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Nigerian forex traders require a forex trading account to navigate foreign exchange markets with the best forex brokers in Nigeria offering a range of CFD products, low minimum deposits and advanced forex trading platforms such as MT4 + MT5.
Compare the forex brokers for Nigerian forex traders below.
By Justin Grossbard / Updated: Monday, February 17th, 2020
The top 8 forex brokers in Nigeria for international forex trading on a range of forex markets are:
Pepperstone has the three top forex trading platforms based on popularity:
All fx trading platforms come with a free demo account with allow Nigerian traders to test out forex broker and platform for 30 days. A maximum of AUD $50k in virtual funds can be traded over this duration on CFDs and forex markets. There are also platform enhancements available for Peppersotne traders including MetaTrader 4 smart trader tools, cTrader Automate, Autochartist and API trading. These third-party tools give traders the edge on the most popular forex trading platforms.
Pepperstone is the best forex broker in Nigeria not just for their platforms but also their fees. There are two forex accounts available. The first is the standard account which has no commissions but higher spreads which is how the forex broker makes its money. The second is the Razor account (often called an ECN forex account) where the spreads are primarily determined by the market (not the fx broker). Instead, the forex broker makes its money from commissions. Overall the Razor account has some of the tightest spreads of any forex broker worldwide.
The second way a forex broker makes it’s money is from commissions which apply to the Razor account. Below shows how the Razor account commission is very low at USD $3.76 for MetaTrader 4 and USD $3.50 for MetaTrader 5. If you choose cTrader the commission is 7 unit charges per lot based on the base currency. All commissions can be lower for high volume traders through their active traders program.
The final way forex brokers make money is through deposit and withdrawal fees. There are no such fees for Pepperstone. The minimum deposit of Pepperstone is $200 although the forex broker is open that they will accept a lower initial deposit from traders.
Pepperstone is the most awarded CFD provider when it comes to customer service. This includes investment trends wich survey, actual forex traders, to gauge their performance. Pepperstone customer support ranges from global call centres, live chat and e-mail.
To avoid forex scams it’s important to choose a broker that is regulated. Pepperstone is regulated by the two most credible regulators:
Pepperstone is also in the process of receiving regulatory approval from the Financial Services Conduct Authority of South Africa.
Open a demo account >>Visit Pepperstone >>
IC Markets is based in Australia (ASIC regulated) and offers the lowest brokerage fees including:
Spreads Offered By IC MarketsThe table below compares IC Markets to other major forex brokers in Nigeria when it comes to average spreads. Across many currency pairs, IC Markets has the lowest spreads.
| Average Spreads (21/02/2019) | EUR/USD | USD/JPY | AUD/USD | GBP/USD |
|---|---|---|---|---|
| Pepperstone | 0.13* | 0.25* | 0.14* | 0.44* |
| Oanda | 0.2* | 0.2* | 0.2* | 0.2* |
| IC Markets | 0.1* | 0.2* | 0.2* | 0.4* |
| IG Markets | 0.263* | 0.293* | 0.512* | 0.992* |
| CMC Markets | 0.805 | 0.879 | 0.751 | 2.793 |
| AxiTrader | 0.44* | 0.62* | 0.42* | 0.85* |
Forex traders in Nigeria can receive some o the lowest commissions from IC Markets including:
There is no commission for the standard account (commission-free account) but this isn’t recommended for this CFD provider as the overall fees are higher. They also were awarded in 2020 with the best forex Islamic account.
IC Markets has no charges on any account deposits or withdrawals to any forex account. Any fees that may be charged will be from the local bank if an international bank transfer is chosen. Below shows the funding methods available with IC Markets.
The minimum amount needed to fund an account (minimum deposit) is USD $200 or the equivalent in another base currency.
EasyMrakets is regulated by CSEC (Cyprus) and ASIC (Australia) and offers beginner forex traders:
EasyMarkets offers three key risk management tools that are ideal to those new to currency trading:
1) Deal Cancellation
Correctly called ‘dealCancellation’, when activated, a trader can cancel a trade within 60 minutes when the markets move in the wrong direction. This is perfect for a new forex trader or those concerned about the high risk of leveraged products. It’s critical to point out that only certain currency pairings offer dealCancellation and the feature can only be activated at certain times. There is a small fee when this is activated but this is minimal when you consider the potential losses of a trade and how this can fit into a trading strategy.
2) Guaranteed Stop Loss Orders
Most forex brokers in Nigeria offer stop-loss orders which will exit a trader when a set profit or loss is made on any trade. The issue exists thought that when a market has low liquidity or experience high turbulence the CFD provider won’t be able to exist the trader at the set price. This is called slippage and can lead to losses exceeding expectations
As standard, easyMarkets makes all stop-loss ordered guaranteed stops which means the maximum losses set are guaranteed to be locked in or the fx broker will cover the difference.
3) Negative Balance Protection
Similar to guarantees stop losses, negative balance protection helps stop a trader’s losses exceeding their expectations. In this case, rather than protecting losses exceeding the amount set on a single trade, this stops overall losses from exceeding deposits. While other CFD brokers will automatically attempt to exist a trader so they don’t lose more money than their balance, this is not guaranteed. easyMarkets on the other hand guarantees trader they won’t lose more than their balance and if this occurs they will cover the difference. This is important due to the high risk of any leveraged financial instruments.
The majority of Nigerian forex brokers offer variable spreads which can fluctuate each minute. This means it’s hard to know the brokerage of the CFD provider which can add up over time. EasyMarkets avoids this variability by fixing spreads so it’s standard all-day, every day. Below shows the three forex account types and the fixed spreads on the major tradable CFDs. the major difference between each account is the minimum deposit which ranges from $200 for the standard (micro account) to $10,000 for the VIP account. The VIP account offers the lowest fixed spreads (EUR/USD at 1.2 pips) and should be considered if you were already planning to trade this amount and want to keep brokerage low.
Unlike most other forex brokers in Nigeria, easyMarkets offer the choice of MT4 or their own online trading platform. Our recommendation is to use the easyMarkets platform as features such as dealCancellation are only available through this online forex platform. This also includes a mobile trading app for iPhone, Android and iPad devices.
easyMarkets is regulated (CySEC License Number 079/07 and ASIC license No. 246566) broker that has fixed spreads, risk management features and an easy to use forex platform making it the best broker to those new to trading forex.
CMC is one of the largest online brokers for stock market and currency trading offering:
CMC Markets specialise in trading forex with over 330 forex pairs but that is not the only CFDs financial markets you can trade. Other CFDs include indices, shares, EFTs, commodities and treasuries. A more recent addition is cryptocurrencies which range from Bitcoin, Ethereum, Litecoin and to Tron. Leverage ranges based on the crypto chosen with more well know cryptocurrencies like bitcoin offering more leverage compared to niche currencies pairs.
CMC Markets offers basic funding methods including:
The biggest advantage is that CMC Markets has a $0 minimum deposit. This means that you can move from a demo account to a live account without a large deposit required. Naturally, you will require some funds in order to trade forex or CFDs with CMC Markets.
CMC offers the choice of MT4 forex trading platform or the next generation platform. The image below shows the charting feature which is one of the most advanced of the forex brokers in Nigeria.
Other key features of the Next Generation charting include:
These five key features and the ability to actually trade directly from charts is why CMC’s CFD trading platform is considered the leader when it comes to charting.
If you’re looking to trade small amounts (low deposits) across a range of CFD markets with a sharp charting forex trading platform then CMC is the recommended CFD broker for you.
Most online brokers don’t offer local Nigerian Naira ₦ (NGN) funding increasing exchange costs of currency trading. ForexTime offers two NGN account funding methods through bank wire transfer or Neteller. The minimum deposit is $100 for a standard forex account for ForexTime. This allows individuals to start trading a range of currency markets while lowering the exchange costs when moving NGN currency to a standard base currency like the GBP, USD or EUR.
ForexTime offer social trading (copy trading) which means a trader:
ForexTime also offers local seminars in Nigeria locations such as Port Harcourt. This is run by industry experts and complements the forex trading (eg webinars) offered on the website.
ForexTime is ideal for Nigerian traders new to CFDs with a higher risk profile. With the highest leverage of any Nigeria fx broker of 1,000:1, detailed training and social trading options, they are ideal for time-poor traders want to test CFDs financial markets.
OANDA operate across the six most credible authorities including:
Along with regulation, OANDA has focused on pricing transparency and customer satisfaction. When it comes to pricing they offer real-time data from liquidity providers and finds mid-points across instruments. This is communicated to traders to be transparent about spreads. When it comes to customer support, OANDA has won several customer service awards for 24 hours/6 days a week support. It’s offered via live chat, emails and through phone support. Customer satisfaction is also enhanced through periodic trading news, instructor-led online trading education and a plethora of free tools and resources.
If regulation, transparency and satisfaction are your priority, OANDA is the best forex broker for your trading needs. The downside is the CFD provider offers low leverage, spreads are not as competitive as Pepperstone and IC Markets and trading markets such as cryptocurrencies are not available.
Hugosway is an ECN forex broker offering ECN trading that:
While in theory trading with an ECN forex broker like Hugo’s Way may sound promising the forex broker is not regulated with any well-known regulator. With limited positive reviews, Compare Forex Brokers doesn’t recommend this forex broker. Also, our head to head Hugosway vs Pepperstone comparison found Pepperstone has low trading costs and other features on-top of their regulation.
Plus500 are trading specialists with their own forex trading platform offering:
They offer the best range of Cryptocurrency trading with instruments including Bitcoin, Ethereum, Litecoin, NEO, Ripple XRP, IOTA, Stellar, EOS, Cardano, Tron and Monero. This can be traded on their real money or demo account to get a feel for these markets.
Plus500 is listed on the London Stock Exchange’s and all Nigerian traders client money is segregated for there protection.
Overall, Plus500 is recommended for those looking for a detailed forex trading demo account that works on their desktop or mobile devices and offers a large list of tradable instruments from currency to crypto.
Pepperstone is the best forex broker for Nigerian based on there:
You can view the full review of Pepperstone here.
To find the best forex broker for a Nigerian trader you should consider:
You can view the best forex brokers globally here.
There are three main trading platforms that the best CFD brokers offer:
A full forex trading platform section details the platforms and brokers.
Forex trading is legal in Nigeria and is regulated by the Central Bank Of Nigeria (CBN). After spending some time viewing the CBN website the team could not find a CBN regulated broker list. Based on this, until the Central Bank Of Nigeria publishes regulated forex brokers it’s recommended you consider one regulated by:
Other less known regulators include the IFSC, Belize, CIMA, CFTC and the SFSA (Dubai Financial Services Authority). The list above is a shortlist with other brokers considered including HotForex, AvaTrade, FxPro and Alpari.
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