HERE IS A LIST OF FOREX BROKERS THAT PASS ORDERS STRAIGHT TO LIQUIDITY PROVIDERS
Best ECN Brokers in Nigeria
ECN brokers are brokers that use an Electronic Communication Network (ECN) to connect traders’ orders to liquidity providers. The liquidity providers are usually banks or big financial institutions with access to the interbank market. Notably, ECN brokers are widely preferred by some traders due to their transparent nature and security. In Nigeria, this remains the case with the top ECN brokers attracting a large number of traders in the country. In this article, we are going to look at some of the best ECN brokers in Nigeria and see what they have to offer to traders.
Our Criteria For Selecting The Best ECN Brokers
Before we list the individual brokers, we must highlight the key features we will consider in making our selections. Traders can then see if the criteria fit their needs and tweak them to find their own preferences. Below are the features we looked at to make our picks:
- ECN account - Of course, any broker we listed here offers an ECN account or is fully ECN.
- Regulation - The regulatory status of a country is of utmost importance to look at. With this in mind, we only featured brokers with regulations from reputable organizations.
- Availability of trading instruments - It is important for traders to have access to a variety of market products to diversify their portfolios.
- Spreads Offered - The spreads that the brokers on this list offer are competitively low, allowing traders to save on trading fees.
- The Trading Platform Available - The brokers we list also have trading platforms with advanced capabilities coupled with user-friendly interfaces.
With that said, let’s now look at some of the best ECN brokers in Nigeria.
Best ECN Forex Brokers in Nigeria
Pepperstone
We will kick off our list with Pepperstone, one of the best ECN brokers that accepts Nigerian traders. This broker sources directs client orders to liquidity providers who then fill the orders. This means that the pricing on the Pepperstone trading site is sourced directly from the interbank market. In this sense, it does not use a dealing desk to fulfil orders. There are two main accounts traders can choose from. These include the standard account and the razor account.
The standard account offers spreads as low as 1.0 pips for major currency pairs with no commission charged. In contrast, the razor account has a spread from as low as 0.0 pips plus a commission depending on the platform a client uses. When using the MetaTrader platforms, TradingView, and the Pepperstone Trading Platform, traders pay a commission of $3.5 per side per lot. On the other hand, traders using cTrader pay a commission of $3 per side per lot.
Further, this broker offers traders a plethora of trading instruments totalling over 1,200 different assets. These include CFDs on forex, commodities, cryptocurrencies, indices, ETFs, and shares. Traders do not have to leave this trading site to invest in multiple markets. Furthermore, the broker offers a variety of trading platforms which include MetaTrader 4, MetaTrader 5, TradingView, cTrader, and the in-house-built Pepperstone Trading Platform.
Finally, Pepperstone has regulations from a variety of organizations. These include the CMA in Kenya, the ASIC in Australia, the FCA in the UK, and the DFSA in the DIFC, among others.
FP Markets
FP Markets provides traders with price streams directly from liquidity providers. In this sense, the broker offers ECN services by not utilising a dealing desk. Notably, FP Markets sources liquidity from several liquidity providers which allows it to offer low spreads, minimal slippage, and ultra-fast execution. Both of the accounts that the broker offers are ECN and have different spreads. The standard account features spreads from as low as 1.0 pips with no commission required. On the other hand, the raw account has spreads from as low as 0.0 pips with a commission of $3 per side per lot.
Further, these accounts offer traders access to over 10,000 different market products. These include forex currency pairs alongside CFDs on indices, commodities, cryptocurrencies, ETFs, shares, and bonds. This allows traders to diversify their portfolios. The trading platforms available to traders include MetaTrader 4, MetaTrader 5, cTrader, Iress, and TradingView.
Finally, regarding regulations, this broker holds licenses from various organisations. These include the FSCA in South Africa, the ASIC in Australia, and the CySEC in Cyprus.
FXGT
FXGT is another broker that accepts Nigerian traders and offers them an ECN account. The ECN account on this broker site features ultra-low spreads from as low as 0.0 pips plus a commission depending on the asset a client is trading. The commission sits at $6 per round turn when trading forex classes, $5 per round turn on all precious metals, and 0.1% per round turn on all cryptocurrency assets.
Notably, traders can trade a variety of markets on this broker site. The market products available to invest in on this trading site include CFDs on forex, indices, precious metals, stocks, cryptocurrencies, synthetic crypto pairs, and the GTi12 index. There are only two trading platforms available to use which include MetaTrader 4 and MetaTrader 5.
Now, let’s see how this broker’s activities are regulated. FXGT operates under the supervision of the FSCA in South Africa, the FSA in Seychelles, and the VFSC in Vanuatu.
IC Markets
Trading Forex and CFDs entail risk.
Your capital is at risk.
IC Markets is an FSCA-regulated broker that offers ECN services to traders in Nigeria. Other than the FSCA, the broker is also under the regulation of other top regulators. These include the ASIC in Australia and the CySEC in Cyprus, among others. While regulations alone are not enough, traders are much safer with brokers with such regulations.
Notably, this broker allows traders to invest in a variety of market products totalling over 2,200 different assets. These include assets from global markets such as forex, futures, commodity indices, stocks, metals, and bonds. The trading platforms available to use include MetaTrader 4, MetaTrader 5, and cTrader.
Further, this ECN broker has some of the lowest spreads offered to traders. The standard account offered by this broker has spreads from as low as 0.6 pips for major currency pairs with no commission paid. On the other hand, the raw spread account has a spread from 0.0 pips plus a commission of $3.5 per side per lot.
FXTM
Trading Forex and CFDs entail risk.
Your capital is at risk.
FXTM, also known as Forextime, is a forex broker that launched in 2011 offering traders access to a variety of market products. With this broker site, traders gain access to forex, metals, commodities, indices, forex indices, stocks, stock baskets, and stock CFDs. Such variety allows traders to invest in multiple markets on the same trading account. Better yet, this broker offers ECN execution, meaning that traders get price streams from the underlying market. On another note, the trading platforms available to use include MetaTrader 4, MetaTrader 5, and FXTM Trader.
Further, the spreads for trading on this broker site are manageable and competitively low. There are three different accounts traders can choose from. The Micro account and the Advantage Plus account both feature spreads from as low as 1.5 pips with no commissions paid. In contrast, the Advantage account has spreads from 0.0 pips with commissions based on trading volumes. The average commissions on the account are between $0.4 to $2. Interestingly, FXTM allows traders to have the Naira as their account base currency on all three accounts.
Finally, we must mention how this broker is regulated. Well, it holds licenses from various institutions including the FSCA in South Africa, the FCA in the UK, and the CySEC in Cyprus, among others.
In conclusion, when it comes to choosing the best ECN brokers in Nigeria, traders should prioritize factors such as regulation, trading instruments availability, competitive spreads, and advanced trading platforms. Pepperstone, FXGT, FP Markets, IC Markets, and FXTM emerge as top contenders meeting these criteria. These brokers offer ECN accounts, ensuring transparency and direct access to liquidity providers. With a diverse range of trading instruments, low spreads, and user-friendly platforms, they cater to the needs of Nigerian traders seeking secure and efficient trading environments. Moreover, their regulatory compliance with reputable organizations like FSCA, ASIC, and CySEC enhances traders' confidence.
Still, these are our picks and they fit our criteria. Not every broker made the cut and there are other reputable brokers that may fit other people’s criteria. As such, traders must do thorough research while considering their own trading needs to find the broker that best suits their needs.