To test these Forex brokers, we opened both demo accounts and real accounts, set up the trading software, read the educational material, deposited and traded ₦100k of our money, and created all kinds of trouble for the local customer service teams. Plus we put the withdrawal procedures to the test to see how long it took to process and receive our money. 

Trading with online Forex brokers is legal in Nigeria, but the government does not supervise the Forex industry. The regulation of Forex brokers in Nigeria should be the responsibility of the Nigerian Securities and Exchange Commission (SEC). While the SEC does post warnings about Forex scams and fraudulent brokers, it does not actively regulate the Forex industry.

Until the SEC starts regulating Forex brokers in Nigeria, we advise that traders use respected and internationally regulated brokers. Some of the best Forex brokers offer trading accounts in Naira and have dedicated Nigerian customer support departments. 

These are the best Forex brokers in Nigeria for 2020, according to our testing and our research.

English

Best Forex Brokers in Nigeria

Last updated on 3 Dec 2020
Updated 3 Dec 2020
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
AvaTrade
Min. Deposit
USD 100
4.184.18
Min. Spread
0.90 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.18/ 5
AlertAccepts South African 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.
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With over 200,000 active traders around the globe, on both the MetaTrader 4 and AvaGo platforms, and the award for Best Trade Execution 2016 by the African Finance Expo, AvaTrade is a good partner for all types of trader. AvaTrade has built its reputation on being a client-focused, dependable broker, and continues to add to that reputation with the recent addition of AvaProtect to its product lineup.

With great trading conditions across Forex, commodities, cryptocurrencies, ETFs, bonds, and equities and boasting FSCA and ASIC regulation, AvaTrade is competitive with some of the best brokers in the world.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited education
Read More About AvaTrade
2
FXTM
Min. Deposit
USD 10
4.234.23
Min. Spread
0.10 pips
Fx Pairs
59
REGULATED BY
Overall Rating
11110.54.23/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.90 pips on trading account with lowest minimum deposit. Max leverage Flexible. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
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FXTM is regulated by the FCA, CySEC and the FSCA in South Africa and the educational material offered is first-class. By keeping the focus on beginners looking for reasonable trading conditions, the FXTM team of educators and analysts have succeeded in creating a welcoming environment for new traders. Additionally, FXTM are one of the few brokers with 24/7 support, allowing new traders to get set up on weekends or holidays.

For the absolute beginner, FXTM has a great deal of training material to help new traders get started. Materials include articles, videos, webinars and a searchable glossary of new vocabulary. This is an excellent resource and many hours can be spent covering the basics of Forex Trading. There is an additional set of videos that cover analysis topics, and more detail on chart reading techniques.

FXTM has an open “Daily Market Analysis” section on their website where research analysts post bulletins that connect daily news items with analysis and actionable trading ideas. This can be combined with other sources to achieve a more comprehensive view of global events and the trading opportunities they represent.

The Standard Account has a minimum deposit of 100 USD and spreads start at 1.3 pips. FXTM also offers a Cent Account where the minimum deposit if only 10 USD but the spreads will be wider. If you can afford it, I would recommend starting with the Standard Account.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
Cons
  • Expensive withdrawals
Read More About FXTM
3
XM
Min. Deposit
USD 5
4.384.38
Min. Spread
0.10 pips
Fx Pairs
57
REGULATED BY
Overall Rating
11110.54.38/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.
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XM Group has achieved substantial growth since 2009, earning 1.5 million clients living in 196 countries. Regulated by three major regulators and the recipient of many industry awards, XM Group stands out from a crowded field of market maker brokers for their customer service and educational support.

XM Group has extensive experience and in-depth knowledge of the global financial markets. XM’s operational philosophy is aimed at client satisfaction and low client turnover; they earn client loyalty through award-winning 24/5 personal customer service, varied account types and competitive trading conditions.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
Read More About XM
4
FXCM
Min. Deposit
USD 50
4.134.13
Min. Spread
0 pips
Fx Pairs
40
REGULATED BY
Overall Rating
11110.54.13/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.3 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & Ninja Trader platforms supported. Forex Capital Markets is regulated by FCA, ASIC, and the FSCA.
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FXCM has been a global Forex and CFD broker since 1999 and are regulated by the FCA, ASIC, and the FSCA in South Africa.

One of the major advantages of FXCM for beginner traders is the quality of the educational material they offer. FXCM offers eBooks on Forex basics, trading strategies, trading habits, the FXCM’s proprietary Trading Station platform, and how to identify potential trading opportunities on the market. FXCM’s extensive video library is organised into different categories that span from how to make deposits, to more advanced trading topics like order types that help traders manage risk in trades.

Like most of their competitors, FXCM ZA uses webinars to teach Forex trading – these are exclusive webinars for South Africans and hosted by Russell Shor, the Senior Analyst for FXCM’s South African team. Having a dedicated education section for South Africans is extremely rare and is one of the greatest advantages to using FXCM ZA. Moreover, FXCM ZA runs free workshops in Pretoria and Johannesburg on a monthly basis.

FXCM has a standard demo account and a single live account offering. The demo account has 5000 USD virtual money and expires after 30 days of inactivity. The standard account is commission free with a minimum deposit of 50 USD

Pros
  • Well regulated
  • Great platform choice
  • Excellent education
  • Innovative trading tools
Cons
  • Limited demo account
Read More About FXCM
5
easyMarkets
Min. Deposit
USD 25
4.244.24
Min. Spread
0.90 pips
Fx Pairs
103
REGULATED BY
Overall Rating
11110.54.24/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles.
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Founded in 2001, easyMarkets (then easyForex) was one of the first online brokers. Regulated by ASIC since 2003, CySEC since 2007 and the FSA since 2020, easyMarkets states their values as simple, honest and transparent which are reflected in their industry recognition – recently being awarded the Best Trading Platform and Most Transparent Broker awards in 2017 from FX Empire and Forex-Awards, respectively.

easyMarkets has always innovated, introducing tools like negative balance protection and guaranteed stop loss back in 2001 – these tools are now industry standards. Their innovation has continued with the unique Freeze Rate and dealCancellation tools, both intended to support new traders and keep trading transparent and simple. In 2018, easyMarkets won the Most Innovative Broker 2018 at the World Finance Markets Awards, a further sign that they are respected as innovators among their peers.

Pros
  • Well regulated
  • Wide range of assets
  • Innovative trading tools
Cons
  • Limited platform choice
  • Limited account options
Read More About easyMarkets
6
HotForex
Min. Deposit
ZAR 70
4.294.29
Min. Spread
0 pips
Fx Pairs
51
REGULATED BY
Overall Rating
11110.54.29/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.20 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.
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An STP broker regulated by multiple major authorities including the FCA and CySEC, HotForex has built a reputation among traders for its tight spreads, low fees, and fast market execution. Excellent educational and analytical material is available for both visitors and clients, and customer service is world-class.

Listed as one the Top 100 Companies by World Finance Magazine and with an award for Business Excellence 2015 (World Confederation of Businesses), HotForex is not just celebrated by their industry peers, but also by the financial industry as a whole.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
Read More About HotForex
7
Exness
Min. Deposit
USD 1
4.124.12
Min. Spread
0.10 pips
Fx Pairs
120
REGULATED BY
Overall Rating
11110.54.12/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.
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Founded in 2008, Exness is a well-regulated broker with tight spreads and unlimited leverage on a specialist zero account.  With both market and instant execution methods and full support for both MT4 and MT5, there is little to find fault with here – including its well-publicised sponsorship of Real Madrid.

Exceptionally, customer service is available 24/7 and most traders will find something to like from the wide range of account types.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • 24/7 customer service
Cons
  • Limited education
  • Limited market analysis
  • Unavailable in Europe
Read More About Exness
8
CM Trading
Min. Deposit
USD 250
3.383.38
Min. Spread
1.50 pips
Fx Pairs
47
REGULATED BY
Overall Rating
1110.503.38/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.
Show Details

CM Trading is a well-regarded South African broker, regularly cited as the largest in the country, and headquartered in Sandton, Johannesburg.

CM Trading is a market-maker, but offers competitive spreads and is a good choice for new traders due to their great educational material and the CopyKat copy-trading system. Maximum leverage is 200:1 and both MetaTrader 4 and Sirix Webtrader platforms are available, allowing for some flexibility.

Customer service is generally excellent and, while deposit and withdrawal costs are high, many customers will find comfort in working with a good local broker.

Pros
  • Good for beginners
  • Great customer support
  • Copy trading accounts
Cons
  • Expensive withdrawals
  • Local regulation only
Read More About CM Trading

How we choose the best Forex Brokers in Nigeria

Though most brokers might appear to be similar at first, they are quite different once you dig a little deeper. To make an effective comparison, our research team judges every Forex broker by the same standards. This makes it easier to spot the poor-quality brokers and makes it easier for you to compare them. The main areas we look at are:

  • Regulation: Your funds will only be safe with properly licenced brokers
  • Cost: What kind of fees you will be charged by a broker
  • Trading Conditions: How a broker’s business model will affect your trading experience
  • Customer Support: How well does a broker treat its clients who need help
  • Trading Platforms: What kind and how many trading platforms does a broker offer

We also look at a few other things, but these are the most important to consider when choosing a Forex broker. We will go through each of these areas in more detail and then jump into a few FAQs.

FAQs

What is the best Forex broker in Nigeria?

The best brokers in Nigeria are AvaTrade, FXTM and XM. AvaTrade is a great all-round broker with low fees and tight spreads. FXTM is trusted by thousands of traders across Africa and has a great range of account types. XM is the best overall broker, with great customer support and education for new traders.

I am a beginner trader, what should I look for in a broker?

As a beginner trader, choose a broker with an unlimited demo account, as this will give you the opportunity to practice before making a deposit. Limited demo accounts usually expire after 1-3 weeks, which is not enough time to learn how to profit from CFD trading.

Beginner traders should get educational support when starting, and each broker varies significantly in what material they provide. The minimum you should accept is some general videos and articles, but some brokers have invested in creating small trading universities that include video material as well as live webinars hosted by experts.

Each of our reviews has a section on the educational content to help beginner traders decide the best path forward.

Which is the best Forex brokers for beginners?

The Forex broker for beginners is XTB.  Customer service is available 24/7 with both one-on-one mentoring and dedicated account managers provided for new traders. Educational material is excellent and is presented via XTB’s Trading Academy, which is both well-structured and clear. Finally, minimum deposit requirements are low, and spreads are tight.

How do you trade Forex in Nigeria?

To trade Forex in Nigeria you will need a trustworthy Forex broker, which you can find here at TradeForexSA. Before you start trading, you should open a demo account with the broker so you can gain experience with the Forex market and with the broker’s trading platform. Once you have gained enough experience you will need to deposit funds with the broker via bank transfer or a payment system like Ozow or Neteller. Once your live account is funded, you will be able to start trading.

Is Forex trading legal in Nigeria?

Yes, Forex trading is legal in Nigeria, and Nigerians are free to trade with any Forex brokers of their choice.

How do I know I can trust a Forex broker?

Four things should be considered when determining if a broker may be trusted – regulation, trade execution method, client funds management, and industry recognition of their achievements.

The more major regulators the broker group is regulated by, the more oversight the group has. The number of regulators overseeing their processes gives a strong indication of the level of trust the government regulatory agencies have in them.

The execution method of trades is another component because if the broker profits from your loss – as is the case with market maker brokers – this can be seen as making the broker less trustworthy.

This is more of a concern if fewer major regulators regulate a market maker. Therefore, a heavily regulated market maker is considered more reputable than one with lesser regulation. It is noteworthy that some market makers have strong reputations and lots of client resources.

Most regulators require strict processes to keep client funds safe. This process includes placing client funds in segregated accounts at major banks in the local jurisdiction. Segregated bank accounts that are audited every evening means that client funds are protected against any bankruptcy.

Industry awards are given to brokers from journalists, financial watchdog organisations and their peers. While it can be argued that these award ceremonies are biased, they remain the best gauge industry recognition.

Do brokers trade against you?

If the broker is a market maker, then they are the market and will be trading against you by being the counterparty to your trade to create the liquidity you need. Since a vast majority of trades by retail traders are lost, a market maker is making money in most client trades. DMA brokers do not have any conflict of interest and do not trade against you.

How do brokers make money?

Market Makers will make money only from the spread – the difference between the buying and selling price of the currency pair. Since a Market Maker will become the counterparty to any trade, they will also make money when clients lose trades.

DMA brokers will make money from a tight spread and a commission, which is calculated on a per lot amount.

How to deposit with a broker?

Each broker is going to have different deposit methods, but all will have a deposit by credit/debit card and bank transfer option. Most brokers will also accept Neteller or Skrill, which are favoured by many traders because deposits and withdrawals are instant and usually free.

Some will accept regional payment methods, but local deposit methods have not yet been adopted in Nigeria. On occasion, brokers will accept Bitcoin deposits, and PayPal in addition to standard currency.

Which broker should I choose?

Traders have different requirements of Forex brokers, and thus there is no single best choice. This is how we compare them, and we offer insight into your choices. At the top of this article, there is a list of those that we believe are the best brokers for traders based on their reputation, platform, trading conditions and resources available to beginners.

How can I report scam brokers?

If you believe you have been scammed by your broker, the first thing to do is warn others and tell your story.  We have a report a scam broker form which we use to gather information so that we get the word out.  If you have been scammed, please complete the form.

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: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. 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 from the FCA or from ASIC)

Our Rating & Review Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

References

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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