Is Forex Trading Legal in Nigeria?
Is Forex Trading Lega in Nigeria revealed. We tested and verified the legalities of forex trading for Nigerian traders.
This is a complete guide to if forex trading is legal in Nigeria.
In this in-depth guide you’ll learn:
- Is Forex Trading Legal in Nigeria?
- Our recommended forex brokers for beginner traders?
- How to compare forex trading brokers against each other?
- Is forex trading legal for Islam traders?
- Is Halal trading legal in Nigeria?
- Which low spread 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 if forex trading is legal for Nigerians…
Let’s dive right in…
Is Forex Trading Legal in Nigeria? (Updated 2023)
- ✅ Is forex trading legal in Nigeria?
- ✅ History and Development of Foreign Exchange in Nigeria
- ✅ What are the legalities that surround forex trading in Nigeria?
- Is forex considered gambling in Nigeria?
- Who regulates the forex market in Nigeria?
- Forex Participants in Nigeria
- The Importance of Forex regulation in Nigeria
- Taxation and Forex Trading in Nigeria
- How to choose the right Forex Broker in Nigeria
- The Best Regulated Forex Brokers in Nigeria
Is forex trading legal in Nigeria?
👉 Yes, forex trading is legal in Nigeria. If you trade Forex for yourself and utilize a broker who is licensed to facilitate such transactions, then you are not breaking any laws in Nigeria.
👉 With an average daily trading volume of between 300 and 450 million Nigerian naira, forex trading is a common technique for Nigerian investors to make money and accumulate wealth.
History and Development of Foreign Exchange in Nigeria
👉 The development of the foreign currency market in Nigeria to its current position was impacted by a variety of variables, including the shifting pattern of international commerce, institutional changes in the economy, and structural adjustments in production.
👉 Before the creation of the Central Bank of Nigeria (CBN) in 1958 and the passage of the Currency Control Act in 1962, foreign exchange was generated by the private sector and kept in overseas accounts by commercial banks that worked as agents for local exporters.
👉 During this time, agricultural exports made up many foreign currency earnings. The fact that the Nigerian pound was pegged to the British pound sterling at par and was easily convertible slowed the development of an active foreign currency market.
👉 With the establishment of the Central Bank of Nigeria (CBN) and the consequent centralization of foreign currency power within the Bank, it became imperative to construct a local foreign exchange market.
👉 Early in the 1970s, the increasing export of crude oil because of a dramatic increase in its price boosted government foreign currency revenues. During this era, the foreign currency market witnessed a boom, necessitating the management of foreign exchange resources to prevent shortages.
👉 However, extensive currency restrictions were not implemented until 1982 because of the foreign exchange crisis that occurred that year.
👉 The rising demand for foreign currency at a time when the supply was decreasing stimulated the growth of a thriving foreign exchange parallel market.
👉 The exchange control system was unable of developing a mechanism for foreign currency allocation consistent with the objective of internal balance.
👉 Because of this, it resulted in the establishment of the Second-tier Foreign Exchange Market (SFEM). Under SFEM, the Naira exchange rate and distribution of foreign currency were determined by market forces.
👉 To broaden the scope of the Foreign Exchange Market, bureaus de change for trading privately obtained foreign currency were launched in 1989. Because of rate volatility, the Foreign Exchange Market underwent more modifications in 1994.
👉 This involved the official pegging of the naira exchange rate, the consolidation of foreign exchange within the CBN, the restriction of Bureaux de Change to purchase foreign exchange as intermediaries of the CBN, the reaffirmation of the illegality of the parallel market, and the discontinuation of open accounts and bills for collection as payment sectors.
👉 The Foreign Currency Market was liberalized in 1995 with the formation of an Autonomous Foreign Exchange Market (AFEM) for the selling of foreign exchange to end-users by the Central Bank of Nigeria (CBN) via authorized dealers at a market-determined exchange rate.
👉 In addition, Bureaux de Change was reinstated as approved purchasers and dealers of foreign currency. The Foreign Exchange Market was further liberalized in October 1999 when the Interbank Foreign Exchange Market (IFEM) was introduced.
👉 Between 2002 and 2015, the Bank implemented the Retail Dutch Auction System (RDAS), Wholesale Dutch Auction System (WDAS), and Interbank Rate System Regime.
👉 The RDAS and WDAS included twice-weekly auctions, with the RDAS intervention being directed to consumers and the WDAS intervention being to banks for sale to customers.
👉 2015 saw the introduction of the Interbank Rate System Regime, in which the Bank intervenes when necessary. The Bank implemented the managed floating system in 2016 in response to rising demand pressure.
👉 Under the new system, demand and supply determine the value of the naira in the interbank foreign exchange market.
What are the legalities that surround forex trading in Nigeria?
👉 Although trading foreign currency is still a recent activity in Nigeria, it has quickly become extremely popular. A considerable number of individuals are considering entering the foreign exchange market in the hopes of one day becoming lucrative traders.
👉 Because Nigeria is a thriving nation, its traders may now take advantage of a plethora of lucrative business prospects. However, it would be in your best interest if you always remember that trading is not a simple activity and that being a skilled trader requires time, work, and understanding.
👉 Trading stocks and currencies on the foreign exchange market (Forex) is permitted in Nigeria; however, the trader or broker must comply with the rules and regulations that regulate the business.
👉 Surprisingly, unlike in many other countries of the globe, such as the United States, there is not a significant amount of regulation governing forex trading in Nigeria. This might be due, at least in part, to the fact that it is still a very new phenomenon that is rapidly gaining popularity amongst residents.
👉 The Central Bank of Nigeria oversees regulating the foreign exchange market in Nigeria, and to engage in forex trading on behalf of their customers, brokers are needed to fulfil a few prerequisites.
👉 In addition, profits made from engaging in commercial activities are subject to taxation in this nation. Subsequently, they must be disclosed appropriately to avoid getting on the wrong side of the law.
👉 In a similar vein, stock trading in Nigeria is subject to a set of regulations, and the process of getting started is something that can be accomplished in only two days.
👉 Opening a trading or brokerage account, obtaining a Central Securities Clearing System (CSCS) account, and then obtaining a Clearing House Number (CHN) are the stages involved.
👉 One can begin investing and trading on the Nigerian Stock Exchange (NSE) after finishing this procedure and providing the necessary papers. According to reports, the NSE is home to around 169 different firms that are listed.
👉 Considering the expanding level of interest in forex and stock trading, Nigerian traders must remember that it is accompanied by a certain amount of trading and transaction costs, with which traders must be acquainted before they invest real money.
👉 Additionally, since there are no regulations in place, trading in CFDs is perfectly acceptable in Nigeria.
👉 By engaging in contract for difference (CFD) trading, traders can speculate on the price movement of a certain financial instrument without ever really owning ownership of the asset that the instrument is based on.
👉 Trading in contracts for difference (CFDs) is not fundamentally flawed and should not be avoided. Trading contracts for difference (CFDs) is perfectly lawful in many nations that are regulated.
👉 Because certain benefits come with trading through CFDs, some highly regulated nations have decided to not permit it, which might be a disadvantage for forex traders because of these benefits.
👉 Although the absence of regulation in Nigeria may provide chances for Nigerian forex traders, it is essential to be aware that in the absence of a regulatory agency, Nigerian customers may have truly little protection if anything goes wrong.
👉 There will be no one to turn to for assistance if the broker they deal with has financial difficulties, is forced into liquidation, or attempts to con them out of the money they have put in their account. Brokers are subject to oversight and auditing in nations with stringent regulatory environments.
👉 Even if a broker loses its financial footing and is forced to close its doors, customers often have recourse to compensation programs through which they may recoup the funds that they had deposited with the firm.
👉 Nigerian traders need to choose a broker very carefully since it may not be feasible for them to do this.
👉 Nigerians must verify that the broker has a good reputation within the sector and investigate the policies that they have published about the safety of deposits, the separation of client money, and the prevention of negative balances.
Is forex considered gambling in Nigeria?
👉 Before answering this question, we must consider the definition of “gambling,” which can be described as an activity where a person:
➡️ Places (a sum of money) at risk of being lost in a game or a wager
➡️ Engages in an activity in which one has a chance of winning or losing money or other valuables
➡️ Puts something (valuable or significant) in danger to accomplish something or get what one wants.
👉 The common theme that can be taken from this definition relates to “losing” as well as “risk”. The inherent thing about forex trading is that there are always risks involved, and it is the cost of carrying out business in forex trading.
👉 However, while the truth is that all forex market participants “gamble” when they trade forex, there are several differences between how these market participants “gamble” and how others take part in conventional gambling, and one such difference is associated with “probabilities.”
👉 Probabilities come down to engaging in transactions in which the potential gain is greater than the potential loss at any given time. In other words, increasing the likelihood of favourable outcomes.
👉 Thus, the greater number of “Confluence Factors” you have working in your favour on a particular deal, the greater the likelihood is that the trade will result in a profit for you.
👉 A gambler never knows for sure whether they will be successful, and unless they are intentionally dishonest, they tend to assume that the odds are always stacked against them. Their odds of winning are consistently worse than those of the casino, or they are almost equivalent to the house’s odds.
👉 Forex traders, on the other hand, are always brainstorming new trading techniques in the hopes of improving their chances of success in the market.
👉 They can make accurate forecasts of market movements with the use of a variety of analytical tools, which enables them to take a position that is sure to bring them a profit.
👉 After engaging in certain deft trading patterns, they are confident that they will eventually arrive at an overall position that is lucrative for them. This highlights the primary distinction between a trader in foreign exchange and a gambler.
👉 The people that participate in these two marketplaces are also highly diverse from one another and exhibit a variety of characteristics. The following are some of the most significant characteristics that distinguish them distinct from others:
➡️ The Participants in the Market
➡️ The tools that are used
➡️ Strategies used
👉 The pursuit of financial success is the primary motivation for most individuals to choose any of these professions. Everyone has the goal of making a profitable investment, whether it is in the form of a bet they place or a position they take in the market that will result in positive cash flow for them.
👉 There is a significant disparity in the quantities of money moving around in each of these sectors. Traders from all around the globe conduct daily transactions totalling more than 6 trillion dollars on the foreign exchange market.
👉 The sums of money engaged in the gaming sector are not even close to being on par with such figures. This is a significant aspect that sets these two business sectors apart from one another.
The Participants in the Market
👉 Every industry has its own unique group of individuals that are involved in it. These individuals might be important or small participants, but they all contribute to the overall success of the endeavour.
👉 Retail traders make up most of the participants in the foreign exchange market. Individual investors from various regions of the globe who devise their own trading techniques to beat the market are known as alpha-generating traders.
👉 Another participant in huge financial institutions like banks and mutual funds, such as stock exchanges and stock exchanges. They contribute to the establishment of the legality of foreign exchange trading, and with such large participants, you can be certain that it is legitimate.
👉 On the other hand, gambling is fraught with legal complications since it is outlawed in many regions of the globe. Its members are limited to participating in unlawful underground operations, which casts doubt on the whole enterprise.
The tools that are used
👉 Although Forex trading has its own set of risks, you are fully educated about why you took a certain position. There are a plethora of tools available to assist you in accurately analysing the market, as well as many rules on how to establish and close trading positions.
👉 These change according to your trading strategy and analytical process. When employing technical or fundamental research, you might monitor market developments for many days or even weeks before deciding on a position.
👉 This demonstrates that there is no such thing as a fortunate deal, and they are all influenced by thorough market research. These tools assist a Forex trader to improve and make profitable transactions. However, gambling does not have any tools that can be used.
👉 There are no trends to research to make an educated selection, everything is up to chance, which does not seem to be a sensible concept.
👉 The majority of those who gamble will, at some point, develop a gambling addiction. According to the findings of recent studies, this may be traced back to the feelings evoked by gambling.
👉 When a gambler enters a casino with the intention of gambling, their main goal is to walk out with a profit. Their judgment is clouded as a result, and they are ignorant that there is also the danger of losing money.
👉 Because there is no way to make educated bets and the outcomes depend entirely on chance, there is a possibility that they may end up losing all their money if the odds are not in their favour on a specific day.
👉 It is more likely to encourage someone to continue gambling since they will continue to do so until they become addicted to it, rather than discouraging them from doing so.
👉 However, things are different when it comes to trading forex. During one’s training, they will be required to learn how to keep their emotions and thoughts apart from the choices they must make.
👉 To make better judgments and start lucrative transactions, a trader must understand how to differentiate between greed and fear. This assures that there is no involvement of emotions, and a trader is free to walk away at any point if they so want.
👉 The forex market, like any other industry, is fraught with risk. Some believe that traders might be in a losing run for months, but you discover they made their deals without any plan in mind on correct assessment.
👉 These are traders who have bought into the notion that forex trading involves gambling. A trading plan is key to accomplishing your long-term objectives.
👉 Before putting any money into any transaction, first, perform a good analysis and analyse if it will assist you to achieve your ultimate and desired position. This will help you to make better-informed judgments on whether to engage or avoid.
👉 Stop Losses are one of the many components of the instruments you may employ to guarantee that deals are closed at the appropriate times. Gambling, on the other hand, does not entail any strategy since it is left to destiny to determine whether you will win or lose your bets.
Who regulates the forex market in Nigeria?
👉 There is no official regulating authority of the forex sector in Nigeria, albeit there is one that is not official, The Securities and Exchange Commission (SEC).
👉 The Securities and Exchange Commission (SEC) had its start in Nigeria in 1962, when the Central Bank of Nigeria (CBN) formed the Capital Issues Committee as a temporary consulting and advising body.
👉 Its duty was to assess applications from corporations seeking to raise funds from the capital market and propose the timing of such issues to avoid problems clustering which might overstretch the market’s capacity.
👉 The Committee served as an unofficial advising and consultation body for the Nigerian capital market inside the Central Bank of Nigeria, although it was not subject to any rules or regulations. However, the Committee had not yet dealt with Nigerian Forex dealers at that time.
👉 The duties and responsibilities of the SEC can be described as follows:
➡️ The inspection may be conducted “on-site” or “off-site.” The Commission periodically solicits information from capital market participants. In addition, it conducts investigations and audits of any market participant as appropriate.
➡️ Surveillance is conducted over exchanges and trading systems to prevent violations of market regulations as well as to discourage and discover market-disrupting manipulations and trading activities.
➡️ The investigation of suspected violations of the rules and regulations regulating the stock market and the application of appropriate punishment.
➡️ In minor situations, the Commission convenes an all-party conference in which it acts as a mediator between disputing parties. Enforcement proceedings are taken against market operators who are found deficient after an inquiry has been conducted. If the situation is severe, no settlement is found, or a party fails to comply with a direction issued at all party meetings, the defaulting party will be brought before the Administrative Proceedings Committee (APC), a quasi-judicial court with solely civil jurisdiction.
➡️ Appeals against APC rulings are often filed with the Investment and Securities Tribunal (IST). When charges are determined to be illegal, enforcement action may include a fine, ban, suspension, or even referral to the Nigeria Police Force (NPF), Economic and Financial Crimes Commission (EFCC), or Attorney–General of the Federation (AGF).
➡️ Commission rulemaking in response to new developments. This is to guarantee that the Commission fulfils worldwide standards of excellence.
👉 With the increase in currency commerce and transactions in Nigeria, some are starting to question their legality.
👉 The Nigerian foreign currency market is very volatile due to the country’s reliance on oil, which is the primary foreign exchange earner. In response to this instability, the Nigerian government, via the Central Bank, the country’s central bank, has attempted to regulate the industry.
👉 The Central Bank is authorized under foreign exchange rules and legislation to oversee foreign exchange operations in Nigeria. The rules, laws, and policies that cover foreign exchange in Nigeria include, but are not limited to:
➡️ Exchange Control Act (1962)
➡️ The Central Bank of Nigeria Act
➡️ Banks and Other Financial Institutions Act of 2007
➡️ The Foreign Exchange Act, associated with the Monitoring and Miscellaneous Provisions
➡️ Money Laundering Act, in terms of Prohibitions
➡️ Bureau De Change (1989), and others.
Forex Participants in Nigeria
👉 The main participants in the Foreign exchange market in Nigeria are as follows:
➡️ The Central Bank of Nigeria
➡️ Commercial Banks
➡️ Oil Companies
➡️ Authorized Buyers
➡️ Authorized Dealers
The Central Bank of Nigeria
👉 The Central Bank of Nigeria is by far the largest participant in the Nigerian foreign currency market.
👉 The bank has the authority to create rules and regulations to govern and manage the other currency market participants. Since its inception, the central bank has issued several directives based on current economic conditions.
👉 Most of Nigeria’s commercial banks have been granted permission to trade in foreign currency by the country’s central bank. Domiciliary bank accounts may be opened and managed by customers of commercial banks, whether the customer resides in the country.
👉 Additionally playing a significant part in the foreign exchange market are the oil corporations of Nigeria. They make a significant amount of money from the selling of petroleum goods, which they then turn around and sell to various other FX players in Nigeria.
👉 Authorized buyers are business organisations and other end-users that have been granted permission by the central bank to purchase foreign currency from financial institutions.
👉 The Nigerian central bank designated certain approved dealers to sell foreign currency to end-users as part of an effort to further liberalize the export industry in the country.
The Importance of Forex regulation in Nigeria
👉 The buying and selling of foreign currency online in Nigeria is still in its infancy, and there are no laws in place to regulate the industry. However, there is an organization in Nigeria that is known as the Association of Online Forex Trading Agents.
👉 This group, which has the approval of the government, is collaborating with the Central Bank of the Nation (CBN) and other regulatory bodies to devise a framework that would facilitate foreign exchange transactions.
👉 In addition, in 2018, the Securities and Exchange Commission (SEC) met with the Central Bank of Nigeria (CBN) to establish a regulatory organization to monitor forex trading, which is becoming more popular in Nigeria.
👉 South Africa’s Financial Sector Conduct Authority (FSCA) and the United Kingdom’s Financial Conduct Authority (FCA) are among the authorities monitoring many international brokerage firms operating in Nigeria.
👉 There are several unlicensed local brokers in Nigeria, exposing people and investors to fraud and unethical acts.
👉 Traders who use brokers that are regulated by foreign regulatory agencies such as the FSCA and the FCA in the UK are safeguarded by the severe laws and standards of these organizations.
👉 However, it can be a cumbersome process to settle disputes when they arise against foreign brokers because it involves a foreign regulator rather than a local regulator.
👉 Considering this, the necessity for local FX regulation in Nigeria is crucial. However, until the government develops a local regulator, Forex investors in the nation are recommended to operate with brokers that are licensed in other countries.
👉 For a profitable industry such as forex, which may attract con artists and fraudsters, there should always be a regulating authority that steps in when brokers violate the law or fail to adhere to the specified criteria.
👉 Regulatory organizations also contribute to the development of trust between brokerage firms and their customers, as many investors do not need to investigate everything.
👉 Therefore, they rely on regulators to help establish this confidence. Clients may deposit and trade with the knowledge that their funds are secure. Therefore, the following are benefits of dealing with regulated forex brokers in Nigeria:
➡️ They promote fair and ethical behaviour
➡️ Client protection is guaranteed
➡️ Fraud is dealt with, and disputes can be solved between clients and their brokers
➡️ Fund Segregation is guaranteed
➡️ There are no “Free Money” tricks or scams
They promote fair and ethical behaviour
👉 When the Forex market was unregulated, there were several instances of traders being duped out of their money. In today’s market, greedy brokers continue to defraud unsuspecting investors.
👉 Regulatory agencies have made it tough for such things to happen by adopting severe procedures and tight regulations and norms that the participants must comply with.
👉 However, there is still a chance of theft and unethical behaviour since some brokers take advantage of nations like Nigeria that do not have meaningful control.
👉 To avoid losing a lot of money, you must use extreme caution while interacting with other investors. You may achieve this by finding a broker who is licensed by a stringent regulator and with a formidable reputation.
Client protection is guaranteed
👉 Another significance of forex regulating organizations is to cushion customers. Brokerages and the customers they serve need to be protected by the same set of regulations that govern the brokerages.
👉 These protection techniques are updated regularly to cope with new hazards and obstacles that keep on arising in the forex trading sector.
👉 As such, via adequate regulation, your rights as an investor are maintained and your investment is guaranteed as you will get paid if the broker falls bankrupt.
Fraud is dealt with, and disputes can be solved between clients and their brokers
👉 The establishment of a regulatory agency in Nigeria would offer a framework where corruption instances in FX trading can be dealt with appropriately.
👉 Many Nigerians have been victimized by Ponzi schemes, boiler room methods, and the churning of consumer accounts in the previous several years. A regulator has the authority and responsibility to act against anybody who violates the law if they do so according to the prescribed procedures.
👉 However, international authorities can only efficiently deal with issues that arise inside their borders, which is a concern.
👉 Nevertheless, the Forex market in Nigeria has experienced a major decrease in unlawful behaviours because of the vigorous enforcement of the regulations by foreign authorities.
Fund Segregation is guaranteed
👉 Your money will not be placed in the same account as your brokerage’s working capital since this is a requirement of the regulatory agencies. This guarantees that the broker would be able to handle your withdrawal request at any moment with no delay and could do so at any point.
There are no “Free Money” tricks or scams
👉 Unregulated foreign exchange brokerages will often use deceptive practices to attract naive investors. They achieve this by advertising the availability of a free bonus upon registration for an account with the company.
👉 This bonus is not your money but the money of your broker, and you are not permitted to withdraw it. Because your money is now combined with theirs, they will not even let you withdraw what you have already put up as a deposit.
👉 Regulators play a vital role in preventing frauds like this and ensuring honest business practices.
Taxation and Forex Trading in Nigeria
👉 It is simple to see why a considerable number of Nigerian forex traders are uncertain about their tax responsibilities regarding the money they make from trading forex.
👉 The Federal Inland Revenue Service, abbreviated as FIRS, is the government agency in charge of tax collection in Nigeria. On the other hand, a sizeable number of trading accounts are maintained with offshore or overseas brokerages.
👉 There is a good chance that FIRS will be unable to get a clear picture of the profits produced through forex trading most of the time.
👉 This is because the money is being shifted overseas, and the profits are being produced by companies located in other nations. However, from a legal point of view, this is completely unimportant.
👉 Any person who is considered to have a tax residence in Nigeria is required by law to record and pay tax on all income and profits, even those generated outside of the boundaries of the nation, unless an exemption may be made due to some form of extraordinary situation.
👉 The Foreign Investment Review Service (FIRS) has determined that the profits made by individual forex traders should be categorized as capital gains and should be taxed as such at a rate of ten percent of the gross profit.
👉 It is a frequent fallacy in Nigeria and other countries that forex traders who trade offshore and do not generate any trading gains inside their place of residence do not need to pay tax on their profits. This belief is widespread in both Nigeria and other nations.
👉 However, it is not always the case, and if a person who is resident in Nigeria for tax purposes produces a profit from trading offshore while still living in Nigeria, then in Nigeria, that profit is taxable income. This will be the same procedure in many other nations with similar tax rules.
👉 The person is obligated to provide a disclosure about the money in their yearly tax return. This is because a trader’s tax liabilities are primarily determined not by the location from where the revenue is derived but by the location in which the trader resides during the time in which the money was earned.
👉 You must consult a tax expert about your tax position to verify that you are paying all that you are expected to pay and to see if there is any way to minimize the amount of money that you must pay in taxes.
👉 Trading earnings are taxed as capital gains rather than as income in Nigeria; nevertheless, your tax status may be affected by other capital gains and losses that you encounter within a given tax year.
👉 If you are unclear about your tax duties, you must seek the guidance of a professional, since tax laws are complex and vary depending on an individual’s particular set of financial circumstances.
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 vital 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 Regulated Forex Brokers in Nigeria
👉 In this article, we have listed the best Forex brokers who are well-regulated and therefore recommended for traders in Nigeria. We have further identified the forex brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Regulated Forex Broker in Nigeria
Account Activation Time
👉 Overall, Pepperstone is the best MT4 forex broker in Nigeria. With traders from over 65 countries, Pepperstone is one of the world’s largest and most established online trading organizations.
👉 Pepperstone offers more than 80 financial products, including currency, commodities, energy, and exchange-traded funds (ETFs), all of which may be traded using MetaTrader 4 or MetaTrader 5.
Best MetaTrader 5 / MT5 Regulated 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 MetaTrader 5 forex broker in Nigeria. BDSwiss offers Nigerians 4 retail accounts that can be used to trade several financial markets. BDSwiss offers MetaTrader 5 that can be used across devices from mobile phones to desktop PCs and web browsers.
Best Regulated Forex Broker for beginners 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 broker for beginners in Nigeria. AvaTrade provides demo accounts that may be used as practice accounts, allowing newcomers to trading with virtual cash before risking real money in live markets.
👉 AvaTrade assists traders in sticking to their trading strategy by providing a variety of advice and guiding tools on its website.
Best Regulated Low Minimum Deposit Forex Broker in Nigeria
👉 Overall, Exness is the best Minimum Deposit Forex Broker in Nigeria. Exness has a low minimum deposit requirement of 4,000 NGN.
👉 With such a low minimum deposit Nigerians can register a Standard or a Standard Cent account. Exness offers commission-free trading with an average cost of 10 USD.
Best Regulated ECN Forex Broker in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5
Account Activation Time
👉 Overall, FP Markets is the best ECN forex broker in Nigeria. Barclays and Goldman Sachs are among the liquidity providers used by FP Markets to deliver low and competitive spreads. Nigerian traders could anticipate spreads as low as 0.0 pips and commissions as low as $3.
Best Regulated Islamic / Swap-Free 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 Islamic / Swap-Free forex broker in Nigeria. HF Markets has a 2.5%+ market share in Nigeria which makes it one of the most prominent entities in the region. HF Markets allows traders to convert several accounts into Islamic accounts.
Best Regulated Forex Trading App in Nigeria
USD 50 / 20725 NGN
Account Activation Time
👉 Overall, eToro is the best forex trading app in Nigeria. eToro was one of the first and most successful social trading and investment platforms. Nigerian traders may use eToro’s multi-asset platform to find and invest in specific financial instruments across several markets.
Best Regulated Naira Trading Account Forex Broker in Nigeria
12 USD / ₦5,000
Account Activation Time
👉 Overall, 7B Forex is the best Naira trading account forex broker in Nigeria. 7B Forex is a Nigerian-based broker that offers a Nigerian Naria-denominated account. 7B Forex offers STP execution that gives clients access to the interbank markets for the best pricing.
Best Regulated Lowest Spread Forex Broker in Nigeria
400 Nigerian Naira equivalent to $1
FCA, ASIC, CySEC, EFSA, JSC
• MetaTrader 4
• MetaTrader 5
• Admirals Mobile App
35 Forex Currency Pairs
Account Activation Time
👉 Overall, Admirals is the best lowest spread forex broker in Nigeria. Admirals provides experienced traders with some of the finest pricing and trade execution with minimal spreads, instructional resources, and sophisticated trading tools.
Best Regulated Nasdaq 100 Forex Broker in Nigeria
👉 Overall, XM is the best Nasdaq 100 forex broker in Nigeria. XM is well-known for its no-requote and no-rejection assurance. Multiple stock exchanges provide a variety of stock trading choices to Nigerian traders, and this includes Nasdaq 100.
Best Regulated Volatility 75 / VIX 75 Forex Broker in Nigeria
USD 0 / 0 NGN
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👉 Overall, IG is the best Volatility 75 / VIX 75 forex broker in Nigeria. IG provides Nigerians a choice between powerful trading platforms. Nigerians can choose from several account types that will suit their trading objectives and needs.
Best Regulated NDD Forex Broker in Nigeria
USD 1 / 415 NGN
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👉 Overall, InstaForex is the best NDD forex broker in Nigeria. IG offers more than 18,000 markets that can be traded through a No-Dealing Desk (NDD) model. IG offers tight spreads and a choice between several accounts that suit diverse types of traders.
Best Regulated STP Forex Broker in Nigeria
👉 Overall, Tickmill is the best STP forex broker in Nigeria. Since 2015, Tickmill has been a prominent online ECN and STP broker delivering online trading services and solutions. Tickmill serves both retail and institutional customers appropriately.
Best Regulated Sign-up Bonus Broker in Nigeria
👉 Overall, OctaFX is the best sign-up bonus broker in Nigeria. OctaFX offers a no-deposit bonus to Nigerian traders between $8 and $16 when they sign up for an account in a few simple steps on the broker’s website.
👉 Forex trading is legal in Nigeria if traders and brokers alike follow the laws and policies that are currently applied in the Country.
👉 While there is no official regulating body in Nigeria like that in South Africa, the UK, Kenya, or other regions, Nigerian traders are urged to use brokers with at least Tier-1 or Tier-2 regulations to ensure that they are protected.
Can Nigeria trade forex?
Yes, online trading in Nigeria is possible through the platforms provided by brokers, which are linked to interbank networks (banks) located all over the globe.
How much do you need to start trading forex in Nigeria?
You can start trading with 1,000 NGN but traders are advised to start with capital of 50,000 Nigerian Naira, of which they should never risk more than 5% on a single trade.
How do I become a forex trader in Nigeria?
Connect to the internet, connect to a forex broker, and register an account, fund the account, install the trading platform, make the minimum deposit, start trading.
How difficult is forex?
Trading forex is extremely challenging, despite the common misconception that it is an effortless way to make money and is thus highly entertaining.
Trading foreign currency, which takes place on the foreign exchange market, is not at all like trading stocks or commodities, even though this market is the biggest and most liquid in the world.
Where can I learn Forex in Nigeria?
You can either use online guides from Aplus Forex GTraining Hub, Revglobal Forex Academy, and Global Forex Trading Institute, or you can attend classes at forex trading schools such as Oasis International School in Lagos and ProTraders Academy in Ikeja.