To help Nigerian forex traders choose a broker we compared the fees and forex trading platforms to find the best forex brokers in Nigeria. Only CBN regulated forex brokers and broker from ‘tier 1’ regions such as Europe were considered as part of this August 2021 comparison.
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Our August 2021 best list of registered forex brokers in Nigeria is.
Markets.com is a global broker that offers low spreads, a diverse range of CFDs and the best trading platforms available. As the broker is a market maker and uses a dealing desk when executing orders, all foreign exchange spreads are commission-free and competitive when compared to other top forex brokers.
Key features that make Markets.com the best broker overall for Nigerian traders include:
To gain access to Markets.com full product range and make the most of the broker’s selection of unique trading tools, the broker’s proprietary CFD and forex trading platform, Marketsx, is the best option. You can trade over 2,200 different financial instruments, as well as use sentiment, technical and fundamental analysis tools when developing CFD trading strategies.
If you are wanting to focus purely on stock markets, the broker offers Marketsi investment platform is pre-installed with tools specifically designed for share CFD trading. Like Markektsx, the Marketsi provides access to the broker’s full product range, with the main difference between the two proprietary platforms being the trading tools available for analysis and strategy development.
Alternatively, if you are looking for a trading platform where you can fully automate CFD with algorithmic strategies, both MetaTrader 4 and MetaTrader 5 are offered by Markets.com.
Markets.com offers a range of unique trading analysis tools to help you develop complex CFD trading strategies. As well as technical and fundamental analysis tools, the broker’s Marketsx platform provides 8 different sentiment tools that show how other market participants are trading.
Sentiment tools help you to analyse and measure market sentiment, providing you with a potential indication on how various financial markets might move. Sentiment data and analysis is a great tool to gauge whether traders are buying and selling, as well as overall market confidence.
Technical analysis tools play a vital role when developing trading strategies. Marketsx advanced charting tools help you identify trading opportunities and confirm market trends. The planforms technical analysis tools allow you to visualise charting patterns while understanding how different financial instruments are correlated.
Fundamental analysis tools help you stay up to date with the myriad of economic events that impact financial markets. Marketsx tools allow you to observe significant events in real-time while analysing the effects on different financial markets.
The trading tools available on Marketsi focus on share trading and stock market analysis. For instance, the platform’s Investment Strategy Builder allows you to find share trading opportunities and develop strategies by filtering stocks based on company information such as PE ratios or market cap.
Although Marketsx and Marketsi offer an excellent range of unique sentiment, technical and fundamental analysis tools, certain traders will prefer MetaTrader 4 (MT4) or MetaTrader 5 (MT5) due to the platforms algorithmic trading capabilities. Using MQL4 or MQL5, you can create your own trading robots for fully automated trading. Within the MetaTrader community, trading robots are known as Expert Advisors (EAs). If you are a beginner trader and do not feel comfortable writing your own EAs, there are thousands of EAs available to download from the MetaTrader Marketplace online.
A downside to MT4 or MT5, when compared to the broker’s proprietary platforms, is market access. MT4 and MT5 offer a narrower product range with no bonds or blends available, while Marketsx or Marketsi users gain full market access and can trade over 2,200 CFDs.
As a dealing-desk broker, Markets.com offers tight commission-free forex spreads as well as access to over 2,200 different financial markets. Regardless of your level of experience, the broker offers an appropriate trading platform (MT4, MT5, Marketsx or Marketsi) with tools to help you develop trading strategies with over 2,200 CFDs to choose from.
View Markets.com Review >>Visit Markets.com >>
The overall rating is based on review by our experts
Pepperstone has the three top forex trading platforms based on popularity:
All fx trading platforms are available as desktop, webtrader, and mobile app platforms. Each option comes with a free demo account that allows 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 Pepperstone 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 slightly 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.
Pepperstone’s standard account is available with MetaTrader 4 and MetaTrader 5 and offers some of the tightest no commission spreads available to Nigerian forex traders.
Pepperstone’s commission-free spreads are significantly more competitive than other top brokers. If you are new to trading forex and want a no commission account type to keep things simple, Pepperstone is a great option with tight spreads.
Data taken from broker website. Accurate as at 01/08/2021
Compare Standard Account Spreads
The Razor Account was designed with scalpers and algorithmic traders in mind, offering tight ECN style spreads plus low commission fees. With straight-through processing and no dealing desk execution, Pepperstone provides an institutional-grade trading environment for experienced traders.
As you can see from the spread comparison below, Pepperstone is ultra-competitive across most major forex pairs.
Please note, all average spreads are sourced directly from the broker’s website, and are updated monthly for increased accuracy.
With ECN style accounts, forex brokers make money from commissions that apply to the Razor account. Below shows how the Razor account commission is very low at USD $3.50 for MetaTrader 4 and 5.
If you choose cTrader the commission is 7 unit charges per lot based on the base currency. Meaning, if you are trading 100,000 units of EUR/USD, you will pay a commission fee equal to 0.0035% of the base currency, in this case, €3.50 per side. All commissions can be reduced for high-volume traders through Pepperstone’s Active Trader’s 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. Below shows the overall costs for different brokers with our exclusive forex brokerage calculator.
Pepperstone is the most awarded CFD provider when it comes to customer service. This includes investment trends that survey actual forex traders, to gauge their performance. Pepperstone customer support ranges from global call centers, 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.
View Pepperstone Review >>Visit Pepperstone >>
IC Markets is based in Australia (ASIC regulated) and offers the lowest brokerage fees, including:
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.
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 have 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.
FP Markets is an ECN forex broker offering STP trading with tight spreads and fast execution speeds. To access the broker’s competitive trading conditions, you can choose between two account types that offer different pricing structures. Both account types require a minimum deposit of AUD $100 and are available on MetaTrader 4 and MetaTrader 5.
Regardless of the account type or trading platform you choose, you can enjoy excellent trading conditions with low spreads and fast trade execution.
The no dealing desk broker executes your orders using straight-through processing (STP) and multiple liquidity providers. With deep liquidity sourced from 50+ major financial institutions, FP Markets can offer some of the tightest spreads available to retail investor accounts.
As well as low spreads, the NDD broker offers:
The broker is popular among the Nigerian forex trading community as it is overseen by multiple top-tier financial authorities.
Overall, FP Markets is a great option for Nigerian traders wanting a trusted STP broker. With STP order execution, the broker can offer ultra-tight ECN spreads via its raw account, or low no commission spreads through its standard account.
Both account types enjoy excellent trading conditions with fast execution speeds on MetaTrader 4 or MetaTrader 5. To test FP Markets ECN features, you can sign up to a demo account to practise trading.
View FP Markets Review >>Visit FP Markets >>
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.
View FXTM Review >>Visit FXTM>>
HotForex is a good choice if you are looking for a broker that offers high leverage as they offer leverage of 1:1000 which is higher than most other brokers will permit. The main features of HotForex include:
While most brokers offer a maximum 1:500 and in Europe 1:30 leverage when trading, HotForex allow trading with 1:1000 with their Micro account. While leveraged trading (sometimes called margin trading) does carry high risk when movements don’t go in your favour, leverage can be a useful tool to amplify your profits with little capital when successful.
HotForex offers a choice of 5 trading accounts. Most retail traders will want the Micro, Premium or Zero Spread account as these are built for traders that plan to manage their own trading activities. Each of these accounts can be summarised as:
HotForex also offers two unique accounts. These are designed for a trader that wishes to use trading automation or copy trading.
HF Forex has a large range of bonus offers, which means extra cash to trade with. HotForex offers include the following:
Nigeria has the largest population of Muslims in West Africa, so it makes sense we should mention a trading broker that offers trading account complaints with sharia law. Key offerings of OctaFX include:
If you are an Islamic trader and have a need to comply with Sharia law, then OctaFX has an account that does no charge swaps or interest for active positions held overnight. This means there are no overnight or rolling fees which are sharia law does not permit, instead, OctaFX has a fixed fee and this fee will vary depending on movements in the trader’s currency pairs.
Fees will vary depending on the account you are using and the currency pairs.
If you are using the OctaFX MT4 Micro account and you trade 1 standard lot for EUR/USD with USD as your base currency, then your fixed fee will be 1.9 USD when or short or 2.1 when you buy or go long. If you are trading AUD/USD, you will pay 1.9 USD to short and 0.58 USD to go long.GBPUSD will cost you 4.8 USD to short and 2.8 USD to go long.
This account has a flat fee for every 3 days you keep an open position. You will pay 10 USD for EUR/USD and GBP/USD currency pairs. AUD/USD will cost 40 USD.
If you are using the cTrader trading platform, then you will pay a fixed commission that is based on the formula pip price * swap value of the currency pair. This fee is applied on a weekly basis. EUR/USD is around 10 USD, GBP/USD is around 20 USD and AUD/USD is around 140 USD.
OctaFX offers a choice of 3 trading platforms. These are MetaTrader 4, MetaTrader 5 and cTrader, while the MetaTrader platform is going to be the most likely choices as these are the most popular trading platforms worldwide, cTrader is a worthwhile platform to consider.
cTrader is popular with ECN traders and scalpers because the platform offers:
While cTrader is available with a number of other brokers, one feature that OctaFX offers few other cTrader brokers offer is cTrader Copy. This feature allows you to follow and copy the trades of other brokers by using the signals they provide.
If you don’t wish to learn the ins and outs of forex trading, then copying the trades of other successful traders can be an effective strategy.
OctaFX offers a choice of 3 trading accounts. These are MT4 Micro Account, MT5 Pro Account and cTrader ECN account.
The MT4 Micro account is a good choice if you desire an account with a low minimum deposit, no commissions, and want to trade small amounts. One of the benefits of this account that you can choose between floating and fixed spreads. Fixed spreads can be a good choice if you are not an experienced trader or when the market climate is volatile. Unlike variable spread which can change dramatically in extreme events, fixed friends remain stable which gives you an element of protection when things go bad. This account uses MetaTrader 4.
The MT5 Pro account is for the serious investor. Like the MT4 Micro account, this is a spread only account but has a higher minimum deposit. This account uses MetaTrader 5 and is best for the trader looking to trade large volumes due to the lower cost.
cTrader ECN uses the cTrader trading platform and unlike the other account has commissions costs over the spread.
AvaTrade is a broker that only offers fixed spreads This can make AvaTrade a good choice for scalpers, as spreads are predictable and for traders wanting a level of protection in a volatile market.
AvaTrade is a multi-regulated broker that offers tight fixed spreads on a range of currency pairs and CFDs. As a market maker broker, AvaTrade uses internal liquidity pools and a dealing desk to execute orders. Following a fixed pricing model, the brokers fixed spreads are commission-free and do not fluctuate with changes in market conditions as variable spreads do.
Examples of AvaTrade’s average fixed spreads:
AvaTrade’s commission-free fixed spreads are offered across all the broker’s CFD trading platforms – MetaTrader 4, MetaTrader 5 and the broker’s proprietary trading platform, AvaTradeGO. While AvaTrade charges no commission fees, there are general trading and account costs that customers may incur. For instance, if you hold a forex and CFD position open for longer than one day you will pay (or receive) overnight financing fees, also known as swap rates.
Choosing AvaTradeGO app for android and iOS mobile means you will get access to AvaTrade’s exclusive risk management tool known as AvaProtect. With this feature, you can buy time to decide if you wish to reverse your trade. This feature can be handy in the event price movement goes against you for a set amount of time after your trade. In addition to AvaProtect, all AvaTrade clients will get negative balance protection.
AvaTrade also offers a mobile app specifically designed for options trading. Options trading can be complicated and many standard CFD trading platforms lack design features that allow you to truly make the most of the potential with options trading.
Although the broker only offers one main forex and CFD trading account as all spreads are fixed and commission-free, AvaTrade caters to Islamic traders by offering a swap-free account type. Islamic Accounts are designed for traders that follow Sharia law where you cannot earn or receive interest. Rather than interest rate-based payments, Islamic traders pay a flat-rate daily administration fee for forex positions held open overnight. There are certain CFD products Islamic Account holders are not able to trade, including cryptocurrencies and forex pairs that include the ZAR, RUB, MXN or TRY.
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 find 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 phone support. Customer satisfaction is also enhanced through periodic trading news, instructor-led online trading education material, 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.
View Oanda Review >>Visit Oanda >>
Plus500 is a CFD broker with its 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 their 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.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘72% of retail CFD accounts lose money’
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.
The top 6 Nigerian forex trading platforms are:
Overall, Pepperstone is recommended with a full review provided.
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, eToro and easyMarkets.
Disclaimer: If you sign up for a broker’s UK branch regulated by the FCA, you will not be able to trade cryptocurrencies. The FCA recently banned retail traders from trading cryptos.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.