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75-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. We may receive compensation when you click on links to products we review. Please read our advertising disclosure. By using this website you agree to our Terms of Service.

EditorEditor: Alison HeyerdahlUpdated: Apr 28, 2024
AuthorAuthor: Chris Cammack

Last Updated On Apr 28, 2024

Chris Cammack

The best Forex brokers for beginners all share the same essential qualities. They will be regulated to ensure protection from fraud and have a user-friendly trading platform for a stress-free first trading experience. In addition, they will have a comprehensive educational section and a free demo account so beginners can learn as they trade without risking their own money. Finally, they should also have low costs, as many beginners start trading with small sums of money, and reliable customer support in case technical issues arise.

All the Forex brokers on this list have been chosen because they meet these criteria, so whatever your exact needs as you start trading, you will find a broker that suits you.

These are the best Forex brokers for beginners in Nigeria for 2024.

  • Octa - Best Platform Options for Beginners
  • AvaTrade - Best Trading App for Beginners
  • Pepperstone - Lowest Cost ECN broker for Beginners
  • HFM - Best Customer Service for Beginners
  • XM - Best Education for Beginners
  • Exness - Low-Cost, Low-Risk Cent Account
  • IC Markets - Best ECN Broker for Beginners
  • FBS - Best Trading Account For Beginner Traders
  • XTB - User-friendly Platform, Comprehensive Trading Academy
  • FP Markets - Best Customer Support for Beginners

Forex Brokers for Beginners 2024

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Broker
Broker Score
Official Site
Beginner Friendly
Min. Deposit
Beginner Course
Beginner Videos
Downloadable Ebook
Unlimited Demo
Trading Cost
Currency Pairs
Crypto Pairs
Total CFDs
Platforms
Regulated
Support Hours
Compare
Octa
4.37 /5
Read Review
Visit Broker >
67.65% of retail CFD accounts lose money
Excellent
USD 25
USD 6
35
30
232
OctaTrader
CySEC Regulated Brokers
FSCA Regulated Forex Brokers
Mwali International Services Authority
24/5
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
Excellent
USD 100
USD 9
63
30
930
Avatrade Social
AvaOptions
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
CySEC Regulated Brokers
Financial Services Agency
Central Bank of Ireland
Financial Regulatory Services Authority
24/5
Pepperstone
4.61 /5
Read Review
Visit Broker >
89%74- of retail CFD accounts lose money
Excellent
USD 0
USD 10
100
19
1275
TradingView
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
24/7
HFM (HotForex)
4.53 /5
Read Review
Visit Broker >
72.90% of retail CFD accounts lose money
Excellent
USD 0
USD 10
53
40
1230
HFM Trading App
CySEC Regulated Brokers
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Dubai Financial Services Authority
Financial Services Commission
The Seychelles Financial Services Authority
24/5
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
Excellent
USD 5
USD 6
57
60
1554
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
Dubai Financial Services Authority
International Financial Services Commission
FSCA Regulated Forex Brokers
24/5
Exness
4.32 /5
Read Review
Visit Broker >
71.67% of retail CFD accounts lose money
Standard
USD 3
USD 7
100
34
221
Exness Terminal
FSCA Regulated Forex Brokers
The Seychelles Financial Services Authority
Capital Markets Authority
British Virgin Islands Financial Services Commission
Financial Services Commission
24/7
IC Markets
4.56 /5
Read Review
Visit Broker >
70.81% of retail CFD accounts lose money
Excellent
USD 200
USD 8
64
18
1744
TradingView
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
Securities Commission of the Bahamas
24/7
FBS
4.33 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
Excellent
USD 5
USD 7
37
100
254
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
International Financial Services Commission
24/7
XTB
4.39 /5
Read Review
Visit Broker >
78% of retail CFD accounts lose money
Excellent
USD 0
USD 7
57
49
5211
xStation5
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
International Financial Services Commission
Komisja Nadzoru Finansowego
24/5
FP Markets
4.40 /5
Read Review
Visit Broker >
79% of retail CFD accounts lose money
Excellent
AUD 100
USD 7
70
11
10162
IRESS
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
FSCA Regulated Forex Brokers
Capital Markets Authority
The Seychelles Financial Services Authority
24/5

What is a Forex broker? 

Online Forex trading can only be done via a Forex broker. Because most of the currency traded globally comes from large institutions like banks that don’t deal with retail clients, Forex brokers facilitate the trades between these institutions and retail traders. Forex brokers buy up large currency positions and make them available to retail traders who can open accounts with just a few hundred dollars or less.  Brokers also provide the software – called a trading platform – which connects the trader to the virtual network of computers that forms the Forex market.  

How we selected the Best Forex Brokers for Beginners 

We have an experienced review team dedicated to evaluating the best brokers for beginners, so you don’t have to. Our team of experts meticulously examines each broker in 7 different areas using over 200 individual metrics. We invest hundreds of hours annually researching and scrutinising brokers to ensure we only recommend the best in the Forex industry.  

Forex Broker Scoring

Of these 7 areas, we focused on the broker’s regulation, trading platforms, educational resources, and customer service to ensure that they cater to beginner traders. You can find out more about our in-depth review process here.


Others Also Visit

Scroll for more detailsPreviousNext
Visit
Octa
4.37 /5
Read Review
Visit
AvaTrade
4.59 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit
Exness
4.32 /5
Read Review
Visit
HFM (HotForex)
4.53 /5
Read Review
Visit

Octa – Best Platform Options for Beginners

Broker Score
4.374.37 / 5
🏦  Min. DepositUSD 25
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2011, Octa offers three different trading platforms catering to beginner and experienced traders. The MT4 platform is the most popular trading platform globally and is a great starting point for many beginners. The MT5 platform has more features but also allows trading on stocks. At Octa, all accounts have low trading fees, with a minimum deposit of 25 USD and commission-free spreads down to 0.6 pips (EUR/USD).

Octa also recently launched its OctaTrader platform, which is also available as a mobile app on iOS and Android devices. This platform features a modern, intuitive design and is best for those with no trading experience.  All three platforms have demo accounts that never expire, an excellent option for beginners who want a risk-free introduction to trading. The educational material offered at Octa is designed specifically for beginner traders, with an online trading academy.

Pros
  • Fast and free withdrawals
  • Low minimum deposit
  • Tight spreads
Cons
  • Limited range of assets
  • Poorly regulated
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 and Octatrader platforms supported. Octa is regulated by CySEC.

Avatrade – Best Trading App for Beginners

Broker Score
4.594.59 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A well-regulated ASIC Forex broker, Avatrade offers trading on multiple assets, including Forex, commodities, cryptocurrencies, ETFs, options, bonds, and vanilla options.  With full support for leading trading platforms, including MT4, MT5, and its award-winning app, AvatradeGO, Avatrade provides one of the most user-friendly and innovative trading environments for beginner traders. 

Voted Best Forex Trading App by the Global Forex Awards, AvatradeGO allows access to trader insights, connect with global trading markets, create watchlists, and view live prices and charts.  It also offers a range of trading tools, including Autochartist, Duplitrade, and AvaProtect, its own state-of-the-art risk management system.  Lastly, Avatrade’s educational and market analysis materials are comprehensive, well-structured, and in-depth, catering to traders of all experience levels. 

Pros
  • Top-tier regulation and security with licenses from ASIC and CBI among others
  • Accessible trading with a low minimum deposit of 100 USD
  • Award-winning mobile trading with the AvaTradeGO app with social trading features
  • Wide range of assets including unique instruments like vanilla options
  • Educational material to support trader development and strategy enhancement
Cons
  • Market analysis could be more extensive
  • Poor regulatory oversight outside of the UK and EU
  • Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
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 – Lowest Cost ECN broker for Beginners

Broker Score
4.614.61 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A leading Australian broker, Pepperstone offers support for the MT4, MT5, and cTrader platforms on two account types with ECN execution.  Pepperstone’s trading conditions are some of the most competitive in the industry, with spreads starting at 1.00 pips on its commission-free Standard Account, and averaging at 0.10 pips (EUR/USD) on the Razor Account in exchange for a commission of 7 USD per trade.  Most trades are executed within 30 milliseconds, which is ideal for scalpers and those who run expert advisors. 

Pepperstone offers an array of educational materials to help beginners get their trading careers underway. Its educational resources comprise free trading guides, articles on how to trade Forex and CFDs, various courses and videos.  It hosts regular webinars, and archives of previous webinars are available for free on its website.  Customer service is also available 24/7 in multiple languages to help beginners with any setup or technical queries. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pipson the trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4, MT5, TradingView & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, CySEC, SCB, CMA, BaFin and the DFSA.

HFM (formerly known as HotForex) – Best Customer Service for Beginners

Broker Score
4.534.53 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A global CFD broker, HFM offers trading on several instruments, including Forex, crypto, metals, energies, indices, shares, commodities, bonds, and ETFs.  Traders have the choice of five account types, with tight spreads, leverage of up to 1000:1, and minimum deposits starting at 0 USD on its entry-level account.  HFM’s award-winning customer support is available 24/5 in over 27 languages via email, live chat, and telephone.  Its goal is to provide the best customer service by maintaining a client-focused culture. 

HFM also provides a world-class repository of educational and market analysis materials, including articles, video tutorials, and frequent webinars on current events, advanced trading strategies, and chart analysis.  Traders who open a demo or live account will also access the Hotforex e-Course, which outlines Forex theory and trading, reading and interpreting the charts, trading psychology, and technical analysis.  

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 – Best Education for Beginners

Broker Score
4.454.45 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

XM also provides some of the best educational and market analysis materials in the industry.  Comprised of various sections, including its unique live education available Monday to Friday 05:00 – 15:00 GMT, daily Q&A sessions, educational videos, Forex webinars presented by 67 highly skilled experts in 19 languages, platform tutorials, and Forex seminars, traders will be well equipped to get their trading career underway. 

A well-regulated market maker, XM offers trading on multiple assets, including Forex, stocks, commodities, equities, precious metals, energies, and shares.  Traders can choose between four live accounts on both the MT4 and MT5 platforms.  XM boasts a strict no requotes and no rejections policy, and 99.53% of all trading orders are executed in less than one second. 

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the Belize FSC.

Exness – Low-Cost, Low-Risk Cent Account

Broker Score
4.324.32 / 5
🏦  Min. DepositUSD 3
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. LeverageUnlimited:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2008, Exness is a market maker that offers both market and instant execution accounts on both the MT4 and MT5 platforms.  Trading conditions at Exness are some of the best in the industry and include a low-cost Cent Account to help beginner traders get their footing. 

Exness offers two standard trading accounts and three professional accounts with a range of options for traders of all experience levels.  Its beginner-friendly Standard Cent MT4 Account has a minimum deposit requirement of 1 USD and offers spreads starting at 0.3 pips on the EUR/USD.  This is a great account for new Forex traders who want to learn the ins and outs of trading without too much risk.  Customer support is also available 24/7 to help beginner traders set up accounts and assist with any technical queries.   

Pros
  • Highly competitive spreads and low trading costs (7 USD per lot).
  • Extensive selection of trading instruments and over 100 Forex pairs
  • User-friendly trading platforms: MT4 MT5 and Exness Terminal.
  • Minimum deposit requirement of only 3 USD
  • Offers copy trading options
Cons
  • Extreme leverage
  • Limited range of share CFDs
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage Unlimited:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA and the FSA Seychelles.

IC Markets – Best ECN Broker for Beginners

Broker Score
4.564.56 / 5
🏦  Min. DepositUSD 200
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

IC Markets is a well-regulated ECN broker that provides a welcoming environment for beginner traders.  Many other ECN brokers fail to provide education and analysis materials, forcing traders to self-educate with third-party material.  IC Markets’ extensive education hub is free to all visitors of the website and includes topics such as Forex Basics, Technical Analysis, Fundamental Analysis, Trading Psychology, Trading Strategies, and Risk Management, among others.  Instructional videos are also available to help clients set up trading software. Furthermore, IC Markets has a dedicated support department operating 24/7 via email, live chat, and phone, helping beginner traders to set up accounts on the weekend.  

IC Markets offers two Raw Spread Accounts and a Standard Account with variable spreads on the MT4, MT5, and cTrader platforms.  The Raw Spread Accounts offer spreads averaging at 0.1 pips on the EUR/USD, which is one of the tightest spreads available, in exchange for a commission of 7 USD per trade. IC Markets pricing relies on 25 different liquidity providers ensuring deep liquidity and some of the lowest spreads in the industry.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC, ASIC, and the FSA.

FBS – Best Trading Account For Beginner Traders

Broker Score
4.334.33 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage3000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

With very low minimum deposits, two low-risk accounts for beginners, and excellent education and market analysis, FBS is the best broker for beginner traders. Beginners who don’t want to risk too much money will like FBS’ Cent Account, which has a 1 USD minimum deposit, and the Micro Account, with a 5 USD minimum deposit. Both accounts also feature low-risk trading, with trading in USD cents on the Cent Account and micro-lots unlocked on the Micro Account. Both are also demo accounts and will only expire after 90 days of inactivity.

FBS is also one of the better brokers in terms of education and market analysis. The education section is comprehensive and well-structured, and the market analysis is up-to-date and well-explained. Beginners will also appreciate that FBS’ customer service is available 24/7 – a welcome development, where the norm is 24/5.  This is especially helpful for beginner traders who want to set up trading accounts on weekends.  

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
Cons
  • Limited range of assets
  • Extreme leverage
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.

XTB – User-friendly Platform, Comprehensive Trading Academy

Broker Score
4.394.39 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A well-regulated STP broker, XTB is the creator of the award-winning xStation 5 platform.  With a user-friendly and intuitive design, it allows traders to track market movements accurately.  It also offers powerful charting tools, one-click trading, real-time performance statistics, and a trader’s calculator. 

XTB provides some of the best training materials available for beginners.  Its Trading Academy is comprehensive, clear and concise, and structured like a course.  It also offers one-on-one mentoring, dedicated account management, and 24/7 customer service, allowing a smooth onboarding experience for beginner traders. 

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 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 FSC

FP Markets – Best Customer Support for Beginners

Broker Score
4.404.40 / 5
🏦  Min. DepositAUD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A large, globally renowned ECN/DMA broker, FP Markets is well-recognised by the Forex industry, having won numerous awards since its inception. Available 24/7 via live chat, email, and telephone in over 12 languages, FP Markets’ customer service helps beginner traders with all aspects of CFD trading, from setting up an account to navigating its platforms and any other technical queries.

FP Markets offers competitive trading conditions on two live accounts on the MT4, MT5 and cTrader platforms, with spreads averaging at 1.2 pips (EUR/USD) on its commission-free Standard Account and 0.10 pips (EUR/USD) on its Raw Account in exchange for a commission of 6 USD (round turn) per lot traded.  

Pros
  • Trusted since 2005 with top-tier regulation
  • 100 USD minimum deposit amount
  • Supports MT4 MT5 cTrader and TradingView
  • Spreads start at 1.0 pip and narrow to 0 pips with higher trading volumes
  • Welcoming South African traders with specific regulatory compliance
Cons
  • Notably higher withdrawal fees than competitors
  • Stock CFDs are limited on MT4/MT5 and primarily available through IRESS
  • High leverage up to 500:1 posing risks for inexperienced traders
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.

What is Forex Trading? 

Forex trading is the buying and selling of different currencies on the foreign exchange market. The goal of forex trading is to profit from fluctuations in exchange rates between currencies. The Forex market is the biggest financial market in the world, with over 6.6 trillion USD traded every day. Because the Forex market is global and virtual, it operates 24 hours a day, 5 days a week – from the moment the Australian market opens on Monday morning until the New York market closes on Friday evening. 

Why is Forex Trading Popular in Nigeria? 

Forex trading’s popularity in Nigeria has soared due to increased internet access, flexible 24/5 trading hours, and the potential for significant returns. In a growing economy with a youthful, tech-savvy population, online trading platforms and forex education resources have seen widespread adoption. Moreover, the Nigerian Central Bank’s efforts to regulate and monitor forex trading has increased confidence in the market.

Key Considerations for Beginners when Choosing a Forex Broker 

  • Regulatory Compliance:

Ensure the broker you choose is regulated by a reputable financial authority, like the Financial Conduct Authority in the UK, the Australian Securities and Investment Commission, or the Financial Sector Conduct Authority (FSCA) of South Africa. Regulation provides a level of security and ensures that the broker adheres to a set of standards, providing trader protection against fraudulent activities. 

  • User-Friendly Trading Platforms 

As a beginner, it’s essential to choose a broker that offers a user-friendly trading platform. The platform should be easy to navigate, with a clear layout and intuitive design. It should provide easy access to buy and sell orders, charting tools, market news, and other features necessary for trading. Moreover, the platform should offer seamless execution of trades and real-time price updates. The functionality and usability of the trading platform will have a significant impact on your trading experience. 

  • Comprehensive Educational Material

A forex broker that offers comprehensive educational resources can be highly beneficial for beginners. Look for brokers that provide a range of learning materials, such as e-books, webinars, tutorial videos, FAQs, and glossaries. These resources can help you understand forex trading concepts, strategies, market analysis, risk management, and more. Some brokers also offer dedicated learning centres or academies, which can be incredibly valuable for enhancing your trading knowledge and skills. 

  • Accessible Demo Accounts

Demo accounts are an invaluable tool for beginners. They allow you to practice trading strategies, understand how the forex market operates, and get familiar with the trading platform without risking any real money. Ensure that the broker you choose provides an easily accessible and fully functional demo account. Ideally, the demo account should closely mimic the conditions of a real trading account, offering a realistic trading experience. 

  • Low Minimum Deposit Requirement

As a beginner, it’s advisable to start with a broker that has a low minimum deposit requirement. This allows you to start live trading without making a significant financial commitment. Remember, as a new trader, the primary goal should be to learn and gain experience, not to make big profits. Once you gain confidence and experience, you can consider investing more money. Always remember that forex trading involves risks, and it’s possible to lose the money you invest. 

  • Reliable Customer Support:

For beginners, effective customer support can be crucial. Problems can arise anytime, and having a responsive local Nigerian support team can make a significant difference. You want a broker that offers 24/7 customer support through various channels (e.g., live chat, email, and a local telephone number). Additionally, the support team should be knowledgeable and capable of resolving issues quickly and effectively.

  • Transaction Costs:

Every time you trade, you will have to pay for either the spread or a commission, so it’s crucial to look for the most affordable and reliable brokers. When we evaluate brokers, one of the most important considerations is the trading costs, which can affect your profitability. Brokers such as Avatrade and Pepperstone are both good for beginner traders and provide a low-cost trading environment.

  • Withdrawal and Deposit Methods:

Good Forex brokers will allow you to deposit funds and withdraw your earnings hassle-free. Ensure the broker’s withdrawal and deposit methods are convenient and straightforward. Check for any fees associated with these transactions, as they vary between brokers. Having accounts denominated in NGN is also a bonus for Nigerian traders, who will be able to avoid paying currency conversion fees on deposits and withdrawals. 

Tips for Beginners to Get Started Forex Trading 

  • Use a Demo Account

Demo accounts are a crucial tool for any beginner in the forex market. These accounts allow new traders to practice trading without risking real money, providing a risk-free environment to understand how trading works. They offer real-time market scenarios, enabling traders to familiarise themselves with different trading platforms, implement various strategies, and understand trading operations like placing orders, setting stop losses, and making profits. Beginner traders should always start with a demo account before transitioning to a live trading account. 

  • Continual Learning and Regular Practice

Forex trading is not a set-it-and-forget-it activity. It requires constant learning and skill upgrading to stay abreast of changing market conditions. This can be achieved by attending webinars and seminars, enrolling in online courses, listening to podcasts, and staying updated with financial news. Traders should also learn technical analysis, charting, and the use of trading indicators. Practicing different strategies and learning from successful forex traders can contribute significantly to skill enhancement.

  • Understanding Risk Management

Risk management is a key component of successful forex trading. It involves recognising potential risks and taking steps to mitigate them. This includes setting stop-loss orders to limit potential losses, using leverage wisely to avoid significant losses, and never investing more money than you can afford to lose. Diversification, trading only a small portion of your capital, and not getting emotionally attached to trades are vital risk management strategies. Remember, the goal is not to win every trade but to manage your risk so you can stay in the game for the long term.

  • Following Market Trends

Understanding and following market trends is essential in forex trading. Trends give traders an idea of the direction in which the market is moving. Traders can use various technical analysis tools to identify trends, such as moving averages and trend lines. Following market trends and combining this strategy with other trading techniques can increase the likelihood of making successful trades. Additionally, staying updated with global news and economic indicators can provide insights into potential market trends. It’s important to note that trends can change quickly, so traders should be adaptable and ready to respond accordingly. 

FAQs

How much money do I need to start Forex trading? 

Some brokers in Nigeria have minimum deposits of just 4600 NGN, but we recommend starting with at least 100,000 NGN to avoid your account being wiped out if the market turns against you. 

Most international brokers require a minimum deposit in USD, which can vary from as low as 5 USD to as high as 2000 USD, depending on the broker and the account type you are opening. In Nigeria, some brokers will offer NGN trading accounts which means that you can keep your trading balance in naira. 

What are the risks involved in Forex trading?

Forex trading is a risky endeavour that can cause substantial losses if not managed properly.  Some of the risks associated with Forex trading are market volatility, which can cause losses due to sudden currency fluctuations, and high leverage, which can intensify both gains and losses. The decentralization of the forex market also contributes to the risk, as it can lead to potentially fraudulent activities. Additionally, external factors like political instability, economic events, and natural disasters can dramatically affect currency values, adding to the inherent risks. 

Can I make a living through Forex trading? 

Yes, it is possible to make a living through forex trading, but it’s important to note that this is not easy and is not the norm. Successful forex trading requires a high level of knowledge and skill, as well as a comprehensive understanding of financial markets, macroeconomic indicators, and risk management. Forex traders must be prepared to spend a significant amount of time studying the markets, following international news, and developing and testing trading strategies. Consistent profitability requires time, patience, discipline, and continual learning. 

How can I improve my Forex trading skills?

Improving your forex trading skills involves a combination of education, practice, strategy development, and emotional control: 

  • Continually educate yourself about the Forex market by attending webinars, listening to podcasts, and keeping up to date with geopolitical and economic news. 
  • You can also improve your skills by developing a strategy and fine-tuning it to suit your trading style and risk tolerance.  
  • One of the keys to improving as a Forex trader is to practice managing your emotions. Trading involves emotions like fear, greed, and stress, but the best Forex traders don’t allow their emotions to dictate their trading decisions.  
  • Lastly, learn from others by joining Forex trading communities and following more experienced traders to glean from their knowledge.  

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: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. 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 about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our State of the Market Report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers.

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

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References

  1. Foreign exchange turnover in April 2019
 

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