There are a lot of forex Brokers in Nigeria that offer services to the country’s residences. However, thousands of traders in Nigeria were scammed by unregulated financial institutions. As a result, a group of online forex trading brokers in Nigeria, the Association of Online Forex Trading Agents, started an initiative to restore the lost confidence and trust in online forex trading. One of the main points was to engage various government agencies and authorities in regulating the foreign exchange market. The bodies who have the power to establish a regulatory framework for trading in OTC derivatives are the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
Despite all those efforts, the market in Nigeria reached to a point with no specific rules governing online forex trading and the market became open to a lot of forex brokers. Nigerian residents are targeted by many forex brokers as the demand for financial services is growing in this promising and emerging market. In fact, many forex brokers in Nigeria have established a strong physical presence. As there is no substantial legal framework for online forex brokers in Nigeria, no authority is overseeing their business activities. The CBN regulates mainly the interbank currency market.
Another African country with a booming forex trading industry that attracts a lot of forex brokers, is South Africa.
What is Forex Trading?
Forex trading includes all the aspects of buying, selling and exchanging currencies in order to make a profit. The forex industry was established to enable the purchase and exchange of currencies in pairs. In forex trading terminology, a currency pair includes a base currency and quote currency. The ultimate objective of forex trading, is to make profit as the prices of these various currencies fluctuate affected by global economic events.
Is Forex trading legal in Nigeria?
Forex trading in Nigeria is legal as long as traders stay on the right side of the law. As long as one chooses to work with a regulated forex broker, and is trading for himself and not on behalf of others, then there is nothing to worry about. It is also important that traders declare their earnings for tax purposes, as they would with a normal employment income.
Nigerian Forex Brokers List
MAS, JFSA, DIFC