Broker of the month
- Spreads: as low as 0.2 pips*
- Trading Instruments: 500+
- Trading platforms: MT4, MT5, HFM Platform
- Account base currency: USD or NGN
Risk warning: Trading margined products carries a high level of risk.
How do we select brokers featured on this page?
Selecting a forex broker to invest in can be a very menacing task. Even seasoned professional traders find it tough to sift through the thousands of brokers in existence. However, there are some key features to look at to make sure you are investing with a quality broker. These include:
Best Nigerian Forex Brokers
We looked at some of the best forex brokers that operate in Nigeria and made a summarised comparison of their features below.
HFM
Regulation: FSCA, CMA, SV, FCA, DFSA
Spreads: As low as 0.2 pips*
Max. leverage: 1:2000, Forex pairs: 50+
Min. deposit: $0/₦0
HFM caters to Nigerian traders with over 1,000 different market products and is regulated in Africa by two regulatory commissions that include the CMA in Kenya and the FSCA in South Africa. HFM offers Nigerian traders Naira and USD as account base currencies and provides them with competitive trading conditions. Additionally, this broker offers high leverage of up to 1:2000 and multiple account options with low spreads starting from as low as 0.2 pips*.
Trading Forex and CFDs entail risk and could result in the loss of your capital.
Exness
Regulation: FSCA, CMA, CySEC, FCA
Spreads: As low as 0.3 pips
Max. leverage: 1:unlimited, Forex pairs: 100+
Min. deposit: $10/7,775 NGN
Exness is regulated by two regulatory commissions in Africa that include the CMA in Kenya and the FSCA in South Africa. This broker promises its clients instant processing of transactions, both deposits and withdrawals. Nigerian traders will get access to 107 different currency pairs to trade with this broker site. Nigerian traders can use the Naira as their base currency and trade forex with low spreads starting from as low as 0.3 pips.
Trading Forex and CFDs entail risk and could result in the loss of your capital.
XM.com
Regulation: FSC, ASIC, CySEC
Spreads: As low as 0.6 pips
Max. leverage: 1:1000, Forex pairs: 55
Min. deposit: $5
XM is another reputable broker that accepts Nigerian clients. The broker offers over 1,000 CFDs with low spreads starting from as low as 0.6 pips on the XM Ultra low account. The trading platforms offered by this broker include the MT4, MT5, and the XM Trading App. Notably, Nigerian clients will gain access to 55 different currency pairs on the XM trading site. The broker also has an extensive educational centre including online webinars every day of the week.
Trading Forex and CFDs entail risk and could result in the loss of your capital.
Regulation: FSCA, CySEC, ASIC, Spreads: as low as 1.0 pips
Max. leverage: 1:500, Forex pairs: 70+, Min. deposit: $100
FP Markets offers its clients one of the deepest collections of market instruments, totalling over 10,000 different assets. Traders have access to over 70 different currency pairs with spreads from as low as 1.0 pips with no commission fee. The trading platforms available include MT4, MT5, IRESS, and cTrader. FP Markets is regulated by the FSCA in Africa among other organizations and has on TrustPilot an average rating of 4.8 out of 5 stars.
Regulation: CMA, CySEC, ASIC, FCA, BaFin, Spreads: as low as 1.0 pips
Max. leverage: 1:400, Forex pairs: 60+, Min. deposit: No minimum deposit
Pepperstone is one of the fastest execution brokers in the market today. On this broker site, most orders are executed in under 60 milliseconds. It offers four world-class trading platforms that include MetaTrader 4, MetaTrader 5, cTrader, and TradingView.
On this trading site, clients have access to over 1,200 CFDs including over 60 different currency pairs. The fees on this broker site are competitively low with spreads that can go as low as 1.0 pip and no commission fees on the standard account or as low as 0.0 pips with a commission of $3.5 per side per lot paid on the razor account.
Regulation: FSCA, CySEC, ASIC, Spreads: as low as 0.8 pips
Max. leverage: 1:500, Forex pairs: 80+, Min. deposit: No minimum deposit
XTB has over 650,000 clients from around the world and accepts traders from Nigeria. It offers access to over 2,200 trading instruments including nearly 50 different currency pairs.
This broker offers low spreads when trading currency pairs starting from 0.8 pips on forex majors. The sole trading platform offered by XTB is the in-house-built xStation 5. In terms of regulations, this broker has licenses from the FSCA, the CySEC, and the ASIC.
How to find the Best Forex Broker in Nigeria
Each trader in the market has their own needs that need to be met by the broker of their choice. Some of the important aspects that the majority of traders look for include regulations, spreads and other trading fees, the trading platforms offered by the broker, and the availability of trading assets.
Some traders also consider whether a broker supports their national currency as a base account currency. For Nigerian traders, a broker that supports the Nigerian Naira as an account base currency is an added advantage.
Many brokers in Nigeria offer traders promotions such as deposit & no-deposit bonuses, or even trading competitions to attract customers. While these are appealing perks, what matters most is the regulations, trading fees, and transparency demonstrated by a forex broker.
The regulatory status of a company is probably the most important thing to look for when selecting a broker to invest with. Every expert will tell you that trading with a broker with no regulations is a recipe for disaster. Moreover, regulations alone are not enough. There are companies with regulations from jurisdictions that have relaxed laws. Such brokers do not have to provide top-notch trading conditions to their clients. As such, traders should only trade with forex brokers with at least 1 regulation from a world-class organization.
In Nigeria, the Securities and Exchange Commission of Nigeria alongside the Central Bank of Nigeria are in charge of regulating the forex and financial market. While these bodies have been operating for years in Nigeria, there are not any brokers that are under the supervision of any of these bodies.
As such, the best bet for Nigerian traders is to choose a broker that is regulated by reputable organizations from other countries in the world.
Better yet, Nigerian traders should prioritize brokers that have regulations in Africa by the FSCA in South Africa or the CMA in Kenya. When choosing brokers with regulations elsewhere, those with licenses from the FCA, the CySEC, and the ASIC stand out. These are the regulators in the UK, Cyprus, and Australia respectively. They have very strict laws that brokers must follow to receive a license.
Paying hefty fees when trading is counter-productive. The more fees a trader pays, the less profit they make from their trades. As such, traders should look for a trading broker that charges competitively low fees. There are four main charges that are usually charged by brokers. These include spreads, commissions, deposit and withdrawal fees, swap fees, and inactivity fees. Let’s quickly look at each of these.
1# Spreads
The spread is the difference between the asking price and the bidding price. The most traded assets on a broker site usually have the smallest spreads. For example, major currency pairs usually have lower spreads than minor and exotic currency pairs. Traders can check the spreads associated with an asset on a broker’s website before investing.
The screenshot is used for illustration purposes only
2# Commission fees
Some brokers charge their traders commissions in place of spreads or a combination of low spreads plus a commission. For example, on the Exness broker site, clients can trade on professional accounts that feature ultra-low spreads (as low as 0.0 pips) plus a commission. Other brokers charge commissions on certain asset classes. For example, XM only charges commissions on its Shares account.
3# Swap fees
Swap fees are costs paid by traders for holding positions overnight. Most brokers are pretty transparent about these fees and traders can access this information on the broker’s website. They may vary from broker to broker depending on the asset and size of the position held overnight. For Muslim traders, there are numerous brokers that provide Islamic accounts which do not incur swap fees.
The screenshot is used for illustration purposes only
4# Deposit and withdrawal fees
For the most part, reputable brokers have eliminated deposit and withdrawal fees from their trading platforms. Even those that do charge these fees normally only apply them to some specific payment methods like bank transfers.
5# Inactivity fee
This fee is charged by brokers on trading accounts that remain inactive for a given period of time. The period after which the charge starts to apply varies from broker to broker and can range from a few dollars to hundreds of dollars. The best bet for traders who want to take a break from trading would be to withdraw all their funds to avoid paying this charge.
Most traders prefer to trade with forex brokers that support their country’s currency as an account base currency. This makes it convenient for them as they do not have to convert their funds into another currency once they make a deposit.
Unfortunately, not many brokers support the Nigerian Naira as a base account currency. Consequently, brokers like Exness that support the Naira as a base account currency stand out for Nigerian traders.
Nonetheless, it is not a huge inconvenience for traders to convert their currencies when making a deposit. After all, the account base currency will probably be converted automatically when the trader places an order on a currency pair that does not involve his base account currency.
For example, if the account is in Naira and the trader places an order on the GBP/USD pair, then the Naira will first be converted to GBP.
The number of currency pairs you will find on a broker site will differ from broker to broker. While most brokers provide major currency pairs, the same cannot be said for minors and exotic currency pairs. The selection a trader makes depends on the individual needs and how deeply they want to diversify their portfolios.
Leverage is a tool that allows investors to trade on borrowed money in order to control larger positions. This increases the potential profits and potential losses. Most Nigerian forex brokers offer their clients fairly high leverage with Exness standing out with its 1:unlimited leverage. Needless to say, traders should use whatever leverage they have access to conservatively to reduce the risk of losing their account balance.