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: Tuesday, January 14th, 2020
List Of Best Forex Broker In Nigeria
The top 8 forex brokers in Nigeria for international forex trading on a range of forex markets are:
Pepperstone – Best MetaTrader 4 + 5 Forex Broker
IC Markets – Lowest Spreads and Fees FX Broker
easyMarkets – Best Forex Broker For Beginners
CMC Markets – Lowest $0 Minimum Deposit
FXTM – Local Nigerian Naira ₦ (NGN) Funding
OANDA – Most regulated broker (FCA, ASIC etc)
Hugosway – ECN Forex Trading Account
Plus500 – Best Forex Demo Account + Cryptocurrency
Pepperstone has the three top forex trading platforms based on popularity:
MetaTrader 4 – Most Popular For Forex Trading
MetaTrader 5 – Most Popular CFDs Trading Platform
cTrader – Best Automated Trading Trading Platform
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.
Other Key Features Of Pepperstone
1) Spreads And Commissions
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.
2) Customer Support
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:
FCA – UK’s Financial Conduct Authority
ASIC – The Australian Securities and Investments Commission
IC Markets is based in Australia (ASIC regulated) and offers the lowest brokerage fees including:
Low spreads on major currency pairs and exotic pairings
Low commissions for MT4, MT5 or cTrader forex traders
No Deposit Or Withdrawal Fees
Spreads Offered By IC Markets
The 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)
Commissions Offered By IC Markets
Forex traders in Nigeria can receive some o the lowest commissions from IC Markets including:
USD $3.5 (per lot per side) for MetaTrader 4
USD $3.5 (per lot per side) for MetaTrader 5
USD $3.0 (per USD 100k) for cTrader
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.
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.
EasyMarkets Is The Best Forex Broker For Beginners
EasyMrakets is regulated by CSEC (Cyprus) and ASIC (Australia) and offers beginner forex traders:
Enhanced risk management tools as standard
Fixed spreads on all forex pairings
An easy to use forex trading platform
Risk Management Tools Offered By EasyMarkets
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.
EasyMarkets offers Fixed Spreads
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.
EasyMarkets Have A Trading Platform Perfect For Beginners
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.
Overall Reasons Why easyMarkets Is The Best For Beginner Traders
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:
A range of financial markets including Bitcoin
$0 minimum deposit and easy funding methods
Advanced charting through the Next Generation CFD platform
Financial Markets With CMC
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.
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.
Advanced Charting Through The Next Generation Platform
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:
35+ drawing tools – these can outline resistance and support levels or make notes that identify patterns and price movements
Technical indicators – with 30+ overlays and 50+ studies these indicators help identify trends and trading opportunities
Price History – CMC has 20+ years of price history to understand short-term and long-term historical price performance
Chart Intervals – Next Generation lets traders easily switch chart intervals from a month to seconds
Customised Charts – the technical layouts, chats and layouts can be customised to a traders technical analysis setup requirement
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.
Who Is Suited To CMC Markets?
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.
Other Key Features Of FXTM (ForexTime)
ForexTime offer social trading (copy trading) which means a trader:
Selects a Strategy Manager
Makes a deposit (minimum deposit of $100)
Mirror the Strategy Manager’s trade
Watch as you share a percentage of wins/losses
Cash-out or add deposits when required
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.
Why Choose ForexTime (FXTM)?
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:
Australia AISC (Australian Securities and Investments Commission)
United States CFTD (Commodity Futures Trading Commission)
Europe and UK FCA – (Financial Conduct Authority)
Japan IFFA (Institute Financial Futures Association)
Singapore MAS (Monetary Authority Of Singapore)
Canada IIROC (Investment Industry Regulatory Organization of Canada)
OANDA Focuses On Transparency
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.
Why Choose OANDA?
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:
Has liquidity from 50+ banks and dark pool liquidity providers
Offers straight-through processing reducing latency times
Achieve low spreads with no dealer interference
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 Have The Best Forex Demo Account
Plus500 are trading specialists with their own forex trading platform offering:
A free unlimited demo account
A number of trading options form Stop Limit, Trailing Stops to Guaranteed Stops
Web trading, Mobile trading and a desktop trading platform
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.
Why Choose Plus500
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.
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:
ASIC – Australian Securities and Investment Commissions
FCA – Financial Conduct Authority
CYSEC – Cyprus Securities and Exchange Commission
FSCA – Financial Sector Conduct Authority
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.