Desk. Axiory charges spread from 0.13 pips and commissions from $0.04, with all orders sent to some of the best liquidity providers in the industry.
Best Low Capital STP Forex Broker in Nigeria
USD 10 / 4145 NGN
Australia, Bahamas, Cyprus, Dubai, Germany, Kenya, UK
MetaTrader 4, MetaTrader 5, cTrader and TradeView
Account Activation Time
👉 Overall, Pepperstone is the best low capital STP forex broker in Nigeria. Pepperstone is a large and well-known broker that offers superior trade execution speeds on its STP model. In addition, with Pepperstone, Nigerians can expect competitive and transparent trading prices with no hidden fees.
Best Low Capital Sign-up Bonus Broker in Nigeria
USD 5 / 2 075 NGN
IFSC, CySec, ASIC
Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform
No (Just spread)
Account Activation Time
👉 Overall, XM is the best low capital sign-up bonus broker in Nigeria. When Nigerians register with XM for the first time, they can get a $30 sign-up bonus that is also a no-deposit bonus. While Nigerians cannot withdraw this bonus, they can withdraw the profits that they make from it.
👉 Overall, the forex market allows Nigerian traders to start trading with lesser amounts of capital. This is a suitable option for beginner traders, but it can limit the profits that traders stand to make.
👉 When traders use the right risk management strategies, they can slowly build their capital to a sizable amount which will expose them to more opportunities.
How can I trade forex in Nigeria for Beginners?
As a beginner, you can start by building your knowledge about the forex market and forex trading. Once you know more about trading forex, you can choose a suitable broker and register a demo account with them.
Next, you can build some experience in a risk-free environment before you start trading micro-lots, followed by larger position sizes.
How much do forex traders make a day in Nigeria?
According to recent statistics and reports, forex traders in Nigeria trade forex positions to the value of $1.25 million daily.
What is the best time to trade the forex market in Nigeria?
The best time to trade forex in Nigeria is between 2 pm and 6 pm. During this 4-hour timeframe, the London and New York sessions overlap, and this will ensure that there are a lot of liquidity and subsequent trading opportunities.
What time is the New York session in Nigeria?
The New York session is open between 7 am and 4 pm and in Lagos, this is between 4 pm and 11 pm.
Is forex trading legal in Nigeria?
Yes, forex trading is a legal activity in Nigeria, given that traders use regulated and reputable brokers.