HERE IS AN ANSWER TO WHAT IS THE MINIMUM AMOUNT TO START FOREX TRADING
Minimum Amount to Start Forex Trading in Nigeria
Currently, forex trading in Nigeria is gradually gaining popularity. Nigerians have found it as one of the ways to diversify their income sources. It has lured many people to start trading. This has caused an emergence of new traders entering the market every month. However, one common question that arises among beginners is: What is the minimum amount to start forex trading in Nigeria? In this short review, we are going to answer this question and look at some low-deposit brokers in Nigeria.
What is The Minimum Amount to Start Forex Trading in Nigeria?
The minimum amount required to start forex trading in Nigeria varies depending on the broker and the trading account type that a trader chooses. Some brokers in Nigeria have minimum deposits as low as $5, while others might require a higher amount, like $100. Generally, brokers that offer lower minimum deposits accommodate traders who do not have large amounts to invest.
However, having at least $100 or its equivalent will give you more flexibility in managing your trades. It's essential to research and compare different brokers to find the one that best suits your trading needs and budget. Additionally, make sure to consider other aspects such as spreads, commissions, and withdrawal fees when determining the total amount you need to start trading. Let’s take a look at some of the minimum deposit requirements accepted by some popular forex brokers in Nigeria.
Brokers With Low Starting Amount Requirements
HFM
Notably, HF Markets does not have a minimum deposit requirement for Nigerian traders, except on two of its accounts. This broker allows its traders to start investing with whatever amount they wish to deposit. As such, traders can start small and increase their capital over time. Additionally, the broker supports the Nigerian Naira and USD as base account currencies.
After making a deposit, traders gain access to a wide variety of market products totalling over 1,000v assets. Specifically, traders gain access to CFDs on forex, energies, metals, stocks, indices, commodities, bonds, ETFs, and cryptocurrencies. The trading platforms available to use include MetaTrader 4, MetaTrader 5, and the HFM Platform.
Further, the broker offers various trading accounts to suit different traders. These include Premium, Cent, Pro, Pro-Plus, Zero, and Top-up Bonus accounts. Premium and Cent accounts have competitive spreads starting at 1.2 pips. The Top-up Bonus account has spreads from 1.4 pips. For experienced traders, the Pro account offers spreads as low as 0.5 pips on major currency pairs, and the Pro-Plus account features ultra-low spreads starting at 0.2 pips*. These five accounts do not charge commissions on forex trading. However, the Zero account offers spreads as low as 0.0 pips with a commission starting at $0.03 per 1k lot.
Regulation is crucial for many traders. HFM is supervised by multiple regulatory bodies across various jurisdictions, including the FSCA in South Africa, the CMA in Kenya, the SV in St. Vincent & the Grenadines, the FCA in the UK, the CySEC in Cyprus, and the DFSA in the DIFC.
Exness
Exness is one of the most popular brokers in Africa that has a low minimum deposit amount that sits at $10 which is approximately 10,760 in Naira. The broker supports having a base account currency either in USD or in Naira. It offers many different ways for traders to deposit and withdraw funds. These include payment methods such as e-wallets and crypto-wallets. It also includes electronic payment systems, bank cards (Visa, Mastercard, and JCB), bitcoin wallets, mobile banking methods, and bank cashier payments.
There are different financial instruments available for traders to invest in, traders gain access to the Forex, Metals, Indices, Cryptocurrencies, Energies, and Stocks markets. One can invest in them through five different types of accounts which include the Standard Cent, Standard, Pro, Zero, and Raw Spread accounts. The various trading platforms available to use include MetaTrader 4, MetaTrader 5, and Exness Terminal.
On another note, the spreads are competitively low on Exness, allowing traders to maximize their earnings while reducing costs. The standard account has spreads from 0.2 pips while the standard cent account has spreads from 0.3 pips with no commission on either account. The three professional accounts feature even lower spreads that can go as low as 0.0 pips plus a commission on two of the accounts.
Finally, Exness is a regulated broker in various jurisdictions. In Africa, this broker is under the regulation of the CMA in Kenya and the FSCA in South Africa. Elsewhere, Exness is regulated by the FCA in the UK and the CySEC in Cyprus, among others.
XM.com
Traders can start trading with XM from as low as $5 which is approximately 5,380 NGN at the time of writing this. This broker accepts a wide variety of payment options for traders to deposit and withdraw funds. These include credit and debit cards, bank transfers, e-wallets, and many more. Once traders make a deposit, they gain access to a deep collection of market products that total over 1,000 assets.
The assets available on this broker site include CFDs on forex, indices, stocks, commodities, energies, precious metals, and shares. These assets can be traded on two different platforms which include MetaTrader 4 and MetaTrader 5. They also offer several trading accounts that traders can choose from. The trading accounts include a micro account, standard account, XM Ultra low account, and Shares account. The standard and the micro account offer spreads as low as 1 pip with no commission required. On the other hand, the XM Ultra low account has a spread from as low as 0.6 pips with no commission. The shares account charges a commission depending on the share being traded.
Lastly, XM is regulated by several regulators in the market. Specifically, the broker is under the regulation of the FSC in Belize, the CySEC in Cyprus, the DFSA in the DIFC, and the ASIC in Australia, among others.
FBS
FBS also offers traders the opportunity to start trading from as low as $5, approximately 5,380 in Naira. To deposit and withdraw funds, traders can use a variety of payment options. These include numerous electronic payment systems, credit and debit cards, bank wire transfers, and exchangers. Once traders make a deposit, there are many trading opportunities on the FBS trading site.
In total, there are more than 650 different market instruments that traders have access to. These include assets in the forex, stocks, metals, energies, and indices markets, among others. FBS offers only one account to Nigerian traders, the standard account. This account features an STP execution model and low spreads that start from as low as 0.7 pips for major currency pairs. The trading platforms available to choose from include MetaTrader 4, MetaTrader 5, and FBS Trader.
Lastly, FBS is one of the international forex brokers that have regulations from a variety of organizations. It operates under the regulation of the FSCA in South Africa, the FSC in Belize, the CySEC, and the ASIC.
AvaTrade
Trading Forex and CFDs entail risk.
Your capital is at risk.
Let’s close out this piece with AvaTrade which offers traders a minimum deposit of $100, approximately 107,600 NGN. While this may be slightly high, it is one of the most common minimum deposits supported by brokers. Notably, AvaTrade supports a wide variety of payment options that include e-payments such as Skrill, WebMoney, and Neteller. It also supports payment options such as Wire Transfers and Credit and Debit cards.
Further, AvaTrade traders have access to a deep collection of market products to diversify their portfolios. There are over 1,200 popular assets including CFDs on Forex, Stocks, Commodities, ETFs, Options, Cryptocurrencies, and Indices. To trade these assets, traders can choose between MT4, MT5, WebTrader, and the AvaTradeGO app as their trading platform. The spreads are competitively low, starting from 0.9 pips for major currency pairs with no commission charged.
Like the other brokers in this article, AvaTrade is regulated by several regulators. These include the FSCA, the Central Bank of Ireland, the CySEC, and the ASIC.
The minimum amount needed to start forex trading in Nigeria varies according to broker requirements. While some brokers provide accounts with modest minimum deposits, traders should consider practical factors. These include factors such as the regulatory status of a broker, the spreads involved when trading, the market products available to trade, and the trading platforms available.
We listed here some brokers that accept relatively low minimum deposits from Nigerian traders. We also mentioned the specific features they have including their regulatory statuses. Nonetheless, the choice of the broker and deposit level depends on the comfort level of a trader. Some traders may choose to invest with brokers with high minimum deposit requirements simply for the quality of services they offer. Others may choose to invest with a broker with a low minimum deposit simply because of the affordability.