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), but 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. 

To test these brokers, we verified their regulation and accepted clients with Nigerian residency and Nigerian bank accounts. We signed up for a live account, checked the platform selection, trading desk type, and minimum deposit requirements. Further testing focused on the trading conditions, the total cost of trading, withdrawal fee requirements and additional fee structures so traders can keep trading costs as low as possible. These are the best Forex brokers in Nigeria for 2021, according to our testing and our research.

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Best Forex Brokers in Nigeria

Last updated on 25 Mar 2021
Updated 25 Mar 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
Blackstone Futures
Min. Deposit
ZAR 1000
4.484.48
Min. Spread
0.60 pips
Fx Pairs
32
REGULATED BY
Overall Rating
11110.54.48/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 and CloudTrade platforms supported. Blackstone Futures is regulated by the FSCA - FSP:49846
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Blackstone Futures is an established FSCA-regulated CFD broker based in Johannesburg, offering clients trading in commodities, cryptocurrencies, equities, energies, Forex, futures, indices, and metals. Blackstone offers ZAR and USD accounts on MT4 and the proprietary CloudTrade platforms – both with STP execution.

While trading costs are low, and spreads are tight and maximum leverage is 400:1, Blackstone Futures restricts traders by offering a limited set of 32 FX pairs. Beginner traders are well-catered with outstanding educational support for beginners, weekly webinars, and in-person Masterclass sessions around South Africa.  Unfortunately while BlackStone Futures caters to Malaysian clients, it does not offer Islamic swap-free accounts.

Pros
  • ZAR accounts
  • Tight spreads
  • Fast and free withdrawals
Cons
  • Limited platform choice
Read More About Blackstone Futures
2
FXTM
Min. Deposit
USD 10
4.174.17
Min. Spread
0.10 pips
Fx Pairs
59
REGULATED BY
Overall Rating
11110.54.17/ 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 a multi-regulated FSCA registered CFD broker offering clients trading on Forex, cryptocurrencies, indices, metals and stocks. With a complete education and market analysis section, and the unique FXTM Invest copy trading platform, FXTM is plagued by unfavourable trading conditions and platform choice limits on their entry-level accounts and charging withdrawal fees.

Beginners at FXTM will find a good overview of how Forex trading works and the basics of a beginners course in their guides and tutorials, webinars, ebooks, trading glossary and videos that cover beginner and intermediate topics. Daily market analysis will help beginners understand the real-world implications of news events on the Forex market and where the opportunities lie. However, Serious beginners should consider the ECN Account (minimum deposit 500 USD) or the ECN Zero Account (minimum deposit 200 USD) as trading conditions dramatically improve to fall in line with industry averages.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
Cons
  • Expensive withdrawals
Read More About FXTM
3
BDSwiss
Min. Deposit
USD 100
4.324.32
Min. Spread
1 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.32/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.
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BDSwiss is a European CFD broker regulated by CySEC, the FSC (Mauritius) and the FSA (Seychelles). BDSwiss offers trading on Forex, commodities, shares, indices, and cryptocurrencies. While trading costs on the entry-level Classic account are slightly above the industry average, the trading platform choice and the industry-leading education and market analysis material make up for it. A professional 5000 USD Raw account is also available with industry-competitive trading costs of 8 USD per EURUSD lot traded.

BDSwiss offers MT4, MT5 and a bespoke BDSwiss Web Trader application – the star attraction for new traders – with an intuitive and modern interface, an extended set of technical analysis tools, and advanced charting. The BDSwiss trading academy and market analysis are some of the best in the industry, with structured courses for all levels, frequent strategy webinars, and insightful market analysis headlined by a detailed daily market preview.

Pros
  • Tight spreads
  • Good for beginners
  • Wide range of assets
Cons
  • Expensive withdrawals
  • Limited market analysis
Read More About BDSwiss
4
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 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
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AvaTrade is an internationally and FSCA regulated CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds and EFTs. AvaTrade has one of the best mobile trading applications in the industry and, unlike many global brokers, offers a local South African customer support team. 

AvaTrade has over 200,000 active traders on the MT4, MT5, and AvaGo platforms and provides free access to trading tools like Autochartist, Duplitrade and AvaProtect, its own innovative risk management system.

While AvaTrade is a dependable broker for beginners, professional traders looking for advanced educational material and industry-leading market research will be underwhelmed.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited education
Read More About AvaTrade
5
XM
Min. Deposit
USD 5
4.384.38
Min. Spread
0.60 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 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.
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XM is a reliable multi-regulated CFD broker offering trading in Forex, stocks, commodities, indices, metals, and energies. XM leads the Forex industry in terms of education and market analysis, but with customer service closed on the weekend, beginner traders with technical issues could face difficultly.

With support for MT4 and MT5, trading costs below the industry average on both introductory and professional accounts, and a low minimum deposit of 5 USD (70 ZAR), XM Group stands out from a crowded field of market maker brokers.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
Read More About XM
6
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
7
HotForex
Min. Deposit
USD 5
4.494.49
Min. Spread
0 pips
Fx Pairs
51
REGULATED BY
Overall Rating
11110.54.49/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
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HotForex is a global CFD broker with FSCA regulation offering a variety of trading products including Forex, commodities, indices, shares and crypto. Trading conditions are unusually good on the 5 USD (5 USD) introductory account, with fast market execution and competitive spreads. Experienced traders will be interested in HotForex’s professional account with EUR/USD spreads starting at 0 pips pips and a 6 USD commission.

HotForex supports both the MT4 and MT5 platforms and provides 18 trading tools to further assist traders. Unfortunately, access to better trading tools like Autochartist, which other brokers offer as a free service, requires an account balance of 6500 ZAR – well above the required minimum deposit.

HotForex offers a structured beginner course and webinars to help newcomers get started, but customer support is closed on the weekend, leaving novices stranded when they may need help the most.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
Read More About HotForex
8
Exness
Min. Deposit
USD 1
4.324.32
Min. Spread
0.10 pips
Fx Pairs
120
REGULATED BY
Overall Rating
11110.54.32/ 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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Exness is an FSCA and internationally regulated CFD broker offering trading in Forex, cryptocurrencies and metals. Exness has some of the tightest spreads in the industry and a relatively low minimum deposit, but its selection of financial instruments is limited compared to similar brokers.

Exness has market and instant execution accounts and full support for MT4 and MT5 on both standard accounts. An optional ZAR account is available to South African traders, deposits and withdrawals are free of charge, and customer service is 24/7.

While Exness’ trading costs are well below the industry average, its education and market analysis are poor compared to other major brokers.

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
9
CM trading
Min. Deposit
USD 100
3.243.24
Min. Spread
1.50 pips
Fx Pairs
47
REGULATED BY
Overall Rating
1110.503.24/ 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.
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CM Trading is a major South African CFD broker offering trading on Forex, indices and commodities.  South African traders will be pleased that CM Trading is fully licenced by the FSCA, but should be aware that trading and withdrawal costs are high.

The minimum deposit is 250 USD and CM Trading offers both MetaTrader4 and Sirix trading platforms on desktop computers and mobile devices. A variety of promotions and bonuses are available for new accounts.

The local customer service is generally excellent, but wide spreads and only basic market analysis might discourage traders.

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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