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AuthorBy Chris Cammack
Updated: May 5, 2022

CFD trading is a form of investment made popular by tales of generous profits from trading both sides of the market – all from the comfort of working from home. CFD brokers provide the trading software needed to connect traders with the CFD market, so the first step for a new trader will be to choose from a long list of potential brokers.

To start our review process, we evaluated the broker’s financial regulation, trading platforms, educational material, minimum deposit requirements, and fee structure. To test these CFD brokers further, we created live trading accounts, depositing the minimum required amount, and started researching the trading conditions and functionality offered to emulate a beginner trader’s experience. These are the best CFD brokers in Nigeria for 2022, according to our testing and our research, where extra consideration was given for low trading costs and strong international regulation. 

  • FP Markets - Best Overall CFD Broker
  • XM - Best CFD Education
  • HotForex - Most Popular CFD Broker in Nigeria
  • AvaTrade - Best Mobile Trading Experience
  • Pepperstone - Best ECN CFD Broker
  • FxPro - Best MT5 CFD Broker
  • XTB - Best Proprietary CFD Trading Platform
  • FXTM - Best CFD Broker for Beginners

Best CFD Trading Brokers 2022

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Broker
Overall Rating
Official Site
Min. Deposit
Max. Leverage (Forex)
Total CFDs
Currency Pairs
Share CFDs
Commodity CFDs
Indices
Trading Cost (Forex)
Regulators
Trading Desk
Platforms
Support Hours
Compare
FP Markets
4.28 /5
Read Review
Visit Broker >
Your capital is at risk
AUD 100
500:1
10099
60
10000
11
17
USD 7
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
ECN/DMA
IRESS
24/5
XM
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
888:1
1510
57
1291
10
14
USD 16
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FCA Regulated Brokers
International Financial Services Commission
Market Maker
24/5
HotForex
4.49 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
1000:1
1169
53
71
5
24
USD 10
CySEC Regulated Brokers
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Dubai Financial Services Authority
Financial Services Commission
STP
24/5
AvaTrade
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
USD 100
400:1
872
55
625
25
33
USD 9
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
British Virgin Islands Financial Services Commission
Financial Services Agency
CySEC Regulated Brokers
Central Bank of Ireland
Market Maker
Avatrade Social
AvaOptions
24/5
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
USD 0
400:1
0
70
0
17
28
USD 7.70
FCA Regulated Brokers
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
Dubai Financial Services Authority
Bundesanstalt für Finanzdienstleistungsaufsicht
Securities Commission of the Bahamas
Capital Markets Authority
NDD
24/7
FxPro
4.29 /5
Read Review
Visit Broker >
Your capital is at risk
USD 100
200:1
2181
70
2030
0
19
USD 14
FCA Regulated Brokers
CySEC Regulated Brokers
FSCA Regulated Forex Brokers
Dubai Financial Services Authority
Securities Commission of the Bahamas
Market Maker NDD
FxProEdge
24/7
XTB
4.14 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
500:1
4148
48
1891
23
37
USD 14
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
International Financial Services Commission
Market Maker NDD
xStation5
24/5
FXTM
4.33 /5
Read Review
Visit Broker >
Your capital is at risk
USD 10
2000:1
791
62
172
3
11
USD 15
CySEC Regulated Brokers
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Financial Services Commission
ECN/DMA
Market Maker
24/7

FP Markets – Best Overall CFD Broker

FP Markets is an Australian CFD broker offering thousands of CFDs to trade, including 60+ Forex pairs, shares, metals, indices, commodities, and cryptocurrencies (Bitcoin, Etherium, Ripple, Bitcoin Cash and Litecoin). Both MT4 and MT5 are available with ECN pricing, ensuring low spreads and fast execution. But for the full range of FP Market’s CFDs the IRESS trading platform offers direct exchange access and leverage of 20:1 on 10,000 global stocks.

MT4 and MT5 trading accounts can be opened with a minimum deposit of 100 USD. Average spreads on the RAW Account are 0.1 pips (EUR/USD) and commission on this account is 6 USD round turn, making the total trading costs at the low end for the industry. IRESS trading accounts require higher minimum deposits, starting at 1000 AUD for the Standard Account. IRESS trading accounts also attract a brokerage rate, IRESS platform fee and an ASX Live Data fee unless a minimum monthly commission is reached.

FP Markets also offers a range of trading tools including VPS, Autochartist and copy-trading via Myfxbook AutoTrade. For beginners, the Traders Hub gives beginner CFD traders the education they need to get started and includes video tutorials and trading courses.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC, ASIC and BVA FSC.

XM – Best CFD Education

An FCA regulated CFD broker with tight spreads over three simple account types, XM offers trading on Forex, shares, commodities, indices, precious metals, and energies. XM stands out for its educational support and market research. XM’s research team provide frequent market updates across all CFD classes in an easy-to-understand manner, highlighting trading opportunities and technical insight. Webinars are available 7 days a week in 19 languages and educational videos cover basic, intermediate, and advanced trading concepts.

All XM accounts have max leverage of 888:1, negative balance protection, and minimum deposits start from 5 USD. XM also has a strict no-requotes/rejection policy, which means that all trades are always filled at the price expected. Platform support is offered for MT4 and MT5 but MT4 users will only be able to trade Forex, stock indices, precious metals, and energies.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Dealing desk
  • Wide spreads on its entry-level accounts
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 888:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.

HotForex – Most Popular CFD Broker in Nigeria

HotForex is a global CFD broker with FSCA regulation providing a variety of CFDs including Forex pairs, commodities, indices, shares and crypto. HotForex offers lightning-fast STP execution and access to 1000+ CFD instruments on all six different accounts that it offers. HotForex has also introduced symbols listed on the JSE to its portfolio, ideal for South African traders who want to trade local shares. The minimum deposit on the Micro Account is exceptionally low, at 70 ZAR (5 USD) and spreads start at 1.2 pips on the EUR/USD. For beginners, HotForex offers unlimited demo versions of all its account types. For more experienced traders, the HotForex Zero Spread Account offers spreads down to 0 pips for a 200 USD minimum deposit.

HotForex supports MT4 and MT5 via every method, including the MT4 MultiTerminal, which allows traders to manage multiple MT4 accounts from a single platform. MT4 and MT5 are also available via web, desktop, and Android and iOS apps. Trading tools available include free Autochartist, VPS services and the HFCopy copy trading service.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

AvaTrade – Best Mobile Trading Experience

AvaTrade is an internationally and FSCA regulated beginner-friendly CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds, vanilla options, and ETFs. The AvaTradeGO app provides one of the best mobile trading experiences and, unlike many European brokers, AvaTrade has a local South African customer support team. All 1000+ CFDs instruments offered by AvaTrade are available in the app, as is the AvaProtect tool, which protects traders from losses for a limited time. Other highlights of the app include a market trends monitor, zoom function and seamless synchronisation with AvaTrade’s webtrader.

Avatrade single account features some of the tightest spreads for a commission-free account with a 100 USD minimum deposit – as low as 0.7 pips on the EUR/USD. Maximum leverage is set at 1:400 on MT4 and MT5, which include EA’s, indicators, scalping, hedging, and provides free access to the integrated Trading Central dashboard for both platforms. 

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

Pepperstone – Best ECN CFD Broker

Pepperstone is the leading ASIC regulated ECN/STP Forex and CFD broker with CFD trading on over 0 instruments including Forex, indices, shares, commodities, cryptocurrencies, and currency indices. Pepperstone’s two ECN accounts offer market execution with some of the tightest spreads in the industry – the Razor Account has spreads from 0 pips for the EUR/USD and 7 USD commission.

Pepperstone also offers fixed spreads on its indices CFDs, after-hours trading for US shares, and crypto basket trading – indices of the world most highly traded cryptocurrencies.

Pepperstone’s award-winning, 24-hour support provides the foundation for its excellent customer service, where personalised assistance is available via several methods. For beginners interested in CFD trading with an ECN broker, Pepperstone’s also has one of the better education sections offered by a market execution broker.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.77 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone Group is regulated by the FCA, ASIC, and the DFSA.

FxPro – Best MT5 CFD Broker

FxPro is a respected and well-regulated CFD broker, offering NDD execution on MT5, MT4, cTrader and its own browser-based trading platform. The MT5 account offers a 100 USD opening deposit combined with competitive spreads on 70+ Forex pairs, futures, indices, shares, metals, and energies. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are ideal for traders who want to take advantage of MT5’s algorithmic trading capabilities across a range of assets.

The MT5 account at FxPro offers market execution, variable spreads, no requotes and will allow for partial fills for orders that lack liquidity.  The MT5 account is commission-free with spreads sometimes down to 0.6 pips, though traders will find that the average spread on the EUR/USD is closer to 1.2 pips. FxPro offers a range of technical analysis indicators from Trading Central for MT5 as well as a free VPS service. 

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB.

XTB – Best Proprietary CFD Trading Platform

A well-regulated STP broker, XTB offers trading on multiple assets, including Forex, indices, commodities, stock CFDs, ETFs, and cryptocurrencies.  XTB offers trading on two live accounts with competitive trading conditions, including tight spreads, high leverage, and no minimum deposit requirements. The main draw at XTB is the award-winning xStation 5 trading platform. Intuitive, powerful, and fast, xStation 5 shows XTB sentiment data in the platform and offers powerful charting tools, one-click trading, and real-time performance statistics so traders can identify areas for improvement.

While xStation 5 is a multiple award-winning platform, some traders may be disappointed that XTB recently removed its support for MT4 – severely limiting platform choice. It’s important to note that as xStation 5 is a proprietary platform it can not be used at other brokers, so traders may feel tied to XTB. For beginners, XTB has some of the best Forex education available. Its Trading Academy is structured into topics and experience levels; it is clear and concise and structured like a course. Market analysis is less detailed but will assist new traders looking for trading opportunities.

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.40 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, FCA, the DFSA, and the IFSC

FXTM – Best CFD Broker for Beginners

FXTM is an award-winning CFD broker offering trading on 250+ instruments including Forex, commodities, metals, stocks, and indices. While FXTM’s Advantage Account Account has a minimum deposit of 500 USD, spreads starting at 0 pips, and a 4 USD commission, FXTM also offers a Micro Account with a 50 USD minimum deposit and spreads starting at 1.5 pips which could be more appealing to the beginner. For beginners looking to copy professional traders, the FXTM Invest CopyTrading scheme is one of the best in the industry, where traders can copy Strategy Managers whose risk profile matches their own.

FXTM has a large volume of training material, including videos, webinars, and a searchable glossary of new vocabulary to help new traders get started. An additional set of videos covering analysis topics and more detail on chart reading techniques is available for experienced traders. FXTM are one of the few CFD brokers with weekend support, allowing new traders to get set up outside of the working week.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

What is CFD Trading?

CFD trading, or a Contract for Difference, is where investors don’t take ownership of the asset they are trading. CFDs are derivative products; their value is derived from the underlying asset. The underlying asset can be anything that is commonly traded on a market – be this commodities such as crude oil, corn and gold or equities such as Spotify or Boeing shares or currencies such as Forex and crypto pairs, or even entire indices such as the NASDAQ, JSE or FTSE. So, rather than trading the asset itself, traders instead speculate on the future price of the asset with what is known as a futures contract.

Leverage

The second important thing to understand about CFDs is the leverage involved. CFDs are leveraged products where traders only put up a small percentage of the amount required for the trade, and a third-party liquidity provider will lend the trader the rest. The money in the trader’s account will then be used as collateral against the loss, but in exchange, the profits for the trader can be much larger. For instance, if you buy 100 USD of a crude oil CFD at 100 USD a barrel and the price of crude goes up by 2 USD you will make 2 USD in profit. But if you borrow 900 USD (to make an even 1000 USD when added to your 100 USD – a 10% margin or 10x leverage) and you buy 1000 USD of crude oil you would make 20 USD – all without spending more than your original 100 USD, a fairly incredible 20% profit in real terms.

Leverage Iceberg

The problem with this is that you can also lose money incredibly quickly. Take the same example above, but this time the price of crude oil falls by 5 USD. Because of your leveraged position (10x in this case), you would lose 50 USD, half of your original investment. In a volatile market (such as Crypto or certain commodities) it is very easy to lose your entire investment.

Additionally, losses apply not just to your investment but to your whole account and, if you are not careful, you can lose large amounts of the trading capital in your account through something called a margin call – this is explained in detail in the FAQs below.

Due to the risk involved in using leverage, retail CFDs are banned or very tightly regulated in much or the world. Since this trading is speculation on the price of an asset or instrument, traders can make money when the price is both rising or falling.  CFD traders will take long positions when the market is bullish, and short positions when the market is bearish.

How to trade CFDs

To start trading CFDs, you will need to find a reputable broker and open an account – check out our list above. Because it is a financial trading account, the broker will require that you submit copies of your government issues identification documents and proof of residence such as a utility bill issued in the past six months. Once your account is set up, you will be able to make a deposit and open your first trade.

Is CFD trading gambling?

It can be gambling if you treat it as such, but if you do your research and treat it like any other investment in the financial markets, it is not gambling. It’s important to remember the risk of leverage as your deposit is only a small part of your overall exposure and you can lose substantially more than your deposit if the trade goes against you.

However, it is possible to reduce your potential losses by using a stop order. This means that the trade will automatically be closed if it goes against you by an amount you specify. Higher spreads can be another pitfall as it can ruin any potential profits. So pick which instruments you trade very carefully.

What is short selling with CFDs?

Short selling is when you believe the price of an instrument is going to decrease rather than increase. Instead of buying low and selling high, you sell high and buy low – profiting on the decrease in the underlying instrument’s value. See our article on short-selling for a more detailed breakdown of how this can work and it’s uses in trading.

What is a Margin Call?

Brokers will apply a required margin on any position taken by a trader – this is often 50% of the original margin or 50% of your original investment, but it varies from broker to broker and instrument to instrument. If the total funds available in your trading account falls below this value the broker will make a margin call – requiring you to add funds to your trading account or close your position, covering any losses from your trading account. Needless to say, this is a very bad thing, and if you are planning on holding a long-term position in a volatile market you should have the required margin foremost in your mind when calculating the funds to hold in your trading account.

Commissions on Trades

In addition to your deposit to open or close a CFD trade, you might have to pay a small commission, which can be as low as 0.1%. That said, most brokers make money through the spread and will charge no commission. You may also have to calculate interest adjustments that are added or subtracted from your trade if you hold the trade overnight.

Is Trading Profits Taxed in Nigeria?

Profits are taxable in Nigeria as income, even the case if the broker is located outside of Nigeria. The Nigerian government never sees this as a tax-free form of income. For more detailed information read our tax article.

Is CFD Trading Allowed in Islam?

Traders can open Halal accounts, which the industry has named Swap Free accounts. Swap Free accounts will stop any interest payments being made either from the broker to you, or you to the broker.

Swap Free accounts are more common than you may think and are widely available with CFD brokers. The usual way to get a swap-free trading account is to complete the regular registration process and ask your account manager to make the changes in your account.

Summary

CFDs are designed to mirror the price of underlying assets so traders can take advantage of the price fluctuation without owning the underlying instrument. Technically a CFD is a financial contract between the trader and broker that allows speculation on price.

CFDs are a flexible and attractive alternative to other financial vehicles and they allow you to take advantage of the fluctuations in the value of a huge range of instruments.

Importantly, CFD trading allows traders to make money both when the market is rising or falling. Furthermore, you don’t have to put up the full cost of exposure to the market, and there is no fixed period for your trade. With CFDs, you’re able to trade a multiple of your capital using leverage, but this can be a double-edged sword so make sure you’ve done your research and that you keep a close eye on your trades.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the results of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and sifting through the fine print. Learn more about how we rank brokers

Featured Brokers

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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