Why Choose an NGN Forex Trading Account?

There are three good reasons for you to have a trading account in Naira (NGN):

• If you trade FX pairs with NGN as the quote currency, such as USD/NGN or EUR/NGN you will avoid currency conversion when opening and closing a trade. This will save you money as most brokers charge a commission for currency conversions when trading and will often give you a bad exchange rate.
• If you deposit NGN into a normal US Dollar (USD) trading account, your Naira is converted to USD first. There is usually a fee for this currency conversion, and you may also lose money on the exchange rate. To make matters worse, you will be charged another conversion fee when you withdraw from your trading account. With an NGN trading account, you don’t have to worry about fees or exchange rates.
• If your broker has NGN trading accounts, they probably keep your funds in a Nigerian bank. This means that deposits and withdrawals to and from your personal bank account will be much quicker and cheaper. 

We go into more detail on the advantages (and disadvantages) of using an NGN Account for Forex trading below the broker reviews.

NGN Account Broker Reviews

Below, we’ve picked out the ten best brokers in Nigeria with NGN accounts. In our short reviews, we look at the trading costs on their NGN accounts and why we think they are safe to trade with. When we compare brokers, we also look at a few other things, like the number and quality of trading platforms on offer and how good the customer service is. We’ve also highlighted any other unique features that are important to consider. 

What are the Advantages of Having a NGN Account?

The greatest advantage of having a NGN Account is that you will avoid currency conversion fees when funding your trading account.

NGN Accounts will not have conversion fees on withdrawals and deposits. If you have a USD trading account, conversion fees or the volatile NGN/USD exchange rate can take a bite out of your profits before you even start trading. Most international brokers will also give you a poor exchange rate from NGN to USD. 

Funding NGN Accounts is much faster than USD accounts. NGN accounts are also good for traders who use bank transfers or credit cards to fund their accounts. If you ask your bank or credit card company to fund a USD account, you can lose 7-10% of the value of your deposit in conversion charges and added fees. Fund transfers are also much quicker between local banks, so deposits and withdrawals can generally be made within 24 hours, and often happen instantly.

NGN Accounts are usually held in Nigerian banks. Another benefit of having a NGN account is that your funds will be kept in a Nigerian bank and will be accessible if your broker declares bankruptcy. With a USD account at an international broker, this will not be the case: Even if your funds are kept in a segregated account, they will be kept in a segregated account in another country.

How to choose the best NGN Account

Choosing a broker with the best NGN account is much the same as choosing any Forex broker. It is essential to look at the detail of each broker to find out what differentiates them from each other.  When looking for a NGN account broker, it is important to judge them on the following areas:

Regulation 

Regulation is the most important aspect of selecting a broker with a NGN account, as it is with any Forex broker. You want to make sure your funds are secure and kept in a segregated account and that your broker maintains a fair trading environment. 

The best international brokers tend to be regulated by the FCA, CySEC or ASIC as well as the FSCA.

HotForex, one of the best brokers  is regulated by the FSCA, CySEC and the FSCA.

Trading Conditions 

This includes what kind of spreads are available, how much leverage is offered, and how many currency pairs are available. These factors will directly impact your profit or loss.

Trading conditions are particularly important for traders with NGN accounts as your trading balance will be denominated in Naira. This means that when you are open a trade with the base currency in anything other than NGN (USD/JPY, EUR/USD, AUD/USD, etc.) you NGN balance will be converted in the base currency, it will be converted back again to NGN once you close the trade. This can be expensive if you plan to hold multiple large trades open simultaneously.

If you are planning to trade the USD/NGN be aware that this is considered an exotic pair and spreads are much wider than for major pairs (such as the USD/GBP), often as wide as 80 or 100 pips. When trading, your account currency is converted to the base currency of an FX pair.

Trading Platforms

Another factor to consider is the choice of trading platforms on offer. Most brokers will offer MT4, but some brokers will offer multiple platforms – each with their own advantages. Many brokers also have their own platforms, these are often easier to use for beginners, though may not have the automation options that exist on downloadable applications like MT4, MT5 and cTrader.

Minimum Deposit 

For NGN Accounts, your minimum deposit will always be in Naira. How much you are required to deposit changes for each broker and often changes between account types offered by the same broker, with higher minimum deposits often linked to better trading conditions.

Deposit and Withdrawal Methods

All brokers accept traditional payment types such as debit/credit cards and bank transfers, many accept online payments through Skrill and Neteller and other local online payment services.

Always check for deposit and withdrawal fees, a few brokers charge a percentage fee for some withdrawal methods, making large drawdowns expensive. 

Education and Market Analysis

Most brokers with NGN accounts will offer Forex education and market analysis. If you are a beginner trader, the quality of this educational and research material should be an important factor in your decision.

Customer Service

Another important factor to consider when opening a NGN account is the quality of customer service offered by a broker. Brokers with NGN accounts tend to have local offices and can offer local support – which can make all the difference for beginner traders as brokers with local customer support will have a better understanding of your needs

Brokers with local customer support have a better understanding of the issues new traders in South African’s have when setting up their accounts. They also can offer support in multiple languages, including Yoruba, Ibo and Hausa.

Why are NGN Accounts so Rare?

Broker with NGN accounts need the support of large Nigerian banks. Forex brokers who offer NGN accounts are rare, and most brokers still only offer USD or EUR accounts. This is mainly due to a lack of NGN liquidity providers. Forex brokers with NGN accounts need access to large amounts of Naira, or Naira liquidity pools, to cover their clients’ trades. Currently, there are just not that many banks in Nigeria willing to provide the necessary funding.

International brokers with NGN accounts lose money when the Naira devalues. Another reason for the lack of NGN accounts is that most international brokers have their costs priced in USD. By converting large sums of USD to finance NGN accounts they would open themselves up to huge exchange rate risk. They would lose money every time the NGN devalued against the USD, which has been a common problem recently.

Should I Use a NGN Account?

If you are concerned about conversion fees and wish to be able to make fast withdrawals and deposits then the answer might be yes.

Some traders want a USD account, especially traders who keep many positions open simultaneously. With this approach to trading with a NGN account, the fluctuations in the exchange rate would impact your profit margins.

One thing to keep in mind with a NGN account is whether your broker charges commission on trades – most ECN brokers do – and what currency the commission is charged in. If you have a NGN account and are being charged a USD commission for every trade, you will be losing a small amount of every trade in currency conversion. This can add up over time and become quite expensive. Most brokers with NGN accounts will charge the commission at a fixed rate in NGN but do check first.

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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