For an investor, forex trading has always been one of the most famous financial instruments but choosing the best forex broker can certainly be an overwhelming task. Considering the country Nigeria, forex trading is a rapidly developing industry and hence both the good brokers and the scam ones are gaining popularity. Unless you are able to differentiate between the trusted ones and the illegitimate ones, you won’t make profit in the trade.
In this post, we will give you a list of the best forex brokers in Nigeria based on different aspects of the trade. Read on if you’re a Nigerian trader.
Found in 2011, they are regulated by the FCA and their USP lies in the fact that they offer different types of account, all of which can be funded in Naira and with low minimum deposits. Besides trading the forex market, FXTM also provides other financial instruments like CFDs on spot metals and CFDs on Commodity Futures making it a luring option for the traders.
Pros of FXTM:
- A highly regulated forex broker, hence safe
- Minimum deposits are 2000Naira
- Low spreads on minor & major pairs of currency
- Instant withdrawals
- Live chat
Cons of FXTM:
- In case of standard accounts, FXTM offers a slightly higher spread. Their USD or EUR is 2pips on an average and yet it is considered as a competitive rate.
#2: XM Forex
Found in 2009, XM Group is a partner of Trading Point of Financial Instruments Ltd. and since 2015, they were regulated by CySEC. They offer 55 currencies and more than 350 various financial instruments. They offer 3 main types of accounts with competitive fees and low minimum deposits. They have a user-friendly interface for mobile & desktop users.
Pros of XM:
- Regulated by 2 top tier regulators
- Offers competitive spreads
- Protection against negative balance, instant withdrawals
- Responsive chat support
Cons of XM:
- No local office in Nigeria
- No options for local bank deposits
Established in 2010, Hotforex is regulated by CySec, FCA and Financial Sector Conduct Authority thereby making it to the list of trusted forex brokers. Their minimum deposits are as low as $5 and their spreads are competitive. Traders can access their platform from their iPhones, Android phones and from desktops.
Pros of Hotforex:
- Highly regulated broker
- Low requirements of minimum deposit
- Lowest spread among all brokers
- Sign up bonus is extremely attractive
- Good customer care support
Cons of Hotforex:
- For new clients, minimum deposit amount if 30,000 Naira which is too high
Avatrade is a European forex trade broker that offer fixed spreads and they offer 1.3 pips spread for both USD and EUR. They offer you leverage of 1:1000 and their account minimums are $100. Avatrade is regulated by ASIC and FSCA regulators.
Pros of Avatrade:
- Fixed spread broker and the spread will stay same irrespective of market conditions
- Charges 0 fees on withdrawals and deposits
- They have a local phone number for providing support
Cons of Avatrade:
- Not regulated by FCA which is a regulatory authority
- Spread is higher for exotic and few minor currency pairs
- Live chat only during business hours
Found in the year 2008, this is one of the largest brokers in terms of volume of trading. They’re regulated by FCA UK under the license 730729. They offer you a wide range of trading instruments with more than 120 pairs of minor and major currency pairs. They offer tight spreads in 3 of the main types of accounts. Customer support is available in 8 languages.
Pros of Exness:
- Highly reputed broker
- Minimum deposit requirement just $1
- Bank deposit options available
- Instant withdrawal options available
Cons of Exness:
- Lack of sign-up bonus for new sign-ups and no loyalty programs
Found in the year 1998, this is said to be the 6th best forex trading brokers in Nigeria as they offer a plethora of financial assets like CFDs, forex, stocks and spot metals. They have 6 types of deposit accounts and their minimum deposits are as low as 0 with Nano account.
Pros of Alpari:
- Oldest broker with more than 2 million customers
- Lets you trade in cryptocurrencies as well
- Low minimum deposit that stars from 0 Naira
- Has a local office in Nigeria
Cons of Alpari:
- Re-quotes in situations of high market volatility
- Not regulated with FCA in UK and in US
How to choose the best broker – The 5 points
- Reviews and reputation of the brokers
- Platforms for trading
- Trading fees
- Customer care support
So, now that you know how to choose the best forex brokers in Nigeria, base your decisions on the above listed points. Make sure you select the most trustworthy ones.