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This is our list of the best Forex brokers in Nigeria. These brokers are all trustworthy, have low fees and provide good trading education for new traders. To create this list we tested 160+ Forex brokers accepting Nigerian traders, including the most respected FSRCC-regulated brokers based in Nigeria.

To test a broker, we verify that they are regulated and make sure that their trading costs are not too high, as lower trading costs provide greater opportunity to profit. We also assess the quality of their educational section and market analysis to make sure that new traders are well catered for.

Below the list are reviews of each broker highlighting their features and explaining why they are on the list. We also share our expert knowledge on how to compare Forex brokers. These are the best Forex brokers and best trading platforms in Nigeria in 2022.

  • AvaTrade - Best Forex Broker in Nigeria
  • HotForex - Highest Leverage for Market Execution
  • XM - Broker with the Lowest Spreads in Nigeria
  • Exness - Best Trading Account Conditions for Beginners
  • Pepperstone - Best ECN Trading Execution
  • Axi - Best ECN broker on MT4
  • easyMarkets - Best Risk Management Tools for Beginners
  • CM Trading - Largest African Broker by Client Volume
  • FXTM - Best Forex Broker for Beginners in Nigeria

Best Forex brokers in Nigeria

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Broker
Overall Rating
Official Site
Min. Deposit
Max. Leverage
Beginner Friendly
EUR/USD - Standard Spread
Cost of Trading
EUR/USD - Raw Spread
Total CFDs
Currency Pairs
Platforms
Compare
AvaTrade
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
USD 100
400:1
Excellent
0.90 pips
USD 9
0.90 pips
872
55
Avatrade Social
AvaOptions
HotForex
4.49 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
1000:1
Excellent
1.00 pips
USD 10
0.10 pips
1150
53
XM
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
888:1
Excellent
1.60 pips
USD 16
0.10 pips
1479
57
Exness
4.12 /5
Read Review
Visit Broker >
Your capital is at risk
USD 1
2000:1
Standard
0.70 pips
USD 7
0 pips
201
100
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
400:1
Excellent
0.69 pips
USD 6.90
0.09 pips
1129
60
Axi
4.34 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
500:1
Excellent
1.20 pips
USD 12
0.00 pips
183
70
easyMarkets
3.98 /5
Read Review
Visit Broker >
Your capital is at risk
USD 25
400:1
Standard
2.00 pips
USD 20
0.70 pips
216
103
CM Trading
3.54 /5
Read Review
Visit Broker >
Your capital is at risk
USD 100
200:1
Standard
1.50 pips
USD 15
1.70 pips
160
47
Sirix
FXTM
4.33 /5
Read Review
Visit Broker >
Your capital is at risk
USD 10
2000:1
Excellent
1.50 pips
USD 15
0.00 pips
795
62

Comparing Forex Brokers in Nigeria

Although international brokers accept clients from most countries, trading conditions and regulatory supervision may be different for Nigerian traders. To find the best Forex broker for Nigerian residents, we need to understand account conditions for Nigerian clients in detail.

To test each broker’s trading platform, we opened an account, set up the trading software, read through the educational material, and deposited and traded 100.000 ₦ of our money. We also created all kinds of trouble for the customer service teams, read through the fine print in the client agreements, and tested how long it took to withdraw our money. In our test, we investigated:

Broker Regulation: Regulators keep an eye on Forex brokers to make sure they’re behaving legally and ethically. Some regulators, such as ASIC, the FCA, and CySEC, are better at keeping brokers honest than others.

Account Supervision: Most brokers are supervised by multiple international regulators. As a Nigerian resident, it is important to know which regulatory authority will supervise your trading account. It is common for brokers to open trading accounts for Nigerian residents under their offshore licenses (Mauritius, Seychelles, Vanuatu, etc.) to offer higher leverage or to bypass powerful client protections. Traders with accounts registered under offshore licenses are not protected by the FSRCC and are open to the additional risks of broker bankruptcy, fraudulent activity, or unfavourable trading conditions like a lack of negative balance protection.

Broker Trading Conditions and Costs: Better Forex brokers will often have lower trading costs, meaning that spreads are tight and minimum deposits are low. Trading execution should be lightning-fast and with little or no intervention. Forex brokers should also publish their spreads, execution policy, and a list of all CFDs available to Nigerian traders. We often see that trading conditions and negative balance protection availability change depending on a trader’s country of residence.  

Broker Education and Analysis: Brokers should offer beginner traders a coherent and well-structured trading course alongside a demo account. Brokers should supply detailed market analysis to highlight trading opportunities and provide a complete learning experience. 

Broker Trading Platform: Brokers will have their own trading platform or provide support for a third-party platform, such as MT4, MT5, or cTrader. Some brokers will do both. Most Forex traders generally have a platform preference, so brokers with multiple platforms are more likely to have the platform a trader wants to use.  Platform availability may vary between countries of residence, so our research notes which platforms are available for Nigerian residents.


 

AvaTrade – Best Forex Broker in Nigeria

Founded in 2006, AvaTrade is a beginner-friendly CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds, vanilla options, and ETFs.

Winner of the award for the best Forex broker of 2020, AvaTrade’s AvaTradeGo mobile app offers Nigerian Forex traders an easy and intuitive mobile trading experience. Avatrade spreads are some of the tightest for a commission-free account with a 100 USD minimum deposit – as low as 0.9 pips on the EUR/USD.

AVATRADE FEATURES

  • Maximum leverage of 400:1
  • Both MT4 and MT5 trading platforms are available
  • Integrated Trading Central dashboard for both platforms
  • AvaProtect tool, which allows traders to purchase temporary loss protection. Losses are refunded, but profits are the traders to keep
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.

HotForex – Highest Leverage for Market Execution

Founded in 2009 and headquartered in Cyprus, HotForex is the global brand name of HF Markets Group. Regulated by the FCA, CySEC and the FSCA, HotForex provides trading on Forex, commodities, indices, shares, bonds, and ETFs – though it recently stopped offering crypto CFDs. With No-Dealing Desk STP execution for all trades, client’s trades are posted directly to the market, and leverage is available up to 1000:1 on the Micro Account where the minimum deposit is 5 USD.

HOTFOREX FEATURES

  • FSCA regulation and low-cost Trading Accounts
  • Tight spreads, starting at 1.00 pips pip on the Micro Account.
  • Detailed market analysis for beginners and professionals, including daily market news, trade analysis, and outlooks.
  • Customer support available 24/5 from a toll-free local phone number to assist.
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.

XM – Nigerian Broker with the Lowest Spreads

Founded in 2009, XM is one of the most well-regulated brokers in the Forex industry and offers CFD trading on Forex, stock CFDs, commodities, equities, precious metals, energies, and shares. XM are well known for its low trading fees, wide account choice, execution speed and a wide range of CFD assets available on both the MT4 and MT5 platforms. Hedging, scalping and algorithmic trading are all permitted.

XM FEATURES

  • Both MT4 and the MT5 trading platforms are supported
  • The XM Ultra-Low account: A minimum deposit of 50 USD and spreads start at 0.6 pips with no commission.
  • All accounts have a no-requotes execution policy and 99.35% of XM orders are executed in less than one second.
Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
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.

Exness – Best Trading Account Conditions for Beginners

Founded in Russia in 2008, Exness Group has over 200,000 clients worldwide and offers trading on 100+ Forex pairs, a small range of cryptocurrencies, 70+ stock CFDs, indices and commodities. Exness has nine account types on the MT4 and MT5 platforms – many more than most brokers.  The Standard Cent Account is aimed at beginners who want low fees and a low minimum deposit with a 1 USD minimum deposit, micro-lots unlocked, and spreads as low as 0.3 pips. The only disadvantages to this account are that traders will only be able to trade currency and metals and MT5 is not supported. 

EXNESS FEATURES

  • Nine accounts on the MT4 and MT5 trading platforms
  • ECN Accounts for experienced traders with raw spreads and 7 USD commission
  • Automated instant withdrawal system, with free withdrawals to e-wallets.
  • 24/7 customer service
Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • 24/7 customer service
Cons
  • Limited education
  • Limited market analysis
  • Unavailable in Europe
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.

Pepperstone – Best ECN Trading Execution

Pepperstone is the leading Australian ECN/STP Forex broker. Most trades on Pepperstone have execution in less than 30ms, which is ideal for scalpers and clients who run expert advisors. Both 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. Furthermore, Pepperstone supports all three major trading platforms – MT4, MT5 and cTrader.

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 ECN trading, 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 0.69 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.

Axi – Best ECN broker on MT4

Founded in Australia in 2007, Axi is an ECN broker offering trading on Forex, metals, commodities, cryptocurrencies, and indices – a smaller group of assets than most brokers but with a good selection of 70+ Forex pairs. Axi only provides support for the MT4 trading platform, but with the MT4 NexGen plugin it has the best ECN MT4 trading experience. The MT4 NexGen plugin includes an advanced sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal.

AXI FEATURES

  • ECN trading conditions, 20 liquidity providers so less slippage and requotes
  • Pro Account with spreads starting at 0 pips and 7 USD per lot commission
  • Max Leverage of 1:500
  • Trading tools include Autochartist, Pysquation (an AI trade diagnostic) and VPS hosting
Pros
  • Low minimum deposit
  • Wide range of assets
  • Well regulated
  • Tight spreads
Cons
  • Poor customer service
  • Limited demo account
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA.

easyMarkets – Best Risk Management Tools for Beginners

easyMarkets is a well-regulated market maker offering trading on shares, cryptocurrencies, metals, commodities, indices, and over 103 Forex pairs.  Founded in 2001, easyMarkets was the first broker to introduce negative balance protection and guaranteed stop-loss.  Since then it has introduced other innovative risk management tools, including dealCancellation, which allows traders to cancel a losing trade within a specific period of time, easyTrade, allowing traders to set the maximum amount they are comfortable risking, and Freeze Rate, a unique tool which allows traders to freeze the prices they see. 

Trading conditions are comparatively poor at easyMarkets, with spreads starting at 1.90 pips on the EUR/USD on its commission-free entry-level account.  Spreads tighten slightly on its Premium account, down to 1.40 pips on the EUR/USD in exchange for a high minimum deposit of 2000 USD.  VIP account-holders can access spreads as tight as 0.9 pips on the EUR/USD, but the minimum deposit on this account is 10,000 USD. 

Pros
  • Well regulated
  • Wide range of assets
  • Innovative trading tools
Cons
  • Limited platform choice
  • Limited account options
AlertAccepts Nigerian Clients. Average spread EUR/USD 2.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles.

CM Trading – Largest Nigerian Broker by Client Volume

Founded in 2012 in Sandton and now with over 1 million clients worldwide, CM Trading is the largest Nigerian broker and offers trading on Forex, indices, cryptocurrencies, commodities, oil, and metals. A. minimum deposit of 100 USD, negative balance protection, personalised customer service, and fixed spreads on a range of assets with EURUSD spreads from 1.70 pips pips.

CM TRADING FEATURES

  • FSCA-regulated since 2012
  • 6 account types on MT4 and Sirix Webtrader
  • CopyKat copy trading system
  • Guardian Angel automated feedback tool to optimise strategy and prevent errors
Pros
  • Good for beginners
  • Great customer support
  • Copy trading accounts
Cons
  • Expensive withdrawals
  • Local regulation only
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.70 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.

FXTM – Best Forex Broker for Beginners in Nigeria

Founded in 2011 and regulated by the UK’s FCA and the FSC in Mauritius, FXTM is an established Forex and CFD broker offering trading on Forex, commodities, metals, stocks, and indices. While FXTM’s Advantage Account has a minimum deposit of 500 USD with spreads starting at 0.0 pips and a 4 USD commission, FXTM also offers a Micro Account with a 10 USD minimum deposit but with wider spreads (starting at 1.5 pips) that may be more appealing to beginners.

FXTM FEATURES

  • NGN Trading accounts for Nigerian Traders
  • FXTM Invest CopyTrading scheme: Clients can copy the trades of 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.
  • FXTM also offer videos covering analysis topics and advanced chart reading techniques for experienced traders.
  • FXTM are one of the few 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 the Foreign exchange market?

The foreign exchange market, also known as the forex (or even more simply, the FX market), is the largest financial market in the world. Every day, trillions of pounds of global currencies are traded in what are called “pairs”, i.e. the exchange of one currency for another, such as pounds for dollars, euros for Japanese yen, etc. These transactions are carried out five days a week, 24 hours a day around the globe and determine the value of every currency on the planet second by second, based on supply and demand. So, if the pound is in demand, its value against, for example, the dollar will rise and vice versa.

Given its scale and breadth, forex trading is easily accessible by individual investors, who can open an account with a few hundred pounds and begin trading immediately. But it is easy to lose money, especially if you are a beginner. Trading successfully requires effort, discipline and a determination to learn as much as you can about the market before you start. You also need to understand the regulations governing the market, the costs of trading and which brokers to use. Most importantly, you should understand the risks and disadvantages before deciding whether forex trading is for you.

Why does the forex market exist?

There are many reasons why people trade currencies. Nigerian companies may need to buy dollars to pay for American imports, or they may need euros to pay for the acquisition of a company based in Europe. Central banks, such as the Bank of England, can intervene in FX markets, buying and selling currency to manipulate its value for reasons of economic policy. Speculators also drive a very large part of the market, trading with the aim of generating a profit.

Large financial institutions, multinational corporations and hedge funds dominate the forex market, which reached a value of US$6.6 trillion per day in April 2019, according to the latest statistics.[i] That size means it is a hugely liquid market, i.e. it is very easy to buy and sell currencies because there are so many buyers and sellers in the market for most currencies.

Market drivers

The British pound is a free-floating currency. In other words, the value of the pound in the FX markets is determined by supply and demand. This is the case for the currencies of most advanced economies. By contrast, some currencies, such as the Chinese renminbi (RMB), have a fixed exchange rate. The Chinese authorities determine the value of the RMB against the dollar and keep the link until they decide to alter the exchange rate. Clearly, there is no potential for individual traders to profit from trading currencies with a fixed exchange rate.

The value of a floating currency such as the UK pound, however, is constantly moving up and down against other currencies. Often these movements are relatively small, so the pound may begin the trading day buying one dollar and forty cents and end a fraction of a cent higher or lower, or even back at its opening level. But dramatic economic or political news can spark much greater volatility. For example, the pound fell by around 10% the day after the UK had voted to leave the European Union, back on 23 June 2016. Traders, fearing a prolonged period of political and economic uncertainty, sold the pound as quickly as they could.[ii]

Economic developments are also a key influence. New data suggesting the economy is growing faster than anticipated might spark concerns that the Bank of England could raise interest rates to rein in growth. Higher interest rates enhance the appeal of holding a currency, since you are getting a bigger return on your money. That outlook consequently boosts demand for the pound and its value rises. Similarly, if the UK’s economic outlook darkens and traders anticipate the Bank of England will cut interest rates, they will sell the pound, so depressing its value against other currencies.

That is why FX traders follow economic, financial and political news so closely, looking for any hint of information that could sway the value of the pound. They are hoping to react before other traders spot the development. Or they may take bets on a likely development, believing they have some insight that other traders lack. So, for example, on the day of the Brexit vote, before the results were announced, the pound soared in value because many traders were convinced that Remain had won.

Why is forex trading popular in Nigeria?

Forex trading is the largest and most easily accessible market in the world. The costs involved are relatively low compared with other markets, there are lots of brokers to choose from in Nigeria, and it is relatively easy to understand the ways in which you can trade the market. There are many freely floating currencies and since they can all be traded against each other there are a huge number of currency pairs to trade. A vast amount of information is available to would-be traders, ranging from how to get started to outlining potentially profitable trading strategies.

You can trade from your living room using a fairly basic computer if you download the appropriate trading software, and it is relatively easy to set up an account with a broker. Unlike other financial markets, you can also exploit the concept of “leverage”, where you make use of borrowed money to increase your potential profits (and your losses). To explain what this means, currency pairs are traded in specific amounts called lots. They tend to be in 100,000 units of a currency, so, for example, if you are trading in the pound sterling against the US dollar, you would buy or sell £100,000 at a time. Since most people don’t have £100,000 available to trade, the broker effectively offers to lend you money. So, they may allow you to trade in a lot of £100,000 by opening an account with £1,000 and lend you the remainder. The initial £1,000 is known as the margin and your leverage, in this case, would amount to 100 to one (100:1).

As we mentioned, as well as increasing potential profits, leverage can dramatically increase risk. There are methods you can use to contain risk, but that is a topic for another article.

The disadvantages of forex trading

Forex trading requires a considerable commitment. It takes time to learn how to trade profitably, and when you start to trade you may have to spend many hours per day on your computer screen following and researching what is happening in the market – and why – in preparation for your trading day. When that day is finished, you will need to analyse what happened and why your trading activities succeeded or failed, so that you can apply the lessons learnt to the next day’s trading. There could be days when you lose money and it is easy to become disheartened. There is certainly no guarantee of success. FX trading can be risky and you can lose money or you may find that it is simply not something you like or have the temperament for. You have to be patient, for example, waiting for opportunities to arise, and the market can experience bouts of extreme volatility that you may find highly stressful.

Introduction to the regulation of the Nigerian market

The financial market regulator in Nigeria is the Securities and Exchange Commission (SEC). This body regulates the Nigerian Stock Exchange, the bonds market and the operators within the equity trading industry. Nigeria’s financial markets are not as robust as you would find in the Western world. Short selling is not permitted, and the SEC has not made any moves to regulate the Forex market or other exotic financial trading products. Rather, it has been content with providing disclaimer warnings to the public, asking them to only invest in markets approved by the SEC and only to trade with money they can afford to lose. You might by now be building the picture that there is a huge regulatory absence in the Forex industry in Nigeria.

Prior to 2010, the Forex market in Nigeria was hit by many scams and local Forex traders lost millions of dollars to offshore brokers who simply disappeared with their clients’ funds. There is now better awareness about the need to use brokers who are regulated. However, many local traders still patronize unregulated brokers who tempt them with over-the-top bonus offers. Some established names in the local financial markets have begun to lobby the SEC to follow the examples of Kenya, South Africa and Mauritius, by enacting regulatory protocols specifically for the Forex market.

However, Nigeria is a very ethnically diverse country and certain activities such as the operations of companies in the financial markets are dominated by certain ethnic nationalities. Getting bills to back regulation of such industries to pass in the Nigerian Senate and House of Representatives usually requires a lot of collective bargaining that sometimes has to cross these ethnic lines. This makes it not only a difficult proposition but also a lengthy process. A case in point is a bill that seeks to regulate Nigeria’s highly controversial oil sector, which has still not been passed close to 20 years since its introduction.

FX trading scams

The regulatory gap has led to an increase in Forex broker interest in the country, and also unlicensed money managers, signals providers, introducing brokers and schemes which resemble Ponzi-style operations.

A number of renowned Forex firms have entered the country and established local branches, including Instaforex, Alpari, Liteforex and Avatrade. ACM Brokers also opened in Nigeria in 2019. Strangely, these firms are not licensed by the Securities and Exchange Commission to offer Forex trading to Nigerian traders. Rather, they are riding on the licenses of their parent firms in Cyprus and other offshore locations to deliver their product offerings to the local market.

These Forex brokers in Nigeria are not the problem though, as they have conducted business largely with respectability. The biggest scam operations in the Forex market in Nigeria, border on the so-called “trade for me” business models, which are basically a system where someone offers to trade Forex accounts for others with no money management licenses. SEC provides licenses for money managers in Nigeria, but it is virtually impossible to see any one of these “money managers” with an actual license.

In the last three years, three companies have come into the market offering returns of up to 30% per month for money lodged with them. The companies say they will invest your money into the Forex market. The biggest of these companies is MBA Trading, which has hosted a number of high-profile events in which top-ranking members of the Nigerian government have attended. The company claimed it had an SEC license, but in a strange twist, the SEC named them as an unlicensed company and warned the public against doing business with them. Those who claim to have been paid regularly by MBA Trading have hailed them as the best thing to have ever happened to the Nigerian Forex industry, but critics say their mode of operations and returns paid to clients (which exceed average returns on Forex trading) smack of a well-oiled Ponzi scheme waiting to unravel.

The disadvantages of using a regulated broker

Regulations can limit your options when trading FX. Regulations require brokers to follow rules that are specific to their country of origin. An example is leverage limitation: retail traders with UK brokers are limited to 30:1 leverage. An unregulated broker, by contrast, could offer a 500:1 ratio. Offshore brokers also tend to have lower costs, which they can pass onto you in terms of lower trading fees in terms of lower commissions or better spreads.

Islamic Accounts

Forex trading is conducted mostly by Nigerians from ethnicities in the mostly Christian South of the country, with very little participation from the mostly Muslim North. Therefore, Islamic accounts are not considered an important consideration among the Nigerian Forex trading population. Most Muslim investors prefer to use the Jaiz Bank, Nigeria’s only Islamic-investment compliant financial institution, to run their investments.

Comparing forex brokers in Nigeria

A forex broker provides traders with a platform that gives them access to the FX market and allows them to buy and sell currencies. Opening an account is simple and can be done online. You will be asked to provide proof of identity and a deposit.

Using an offshore broker – the pros and cons

You can open an account with an offshore broker, i.e. a company based outside Nigeria, or even outside Africa.

There are advantages and disadvantages to using an offshore broker. The main advantage, as discussed above, is that you won’t be subject to the restrictions placed on a regulated broker. The disadvantages include the fact that if you use an offshore broker, it will be subject to the regulations of that country and it may not be as well supervised at all. If things go wrong and your broker is registered in a country thousands of miles from Nigeria, it might be difficult to gain legal redress.

There are things you should consider whether you use a regulated broker or one based offshore. These include:

  • The trading experience – is the trading platform easy to use, what kind of support do they offer, and are there tools that can help with research, etc?
  • Trading costs and transparency – these can vary widely from broker to broker. Some charge a fixed commission regardless of how much you trade, while others charge a fee based on trading volume (the higher the volume, the greater the commission). Other brokers don’t charge a commission but instead charge a spread fee. The spread is the difference between the price the broker quotes you for buying a currency and the price it quotes for selling it. This is effectively the fee your broker charges you to trade. (For example, imagine the US dollar is trading at 1.40 to the pound and you decide to buy some dollars. The broker may quote you a price of 1.4002, so you have been charged two pips – “percentage in point” or “price interest point” – for your trade. The pip is thus $0.0001 for US dollar-related currency pairs.) It is also important to be aware of the hidden fees some brokers charge, such as inactivity fees, monthly or quarterly minimums, and fees associated with calling a broker on the phone.
  • Customer service – you can trade anytime over 24 hours five days a week so do they offer 24 support during trading hours? Is help available instantaneously online or via the phone or do you have to wait for long? You can check by calling the broker at different times of the day before signing up.
  • The size of the minimum deposit. This can vary from just $1 to $500 although you can open an account with most brokers for around £100.
  • The maximum leverage offered. This is a standard 30:1 ratio for forex brokers in the UK regulated by the FCA. But offshore brokers can offer higher levels of leverage with some providing a 500:1 ratio.

How to Compare Forex Brokers in Nigeria

Though Forex brokers might appear to be similar, they are quite different once you dig a little deeper, and account conditions will vary for UK residents. These are some of the most common questions traders will have when comparing Forex brokers.

Forex Brokers for Beginners

Forex Broker Fees and Trading Costs: 

Other Trading Options

Forex Broker Regulation

Forex Broker Customer Support:

Forex Trading Platforms:

Do I Need a Broker to Trade Forex?

Yes, you will need a broker to trade Forex. Connecting traders to the Forex market is an expensive and technically complex business. It’s important to choose a regulated Forex broker with low costs and a history of treating its clients fairly. 

Which is the Best Broker in Nigeria?

The best broker in Nigeria is IG Markets. The world’s largest CFD broker by revenue, IG Markets is also publicly listed and a member of the FTSE 250. Forex trading at IG Markets is commission-free, and with spreads starting at 0.6 pips on the EUR/USD, IG has some of the cheapest trading costs in the industry. IG also has the most CFDs to trade in the world, including commodities, indices, 16,000+ shares and ETFs, options, interest rates and bonds. Negative balance protection is provided to all clients, and all funds are kept in segregated accounts.

Which is the Best Broker for Beginners?

IG Markets is also the best broker for beginners in Nigeria. IG Markets has some of the lowest fees in the industry, with spreads starting at 0.6 pips on the EUR/USD. IG Markets’ has no required minimum deposit for bank transfers and traders can access 17,000+ CFDs, including Forex, indices, commodities and shares. Beginners will also appreciate IG Markets’ world-class educational and market analysis section.

Other good options for a reliable broker for beginners are:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Beginner Friendly
Beginner Course
Experienced Course
Webinars
Printable Ebook
Unlimited Demo
Support Hours
Min. Deposit
Compare
IG Markets
4.69 /5
Read Review
Excellent
24/5
USD 250
Capital.com
4.68 /5
Read Review
Excellent
24/7
USD 20
HotForex
4.49 /5
Read Review
Excellent
24/5
USD 5
AvaTrade
4.48 /5
Read Review
Excellent
24/5
USD 100
Tickmill
4.48 /5
Read Review
Excellent
24/5
USD 100

Which Broker has the Best Demo Trading Account?

IG Markets also has the best demo trading account in Nigeria. IG Market’s demo account never expires and is available on both MT4 and IG’s own web-based trading platform (also available on iOS and Android). IG’s platform offers in-depth financial analysis with over 75 technical indicators, multiple trading chart types, and extensive drawing tools.  It also allows traders to toggle in and out of up to six tabs while keeping an eye on all charts and instruments. All 17,000+ of IG’s CFDs are available through its demo account.

Other brokers with great demo accounts include:

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Broker
Overall Rating
Unlimited Demo
All Regulators
Beginner Friendly
Beginner Course
Experienced Course
Beginner Videos
Advanced Videos
Webinars
No. of FX Pairs
Compare
IG Markets
4.69 /5
Read Review
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Dubai Financial Services Authority
Commodity Futures Trading Association
Excellent
80
Capital.com
4.68 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
Excellent
137
HotForex
4.49 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
Financial Services Commission
Excellent
53
MarketsX
4.49 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
Excellent
67
Tickmill
4.48 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
Labuan Financial Services Authority
FSCA Regulated Forex Brokers
Excellent
62

Are Forex brokers in Nigeria reliable?

Yes, most Forex brokers in Nigeria are reliable and trustworthy. The most reliable brokers in Nigeria are regulated by authorities in the UK, Europe or Australia and have a history of treating traders fairly. If you are unsure about the reliability of your Forex broker, you can check our list of brokers to avoid.

How do I Choose a Forex Broker?

When choosing a Forex broker there are three things to consider:

  1. Regulation: Make sure you choose a broker regulated by the FCA (UK) or one of the other major regulators like CySEC (Europe) or ASIC (Australia). Regulated brokers have better security and will treat their traders fairly
  2. Cost: Look for a broker with a low minimum deposit and low fees. Broker fees will include the spread, commission and deposit and withdrawal fees. 
  3. Education: If you’re a beginner you will want a broker with good educational content. All of the brokers on our Best Brokers for Beginners page have high-quality education for beginners.

How do Forex Brokers Make Money?

Some brokers (called market makers) only make money from the spread – the difference between the buying and selling price of the currency pair. These brokers will be the counterparty to any trade, so they make money when clients lose trades. 

Other brokers (called ECNs) have tight spreads but make money from commissions, which are charged every time a trade is opened or closed. This type of broker makes money whether a client wins or loses.

Which Broker has the Lowest Fees?

Tickmill is the broker with the lowest fees, with the total trading cost on its Pro Account equalling 0.4 pips on the EUR/USD, this includes a 0 pip minimum spread and a round turn commission of 4 USD per 100,000 traded. 

Other brokers with low trading costs are:

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Broker
Overall Rating
Cost of Trading
Regulators
Min. Deposit
Max. Leverage
EUR/USD
USD/JPY
GBP/USD
Account Types
Trading Commission
Compare
Tickmill
4.48 /5
Read Review
USD 4
CySEC Regulated Brokers
FCA Regulated Brokers
Labuan Financial Services Authority
FSCA Regulated Forex Brokers
USD 100
500:1
0.10 pips
0.10 pips
0.30 pips
STP
4 USD / lot - Pro Account
Admiral Markets
4.24 /5
Read Review
USD 5
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
FCA Regulated Brokers
USD 25
500:1
0.10 pips
0.30 pips
0.60 pips
STP
1.8 - 3 USD per lot
IG Markets
4.69 /5
Read Review
USD 6
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Dubai Financial Services Authority
Commodity Futures Trading Association
USD 250
200:1
0.85 pips
0.94 pips
1.40 pips
Market Maker
Fees Included in Spread
Capital.com
4.68 /5
Read Review
USD 6
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
USD 20
30:1
0.60 pips
0.80 pips
1.30 pips
Market Maker
Fees Included in Spread
ETX Capital
4.07 /5
Read Review
USD 6
FCA Regulated Brokers
FSCA Regulated Forex Brokers
CySEC Regulated Brokers
GBP 100
200:1
1.01 pips
1.35 pips
1.85 pips
Market Maker
Fees Included in Spread

Broker fees are split into the trading costs, which is the total of the spread and commission, and non-trading fees such as deposit and withdrawal fees. 

The spread is the difference between the buy and sell price of a Forex pair and is measured in pips, the smaller or “tighter” the spread the less money you spend when you make a trade. Commission is charged by some brokers every time a trade is opened or closed. 

How do I make a Deposit with a Broker?

Making a deposit with a broker is a simple process. Once you have signed up and opened a live account you will be given a few options. Most brokers in Nigeria will accept local bank transfers, credit cards, online payment solutions like Paypal, and eWallets like Neteller and Skrill. Bank transfers usually take 1-2 days to process and may have a fee attached but all other deposit methods are usually instant and free. 

How do I make a Withdrawal from a Broker?

To make a withdrawal from a broker you must have enough money in your trading account after deducting the margin needed to keep any trades open. Once you know how much you can withdraw, you can make a withdrawal request via your account dashboard. To prevent money laundering, brokers in Nigeria will only allow you to withdraw the same amount as your initial deposit back to your credit card or eWallet. Anything more than this will have to be withdrawn to a bank account in your name. 

Which Broker has the Lowest Minimum Deposit?

Pepperstone is the regulated broker with the lowest minimum deposit. While Pepperstone recommends opening an account with at least £200, it recently waived deposit requirements entirely. In addition, Pepperstone charges no inactivity fees for dormant accounts, charges low withdrawals fees, and has some of the lowest trading fees in the industry.

Other regulated brokers in Nigeria with low minimum deposits are:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Min. Deposit
Regulators
Max. Leverage
Cost of Trading
EUR/USD
USD/JPY
GBP/USD
Compare
Oanda
4.25 /5
Read Review
USD 0
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Investment Industry Regulatory Organization of Canada
British Virgin Islands Financial Services Commission
200:1
USD 10
0.10 pips
0.10 pips
0.10 pips
Global Prime
4.19 /5
Read Review
USD 0
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
Vanuatu
100:1
USD 8
0.16 pips
0.39 pips
0.75 pips
FXCC
3.84 /5
Read Review
USD 0
CySEC Regulated Brokers
500:1
USD 6
0.60 pips
0.80 pips
0.80 pips
FIBO Group
3.50 /5
Read Review
USD 0
CySEC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
British Virgin Islands Financial Services Commission
Financial Services Commission
1000:1
USD 6
0.30 pips
0.30 pips
0.50 pips
FBS
4.23 /5
Read Review
USD 1
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
International Financial Services Commission
3000:1
USD 7
0.80 pips
1.30 pips
1.20 pips

With most brokers, larger deposits usually unlock lower trading costs and other perks. What level of minimum deposit you are comfortable with depends on your financial situation.  

How do I Calculate Trading Costs?

When trading Forex, the total trading cost is the spread on the currency pair you are trading plus any commission your broker may charge. If you keep a trade open overnight you will also be charged a rollover (or “swap”) fee, which will be deducted automatically from your account. Major pairs, such as the EUR/USD or USD/JPY have tighter spreads and are cheaper to trade.

Which Broker Has the Most CFDs?

MultiBank is the broker with the most CFDs to trade. Regulated by 10 different authorities, MultiBank offers trading on over 20,000 instruments, including Forex, indices, share CFDs, commodities and cryptocurrencies. Multibank’s Standard Account has a minimum deposit of 50 USD and Islamic accounts are available for all Nigerian traders.  

Brokers with the widest range of instruments to trade are:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Total # CFDs
# FX Pairs
Regulators
Min. Deposit
Max. Leverage
Cost of Trading
Trading Commission
Compare
MultiBank
3.93 /5
Read Review
20093
41
Financial Services Commission
ASIC Regulated Forex Brokers
USD 50
500:1
USD 14
3 USD / lot
IG Markets
4.69 /5
Read Review
19295
80
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Dubai Financial Services Authority
Commodity Futures Trading Association
USD 250
200:1
USD 6
Fees Included in Spread
FP Markets
4.28 /5
Read Review
10084
60
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
USD 100
500:1
USD 7
6 USD / lot - RAW Accounts
FIBO Group
3.50 /5
Read Review
8079
48
CySEC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
British Virgin Islands Financial Services Commission
Financial Services Commission
USD 0
1000:1
USD 6
6 USD / lot
ETX Capital
4.07 /5
Read Review
5135
62
FCA Regulated Brokers
FSCA Regulated Forex Brokers
CySEC Regulated Brokers
GBP 100
200:1
USD 6
Fees Included in Spread

Which Broker has the Most Currency Pairs?

Capital.com is the Broker with the most currency pairs, with over 130 currency crosses to trade. Capital.com has low fees and also has over 3000 shares to trade too. 

Other Forex brokers with a larger than usual selection of currency pairs to trade are:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Forex Pairs
Crypto Pairs
Regulators
Min. Deposit
Max. Forex Leverage
Cost of Trading
EUR/USD
USD/JPY
GBP/USD
Compare
Capital.com
4.68 /5
Read Review
137
220
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
USD 20
30:1
USD 6
0.60 pips
0.80 pips
1.30 pips
Swissquote
3.90 /5
Read Review
130
5
FCA Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Finansinspektionen
USD 1000
100:1
USD 17
1.70 pips
1.60 pips
2.00 pips
InstaForex
3.32 /5
Read Review
110
11
CySEC Regulated Brokers
British Virgin Islands Financial Services Commission
USD 1
1000:1
USD 30
3.00 pips
3.00 pips
3.00 pips
easyMarkets
3.98 /5
Read Review
103
12
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
USD 25
400:1
USD 20
0.70 pips
1.00 pips
1.30 pips
Exness
4.12 /5
Read Review
100
3
FSCA Regulated Forex Brokers
The Seychelles Financial Services Authority
USD 1
2000:1
USD 7
0 pips
0 pips
0.10 pips

Which Broker is the Best for Professional Traders?

Pepperstone is the best broker for professional traders. An ECN broker with extensive liquidity streams, Pepperstone supports all three major trading platforms (MT4, MT5 and cTrader) and has some of the tightest spreads in the industry (0.09 pips EUR/USD spread on its Razor Account). 

Commissions are low and there are no minimum deposit requirements. Commissions can be further reduced by becoming a member of Pepperstone’s Active Trader Program. The Active Trader Program has a number of other advantages for high-volume traders, including a free VPS service and priority customer support.

What are Managed Forex Trading Accounts?

Some brokers will operate a managed account for you, but this is rare. There are independent money managers who can manage your account while they are trading for themselves. It is vital that you read our article on managed accounts and understand the minimum deposit requirements and additional risks involved when trading CFDs.

How do I Know if a Forex Broker is Regulated?

All regulated brokers are required to display their licence number and the authority they received it from on their website. These licence numbers can be easily verified on the regulatory authority’s website. Some scam brokers will use similar names to legitimate businesses, so make sure the name of the licence holder on the regulator’s website matches the broker’s details.

How do I check if a Forex broker is licenced by the FSRCC?

All Forex brokers that are regulated by the FSRCC are required to publish their FSRCC licence number on their website. Once you have the licence number of a broker you can go use the FSRCC search page to enter the FSP and verify that the broker is indeed licenced.

How Can I Report Scam brokers?

If you believe you have been scammed by your broker, the first thing to do is warn others and tell your story. You can contact FSRCC and ask them to investigate. We also have a report a scam broker form which we use to gather information so that we get the word out.  If you have been scammed, please complete the form.

Which Broker has the Best Customer Support in Nigeria?

FP Markets is the regulated broker with the best customer service. FP Markets customer support has won 22 awards since the company was founded in Australia in 2005. Available 24/7 (0800-1600 on weekends) via live chat, email, telephone and call-back service in over 12 languages, FP Markets’ customer support is knowledgable, responsive and can assist traders with all aspects of CFD trading, from setting up accounts to navigating its platforms, plus any other technical queries.

Which Forex Broker has the Best Platform?

Marketsx is the best trading platform and is owned by Markets.com, which has been FCA-regulated since 2014. Traders can use the Marketsx platform to trade over 2,200 financial instruments. The platform also offers advanced charting, making it easier to spot trends and identify new trading opportunities. Marketsx also allows traders to use five types of indicators once, overlay multiple assets, or compare up to eight instruments side-by-side. Marketsx is available on mobile devices and via the markets.com website. 

Which is the Best Platform for Forex?

Currently, MetaTrader 4 (MT4) is the best platform for trading Forex. MT4 has been around since 2005 but is supported by most Forex brokers and used by millions of traders around the world. MT4 is resource-efficient, fast, and can run on older hardware without any issue. It’s also fully customisable and can handle multiple trading accounts from different brokers with a single installation.

MT4 is particularly valued for its automated trading facilities. Traders can create or buy algorithmic trading robots and install them on their version of MT4 to automate trading or assist in decision making. It’s also possible to copy other traders through the MT4 trading signals facility. 

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 Rating & Review Methodology

Our State of the Market Report and directory of CFD Brokers to Avoid are the results of extensive research on over 200 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

References

These documents were used in the inspiration, research and data collection for this article.

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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