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 in Nigeria can be a daunting task. Even seasoned traders find it challenging to navigate the hundreds of brokers available. However, several key features can help ensure you're choosing a quality broker. These include:
Best Forex Brokers in Nigeria
We've compared some of the best forex brokers operating in Nigeria, with a summary of their key 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 offers over 500 market instruments and is regulated by two African authorities: the CMA in Kenya and the FSCA in South Africa. Nigerian traders can use Naira or USD as their base currency. For trading flexibility, HFM features multiple account options. The Pro Plus account stands out with spreads from 0.2 pips* on major forex pairs and no commissions. The broker also provides deposit bonuses, trading promotions, and contests (T&Cs apply).
Trading Forex and CFDs entail risk and could result in the loss of your capital.
XM
Regulation: FSC, DFSA, CySEC
Spreads: As low as 0.8 pips
Max. leverage: 1:1000, Forex pairs: 55
Min. deposit: $5
XM is another reputable broker serving Nigerian clients, offering access to over 1,400 CFD instruments with tight spreads starting from 0.8 pips on major forex pairs and no commissions on the XM Ultra Low account. The broker supports MT4, MT5, and the XM Trading App as trading platforms, with maximum leverage of 1:1000. Beyond its trading offerings, XM features an extensive educational center that provides daily trading webinars.
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 African authorities: the CMA in Kenya and the FSCA in South Africa. The broker offers instant processing for both deposits and withdrawals. Nigerian traders gain access to 107 currency pairs and can use either USD or Naira as their base currency. Regarding trading costs, Exness provides tight spreads starting from 0.3 pips on forex pairs through its standard account, with no commissions. Even tighter pricing is available on pro accounts.
Trading Forex and CFDs entail risk and could result in the loss of your capital.
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: FSC, CySEC, KNF, DFSA, Spreads: as low as 0.8 pips
Max. leverage: 1:500, Forex pairs: 60+, Min. deposit: No minimum deposit
XTB has over 2 million clients from around the world and accepts traders from Nigeria. It offers access to over 11,200 trading instruments, including little over 60 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 FSC, the CySEC, the KNF and the DFSA.
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.
How to find the Best Forex Broker in Nigeria
Every trader has unique requirements when selecting a broker. The most important factors traders consider include regulation, spreads and trading fees, available trading platforms, and asset selection.
Some traders also consider whether a broker supports their national currency as a base currency. For Nigerian traders, brokers that support Naira as a base currency offer a significant advantage.
Many brokers serving Nigerian traders offer promotions such as deposit and no-deposit bonuses or trading competitions to attract customers. While these are appealing perks, what matters most is regulation, competitive trading fees, and transparency.
Regulatory status is arguably the most critical factor when selecting a broker. Every expert will advise against trading with unregulated brokers, as this poses significant risks. However, regulation alone is not enough.
Some brokers hold licenses from jurisdictions with lax oversight and minimal consumer protection requirements. These brokers are not obligated to maintain high trading standards or fair practices. Therefore, traders should only work with forex brokers regulated by at least one world-class financial authority.
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. Despite their long-standing presence, no forex brokers currently operate under their supervision.
Therefore, Nigerian traders should choose brokers regulated by reputable international financial authorities.
Better yet, Nigerian traders should prioritize brokers regulated in Africa by the FSCA in South Africa or the CMA in Kenya. When selecting brokers with licenses from other jurisdictions, those regulated by the FCA (UK), CySEC (Cyprus), and ASIC (Australia) stand out.
These authorities enforce stringent requirements that ensure high standards of conduct and client protection.
Paying hefty trading fees is counterproductive. The more fees traders pay, the less profit they retain from their trades. Therefore, traders should seek brokers that charge competitive fees. Brokers typically impose several types of charges, including spreads, commissions, deposit and withdrawal fees, swap fees, and inactivity fees. Let's examine each of these.
1# Spreads
Spread is the difference between the bid and ask prices. The most actively traded assets typically have the tightest spreads. For example, major currency pairs generally have lower spreads than minor and exotic pairs. Traders can review spreads for specific assets on a broker's website before opening an account.
The screenshot is used for illustration purposes only
2# Commission fees
Brokers structure fees differently across account types. Raw or zero spread accounts often combine ultra-tight spreads with commissions, while standard accounts typically feature wider spreads without commissions.
For instance, HFM offers a zero account with spreads from 0.0 pips plus a commission of $3 per side per lot on forex trades.
3# Swap fees
Swap fees are costs paid by traders for holding positions overnight. Swap fees are charges incurred for holding positions overnight. Most brokers maintain transparency regarding these fees, which are typically accessible on their websites. Swap rates vary between brokers depending on the asset and position size. For Muslim traders, many brokers offer Islamic (swap-free) accounts that comply with Sharia principles.
The screenshot is used for illustration purposes only
4# Deposit and withdrawal fees
Most reputable brokers have eliminated deposit and withdrawal fees. The few brokers that still charge these fees typically apply them only to specific payment methods, such as bank transfers.
5# Inactivity fee
Brokers charge this fee on accounts that remain inactive for a specified period. Both the inactivity threshold and fee amount vary by broker, ranging from a few dollars to hundreds. Traders planning an extended break from trading should withdraw their funds to avoid this charge.
Most traders prefer brokers that support their local currency as a base currency. This eliminates the need for currency conversion when depositing or withdrawing funds, saving both time and conversion costs.
Unfortunately, few brokers support Naira as a base currency. Therefore, brokers like HFM that offer Naira accounts provide a significant advantage for Nigerian traders.
However, it is important to remember that currency conversions occur automatically when trading any pair that doesn't include your base currency.
For instance, whether a Nigerian trader holds a USD or Naira account, trading EUR/GBP requires the same automatic conversion. What matters most are conversion costs, which reputable brokers keep minimal.
The number of available currency pairs for trading varies significantly between brokers. While nearly all brokers offer major currency pairs, the selection of minor and exotic pairs differs considerably. Traders should choose brokers based on their specific trading strategies and diversification goals.
Leverage is a tool that allows traders to control larger positions with borrowed capital, amplifying both potential profits and losses. Most brokers serving Nigeria offer high leverage, with Exness standing out by providing unlimited leverage. However, traders should exercise caution and use leverage conservatively to protect their account balance.