HERE IS A LIST OF FOREX BROKERS THAT OFFER CENT ACCOUNTS IN NIGERIA
Best Cent Account Brokers
In the forex industry, there are new traders entering the market every month. This is especially true for Nigeria, a country characterised by a majority of young and tech-savvy individuals. The forex market in this country is on a gradual growth driven by an increase in access to technology and the internet. For new traders entering the market, cent accounts can be a perfect fit. Additionally, these accounts are a perfect match for traders who do not have large capital to invest at a go. This is because cent accounts allow investors to trade small lots, greatly lowering the risk. However, selecting the best broker with a cent account can be a challenge to many traders. In this article, we are going to review some of the best cent account brokers in Nigeria. But before that, let’s have a better understanding of what cent accounts are all about.
What is a Cent Account?
In forex trading, cent accounts provide a beginner-friendly option. Instead of having your account balance and trades denominated in the base currency, a cent account uses cents. On top of that, these accounts allow traders to invest in cents which means much smaller lot sizes. This translates to lower risk for both new and experienced traders looking for better risk management. This is by far the main advantage of cent accounts to traders. However, there are others. Let’s take a brief look at some of the advantages and disadvantages of cent accounts.
Advantages of Cent Accounts
- Cent accounts carry manageable risks due to the low investment amounts they involve.
- The low entry point of cent accounts makes them ideal for new traders to learn the ropes of the market without risking significant sums of money.
- Experienced traders can experiment with different strategies on a cent account without risking significant funds.
- Traders can explore the functionalities and user experience offered by different brokers before committing large funds.
Drawbacks of Cent Accounts
- Many forex brokers offering cent accounts impose limits on maximum lot sizes and the number of positions held, restricting extensive usage.
- Cent accounts typically come with slightly higher spreads.
With that, let’s now shift our focus and look at some of the best cent account brokers in Nigeria.
Best Cent Account Brokers in Nigeria
HFM
HF Markets is a well-known broker in Nigeria and globally. It offers a wide range of account types, including cent accounts. Notably, it is one of the top choices for Nigerian traders looking for a cent account. For starters, this cent account comes with favourably low spreads from as low as 1.2 pips with no commission required. Additionally, this broker supports the Nigerian Naira as a base account currency and does not have a minimum deposit requirement on the cent account.
In addition to the cent account, HF Markets offers various other account types including Zero, Pro, Pro Plus, and Premium. On this broker site, clients have access to over 1,000 market products including CFDs on forex, metals, energies, stocks, bonds, commodities, indices, ETFs, and crypto. The trading platforms available to use include MetaTrader 4, MetaTrader 5, and the HFM platform.
As always, the regulatory status of a broker is the most crucial thing a trader should consider before investing their hard-earned cash. Luckily, HFM prioritises regulatory oversight with licenses from a number of well-respected financial authorities. This includes the FSCA in South Africa, the CMA in Kenya, the FCA in the UK, the CySEC in Cyprus, and the DFSA in the DIFC.
Exness
Exness is another well-established broker in Nigeria and Africa at large that offers its traders access to a cent account. The cent account offered by this broker features spreads starting from 0.3 pips for major currency pairs with no commission. The maximum lot size available for the cent account is 200, and the maximum number of positions is 1,000. Exness also provides other account types, including the Standard account and three different professional accounts for Nigerian traders. Better yet, this broker supports the Nigerian Naira as a base account currency.
Additionally, Exness enables portfolio diversification with its wide range of trading instruments. The broker offers access to global markets such as forex, commodities, stocks, indices, crypto, and energies. Traders can invest in these markets using the broker's world-class trading platforms, which include MetaTrader 4, MetaTrader 5, Exness Terminal, and the Exness Trade App. This variety allows clients to choose the platform that best suits their needs.
On regulations, Exness operates under the supervision of the FSCA in South Africa, the CMA in Kenya, the CySEC in Cyprus, and the FCA in the UK, among others. This strong regulatory background is a good sign of a broker that follows the financial laws of the countries in which it operates.
RoboForex
RoboForex also offers a compelling cent account option with their ProCent account. This account allows you to trade a wide range of instruments, including forex, stocks, ETFs, commodities, metals, and energies. This diversity empowers you to create a well-rounded trading portfolio, mitigating risk by not putting all your eggs in one basket. Further, the ProCent account, provided by the broker, requires a minimum deposit of $10 and features spreads from 1.3 pips on major currency pairs.
RoboForex provides a range of trading platforms designed for trading in financial markets. Nigerian traders have options including RStocksTrader, RWebTrader MetaTrader 4, and MetaTrader 5. These platforms cater to individual trader preferences and needs.
Further, this broker holds regulatory licenses from a variety of financial institutions around the world. The list of watchdogs supervising this broker includes the FSC in Belize, FCA in the UK, and BaFin in Germany.
InstaForex
Trading Forex and CFDs entail risk.
Your capital is at risk.
InstaForex is another broker providing cent accounts tailored for Nigerian clients. Investors at InstaForex can select from two types of cent accounts, both requiring an initial deposit of just $1. The two accounts include the cent.Standard and cent.Eurica. The cent.standard account offers spreads starting at 3-7 pips for major currency pairs, without commission, and a maximum trade size of 10,000 units. In contrast, the cent.Eurica account features spreads from 0.0 pips with a modest commission ranging from 0.03% to 0.07%. The maximum trade size on this account is also 10,000 units.
On another note, InstaForex provides a vast selection of global markets for its traders to explore. This includes the ever-popular forex market, along with stocks, indices, metals, cryptocurrencies, and instaFutures. This diversity allows you to build a well-rounded trading portfolio, spreading your risk across different asset classes. Moreover, InstaForex's extensive range of markets can be accessed through multiple trading platforms such as MetaTrader 4, MetaTrader 5, Multiterminal, and WebTrader.
Finally, the broker holds licenses from several authorities in the industry. These include the FSC in Belize, the CySEC in Cyprus, and the BVIFSC in the British Virgin Islands.
Forex4you
Forex4you is another broker worth considering in this review, offering cent accounts for Nigerian traders. Traders can choose between two types of cent accounts: the Cent Fixed account and the Cent Pro account. The Cent Fixed account features spreads starting from 2.0 pips for major currency pairs with no commission. In contrast, the Cent Pro account offers spreads starting from 0.1 pips plus a commission of 10 cents per lot.
Forex4you enables traders to trade multiple market products on the same account simultaneously. Clients of this broker can invest in various global markets, including forex, indices, commodities, and stocks. The available trading platforms on Forex4you include MetaTrader 4, MetaTrader 5, and the Forex4you trading platform.
The regulatory status of Forex4you is not particularly impressive. The broker is regulated by the BVIFSC in the British Virgin Islands and the FSC. The downside to such regulators is that they are not strict and can not be compared to the reputable ones in the market.
Cent accounts offer a compelling entry point for traders, allowing them to invest with minimal capital. This significantly reduces the initial financial risk, making them ideal for beginners testing the waters of the forex market. But their benefits aren’t limited to newcomers. Experienced traders can also use cent accounts to explore new strategies or hedge existing positions without risking significant capital.
The brokers highlighted here stand out for offering cent accounts with several attractive features. These include some of the lowest spreads in the market, regulations by well-known authorities, a variety of trading instruments, and world-class trading platforms. However, while cent accounts are a crucial consideration, they shouldn't be the sole factor when choosing a broker. A broker's overall reputation and quality of service have more weight. Ultimately, the best broker for you depends on your individual needs and preferences.