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Nigeria is a country in West Africa, where Forex trading is becoming more and more popular every day. However, because of the lack of regulations, there are many people who try to avoid trading with the brokers that are functioning locally in the country. We have created this guide to make sure that you could learn more about the field in the country and be able to find the best Forex broker in Nigeria!
Even though many people are trying to avoid this market in Nigeria, it should be noted that there are a number of international Forex brokers in Nigeria that offer people of the country one of the greatest opportunities. Most of the intentional FX brokers are authorized by several regulatory bodies and it can be said that trading with them is very safe.
However, the previous years have shown us that the government is trying to work on different types of regulations to make sure that they can guarantee the safety of their citizens who want to start trading in the country. in 2018, the Securities and Exchange Commission, (SEC) even had a meeting with the Central Bank of Nigeria (CBN) to discuss the creation of a regulatory body that will be able to oversee and regulate the field of Forex in the country.
While looking for the best Forex brokers in Nigeria, one thing that you should remember is that the field in the country is still at its early steps of the development so you should always need to focus on details as much as possible. Once you go through the website of the broker and find that they are authorized, contact the regulatory body to find out if the information provided by the broker is something that can be trusted.
If you do not have the time to go through all the searching process, we can recommend XM as one of the greatest international Forex brokers in Nigeria. To learn more about the broker, visit their website, and learn what they offer to international traders.
What are the Forex regulations in Nigeria?
There are many people who say that regulations are not important and they should not exist at all, however, Forex is one of the fields where regulations are vital. For your own safety, you should always go for the broker that has an official authorization to offer you the services, the field of Forex is already very risky business, so you do not really want to have additional risks added to them.
It is a well-known fact that Nigeria is not that active when it comes to regulations of Forex, because of that, there are many local brokers that are not authorized by official bodies but still offers services to the citizens of the country. However, the great thing is that there are many internationally regulated FX brokers in the country that offer some of the best services in Nigeria.
While looking for the regulated FX brokers, be sure to learn a lot about the regulatory company that gave the authorization to the broker. A great thing to do is to check the information that was provided by the broker with the regulatory body, the information provided by them is something that you can trust the most.
If you found a broker that works perfectly for you but is not authorized something that you can do to make sure that your funds are safe is to read as many reviews of the company as possible. Try to contact those who are trading with the broker and ask them the questions that you might have, it is always a great thing to contact those who already have the experience with the broker so that you do not have to make the same mistakes that other people have already made.
How to find the best and licensed FX brokers in Nigeria?
If you are looking for the best Forex brokers in the country, the best possible thing that you can do is to look for the ones that are regulated by official bodies. The regulations are something that keeps you safe, so always go for the ones that are regulated. Do your research, ask the questions that you have, etc.
Nigeria is one of the countries where the field of Forex is becoming very popular every day, so take advantage of some of the best brokers in the county by following our guide!
What are currency pairs can you trade and what is the national currency of the country?
If you are new to the field of Forex, something that you should know is that there are three different types of currency pairs that you can trade while enjoying the offerings of the best FX brokers in Nigeria. They are Major, Minor, and Exotic currencies. The major currencies include 7 pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, and USD/CAD. Generally, most of the trading is done in majors, which means that they are very liquid and it also a lot easier to get in and out of traders. Also, while trading with these currencies, the opportunity to make a profit is much higher.
Minor currency pairs are the once with the cross currency pairs, they include all of the currencies that are included in majors, however, the USD is not included. In exotic currency pairs, one is the major currency, while the other is one from the emerging economies, for example, South Africa, Brazil, Mexico, etc. These pairs usually do not have high liquidity and trading volume, however, they have higher spreads and volatility.
If you are new to the field, something that we would recommend is to start trading with major currency pairs, since they are a lot easier to get into and understand.
The Nigerian Naira represents the national currency of the country, which is divided into 100 kobos. The issuer of the money is the national bank, Central bank of Nigeria. In most cases, NGN is traded in pairs with the USD. There are many Forex brokers in Nigeria that offer the citizens of the country to trade this currency with other ones, however, something that we would recommend is to start trading with the major pairs, and once you are comfortable with your skills, start trading with the ones that you want!
How does Nigeria’s financial situation look?
Nigeria is a country of more than 186 million people and stands as the most populous country in Africa and seventh in the world. The economy of the country is rising gradually, for example, in 2001, the gross domestic product per capita in Nigeria was $352, while in 2014 it became $3,222. However, it is always hard to see the reality in the numbers, many Nigerians will tell you that it is not easy for them to get by, that is Forex trading in Nigeria is becoming so popular among the citizens of the country.
There are many people who are enjoying FX trading platforms in Nigeria, however, the thing is that the country lacks regulated and trustworthy companies. That is why so many people are deciding to trade with international players.
As in any other country, the fundamental requirements for the start are the same. Traders must have a computer or mobile device, a secure internet connection, trading resources, and a reliable Nigerian Forex broker account. In recent years, Internet access and electricity have become much more efficient, especially in urban areas, making Forex easier to transact. Such circumstances, however, mean that Nigerian traders should be vigilant to avoid a disastrous failure in case a lack of communication that can not be reestablished easily, for this, they can use the hard stop-loss, which can come in handy in these situations.
How much money is needed to start trading with Forex trading in Nigeria?
There are some FX and CFD brokers that require no deposit bonuses in the country, which means that you get to decide how much money you will need to start trading. However, there are some brokers who will ask you to pay at least 100 dollars, or even more, it mostly depends on the broker and you can learn more about this on their websites.
Something that we want you to understand is that the money that you are paying to the FX broker in Nigeria is not a payment at all since it is something that you are investing in your own future. The money that you deposit on your platform is something that you will potentially benefit from in the future, so look at it as an investment and not payment.
Something that we would recommend while looking for the best FX broker is to try to focus on the details, there are many international FX brokers that offer some of the greatest benefits in the world. Like, for example, XM, which has some of the greatest offerings on the market! Click the button below to learn more!
Claim $30 trading bonus with XM
What are the best Softwares and platforms offered by top brokers in Nigeria?
There are many different international Forex brokers in the country that have some of the greatest Softwares. Many of the FX brokers have platforms that were created especially for them, while some are using the ones that are very popular around the world.
One of the most popular platforms among the Forex brokers is the MetaTrader. There are two versions of it available and Nigerian Forex brokers are using them actively. MetaTrader 4 is something that everyone has heard about, it is one of the most successful platforms in the world and offers traders great opportunities.
The newer version of MT4 is MetaTrader 5, which offers additional benefits to its users. Over the years, MT4 and MT5 were able to set a gold standard among the brokers around the world. MT4 is known to be a very great offering for those who are just starting out with the field since it is very popular to use.
Even though MT5 has many benefits over MT4, many people still use the previous version actively because of the huge community that the platform was able to form.
What devices can I use to trade with the best Forex brokers in Nigeria?
The great thing about MetaTrader is that it can be used on both, computers and phones. Different versions of it are available for free download for both, Android and iOS users. For those who are using computers, they can either download it or enjoy its offerings from the internet browser directly.
For those who are always on the go but want to keep in touch with the Forex market, mobile versions of the platforms are very convenient, there are many people who are trading with mobile versions of the programs in Nigeria.
What are the payment methods available in Nigeria?
In Nigeria, just like in many other African countries, the most popular way of payment is mobile payments. Mobile payment is a form of financial transaction which is carried out via the Internet through a personal computer, laptop, telephone, or another mobile device. It is most useful to make these purchases in online stores when purchasing products and services.
This method of payment simplifies the work of traders and their customers. Merchants just have to enter into an agreement with banks, purchase or install free apps, and immediately continue payment acceptance.
There are many different online payment opportunities for Nigerians, but in addition to them, some people are also using credit cards. This is, however, is not as actively used as mobile payments. Because of such active use of this payment method, there are many active FX brokers in Nigeria that offer their users to use mobile payments to deposit money on their trading accounts.
How to start trading in Nigeria?
Before you start trading, one thing that we would recommend is to understand what your needs and wants are. Try to learn what you are looking for in a Forex broker and then start searching. Even though there are some FX brokers that are actively functioning in the country, something that we would recommend to the citizens of the country is to try and go for the ones that are internationally regulated.
Something that we would recommend is that you should always do research before you start trading. Learn more about the broker, try to contact it’s the regulatory body, etc. There are many things that you should focus on before you start trading! The field of Forex is developing every day in the country and there are many new companies that are emerging every day, so staying active and doing your research can help you a lot!
