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Best Forex Brokers in Nigeria 2021

We have listed the best registered forex brokers for traders in Nigeria after comparing the spread, regulations, platform & more of 30+ forex brokers.

TradeForexNigeria Editor

Forex Trading in Nigeria is currently unregulated, though it is not illegal. Currently there are no locally regulated brokers in Nigeria.

So if you are looking to trade forex, then it is advised to trade with popular foreign brokers that are regulated with global regulators like FCA, ASIC, CySEC or FSCA. And you should avoid brokers that are regulated with only offshore regulators.

Most major forex brokers accept traders from Nigeria. Also, there are also few popular brokers that are currently have local office & offer local funding withdrawal methods.

To make the search easier for you, we have listed the forex brokers that you can safely trade with.

Our comparison is based on 11 factors including no. of global top-tier regulations, spread, support, mobile app & more factors.

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Comparison Table of Best Forex Brokers in Nigeria

Forex Broker Minimum Deposit Average GBP/USD spread Regulation Max. Leverage Available instruments Visit
Minimum Deposit: $5
Lowest GBP/USD spread*: 0.3 pips (plus $7 per lot commission)
Regulation(s): FCA, FSCA, CySEC
Max. Leverage:1:1000 (with Micro account)
Available instruments: 53 currency pairs, and 1000+ CFDs
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Minimum Deposit: $5
Lowest GBP/USD spread*: 0.7 pips
Regulation(s): CySEC
Max. Leverage:
1:888
Available instruments: 57 currency pairs, 1000+ CFDs
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Minimum Deposit: $1
Lowest GBP/USD spread*: 1 pips
Regulation(s): CySEC, FSCA
Max. Leverage:
1:2000
Available instruments: 107 currency pairs, 100+ CFDs
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Minimum Deposit: $50 (₦10,000)
Lowest GBP/USD spread*: 1.8 pips
Regulation(s): FCA, CySEC, FSCA
Max. Leverage:
1:2000
Available instruments: 63 currency pairs, 500+ CFDs
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Minimum Deposit: $100
Lowest GBP/USD spread*: 0.9 pips
Regulation(s): CySEC
Max. Leverage:
1:500
Available instruments: 35 currency pairs, 40+ CFDs
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Minimum Deposit: $100
Lowest GBP/USD spread*: 0 pips (plus $4 commission per Standard Lot)
Regulation(s): FCA, FSCA, CySEC
Max. Leverage:
1:500
Available instruments: 62 currency pairs, 19 CFDs
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Minimum Deposit: $100
Fixed GBP/USD spread: 0.9 pips
Regulation(s): ASIC, FSCA, CySEC
Max. Leverage:
1:400
Available instruments: 55 currency pairs, 100+ CFDs
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Let’s look into the detailed trading conditions, fees & other important factors of each broker that is included in our list.

#1 Hotforex – Best Forex broker in Nigeria Overall

Hotforex Nigeria

Rating: 9.0/10

Global Regulation(s): FCA (UK), FSCA, FSA

Minimum Deposit: $5

Available Platforms: MT4 & MT5 platforms, for PC, web, and mobile

HotForex is our highest rated forex broker that we recommend for traders in Nigeria. They are a forex and CFD broker, that are regulated with multiple global regulators, so trading with them is considered safe.

In terms of regulation, Hotforex is regulated by FSCA in South Africa as well as other reputed regulators like CySEC of Cyprus, FCA of UK. The deposited funds are safe as HotForex claims to segregate the funds from the operational expenses of the company.

In terms of Trading Fees: HotForex is 100% STP broker which means all your orders are placed without intervention by the broker, so there is no conflict of interest. They provide very low spreads in the market. For a major pair like EUR/USD, the benchmark spread is around 0.3 pips + $6 per lot for a Zero account, and 1.3 pips for a Premium or Micro account.

Commission of $3 per standard Lot per side is charged by HotForex on Zero accounts. A rollover fee is charged on overnight holdings. There is no Deposit and withdrawal fee, so that is a good thing. But they do charge inactivity fees if you don’t operate your account for few months.

In terms of trading Conditions & Support: They accept deposits in USD or EUR, as well as Naira via bank deposits and withdrawals in GT bank. You can also set Nigerian Naira as your base currency.

HotForex provides MT4 and MT5 trading platforms, which are available on Desktop (PC and Mac) as well as on mobile (Android and iOS) and a WebTrader. They also offer education resources that are suitable for both beginner & professional traders in the form of e-courses, video tutorials, webinars, events, how-to Videos. Customer support is quick and easily reachable via chat, email & a local phone support in Nigeria.

What we like about Hotforex

  • Hotforex is regulated with multiple top-tier regulators including FCA, CySEC & FSCA
  • They charge zero fees on deposits & withdrawals.
  • Multiple account types to suit the needs of different types of traders
  • Hotforex has negative balance protection, and segregation of funds for investor protection.
  • They have 24/5 support via Live chat & email. Plus, they also have a local phone number for support.
  • Accounts can be opened with NGN as base currency
  • Hotforex has local office in Nigeria

What we don’t like so much about Hotforex

  • Inactivity fees: Hotforex charges inactivity fees if you don’t operate your account for 3 months.

#2 XM – Best Low Spread Forex Broker in Nigeria

XM Forex Broker

Rating: 8.2/10

Global Regulation(s): CySEC, IFSC

Minimum Deposit: $5

Available Platforms: MT4 and MT5 for PC, Mac, Android, & iOS; XM App for Android & iOS

XM is a CySEC regulated forex and CFD broker (license number 120/10) but it is not regulated by any tier 1 regulatory authority. The regulatory license is held under the name of its parent firm called ‘Trading Point of Financial Instruments. It claims to have served more than 5 million clients from 196 countries since its incorporation in 2009.

The spreads at XM are as low as 0.6 pips with the Ultra-Low Account type and 1 pip with Standard and Micro Account type. All the forex and CFD trading account types at XM are commission-free but the shares trading account involves a commission.

Clients cannot choose Naira (NGN) as the base currency of the account but they can choose from 11 different currencies including USD, EUR, & ZAR.

The maximum leverage at XM is 1:888 which gets reduced to 1:200 if the account balance is more than $20,000 and 1:100 if the account balance is more than $100,000.

The minimum deposit, as well as withdrawal amount at XM, is 5$. However, it can differ depending on the method of transaction selected by the client. They accept deposits and withdrawals through multiple credit cards, bank wire transfers, and electronic payment methods.

What we like about XM

  • XM offers trading at low spreads with no commission
  • No deposit or withdrawal fees are charged
  • Multiple account types are available to suit different types of traders
  • Low minimum deposit requirement ($5)
  • Negative balance protection is offered on all account types

What we don’t like so much about XM

  • NGN based trading account is not available at XM
  • No local phone number available for customer support
  • XM does not have a local office in Nigeria
  • Nigerian local bank deposits are not available
  • XM is not regulated by any top tier regulatory authority

#3 Exness – Best Forex Broker for Beginners in Nigeria

Exness Nigeria

Rating: 9.0/10

Global Regulation(s): CySEC, FSCA

Minimum Deposit: $1

Available Platforms: MT4 and MT5 for PC, Mac, Web, Android, & iOS

Exness is regulated by FSCA (FSP no. 51024) and CySEC (178/12). It was launched in 2008 and offers trading on more than 200 instruments including 107 currency pairs.

It offers 5 different account types and the fee structure depends on the account type chosen. The Standard and Standard Cent accounts are commission-free with spreads starting from 0.3 pips. The average typical spread for EUR/USD with the standard account is 1 pip.

The 2 professional accounts namely Raw Spread and Zero involves a commission of 7$ per round trade. The spread is 0 for EUR/USD with Raw Spread and Zero account. The Pro account involves no commission and the spread for EUR/USD is 0.6 pip.

Exness does not offer NGN based account and the minimum deposit requirement are as low as 1$ depending on the method of transaction. It allows trading with unlimited leverage if the account balance in less than 999$ which gets restricted to 1:2000 if the account balance is 999-4999$.

A large variety of transaction methods are available including local bank deposits, e-wallets, and cryptocurrencies. The customer support service is decent but there is no local phone support available in Nigeria

What we like about Exness

  • Low minimum deposit requirement
  • Lower spreads than many of the regulated forex brokers in Nigeria
  • A large number of currency pairs (107) are available to trade
  • Multiple choices of account types to suit different types of traders

What we don’t like so much about Exness

  • No local phone support in Nigeria
  • NGN based account types not available
  • No bonus offered

How to choose the best forex broker?

We have created a quick 5 point checklist that you should look for while choosing a forex broker.

1. Regulations: Regulated brokers are safe to trade with, hence it should be the number one criterion. Since Nigeria has no local regulations currently, ensure the broker is regulated with at-least one globally reputed regulator like FSCA or FCA. We also suggest avoiding those brokers who claim to be regulated, but are actually licensed under island regulations like Belize, VFSC etc.

2. Trading fees: Brokers mainly charge spread on a trade, commissions per lot (if any) and other hidden charges in some cases. Brokers also charge overnight charges in the form of rolling fee if the position is held overnight. There may also be deposit and withdrawal charges every time you make a transaction. Make sure the overall fee is as low as possible, and look into the withdrawal fees, and inactivity charges as they might add up to a lot in longer run.

Also, some brokers increase spreads during periods of high volatility, which may eat away your profits, hence you should check the historical spreads of a broker’s available instruments before making a decision.

You can check a forex broker’s fees from their website before signing up. Most forex brokers have list of trading instruments on their website where they compare the spread for each instrument for different account types.

For example, the below table from XM Broker’s website highlights their typical & lowest spread for GBPUSD currency pair with their Ultra Low Standard Account. You can use their search in the table to check the spread for any desired instrument.

Compare Forex broker Spread

Similarly, all other forex brokers also have such lists on their website where you can compare the spread. If you don’t find it, then you can talk to the broker’s support for information on their typical spread for each instrument. Any regulated CFD broker will always provide you this information.

3. Platforms: Trading platform is meant to make trading comfortable. MetaTrader trading platform (MT4 and MT5) is often a good start for serious beginners. It is even better if the platform offered supports mobile.

Practising demo trading with a broker that you are about to choose could help with the decision, but remember that live trading conditions could vary. Use demo to get a hang of the broker’s platform, and see if you are comfortable using it.

4. Order Execution: Order Execution must be quick, without any re-quotes or slippage. Some brokers provide instant execution of orders (mostly with market maker brokers) while others provide Market Execution (price is generated while execution, hence a possibility of slippages). So, it is important to check the execution type & historical experiences of other traders in regard to the speed of execution.

5. Support & Education: Customer Support should be available 24/5 via chat, emails. and offer quick response to emails within 1-2 hours. If there is a Nigerian phone number for support, then it is even better. In our review of various Forex platforms, we found that HotForex and FXTM offer local phone number for support. Educational webinars and knowledge guides are a plus.

Frequently asked questions

Which forex brokers are registered in Nigeria?

Currently there are no forex brokers registered with regulators in Nigeria. All the forex brokers that accept traders from Nigeria are foreign CFD brokers. So it is really important to choose the brokers that are reputed & licensed by multiple foreign Top tier regulators.

Hotforex is the #1 forex broker as per our ratings because of their regulation with multiple Tier-1 & Tier-2 regulators i.e. FCA, FSCA, CySEC & others.

You can choose any forex broker that is regulated by major regulators like ASIC, FCA or CySEC. Forex brokers like FXTM, Exness & others, which are regulated by more than one of these regulators are generally considered safe.

What are the best forex trading platforms in Nigeria?

The most widely used forex trading platform is Metatrader 4 & it is used by nearly 80% traders in Nigeria. Almost all forex brokers including Hotforex, OctaFX, XM, offer MT4 & MT platforms, including support for web, desktop & mobile app.

There are some brokers like Plus500 that offer their own proprietary platforms, but you should choose Metatrader brokers instead as you will get more customization options including support for EA, custom indicators etc.

Which Forex brokers are registered in Nigeria?

Currently only 3 forex brokers i.e. Hotforex, OctaFX, ForexTime have local offices in Nigeria, although they are not regulated by Nigerian regulators. Most other forex brokers are operating from foreign countries. All these 3 CFD brokers have office in Lagos & local phone number for support.

These brokers also accept local bank transfer as a deposit option in Nigeria, and also offer Naira withdrawal option, so you can withdraw your trading balance locally.

Which Forex Broker in Nigeria has the lowest fees?

The trading charges can vary depending on the instruments. Also, some brokers may claim to have low spread but instead charge markup on other non-trading services like during deposits & withdrawals, inactivity.

We checked the spread & overall fees for the most popular currency pairs like EURUSD, GBPUSD & other trading instruments like CFDs on Gold. Based on our research, Hotforex, XM, Tickmill & OctaFX have the lowest fees in comparison to other brokers.

Which forex brokers accept local deposits in Naira?

FXTM, Hotforex, Exness & OctaFX accept local bank deposit option in Nigeria. All these brokers also offer withdrawals in Naira to any local bank account in Nigeria. The withdrawal time for Bank transfer is varied depending on the broker, like FXTM processes it in 24 hours, which other brokers take longer.

There may also be extra hidden charges with some of these brokers during withdrawals (if not for not funding) like in case of FXTM there is 1 USD charge with one of it’s NGN withdrawal method, so you should check the fees being charged for funding & withdrawal.

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