How to Trade Crypto in Nigeria
How to Trade crypto in Nigeria revealed. We tested and verified how to trade crypto for Nigerian traders.
This is a complete guide on how to trade crypto in Nigeria.
In this in-depth guide you’ll learn:
- What is crypto?
- How does crypto Trading work?
- Our recommended crypto brokers for beginner traders?
- How to compare crypto trading brokers against each other?
- How to make money from crypto trading in Nigeria?
- Is crypto Trading Legal in Nigeria?
- Which brokers offer an App on Android and IOS?
- How to trade crypto online in 2022?
- Which crypto 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 crypto trading for Nigerians…
Let’s dive right in…
CySEC, FCA, FSA, FSCA, Labuan FSA
FSA, Cysec, FSCA, FSC,
ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA
CySEC, ASIC, FSCA
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
How to Trade Crypto in Nigeria (Updated 2023)
What is crypto trading in Nigeria?
👉 Crypto trading can be described as the activity involved with taking a financial position either on a cryptocurrency coin against a fiat currency (e.g. US Dollar) or against another cryptocurrency.
👉 Crypto trading involves the same principle as forex trading, where traders buy a crypto coin and sell another simultaneously.
Brief history and evolution of crypto
👉 Historically, cryptocurrencies date back to the 1980s, when they were known as cyber currencies.
👉 In 2008, with the establishment of Bitcoin by an anonymous programmer or group of programmers under the alias Satoshi Nakamoto, these currencies started to gain importance.
👉 Since the introduction of Bitcoin in 2009, cryptocurrencies have been a fad. In recent years, a growing number of people have invested in them due to their expanding popularity.
👉 Encryption was initially mentioned in 1989, and digital currency was created a few years later in 1980 by American cryptographer David Chaum, who used encryption to safeguard and verify transactions.
👉 However, it was not until the early 1990s that cryptographic techniques and software that would allow for the creation of a truly decentralized digital currency began to be developed.
2008 and 2009
👉 Satoshi Nakamoto (a pseudonym) authored a paper titled Bitcoin: A Peer-to-Peer Electronic Cash Mechanism in October 2008, proposing a technique for creating a digital currency that was decentralized and did not depend on third parties. Nakamoto’s article was the catalyst for the cryptocurrency revolution.
👉 Bitcoin is a type of digital currency that may be used to make payments all over the world. Satoshi Nakamoto created the Bitcoin protocol in 2009, the same year it was published as open-source software.
👉 Bitcoin is becoming more popular among those who need to send money across borders without being restricted by banks or governments.
👉 Despite this, some people are unclear about what to do with their Bitcoins since their value has skyrocketed. The first Bitcoin transaction was done on January 12th, 2009, between Nakamoto and Hal Finney.
👉 No one could have known how important this innovative technology could be until February of the following year when one customer paid 10,000 Bitcoins for two pizzas delivered by Papa John’s. Today that business deal would have been worth millions.
👉 Bitcoin was the sole cryptocurrency on the market in early 2010. Its cost was just a few cents at the time. New digital currencies joined the market during the following several years, and their values climbed and fell in lockstep with Bitcoin’s.
👉 During this period of turbulence, many investors lost faith in cryptos as an investment vehicle. Cryptocurrencies, on the other hand, began to witness a significant rise in late 2017.
👉 The total market value of all cryptocurrencies peaked at $820 billion in January 2018, before plummeting later that month. Despite the crisis, the crypto market has been continuously growing.
2017 to date
👉 2017 was the year of cryptocurrency. As the value of Bitcoin and other digital assets increased, so did the number of scams and frauds that target crypto investors.
👉 Thanks to bogus initial Coin Offerings (ICOs) and phishing efforts, thieves were able to steal millions of dollars from naive consumers looking to make a quick buck in the crypto craze. More scams are predicted to arise in 2023 as authorities concentrate on the cryptocurrency sector.
👉 Bitcoin has been the subject of several debates and discussions, but it is impossible to pinpoint when it first gained popularity. Many believe Bitcoin reached its zenith in 2017 when it rose from $1,000 to $20,000 before plunging below $10,000.
👉 Others argue that cryptocurrency exchanges such as Coinbase have increased Bitcoin’s popularity by making it easier for people with no technical knowledge or experience to trade bitcoins. Whatever the reason, one thing is certain and that is that Bitcoin’s popularity will continue to climb as more people become aware of what it stands for, namely decentralization and anonymity.
How does cryptography work?
👉 In the face of adversaries, cryptography offers a means of securing communication. To convert plaintext input into an encrypted output, encryption utilizes an algorithm and a key (for instance, ciphertext).
👉 Data confidentiality, integrity, and availability, as well as authenticity and non-repudiation, are all important components of a safe system. The use of cryptography, when done effectively, helps to provide these guarantees.
👉 To protect data in transit and at rest, the use of cryptography is an invaluable technology. It may also be used to verify the identity of the sender and receiver and prevent them from resigning.
👉 Multiple clients and back-end servers are common features in software systems. There is no way to trust the networks that are being used for these client-server conversations.
👉 External attackers or malevolent insiders may hack either public networks like the Internet or private networks like a company intranet. Untrusted networks may be safe for conversations on this network.
👉 An adversary could easily launch one or both of the following kinds of attacks on a network. Because of them listening to a network segment, an attacker may try to read sensitive information as it moves across the network.
👉 Attackers can also read communication in real-time or collect it and see it later—after spending some time decrypting it—in passive assaults. Communications are intercepted by an attacker, who pretends to be a client or server and views or modifies the material before passing it on to its intended recipient (or dropping them entirely).
👉 Using cryptographic protocols like SSL/TLS, communications could be protected against unauthorized eavesdropping and alteration. In addition, such authenticity safeguards ensure that users are interacting with the systems as intended.
Cryptography and Cryptocurrency
👉 The root of the term “crypto” is a Greek word meaning “hidden” or “secret.” Secret writing, or “cryptography,” is the capacity to send messages that can only be read by their intended receiver.
👉 It is possible to achieve pseudo- or true anonymity with the use of cryptographic technology. To ensure the safety of transactions and participants, as well as the independence of operations from a central authority, encryption is used in cryptocurrency.
👉 Cryptography methods and encryption keys are used in cryptocurrency to mimic the notion of real-world signatures.
👉 A real-world signature is a type of cryptography that uses complex mathematical algorithms to store and transmit data values in a safe manner that assures that only those for whom the data or transaction is meant may receive, read, and process the data.
👉 The most crucial part of cryptography is the encryption key. A communication, transaction, or data item may only be read and processed by the intended recipient if it is encoded with a pseudonym.
👉 The information is made “crypto” or secret using keys. Even while much of the information regarding crypto transactions is openly available to the public, many cryptocurrencies like Bitcoin may not expressly employ such hidden, encrypted messaging.
👉 However, privacy-focused cryptocurrencies, such as ZCash and Monero, can hide the value and receiver of a transaction using encryption. Cryptography has given rise to several useful technologies, some of which have found use in the cryptocurrency world.
👉 Hashing and digital signatures are crucial to Bitcoin’s processing, even though the currency does not employ hidden messages directly.
👉 Nigerians must familiarize themselves with the three main methods of cryptography found in cryptocurrency, these are:
➡️ Symmetric Encryption Cryptography – Each step of the encryption and decryption process utilizes the same private secret key, ensuring that the integrity of the sent data is never compromised.
➡️ Asymmetric Encryption Cryptography – The process of encrypting and decrypting data using two separate keys—public and private—is known as cryptography. Unlike the recipient’s address, which may be shared publicly, only the owner has access to the private key.
➡️ Hashing – To verify the integrity of network transactions, hashing is used. To maintain the structure of the blockchain data, encode people’s account addresses, and encrypt transactions that occur between accounts, block mining is required.
The importance of cryptocurrency in the modern world
👉 Cryptocurrency is getting increasingly popular throughout the globe as people become more familiar with it. However, as a newcomer, you may not understand what is going on or why it is such a huge issue.
👉 Although it may look like a technology of the future and the way we keep money, pay for products and services, and conduct business has and will continue to be transformed by it. In addition, there are several additional ways in which cryptocurrencies will improve the world.
Reduction of Fraud in the Financial Sector
👉 Most things that involve money raise the spectre of fraud as a major problem. Anyone who uses a credit card on an unprotected site is at risk of fraud, regardless of whether the transaction is large or little.
👉 Those who have been the victims of fraud in the past are particularly susceptible to this. To reduce fraud, bitcoin will play a key role since it does not link to your bank account or cash and is transmitted electronically and securely with the blockchain documenting all transactions.
Become a viable alternative to unstable fiat currencies
👉 Shocking inflation and instability have occurred in certain nations’ conventional currencies. Even while not all currencies are vulnerable to astronomical inflation rates, certain nations may benefit from using cryptocurrencies.
👉 Around the globe, cryptocurrency is being accepted more and is not affected by currency or interest rates. Those who live in economically unstable nations would benefit from greater security and predictability because of this.
👉 Most people these days, particularly during the holidays, seem to be making most of their purchases online.
👉 Although it is far more convenient than travelling from store to store to get a certain item and makes window shopping simpler and more comfortable, customers are afraid of fraud, so they do not make as many purchases as they would otherwise.
👉 It is not only consumers that benefit from cryptocurrencies, but suppliers and merchants as well. There is no way to undo a cryptocurrency transaction. Additionally, the use of bitcoin opens new global business options because of the risk reduction it entails.
Improve the way we transfer money
👉 Crypto is faster and more efficient than cheques, money orders, wire transfers and bank-to-bank transfers. If the transfer is international, it could still take a week or more to clear and be deposited using traditional transfer methods.
👉 Transferring crypto does not need the same number of checks and balances as depositing money at a bank. There are no costs, and the transactions can be recorded and saved securely in the blockchain, regardless of whether they are made domestically or internationally.
Allow people to have control over their funds
👉 Even though many individuals are distrustful of banks and financial organizations, they should not keep all their cash at home. However, with funds held in banks, any indication of an economic catastrophe might generate significant anxiety and worry for their savings.
👉 Cryptocurrency enables the return of financial power to the people from the banks. It is not subject to the restrictions that banks and other financial institutions apply.
👉 Whenever more individuals gain control over their own finances, it is a positive development, and it is also another reason why cryptocurrencies will improve the world.
👉 Companies and even whole sectors might be found that engage in unlawful or unethical acts. We, as customers, want to know that the companies we purchase from are operated ethically and that our rights and the law are honoured.
👉 According to what they say about themselves in writing, a corporation or individual’s integrity is not dependable. By altering this process, cryptocurrency will improve the planet. The technology underpinning cryptocurrencies, blockchain, cannot be modified like regular cash.
👉 Incorporating crypto and blockchain technology into business and personal transactions ensures that both parties are held responsible. Customers are also more informed about the businesses selling to them.
Make it safer to transfer money internationally
👉 In addition to minimizing international money transfer fraud, Bitcoin may improve the security of domestic transactions. Carrying copious amounts of cash and credit cards when travelling might be quite risky.
👉 While carrying cash might be dangerous, using bitcoin reduces exchange and transaction costs. More money would remain in the wallets of buyers and sellers because of this. In addition, robberies would be less likely.
Lead to more scientific advancements
👉 A lot of scientific progress has been done in the previous century alone, yet essential data and information are being kept hidden by institutions and governments throughout the globe, making it difficult for the progression of science overall.
👉 To overcome the scientific barriers we face, cryptocurrency and blockchain technology may provide everyone with immediate access to real-time data and eliminate the main organizations, foundations and businesses that hold crucial data.
👉 As a “global citizen scientist,” Nano Vision is already working on a platform that allows everyone to participate in subsequent advances. Using blockchain and a new crypto asset, their approach incentivizes the worldwide gathering and utilization of molecular data.
👉 In addition, a treatment for cancer, the defeat of superbugs, and other vital discoveries might be made possible by the collective potential that we all possess.
What High and Low Spread Tell traders in Nigeria
👉 When the gap between the bid price and the ask price is significant, this is referred to as a high spread. When compared to the spreads of major currency pairings, the spreads on emerging market currency pairs are often much wider.
👉 A spread that is much wider than average often points to either elevated levels of market volatility or low levels of liquidity caused by trading outside of regular market hours. Spreads may become much wider before news events or at times of major shocks, such as the Brexit or the US elections.
👉 When referring to the difference in price between the bid and the ask, a low spread indicates that the gap is narrow. Trading at times when spreads are narrow, such as during the big forex sessions, is highly recommended. When the spread is low, volatility is often low as well, and it often suggests that liquidity is strong.
Market Sessions Nigerians must trade for Narrow Spreads
👉 The foreign exchange market is open for business around the clock, with three main trading periods taking place each day, namely the London session, the US session, and the Asian session.
👉 Traders can efficiently execute strategies at any moment because of the diverse characteristics and patterns that might be shown by any major geographic market centre.
👉 Even though the foreign exchange market is the most liquid of all other financial markets, there are times when volatility is high and others when it is low.
👉 Some periods are more volatile than others. A more reliable forex trading strategy may be developed by first gaining an understanding of the various periods that the forex market is open for trading.
👉 The three main financial market sessions known for lower spreads are:
➡️ Asian (Tokyo) session
➡️ European (London) session
➡️ US (New York) Session
👉 Because big banks, institutions, and retail traders are all active during these trading sessions, the foreign exchange market is considered as being highly functioning and vibrant at these times.
👉 Forex traders will find it easier to construct trading strategies based on this data if they consider the times that each trading session takes place.
Asian (Tokyo) session
👉 The foreign exchange market begins its trading day in Tokyo, which is the first trading session of the day. Many significant players utilize the trade momentum in Asia to construct their plans and as a barometer for the future dynamics of the market.
👉 During the Asian trading day, around 6%t of the world’s total foreign exchange transactions are carried out.
European (London) session
👉 With a market share of around 34% of the daily forex volume, the forex trading session in London is the biggest and most significant of any other session in the world. Because of the city’s substantial market share, many of the top banks in the world have chosen to locate their trading desks in London.
👉 Because of the substantial number of transactions and the vast number of participants in the London forex market, the London session is the most volatile of the three forex sessions. Other sessions are characterized by lower volatility.
👉 The deluge of liquidity that is arriving from London has the potential to significantly boost the “average hourly move” of key currency pairings like the EUR/USD.
US (New York) Session
👉 New York is the world’s second-biggest trading market, and it is responsible for around 16 percent of all international currency transactions.
👉 Many of the transactions that take place in New York take place during the overlap between the US and Europe; however, the transactions begin to slow down as the liquidity in the market evaporates and European traders leave the market.
When is the best time for Nigerians to trade forex?
👉 When traded between 7 pm and 11 pm GMT, European currency pairings have demonstrated to be more profitable than other times of the day.
👉 Because the US session has little to no effect at this period, the liquidity is low as a result. This was discussed before. Because of the reduced liquidity in the market, range-bound trading methods that make more use of indicators like RSI are now possible.
👉 Day traders who like trading in ranges, which means buying at levels that provide support and selling at levels that provide resistance, could try trading European currencies throughout the late US session and into the Asian session which is between 7 pm to 7 am GMT.
👉 Day traders who are interested in breakouts and trends should think about trading between the times when Europe gets online and when Europe goes offline between 8 am and 5 pm GMT.
👉 Trading Asian currencies (such as the AUD or NZD) during the Asian session might potentially yield some breakouts as well. This is because the Asian session coincides with the busy business day for those home currencies.
👉 However, if Nigerians try to trade using specific breakout strategies involving European currencies during the Asian session, they could find it frustrating because those markets do not move as much during that time, especially because it is considered “off hours” for those currencies.
👉 In addition, the same applies when you try to trade breakouts of Asian currencies during the European session, resulting in it becoming a frustrating venture because of the low liquidity.
Evaluating the Forex Spreads of Brokers to find the best deal
👉 First, every forex trader will want to establish how essential the dealing spread is to their currency trading company before selecting a forex broker or market maker.
👉 While some traders have devised methods that are overly sensitive to dealing spreads, others have developed tactics that are less susceptible to spreads.
👉 Any respectable and well-regulated forex broker should be able to supply you with a steady trading platform and solid analytic information if the spread width is not an issue for you.
👉 However, if your strategy’s success depends heavily on the width of your dealing spread, you will need to invest a significant amount of effort in locating an execution partner with the finest spreads in the forex currency pairs you are interested in trading.
👉 It is also important to keep in mind that forex broker spreads might change from time to time based on market circumstances and trading risk.
👉 The fixed spreads offered by certain online brokers for the main currency pairs might be an excellent feature for traders whose primary trading approach is highly dependent on the breadth of the dealing spreads.
👉 Spreads like those seen in Table #1 above were given by Oanda, an online forex broker that publishes its fixed, real, and/or average dealing spreads on its website.
👉 It is an innovative idea to check out the broker’s website to see what kind of spreads you may anticipate. If you have found a broker you think would work, the next step is to sign up for a free test account and check out the spread the broker offers.
👉 Open a moderately financed real account and verify that the live trading spreads and prices match those in the demo account if everything appears in order.
👉 Increasing your trading account financing with a broker would only be appropriate if the broker seems trustworthy and fits all your other requirements for a trading partner.
The Best Spread-based Trading Strategies for Nigerians
👉 Scalping, day trading, swing trading, and position trading are the four primary trading tactics that may be used in the foreign exchange market. The timeframe and duration of the open position both have a role in determining the appropriate trading strategy.
➡️ Day Trading
➡️ Swing Trading
➡️ Position trading
👉 In terms of short-term trading, scalping is the most common method. They only keep positions open for a few seconds or minutes at the most while trading scalping Trades with an expiration time of less than one day are aimed at small intraday price changes.
👉 Because of the enormous volume of deals being performed during each trading session, profits will compound throughout the day, even if they are little.
👉 For this kind of trading to be successful, you will need very narrow spreads and a lot of liquidity. Therefore, scalpers prefer to focus on big currency pairings, such as the EUR/USD, GBP/USD, and USD/JPY, because of their large liquidity and trading volume.
👉 As a result, they prefer to trade only during the busiest periods of the day, when there is a lot of trading volume and frequently a lot of volatility. A broader spread will cut into the potential earnings of scalpers; therefore they strive for the narrowest spreads they can find.
👉 Trying to scalp a few pips as many times as possible in a fast-paced trading market may be difficult and time-consuming for many traders as they must focus on charts for extended periods.
👉 Because scalping may be exhausting, most scalpers stick to only one or two currency pairings at a time.
👉 Day trading may be an option for people who do not want to hold holdings overnight but do not want the rigours of scalping.
👉 As opposed to swing and position traders, day traders do not have to worry about huge overnight movements. They either make money or lose money at the end of every trading day.
👉 Because trades are often held for minutes or hours, traders need plenty of time to research the markets and keep an eye on their holdings throughout the day. In addition, day traders, like scalpers, make money by making small, regular gains.
👉 For spotting trends and market conditions, day traders rely heavily on technical indicators including the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI), and the Stochastic Oscillator.
👉 Swing traders are unlike scalpers who trade within minutes or seconds, and day traders who tend to hold positions for less than one day, often maintain positions for several days. However, occasionally they hold positions for as long as a few weeks at a time.
👉 Because traders hold positions for longer periods to catch shorter-term market swings, they do not need to be seated and continually watch their trades and charts throughout the day, attributable to the fact that positions are kept for longer periods.
👉 Because of this, it is a popular trading method among those who have other responsibilities (such as full-time work), but who would still want to trade in their spare time. Despite this, it is still important to devote a few hours each day to monitoring and analysing the markets.
👉 Swing traders are those who often use trading methods like trend trading, counter-trend trading, momentum trading, and breakout trading. However, apart from swing traders, some day traders also utilize these trading strategies.
👉 Position traders concentrate on the direction prices will go over the long run and hunt for opportunities to make the most profit possible from significant price movements.
👉 Because of this transactions often take place over many weeks, months, or even years. Position traders often analyse and assess the markets using weekly and monthly price charts, employing a mix of technical indicators and fundamental research to identify probable entry and exit levels in the market.
👉 Because position traders are not concerned with smaller price variations or pullbacks, their positions do not need to be watched in the same way that other trading techniques do. Instead, position traders should review their holdings on occasion to keep an eye on the overall trend.
The Best Forex Brokers with competitive spreads in Nigeria
👉 In this article, we have listed the best Forex brokers with some of the most competitive fixed/variable spreads to traders in Nigeria. We have further identified the forex brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Forex Broker with competitive spreads in Nigeria
USD 10 / 4145 NGN
MetaTrader 4 and MetaTrader 5
Account Activation Time
👉 Overall, FXTM is the best MT4 forex broker with competitive spreads in Nigeria. FXTM offers more than 250 financial instruments that can be traded through MetaTrader 4 and other platforms. FXTM offers a range of funding and withdrawal options to Nigerians along with local support.
Best MetaTrader 5 / MT5 Forex Broker with competitive spreads in Nigeria
👉 Overall, Exness is the best MetaTrader 5 forex broker with competitive spreads in Nigeria. Exness is one of the best MetaTrader 5 brokers attributable to the low and tight spreads offered to Nigerians.
👉 Nigerians can register an NGN-denominated account that will exempt them from currency conversion fees.
Best Forex Broker with competitive spreads for beginners in Nigeria
👉 Overall, XM is the best forex broker with competitive spreads for beginners in Nigeria. XM is a suitable forex and CFD broker for beginners based on the range of educational resources and tools that are provided.
👉 XM offers a demo account to beginners and applies negative balance protection to all retail accounts.
Best Minimum Deposit Forex Broker with competitive spreads in Nigeria
USD 1 / 415 NGN
Account Activation Time
👉 Overall, InstaForex is the best Minimum Deposit Forex Broker with competitive spreads in Nigeria. When Nigerians register a live trading account with InstaForex the minimum deposit is 400 NGN.
👉 InstaForex offers leverage up to 1:1000 and provides free VPS hosting along with several other advanced trading tools.
Best ECN Forex Broker with competitive spreads in Nigeria
👉 Overall, IC Markets is the best ECN forex broker with competitive spreads in Nigeria. IC Markets is one of a few brokers that operate a true ECN model with some of the tightest spreads possible. With IC Markets Nigerians are free to use any trading strategies.
👉 IC Markets offers free FIX API connections on cTrader and low trading and non-trading fees.
Best Islamic / Swap-Free Forex Broker with competitive spreads in Nigeria
👉 Overall, LiteFinance is the best Islamic / Swap-Free forex broker with competitive spreads in Nigeria. LiteFinance offers both Islamic and Demo Account options to Nigerian traders. There is a comprehensive market analysis offered on mobile trading that Nigerians will find beneficial.
Best Forex Trading App with competitive spreads in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 Overall, AvaTrade is the best forex trading app with competitive spreads in Nigeria. AvaTradeGO’s proprietary app (AvaTradeGO) is one of the best trading apps on the market.
👉 AvaTradeGO provides the best trader interface along with functionality that will benefit Nigerian traders who are trading while on the move.
Best Naira Trading Account Forex Broker with competitive spreads in Nigeria
USD 100 / 41450 NGN
Account Activation Time
👉 Overall, Alpari is the best Naira trading account forex broker with competitive spreads in Nigeria. Alpari provides an NGN-denominated account that Nigerians can use to trade a wide range of financial instruments.
👉 Nigerians can deposit and withdraw funds in local payment methods without incurring currency conversion fees.
Best Nasdaq 100 Forex Broker with competitive spreads in Nigeria
USD 50 / 20725 NGN
Account Activation Time
👉 eToro makes financial markets accessible through its award-winning platform. eToro provides both investing and trading opportunities to beginner and professional traders in Nigeria.
Best Volatility 75 / VIX 75 Forex Broker with competitive spreads in Nigeria
USD 0 / 0 NGN
Account Activation Time
👉 Overall, IG is the best Volatility 75 / VIX 75 forex broker with competitive spreads in Nigeria. IG is one of the oldest brokers in the world that offers more than 18,000 financial instruments to Nigerians, including VIX.
👉 When Nigerians use IG, they can choose a retail account that suits them best and employ any trading strategy that fits their style.
Best NDD Forex Broker with competitive spreads in Nigeria
👉 Overall, FXCM is the best NDD forex broker with competitive spreads in Nigeria. FXCM uses some of the most powerful trading technology in the industry that allows the broker to execute trades in under 31 milliseconds.
👉 FXCM is an award-winning broker and a market leader in innovation where forex and CFD trading is concerned.
Best STP Forex Broker with competitive spreads in Nigeria
👉 Overall, Markets.com is the best STP forex broker with competitive spreads in Nigeria. Markets.com is a reputable and well-known broker that offers Nigerians commission-free trading and competitive spreads.
👉 Markets.com applies an STP execution model that ensures that Nigerians get the best pricing from an array of financial instruments.
Best Sign-up Bonus Broker with competitive spreads in Nigeria
FSC, FSCA (south africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, WebTrader, FBS Trader – all in one mobile trading platform.
100% Deposit Bonus
Account Activation Time
👉 Overall, FBS is the best sign-up bonus broker with competitive spreads in Nigeria. FBS adds over 10,000 new accounts daily and in the 12 years FBS has been operating, the broker has proven to be trustworthy.
👉 FBS offers one of the best sign-up bonus incentives in the industry in the form of a Quick Start and Level-up bonus.
👉 Nigerian traders in the foreign exchange market are charged a small amount of money for every currency pair they purchase or sell. The spread is what they will earn or pay on a transaction, and it is important to know the diverse types of spreads that Nigerians can expect.
👉 In addition, Nigerians must know what affects the spread and which strategies they can use to harness high and/or low spreads in the forex market.
What is the best spread in forex when trading in Nigeria?
Typically, the ideal spread is 0.0 pips where traders are only required to pay a small commission to cover the broker fee for facilitating the trade.
Why are spreads so high?
Spreads are influenced by several factors including liquidity and volatility. When there is high liquidity, it translates to higher trading volumes and narrower spreads. The opposite is true when there is low liquidity as it means lower trading volume and wider spreads.
How do you reduce the spread when trading in Nigeria?
Make sure that the broker you choose is transparent with their prices. Choose the right currency pair to trade and trade when the markets are busiest. For instance, trading EUR/USD between 2 pm and 6 pm local time in Nigeria.
During this time, the New York and London sessions overlap, and the forex market is at its busiest, which means high liquidity and lower spreads.
What time does the forex market open in Nigeria?
In Nigeria, the forex market opens at midnight with the Asian Session, which remains open until 9 am local time in Nigeria. The London Session opens at 9 am in Nigeria and operates until 5 pm local time. The New York forex session opens at 2 pm in Nigeria and it closes at 11 pm local time.
Is forex trading profitable in Nigeria?
Yes, forex trading can be an extremely lucrative activity in Nigeria. However, profitability goes accompanied by skills, knowledge, and experience that have been built up over years. While the forex market is profitable, it is not a get-rich-quick-scheme.