As Nigerians continue to explore different ways to make money, foreign exchange (forex) trading is coming to the fold as a way for Nigerian investors to diversify their investment opportunities. At the time of writing this article, there are over 300,000 retail forex traders in Nigeria, with a daily volume of billions of dollars. This highlights the popularity of the trade in the country, which is increasing with the emergence of forex brokers. So, while it may seem challenging to choose the right broker, this article highlights the top forex brokers in Nigeria.
Understanding A Forex Broker
A forex broker is an intermediary between retail traders and the foreign exchange market, enabling individuals to buy and sell currencies. They provide a trading platform that monitors price data for currency pairs across the network of institutional forex players and exchanges.
The broker facilitates a trader’s execution of a trade as they earn revenue through spreads (the difference between buying and selling prices) or commissions. Many brokers also offer leverage, allowing traders to control larger positions with a smaller capital investment that can increase both profits and risk.
Top Forex Brokers In Nigeria
1. Exness
Founded in 2008, Exness is a multi-regulated forex and CFD broker with a long-standing history as one of the top brokers. It is one of the low-cost, beginner-friendly CFD brokers that accept traders in Nigeria.
The firm is headquartered in Cyprus and has offices in the UK, South Africa, the British Virgin Islands, Seychelles, and Curaçao.
Exness is registered in Seychelles as Nymstar Limited, and traders from Nigeria are registered under this offshore regulation. It is also licensed by the Financial Sector Conduct Agency (FSCA) in South Africa, the Financial Conduct Authority (FCA) in the UK, and the Cyprus Securities and Exchange Commission (CySEC).
Features Of Exness
Fees
The benchmark for the spread for most CFD instruments is 0.3 pips, with an average for majors such as EURUSD being 1 pip with a standard account with a maximum leverage of 1:2,000. Exness also charges swap fees for overnight positions.
The forex broker does not have charges on deposits and withdrawals. Therefore, traders can get the total of their deposits or withdrawals. Exness does not charge dormant account fees. In addition, you can fund your accounts and withdraw in Nigerian naira through local bank transfers without extra charges.
Trading Conditions
Exness is a MetaTrader-based CFD trading platform with MetaTrader 4 and 5. It offers standard and professional accounts. This broker also offers a swap-free Islamic Account. All accounts have negative balance protection to ensure that money loss does not exceed deposits.
Trading Instruments
The forex broker offers CFDs on several financial instruments, including stocks, cryptocurrencies, metals, energies, and 99 currency pairs.
Deposit And Withdrawal Options
You can instantly fund your accounts with online bank transfers in Nigeria at zero fees. The minimum deposit amount for Exness is $10, and the maximum is $45,000. The minimum withdrawal amount is $3, and the maximum you can withdraw per transaction is $12,000.
Customer Support
Exness claims to have customer support available 24/7 via live chat and email. It also has a knowledge base on using the website and its app.
Pros Of Exness
- Licensed by top-tier regulators.
- Accepts deposits and withdrawals via Nigerian banks.
- No dormant account fees.
- 24/7 customer support.
- Offers commission-free trading.
Cons Of Exness
- Limited range of instruments.
- Unlimited leverage, which means high risk.
- Slow email support.
2. Octa
Octa was established in 2011 and offers extensive trading accounts and platforms to meet the needs of every investor. This forex broker provides competitive spread, flexible leverage, and copy trading as it is on eToro.
The broker is licensed by two tier-2 regulators – the CySEC in Cyprus and the FSCA in South Africa.
Features Of Octa
Fees
Octa spreads start at 0.6 pips and 1:500 leverage for currencies. The broker offers commission-free trading for all types of account, and also a zero swap fees. There are zero charges on both deposits and withdrawals, including zero fees for inactive accounts.
Trading Conditions
There are two basic types of accounts on Octa: MT4 and MT5 Accounts. The broker also provides negative balance protection to prevent the account from losing more funds than the deposit.
Trading Instruments
This forex broker offers currency exchange trading services on CFDs on 35 currency pairs, crypto assets, stocks, metals, and energies through the MT4 and MT5 trading applications.
Deposit And Withdrawal Options
The platform supports transfers from Nigerian banks with a minimum deposit of N15,000 or $50 with credit cards. You can also make deposits in crypto assets such as Bitcoin and Ethereum.
Customer Support
Customer support on Octa is available 24/7 through live chat and email.
Pros Of Octa
- Supports deposits and withdrawals in Nigerian naira via bank transfer.
- Offers swap-free trading.
- Available currency converter on the website.
- Good customer support.
- No extra charges/commission.
Cons Of Octa
- Limited CFD trading instruments.
- Only USD and EUR base account currency options are available.
3. AvaTrade
AvaTrade is a leading trading broker licensed in six (6) countries. It offers over 1,250 trading products across several marketplaces. The broker is licensed by a tier-1 regulator, the Australian Securities and Investment Commission (ASIC), and two tier-2 regulators, the FSCA and Japan FCA.
Nigerian traders are registered under “Ava Trade Markets Ltd,” which is regulated by the BVI Financial Services Commission, an offshore regulator in the British Virgin Islands.
Features Of AvaTrade
Fees
AvaTrade does not charge deposit or withdrawal fees, and CFD trading is commission-free. The spread starts at 0.9 pips for pairs like EUR/USD and has a maximum leverage of 1:400.
AvaTrade charges an inactivity fee of $50 when there is no trading activity in your account for three months. This fee will be recurrent after every three months of inactivity.
Trading Conditions
The broker offers one account for traders along with Islamic account options and a negative balance protection feature. AvaTrade does not have a Nigerian naira account, so traders in Nigeria can choose USD, EUR, or GBP as their base account currency.
Trading Instruments
This forex broker offers its customers different trading markets, including CFDs on cryptocurrencies, stocks, 55 currency pairs, exchange-traded funds (ETFs), commodities, metals, and energies.
Deposit And Withdrawal Options
You can start trading on AvaTrade with a minimum of $100. The minimum withdrawal is $1 for cards and e-wallets while the minimum for wire transfers is $100.
Customer Support
AvaTrade has a Nigerian phone number for support available only during business hours. The firm has frequently asked questions (FAQs) on its website to answer traders’ questions about its services.
Pros Of AvaTrade
- Offers a wide range of CFD trading instruments.
- Regulated by one tier-1 regulator.
- Offers commission-free trading.
- AvaTrade has negative balance protection.
- Supports copy trading.
Cons Of AvaTrade
- No Nigerian naira accounts.
- No deposits/withdrawals to Nigerian bank accounts.
- Customer support is not available 24/7/
4. HFM
HF Markets (HFM) was founded in 2010 as a MetaTrader broker providing standard MetaTrader features. It is a globally recognized trading firm with over 2.5 million active traders.
HFM is regulated by the FCA in the UK, as well as the FSCA in South Africa, CySEC in Cyprus, and the Dubai Financial Services Authority (DFSA).
Features Of HFM
Fees
With Zero Account, there is a $6 commission per lot for majors and $8 for minors. The maximum leverage on HFM is 1:1,000. The swap fees on EURUSD are $0.20 for short trades and $2.30 for long trades.
In addition, HFM charges no deposits or withdrawals, but it charges a dormant account fee of $5 per month if you do not log into your account for six months.
Trading Conditions
HFM has different account types: Pro, Premium, Zero, and Cent. The broker has negative balance protection to prevent losing more money during loss.
Trading Instruments
There are over 1,000 instruments on HFM. These include CFDs on metals and energies. Others are cryptocurrencies, 53 currency pairs, ETFs, and bonds.
Deposit And Withdrawal Options
The minimum deposit for HFM naira account holders is N4,000 or $5, and the minimum withdrawal is $5. You can deposit/withdraw funds via bank transfer in naira.
Customer Support
HFM has various customer support channels via email, live chats, phone numbers, etc. The support is available for five business days a week. The firm also has an office in Lagos where customers can visit.
Pros Of HFM
- Availability of naira accounts with the naira base currency.
- Offers a wide range of instruments.
- Low minimum deposit.
- Licensed by top-tier regulators.
- Deposits/withdrawals via bank transfers in Nigeria
Cons Of HFM
- Charges dormant account fees.
- Customer support is not available 24/7.
5. FXTM
FXTM was established in 2011 and offers forex and CFD trading services. It is licensed by the CySEC in Cyprus, the FCA in the UK, and the FSCA in South Africa. Traders in Nigeria are registered under its company, Exinity Limited, in Mauritius, which is regulated by the Financial Services Commission (FSC) in Mauritius.
Features Of FXTM
Fees
The average spread fee for a major currency pair like EURUSD with a Micro account is about 1.9 pips. The maximum leverage on FXTM is 1:2,000. Swap-free options are available for all account types on FXTM.
In addition, the platform charges zero deposit and withdrawal fees, although the forex broker charges inactive fees of $5 every month after six months of account dormancy.
Trading Conditions
There are three (3) types of accounts on FXTM – Micro, Advantage, and Advantage Plus Accounts. All the accounts have negative balance protection to ensure you do not lose more funds than in your balance.
Trading Instruments
FXTM provides over 1,000 trading instruments, including CFDs on commodities and indices and 60 forex pairs.
Deposit And Withdrawal Options
The minimum deposit amount is N350,000 and the minimum withdrawal amount is N25,000. FXTM supports bank transfers in Nigerian naira, as well as e-wallets and cards for deposits.
Customer Support
FXTM provides customer support channels like live chat, email, and Nigerian phone numbers. It also offers personal account managers to assist and give excellent support for any issue.
Pros Of FXTM
- Offers Nigerian naira (NGN) base account currency.
- Licensed by top-tier regulators.
- Offers referral bonus.
- Accepts deposits/withdrawals to Nigerian bank accounts.
- Has offices in Nigeria.
Cons Of FXTM
- Charges inactive fees.
- Customer support is not available 24/7/
- Charges withdrawal fees for some methods.
Frequently Asked Questions (FAQs) About Top Forex Brokers In Nigeria
What Is The Best Forex Broker For Traders In Nigeria?
There are many forex brokers in Nigeria, each with unique features. However, the brokers highlighted in this article are some of the best in the Nigerian market: HFM, Exness, FXTM, AvaTrade, and Octa.
Which Forex Brokers Have Offices In Nigeria?
HFM and FXTM are two popular brokers that have offices in Nigeria.
Which Is The Best Forex Broker For Beginners In Nigeria?
AvaTrade and FXTM are some of the best brokers for beginners in Nigeria. This is because they offer traders extensive educational resources.
How Do Forex Brokers In Nigeria Make Money?
Forex brokers make their money from the spreads or commissions they charge on trades.
Conclusion
Choosing the best forex broker in Nigeria may be challenging, but understanding your specific needs can help you choose the appropriate broker for you. Irrespective of your level of experience – either as a beginner or an experienced trader, there is a broker for every trader.
However, it is important to consider factors like regulations, fees, and customer support before making a choice.
