| Summary Table | |
|---|---|
| ⚖️Regulator | Central Bank of Nigeria (CBN) |
| 💰Negative Balance Protection | No |
| 💰Compensation Scheme | No |
| 🎮Is it Safe to Trade? | Yes |
| 💱Leverage Allowed | No Limit |
As with most countries in Africa, forex trading has seen a significant increase in popularity across Nigeria over the past few years. Especially with the new pandemic, many young Nigerians have turned to forex and the financial markets for some passive income, or even as a full-time job. This is also because anyone can trade from the comfort of their home.
Online forex trading is relatively new in Nigeria and therefore there are no specific rules or requirements regulating this activity. However, the Association of Online Forex Trading has been formed that works closely with the Central Bank of Nigeria (CBN) to monitor and regulate this market.
Is Forex Trading Legal in Nigeria?
Although forex trading is not illegal in Nigeria, it is considered a grey area with a significant amount of risk involved as there is a lack of strict oversight from the government. Local residents are advised to trade with a broker who is authorized by the Central Bank of Nigeria (CBN) – https://www.cbn.gov.ng/ or Securities and Exchange Commission (SEC) of Nigeria – https://sec.gov.ng/
If you want to learn more about forex trading and how it works, click here to visit our Beginners Guide to Forex.
How To Start Forex Trading in Nigeria?
The important requirements traders need to get started are the same as in any other country. Traders simply need to have a computer or mobile device, a stable internet connection, trading capital, and an account with a trusted Forex broker.
What Are the Best Trading Platforms for Nigerian Traders?
The best forex trading platforms for traders in Nigeria are MetaTrader4 (MT4), MetaTrader5 (MT5), and cTrader and these trading terminals have proven to be reliable, easy to use, and equipped with everything a trader needs to confidently trade.
What are the Best Payment Methods for Forex trading in Nigeria?
- Major debit and credit cards like VISA and MasterCard
- Bank wire transfers
- e-wallets like Neteller and Skrill
- Money transfer services like Western Union and Perfect Money
Forex Regulation in Nigeria
The Central Bank of Nigeria (CBN) is the regulatory body for all financial services and monetary policies in Nigeria. It is by far the biggest institution for forex exchange in the whole of Nigeria. Alongside the SEC of Nigeria, they provide a legal framework for forex trading and other securities and derivatives exchange. They are empowered to make laws and regulations that control other brokers and entities wishing to engage in foreign exchange. Some of these laws and policies include:
- The Exchange Control Act of 1962
- The Central Bank of Nigeria Act
- Banks and Other Financial Institutions Act, 2007
- The Money Laundering(Prohibition) Act
Nevertheless, it is not required to get authorization from these two bodies in order to offer financial services and forex trading to the residents of Nigeria, due to the fact that there is no license to offer yet.
However, it is advised to choose a regulated broker with a Tier 1 license like Cysec, FCA, FSCA, or ASIC to make sure your funds are protected.
Best Forex Brokers in Nigeria
Through our thorough review process we chose the following brokers that stand out for their services in Nigeria:
- OctaFX – Best for Education, Copy Trading, and Local Support
- Pepperstone – Best Overall and Most Trusted Forex Broker
- BlackBull Markets – Best Web Trading Platform and Instrument Collection
- Vantage – Great for Professional and New Traders
- Avatrade – Best for Beginner Traders, Great Mobile App
OctaFX
Pepperstone
BlackBull Markets
Vantage
Avatrade
Learn2Trade
CryptoSignals
1000pipbuilder
DDMarkets
Etoro
1.
OctaFX
- Best for Education, Copy Trading, and Local Support
Regulated By:
SVGFSA(octafx.com), CySec(octafx.eu)
Leverage:
1:500
Min. Deposit:
$25
Trading Instruments:
250+
2.
Pepperstone
- Best Overall and Most Trusted Forex Broker
Regulated By:
FCA , ASIC, CYSEC, BAFIN, CMA, DFSA, SCB
Leverage:
1:30
Min. Deposit:
$200
Trading Instruments:
1000+
3.
BlackBull Markets
- Best Web Trading Platform and Instrument Collection
4.
Vantage
- Great for Professional and New Traders
Regulated By:
ASIC, CIMA, VFSC
Leverage:
1:500
Min. Deposit:
$200
Trading Instruments:
1000+
5.
Avatrade
- Best for Beginner Traders, Great Mobile App
Regulated By:
ASIC, JFSA, FSCA
Leverage:
1:400
Min. Deposit:
$250
Trading Instruments:
250+
Nigeria Forex Brokers Comparison
| Broker Name | Accepts Nigeria Residents |
Regulated by CBN |
Minimum Deposit |
Visit Broker |
|---|---|---|---|---|
| OctaFX | Yes | No | $25 | Visit Site |
| Pepperstone | Yes | No | $200 | Visit Site |
| BlackBull Markets | Yes | No | $200 | Visit Site |
| Vantage | Yes | No | $200 | Visit Site |
| Avatrade | Yes | No | $100 | Visit Site |
| XM | Yes | No | $5 | Visit Site |
| IC Markets | Yes | No | $200 | Visit Site |
| XTB | Yes | No | $5 | Visit Site |
| ActivTrades | Yes | No | $200 | Visit Site |
| FP Markets | Yes | No | $200 | Visit Site |
Methodology
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. We analyze more than 3000 data points across 8 key focus areas.
Our reviews are a combination of data research and working alongside the brokers. All information provided by the brokers are double-checked to guarantee 100% accuracy and that we remain unbiased.
2023 Review Methodology
For our 2022 Forex Broker Review, we assessed, rated, and ranked 45 international forex brokers over a three-month time period. Each broker was graded on 108 different variables and, in total, over 100,000 words of research were produced.
While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.
All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 0.1% each year, providing site visitors with quality data they can trust. Learn more about how we test.
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
Chad Smith
Director of Research & Analysis
Chad Smith is the Director of Research & Analysis here at ForexBrokerListing.com.
Chad previously served as an Editor for a number of websites related to finance and trading, where he authored a significant number of published articles about trading and the impact of technology in transforming investing as we know it.
Overall, Chad is an active fintech and crypto industry researcher with more than 15 years of trading experience, and you can find him teaching his dog how to trade in his free time.