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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: 49 currency pairs, and 100+ CFDs
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Minimum Deposit: $5
Lowest GBP/USD spread*: 0.7 pips
Regulation(s): ASIC, CySEC
Max. Leverage:
Available instruments: 57 currency pairs, 1000+ CFDs
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Minimum Deposit: $1
Lowest GBP/USD spread*: 1.2 pips
Regulation(s): FCA, FSCA
Max. Leverage:
Available instruments: 98 currency pairs, 1000+ CFDs
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Minimum Deposit: $50 (₦10,000)
Lowest GBP/USD spread*: 1.8 pips
Regulation(s): FCA, CySEC, FSCA
Max. Leverage:
Available instruments: 63 currency pairs, 100+ CFDs
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Minimum Deposit: $100
Lowest GBP/USD spread*: 0.9 pips
Regulation(s): CySEC
Max. Leverage:
Available instruments: 32 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:
Available instruments: 32 currency pairs, 40+ CFDs
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Minimum Deposit: $100
Fixed GBP/USD spread: 1.6 pips
Regulation(s): ASIC, FSCA
Max. Leverage:
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, WebTrader and Mobile trading

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

  • Regulation: Hotforex is regulated with multiple top tier regulators including FCA, CySEC & FSCA
  • Low fees: Hotforex spread is quite competitive. It is on average 1.2 pips for EURUSD with their Premium account. Plus, they charge zero fees on deposits & withdrawals.
  • Multiple account types: They have various accounts. Premium Account (spread from 1 Pip) offers flexibility in lot size for experienced traders, and you can start with a minimum deposit of $100. The Zero Spread Account has spreads from 0 Pips + commission per lot, with just $200 deposit required to open that account. This account has very good trading conditions for scalpers and high-volume traders that trade with EAs.
  • Multiple Platforms: Hotforex offers MT4 & the latest MT5 platform, with support for all devices.
  • Risk protection Tools: Hotforex has negative balance protection, and segregation of funds for investor protection.
  • Support is good: They have 24/5 support via Live chat & email. Their live chat is quite response, and they also reply to emails very quickly. Plus, they also have a local phone number for support.

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.

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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