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What is Forex Leverage in Nigeria?

What is leverage in Nigeria revealed. We tested and verified leverage in forex trading for Nigerian traders.

This is a complete guide to leverage in Nigeria.

In this in-depth guide you’ll learn:

  • What is leverage
  • What is considered good leverage in Nigeria?
  • How to approach leverage as a beginner trader?
  • Our recommended forex brokers with the best leverage?
  • How to compare forex trading brokers against each other?
  • How do leverage affect profits in forex trading?
  • How to choose leverage when trading as a Nigerian Trader?
  • What is the best leverage for $50 (20 756 NGN)?
  • Which brokers offer 1:100, 1:3000, and 1:5000 leverages?
  • How to calculate leverage as a Nigerian trader?
  • 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 leverage for Nigerians

Let’s dive right in…

Updated : July 21, 2022

What is Leveraged Forex Trading?

👉 When trading foreign exchange, leverage works similarly to a “loan” that is provided to the trader by the broker. This “loan” allows the trader to trade with a larger sum of money than was first deposited.

 

👉 Leverage is expressed as a ratio and depending on the client’s expertise and experience, forex brokers in Nigeria may provide leverage ratios of 1:50, 1:100, 1:200, 1:500, and greater.

An introduction to Leverage and Margin

Leverage

👉 Trading leverage is the capacity to buy or sell with more money than one has at their disposal (in terms of capital). To help traders, several exchanges provide it as a service. The easiest way to think about leverage is as a secured loan from an exchange or a peer.

 

👉 Subsequently, the collateral will only be a small portion of the loan amount, which is known as margin. With 10X leverage, for example, this implies that you are just paying 1/10th of the value of the position as collateral, rather than having to put up the complete amount.

 

👉 With leverage, traders who do not want to risk losing their whole account balance may deposit just a portion of it and still trade as if they had invested the entire amount.

 

👉 One of the best and safest ways to employ leverage is to reduce third-party risk. Many traders (especially beginners) make use of leverage recklessly, increasing their position sizes while unable to handle the extra risk that comes with trading bigger positions.

 

👉 This is an extremely dangerous practice, and it does not matter how much leverage you use; if the situation goes against you, you can deplete your trading account swiftly, especially if the move is higher than the initial margin of the trade if it is done with heavy leverage.

 

👉 If the market moves against your position by an amount equal to your margin, the exchange will immediately terminate your position and retain your margin if you are trading on an exchange that only provides “fixed leverage.”

 

👉 This means the margin utilized is established at the time of the transaction. If your position is underwater by more than your margin amount, then the exchange will liquidate your trade. This prevents them from having to absorb your losses.

 

👉 When you use cross leverage, things function a little differently. Most forex brokers have this option, and it allows you to constantly trade with the highest possible leverage.

 

👉 Therefore, to protect themselves and the other person on the opposite side of the deal, the exchange will lock up more of your balance to ensure that you can pay out their profits if a position swings against you, also known as margin.

 

👉 Until your whole account has been utilized as margin, you may keep trading, but by this time, your whole account could be terminated, and you could suffer severe losses.

 

Margin

👉 The amount of money that a trader must pay upfront to initiate a position is known as the margin. On margin trading, you only pay a fraction of the position’s worth to open a trade.

 

👉 Leveraged forex trading requires an understanding of margin, which is different from a transaction fee. Increased position size can be achieved by margin trading in the FX market. To establish leveraged trading positions, margin permits traders to do so with lesser initial capital investment.

 

👉 Make sure you understand how leverage works, since it may be a double-edged sword that can magnify both gains and losses.

 

👉 According to the regulations of the appropriate regulatory agency, such as ESMA, a trader is limited in the amount of leverage they could use.

 

👉 When it comes to the most popular currency pairings, margin requirements typically start at approximately 3.33% in the United Kingdom, depending on the forex broker, the regulation, and licenses that the broker holds, and your country of residence.

 

Cash Account vs Margin Account

👉 With a brokerage account, Nigerian traders can buy and sell securities. The two most frequent kinds of brokerage accounts are known as cash accounts and margin accounts, respectively.

 

👉 Financial criteria are the most significant distinction between these two kinds of accounts.

 

Cash Account

👉 One of the most common types of brokerage accounts is known as a “cash account.” To conduct a transaction in a cash account, you must either have accessible cash or long holdings in the stock market.

 

👉 A Nigerian trader who wishes to make a purchase of securities in a cash account is required to either make a deposit of cash or sell an existing position on the same trading day to make the purchase.

 

Margin Account

👉 Your broker-dealer uses your “margin account” as collateral to loan you money so you may buy securities (also known as “margin securities”).

 

👉 A margin account and a cash account can both be offered by forex brokers in Nigeria. A trader can receive a greater total return on their investments if they use margin money to buy currencies and those investments rise in value beyond the interest rate on the funds. 

 

👉 The negative is that the brokerage business charges interest on the margin money for as long as the loan is outstanding, which increases the trader’s cost of purchasing currencies.

 

👉 Traders must pay interest to their brokers if their currency’s value declines. The brokerage company will issue a trader with a margin call if the equity in a margin account falls below the maintenance margin.

 

👉 The trader must either deposit additional money or sell part of their securities within a certain amount of time to cover the difference between the forex pair’s price and the maintenance margin.

 

👉 In addition, a forex broker reserves the right to ask a client for more cash in a margin account if it believes its own funds are in danger, or to liquidate the Nigerian trader’s position and sue the investor if they fail to meet a margin call or if their account is in a negative balance.

 

Minimum Margin

👉 You are required to place a minimum cash deposit into your margin account before you can begin making purchases using margin. Typically, forex brokers and regulators can require that you provide 100% for the minimum maintenance margin.

 

👉 Subsequently, your existing funds will be equal to those that the broker takes, with no additional positions that can be opened.

 

Maintenance Margin

👉 To maintain an open position in a leveraged market, you are required to retain a certain amount of maintenance margin (also known as variation margin) in your trading account at any given time.

 

👉 This guarantees that you will always have sufficient funds to support the current value of the investment and cover any running losses that may occur.

 

👉 A specific quantity of cash must be put into and retained in your account to maintain an open leveraged position.

 

👉 If your position begins to incur losses, your initial deposit will no longer be sufficient to maintain the open position in the transaction. In this scenario, your broker will urge you to deposit extra funds into your account so that they may be brought back into balance.

 

👉 Maintenance margin is also referred to either as variation margin or “free margin,” and to open additional positions, you need enough maintenance margin.

 

Margin Call

👉 A “Margin Call” alerts you that you need to make further deposits of money into your trading account or terminate lost positions to free up more margin.

 

👉 It is expressed as a constant percentage that is decided by your broker and can be found in the Account Specifications section of your trading account. Your margin level will decrease whenever the market moves in a direction that is averse to your open positions.

 

👉 When the margin reaches the Margin Call percentage, your broker will notify you that a Margin Call has been triggered. Thus, Margin Calls serve as a warning to traders that the Stop-out level is getting closer.

 

Stop-Out

👉 When trading forex, a stop-out will often occur when the margin amount reaches 50 percent. In terms of actual statistics, this indicates that the money on the account constitutes just fifty percent of the total monies that were stolen by the broker.

 

👉 When this happens, all open trades will be closed by themselves until the margin level rises over 50 percent. When the margin level falls below 50 percent, the broker will begin to close out the positions automatically. This is known as a stop-out, and it occurs independently of any measures taken by the broker.

 

👉 Certain individuals get the terms “stop-out” and “stop-out level” mixed up, even though these are two distinct concepts, even though they have some essential similarities.

 

👉 The occurrence known as a stop-out is something that takes place at some time in the trading process. In its most basic form, it refers to the process by which a broker automatically cancels positions.

 

👉 However, a stop-out level is a certain level at which the “stopping out” action takes place. In forex trading, this phrase refers to a certain margin amount that is often set at fifty percent.

 

👉 Therefore, a stop-out and a stop-out level are two distinct phrases that refer to the same action, but that have different terms.

Advantages and Disadvantages of Leveraged Trading in Nigeria

👉 With leverage, also known as trading on margin, one can establish huge positions while having a little amount of capital in their trading account. It indicates that you have the potential to raise not only your earnings but also your losses; as a result, you should continue with extreme care.

 

Advantages

➡️ Increased profits

➡️ Increased trading opportunities

➡️ Shorting the market

➡️ 24-hour trading

 

Increased profits

👉 With only a little initial investment, you have the potential to generate the same amount of revenue as you would with a standard transaction.

 

👉 Because profits are determined by considering the whole value of your position, margins may either help you earn more money on profitable trades or cause you to lose more money on unprofitable deals.

 

Increased trading opportunities

👉 You could get more funds, which you may then use toward the purchase of other assets via the use of leverage. The capacity to increase the total amount of money that may be invested is referred to as “gearing.”

 

Shorting the market

👉 Going short is one strategy that may be used to benefit from moves in the market. When you are using leveraged products to make wagers on how the market will move, you are referred to as “levering up.”

 

24-hour trading

👉 Certain marketplaces are open all the time. These markets, including the primary indexes and the currency markets of other countries, are open around the clock and five days a week. This allows traders to cash in on several profitable opportunities in forex using leverage to boost their investment size.

 

Disadvantages

➡️ Increased loss

➡️ There are no privileges for shareholders

➡️ There are margin calls

➡️ Traders are subject to funding charges

 

Increased loss

👉 Because your initial investment is smaller than it would be for typical transactions, it is easy to miss the amount of cash that you are placing at risk. Margin trading, on the other hand, compounds both losses and winnings.

 

👉 You may not be able to lose more than the amount that is now in your trading account, but you should always evaluate each deal in terms of its total value as well as its potential for losses, and then take the appropriate precautions to lower your risk exposure.

 

There are no privileges for shareholders

👉 If you utilize leverage in your deals, you will not get the benefits that come with having genuine ownership of the thing. For instance, the use of leveraged instruments might influence dividend disbursements.

 

👉 Instead of receiving a dividend, the money will either be added to or taken out of your trading account, depending on whether you are long or short on the security.

 

There are margin calls

👉 If your situation begins to shift against you, your supplier may ask you to put up further cash to maintain your trading relationship. This is known as a margin call, and to reduce the amount of risk that you are exposed to overall, you will need to either raise funds or sell investments.

 

Traders are subject to funding charges

👉 When you employ leverage, you are effectively lending the money necessary to open the whole position, which means that your initial deposit is used to pay back the loan. A modest fee will be applied to your account to cover the expenses of keeping your position open throughout the night.

Typical Leverage Amounts offered by Forex Brokers in Nigeria

👉 Typically, leverage is granted in a predetermined amount that varies across brokers. Each broker grants leverage according to its own laws and regulations. The leverage ratios 50:1, 100:1, 200:1, and 400:1 are typical ratios that are offered.

 

Leverage of up to 1:50

👉 1:50 leverage indicates that you may conduct a transaction for up to $50 for every $1 in your account. If you invested $500, for instance, you would be allowed to trade up to $25,000 on the market.

 

Leverage of up to 1:100

👉 1:100 leverage indicates that for every dollar in your account, you may conduct a transaction up to $100 in value. This leverage ratio is representative of a normal lot account. The normal standard account minimum deposit of $2,000 would allow you to handle $200,000.

 

Leverage of up to 1:200

👉 1:200 leverage indicates that for every $1 in your account, you may trade up to $200 worth of currency. The 200:1 leverage ratio is standard for a mini-lot trading account. The normal minimum deposit on such an account is $300, and you may trade up to $60,000 with that amount.

 

Leverage of up to 1:400

👉 1:400 leverage indicates that for every $1 in your account, you can execute a deal for $400. Some brokers provide 400:1 leverage on mini-lot accounts, but traders should be wary of any broker that offers high leverage on a mini account.

 

👉 Anyone who deposits $300 into a forex account and attempts to trade with 400:1 leverage might lose it all in a couple of minutes; a single lost $300 deal at this leverage ratio would cost $120,000.

How much leverage should I use?

👉 The ideal leverage ratio for forex trading is between 1:10 and 1:100, according to practice. According to surveys and statistics, most retail traders want leverage of no more than 1:10, whereas 17% prefer leverage of 1:100, as reported by trustworthy brokers.

 

👉 European legislation recommends that Forex traders limit the maximum leverage to 1:20 – 1:50 for several trading products. Bitcoin and other cryptocurrencies are traded at 1:2 to 1:5 leverage on most platforms.

 

👉 Emotional-driven traders who want to increase their position volume as much as possible without having enough of their own money in the deposit use leverages of up to 1:1000.

 

👉 Such forex brokers must be used with great caution and traders must have a fundamental understanding of how to use leverage, and traders must ensure they have sound risk management procedures in place while trading.

How much leverage should I use?

👉 The ideal leverage ratio for forex trading is between 1:10 and 1:100, according to practice. According to surveys and statistics, most retail traders want leverage of no more than 1:10, whereas 17% prefer leverage of 1:100, as reported by trustworthy brokers.

 

👉 European legislation recommends that Forex traders limit the maximum leverage to 1:20 – 1:50 for several trading products. Bitcoin and other cryptocurrencies are traded at 1:2 to 1:5 leverage on most platforms.

 

👉 Emotional-driven traders who want to increase their position volume as much as possible without having enough of their own money in the deposit use leverages of up to 1:1000.

 

👉 Such forex brokers must be used with great caution and traders must have a fundamental understanding of how to use leverage, and traders must ensure they have sound risk management procedures in place while trading.

How to mitigate the risks of leveraged forex trading in Nigeria

👉 To protect yourself from risks experienced when trading with leverage, you can do the following:

➡️ Ensure you have a thorough understanding of how a margin account operates and what happens if the price of the stocks that were bought on margin falls is essential.

➡️ Be aware that your broker will charge you interest on any money that you borrow from them and comprehend how this will impact the overall return on your assets.

➡️ Be aware that certain securities cannot be acquired using a margin account.

➡️ Having a conversation with your broker about whether you should trade on margin depends on several factors, including your financial resources, investing goals, and your level of comfort with risk.

 

👉 Alternatively, you can also use the following Risk Management Tips:

➡️ Make sure you know which risk you are exposed to

➡️ Educate yourself and never stop learning

➡️ Prepare for every scenario

➡️ Create a solid forex trading plan

➡️ Always keep a clear head about profit expectations

➡️ Limit the use of leverage

➡️ Never risk more than you can afford

➡️ Always use Stop-Loss and Take-Profit Levels

➡️ Do not trade on emotions or “gut” feelings

➡️ Make sure to use diversification

 

Make sure you know which risk you are exposed to

👉 The Forex market is one of the world’s largest financial marketplaces, with daily transactions exceeding 6 trillion USD.

 

👉 With so much money at stake, banks, financial institutions, and individual traders have the potential for both enormous gains and losses. While banks providing money to borrowers must exercise credit risk management, traders must do the same with their investments to secure a return.

 

👉 Forex trading risk is simply the possibility of incurring a loss when trading and the following types of risks can extend to other financial markets such as shares, commodities, metals, crypto, and others:

➡️ Market Risk

➡️ Leverage Risk

➡️ Interest Rate Risk

➡️ Liquidity Risk

➡️ Risk of Ruin

 

Market Risk

👉 Market risk is the possibility that the market may perform differently than anticipated. It is the most prevalent risk in trading. For instance, if you feel the US dollar will rise against the Euro and decide to purchase the EURUSD currency pair, only for it to decline, you will incur a loss.

 

Leverage Risk

👉 Numerous traders utilize leverage to open transactions that are far greater than the amount of their initial investment. In some instances, this might result in a greater loss than the original amount.

 

Interest Rate Risk

👉 The interest rate of an economy could influence the value of its currency, putting businesses (and traders) at risk of unforeseen changes in interest rates.

 

Liquidity Risk

👉 Some currencies and trade instruments have more liquidity than others. If a currency pair has high liquidity, there is a greater supply and demand for it.

 

👉 Thus, transactions can be executed much faster but for currencies with low demand, there may be a delay between the time you initiate or close a transaction on your trading platform and the time that trade is completed.

 

👉 Subsequently, this could imply that the deal is not performed at the anticipated price, resulting in a lower profit or a loss.

 

Risk of Ruin

👉 This is the risk that your trading money will run out. Imagine you have a long-term plan for how you believe the value of a security will change, but the security goes in the other way.

 

👉 You must have sufficient funds in your account to endure this move until the security moves in the desired direction.

 

👉 If you do not have enough capital, your transaction might be instantly closed, and you could lose all you have put in that trade, even if the security subsequently moves in the desired direction.

 

Educate yourself and never stop learning

👉 If you are new to trading, you should teach yourself as much as possible as soon as feasible. Regardless of how much experience you have with trading on the Forex market, there is always some fresh information that may be acquired.

 

👉 Continue to educate yourself on the Forex market by reading and researching relevant topics. The good news is that there is a broad variety of educational materials available online that might be of assistance, such as articles, videos, and webinars that cover all financial markets.

 

Prepare for every scenario

👉 There is no way to foresee the Forex market, but there is a lot of information from the past that shows how the market reacts in various scenarios. Even if the past does not repeat itself, what has occurred shows what can be done.

 

👉 Because of this, it is critical to examine the currency pair’s history before making a trade. Plan for protecting yourself in the event of a negative incident occurring again.

 

Create a solid forex trading plan

👉 Inexperienced Forex traders often make the mistake of opening an account and immediately placing a transaction based on their gut feeling or what they heard on the news that day. Even though a few good deals may result from this, they are just a matter of chance.

 

👉 Stick to your Forex trading plan once you have created it. Having a trading strategy in place will keep your emotions in check and prevents you from overtrading. Plan your entry and exit tactics to be obvious so you may grab your profits or reduce your losses without getting afraid or greedy with a strategy.

 

👉 Discipline in trading is key to effective risk management, and this strategy can help you get there.

 

Always keep a clear head about profit expectations

👉 The unrealistic expectations of novice Nigerian traders are one of the causes of their excessive risk-taking.

 

👉 Because of this, they may believe that aggressive trading will allow them to reap the benefits of their investment more rapidly. More experienced traders, on the other hand, consistently earn money.

 

👉 Therefore, the best method to begin trading is to set reasonable objectives and stick to a cautious strategy. Admitting your mistakes and being realistic go hand in hand.

 

👉 When you realize you have made a mistake in a transaction, you need to get out of the position as fast as possible. Forex trading is not a good place to try to transform a terrible situation into a good one, but this is a normal human response.

 

👉 Greed is a dangerous emotion that may lead to bad trading judgments if you do not keep it in check.

 

Limit the use of leverage

👉 Leverage allows you to amplify your trading account’s earnings, but it may also increase your losses, so raising your exposure to risk.

 

👉 With a higher leverage ratio, your exposure to Forex risk is thus increased. When it comes to forex risk management, it is prudent for beginners to restrict their exposure by avoiding large leverage.

 

👉 Consider using leverage only when you have a thorough grasp of the prospective losses. If you do so, you will prevent significant portfolio losses and prevent being on the wrong side of the market.

 

Never risk more than you can afford

👉 Never risking more than you could afford to lose is one of the most basic laws of risk management in Forex trading. Despite its basic nature, disregarding this rule is a typical error, particularly among those who are new to Forex trading.

 

👉 The foreign exchange market is inherently unpredictable, therefore traders who risk more than they can afford are extremely exposed. If a modest string of losses might wipe out most of your trading money, it shows that each deal involves excessive risk.

 

👉 Covering lost Forex money is challenging, as you must recover a higher proportion of your trading account to make up for your losses. Before engaging in Forex trading, you should thus consider the risk involved.

 

👉  Stop trading if the likelihood of profit is low in contrast to the potential reward. Using a Forex trading calculator might help you limit your risk.

 

👉 A tried-and-true guideline is to never trade with more than 2% of your account balance at any one time. Furthermore, many traders change the size of their positions to match the volatility of the pair they are trading. A pair with a more volatile currency requires a smaller stake than one with a less volatile currency.

 

👉 At some time, you may incur a significant loss or exhaust a significant percentage of your trading money. After a substantial loss, you might want to attempt to recoup your investment with the following deal.

 

👉 However, the worst moment to increase your risk is when your account balance is already low.

 

👉 Consider lowering your trading size or taking a break until you can locate a high-probability transaction during a losing run. In addition, you must always maintain emotional and quantitative equilibrium.

 

Always use Stop-Loss and Take Profit Levels

Stop-Loss

👉 Most traders lose money, but the goal towards which they work is to make greater profits that will outweigh the losses once the trading day ends. One way to ensure that profits are more than losses is by using a stop-loss and take-profit.

 

👉 You may use a stop loss to safeguard your transactions against unexpected market fluctuations by specifying a price at which the deal will end.

 

👉 The transaction will be closed to avoid additional losses when the asset meets your stop-loss price if you entered the market hoping for a gain in the asset’s value.

 

👉 One thing to keep in mind is that stop-loss orders do not guarantee a profit. There are times when the market acts unpredictably and exhibits price gaps.

 

👉 There could be a situation in which the planned stop loss level is not performed, but it is triggered the following time it is reached, resulting in slippage.

 

👉 An excellent guideline for setting stop losses is a percentage loss of no more than 2 percent on any particular transaction. The loss margin should never be increased after the stop loss has been established. In the absence of efficient use, there is no purpose in having a safety net in place.

 

👉 In Forex, there are a variety of stop-loss orders. Depending on your trading style and level of expertise, you can choose between the following:

➡️ Margin Stop

➡️ Chart Stop

➡️ Equity Stop

➡️ Volatility Stop

➡️ Trailing Stop

 

👉 If you notice that you are constantly losing money while using a stop-loss, evaluate how many of your previous stops were hugely beneficial to your trading. To improve your trading outcomes, level adjustments could be all that are needed.

 

👉 You can also safeguard your gains by placing a precautionary stop order. A $500 floating profit can be moved closer to your stop loss to ensure that if it is reached, your trade will finish with part of your profit.

 

👉 In addition, you could keep trailing the stop after the price if the transaction continues to go your way using a “Trailing Stop.”

 

Take Profit

👉 A take profit is quite identical to a stop loss, but as its name implies, it serves the opposite function. A stop loss is meant to automatically cancel deals to avoid future losses, while a take profit is designed to close trades once they reach a predetermined profit threshold.

 

👉 By having realistic expectations for each trade, you may not only establish a profit objective and, therefore, a take profit, but also determine the risk level that is acceptable for the transaction.

 

👉 Most traders aim for a reward-to-risk ratio of at least 1:2, where the predicted profit is double the risk, and they are prepared to take on a trade.

 

👉 Consequently, if you put your take profit 40 pips higher than your entry price, you would place your stop loss 20 pips below your entry price, or half the range. Thus, you must consider the levels you want to achieve on the upside and what degree of loss is reasonable to tolerate on the downside.

 

👉 This will help you keep your discipline during intense market conditions where prices fluctuate faster and more drastically. It will also inspire you to consider the relationship between risk and reward.

 

Do not trade on emotions or “gut” feelings

👉 In trading psychology and risk management, there are numerous commonalities. Emotional self-control is a need for successful forex trading. Emotional control when trading is essential for making the kind of earnings you are looking for in the market.

 

👉 Emotional traders have a challenging time adhering to trading rules and techniques. Traders who are too pessimistic about the market’s direction may fail to exit losing positions promptly.

 

👉 After realizing their error, traders should exit the market with the least amount of loss feasible. Waiting too long might result in a significant loss of cash for the trader. To re-enter the market, traders must be patient and wait for a legitimate chance.

 

👉 Traders who have suffered a loss and are still reeling from it are more likely to execute riskier deals to make up for their losses. Having a winning run might cause a trader to get arrogant and cease adhering to appropriate Forex risk management guidelines.

 

Make sure to use diversification

👉 When it comes to risk management, you cannot put all your eggs in one basket, as the saying goes. To protect yourself if one of your assets loses value, you should diversify your investments throughout several other markets.

 

👉 Subsequently, limiting your exposure to Forex to only a part of your overall portfolio may help you minimize your risk. Exchanging many currency pairs is another strategy to grow your business.

How to choose the right High Leverage 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

👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.

 

Deposits and Withdrawals

👉 Nigerians must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.

 

Range of Markets

👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Nigerians must consider what they wish to trade and what is available.

 

Customer Support

👉 Customer Support is another crucial factor and Nigerians must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.

 

Trading Platform

👉 A trading platform is the Nigerian trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.

 

Education and Research

👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:

➡️ eBooks

➡️ Trading guides

➡️ Trading knowledge on leveraged products

➡️ A risk warning on complex instruments

➡️ Educational videos

 

👉 Research can include some of the following:

➡️ Trading tools

➡️ Commentary

➡️ Status of International Markets

➡️ Price movements

➡️ Market sentiments

➡️ Whether there is a volatile market

➡️ Exchange Rates

➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.

The Best High Leverage Forex Brokers in Nigeria

👉 In this article, we have listed the best Forex brokers that offer high leverage ratios to traders in Nigeria. We have further identified the forex brokers that offer additional services and solutions to Nigerian traders.

 

Best High Leverage MetaTrader 4 / MT4 Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 10 / 4145 NGN

Regulators

CySec, FSCA 

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, FXTM is the best High Leverage MT4 forex broker in Nigeria. FXTM offers MetaTrader 4 alongside its unique and robust proprietary trading app. FXTM offers leverage of up to 1:2000 and provides negative balance protection on all retail trading accounts.

 

Best High Leverage MetaTrader 5 / MT5 Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 10 / 4145 NGN

Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA

Trading Desk

MT4, MT5, MT4 WebTerminal, mobile (iOS & Android, Exness Trader)

Crypto

Yes

Total Pairs

97

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, Exness is the best High Leverage MetaTrader 5 forex broker in Nigeria. Traders in Nigeria may anticipate some of the lowest commission rates and narrowest spreads with Exness, which provides unlimited leverage.

 

👉 Exness offers several trading accounts that can be used across all devices with MetaTrader 5.

 

Best High Leverage Forex Broker for beginners in Nigeria

Xm.com Logo 1 1024x514 1

Overall Rating

Min Deposit

USD 5 / 2 075 NGN

Regulators

IFSC, CySec, ASIC

Trading Desk

Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform

Crypto

No

Total Pairs

57

Islamic Account

Yes

Trading Fees

No (Just spread) 

Account Activation Time

24 Hours

 

👉 Overall, XM is the High Leverage best forex broker for beginners in Nigeria. XM has more than 2.5 million clients in 190 global countries, and this makes it one of the largest brokers in the world.

 

👉 Nigerians can trade more than 1,000 financial instruments with leverage up to 1:888 according to their trading account balance.

 

Best Low Minimum Deposit Forex Broker with High Leverage in Nigeria

Overall Rating

Min Deposit

USD 5 / 2073 NGN

Regulators

CySEC, FSC, FSCA

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

No

Total Pairs

50+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, HF Markets is the best Low Minimum Deposit Forex Broker with High Leverage in Nigeria. HF Markets holds an office in Abuja and provides Nigerians with low minimum deposit accounts with leverage up to 1:1000.

 

Best High Leverage ECN Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 10

Regulators

IFSC

Trading Desk

Meta Trader 4

Crypto

Yes

Total Pairs

32

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

on RoboForex’s website

 

👉 Overall, RoboForex is the best High Leverage ECN forex broker in Nigeria. Apart from offering some of the best execution speeds, RoboForex is also known for its superior liquidity. RoboForex offers leverage up to 1:2000 and Nigerians can expect spreads that start from 0 pips.

 

Best High Leverage Islamic / Swap-Free Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 1 / 415 NGN 

Regulators

IFSC

Trading Desk

Metatrader 4

Crypto

Yes

Total Pairs

300

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

on SuperForex’s website

 

👉 Overall, SuperForex is the best High Leverage Islamic / Swap-Free forex broker in Nigeria. SuperForex is an excellent choice for Muslim traders who want a choice between Swap-Free Accounts. SuperForex also offers leverage up to 1:2000 and accounts from 400 NGN.

 

Best Naira Trading Account Forex Broker with High Leverage in Nigeria

7bforex

Overall Rating

Min Deposit

12 USD / ₦5,000

Regulators

No Regulation

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, 7BForex is the best Naira trading account forex broker with High Leverage in Nigeria. 7BForex is a forex broker native to Nigeria that offers competitive trading conditions to Nigerians.

 

👉 When Nigerians use 7BForex they can expect comprehensive educational materials and leverage up to 1:1000.

 

Best High Leverage NDD Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 10 / 4146 NGN

Regulators

FSC

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

60+

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, Tifia is the best High Leverage NDD forex broker in Nigeria. Tifia is a popular ECN broker in Nigeria that provides the best pricing and competitive zero-pip spreads. Tifia offers three retail accounts and Nigerians can use leverage of up to 1:1000.

 

Best High Leverage STP Forex Broker in Nigeria

Overall Rating

Min Deposit

USD 100 / 41450 NGN

Regulators

Not Regulated

Trading Desk

MetaTrader 5, MetaTrader 4

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

 

👉 Overall, Kwakol Markets is the best High Leverage STP forex broker in Nigeria. Kwakol Markets holds the largest market share over all other brokers in Nigeria. With Kwakol Markets Nigerians can use either MetaTrader 4 or 5 and choose between leverage ratios from 1:1 up to 1:1000.

 

Best High Leverage Sign-up Bonus Broker in Nigeria

Overall Rating

Min Deposit

USD 1 (415 NGN)

Regulators

IFSC, FSCA (south africa), ASIC, CySEC

Trading Desk

MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading pltform, CopyTrade

Crypto

Yes

Total Pairs

250

Islamic Account

Yes

Trading Fees

Low

Welcome Bonus

$140 (58 116 NGNFind out More)

Account Activation Time

Instant

 

👉 Overall, FBS is the best High Leverage sign-up bonus broker in Nigeria. FBS offers Nigerians access to some of the best sign-up bonuses with low minimum deposit requirements.

 

👉 FBS also offers leverage up to 1:3000 on several retail investor accounts and the benefit that there is no slippage or requotes.

Conclusion

👉 Leverage has proven to be an extremely valuable tool to Nigerians in the Forex Market. However, it can be a double-edged sword that requires risk management protocols.

 

👉 Nigerians can access a wider range of markets and trade larger positions using leverage, given that they ensure that they have enough maintenance margin.

FAQ

How much money do you need to trade with leverage in Nigeria?

Most brokers require that you deposit a minimum margin requirement of at least 50%, allowing you to borrow up to 50% of the price of the financial instrument that you want to purchase. This amount will be different between different brokers.

 

What is the best leverage for beginner Nigerian traders?

If you are new to forex trading, you should not use more than 1:10 leverage until you have gained more skills and knowledge to manage your risk tolerance more effectively.

 

What happens if you lose a leveraged trade in Nigeria?

If the value of your stake increases due to market fluctuations, there is no problem. However, if your position loses value to the extent that it no longer meets minimum margin requirements, your broker will liquidate assets to ensure that you do not lose more than you initially deposited.

 

Do you have to pay back leverage to your broker?

Yes, there are consequences for borrowing money to invest, such as when you use margin trading. To make leverage more expensive, several brokers charge interest on margin loans.

 

Is trading with leverage in Nigeria halal or haram?

Except for commerce that may entail anything unethical, all sorts of trade are halal. If you are sure that your transactions are ethical, you can benefit from using leverage.

9.4/10 - (19 votes)

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