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Best CBN Regulated Forex Brokers in Nigeria

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

To be on the safer side while trading forex, people seek the brokers regulated by the authorities in their local jurisdiction. Central Bank of Nigeria (CBN) & Securities and Exchange Commission (SEC) are local authorities that overlook the capital markets in Nigeria.

However, forex trading is not yet regulated by CBN, SEC, or any other regulatory authority in Nigeria. The safety of forex traders in Nigeria mainly depends on the regulations by foreign regulatory authorities like CySEC, ASIC, FSCA, FCA, etc.

More than 20 CFD brokers offer forex trading services in Nigeria. Some of them are licensed by international top-tier regulators and offshore entities, while some are unregulated. Choosing an unregulated or unlicensed broker can incur additional third-party risk and is not considered safe for forex and CFD traders.

Note: There is no CBN or SEC-regulated forex broker in Nigeria. So traders must choose a forex broker that is regulated by tier 1 or tier 2 regulatory authority. Following are the best-regulated brokers in Nigeria according to our comprehensive analysis.

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Comparison Table of Regulated 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
Visit Broker
Minimum Deposit: $5
Lowest GBP/USD spread*: 0.7 pips
Regulation(s): CySEC
Max. Leverage:
1:888
Available instruments: 57 currency pairs, 1000+ CFDs
Visit Broker
Minimum Deposit: $1
Lowest GBP/USD spread*: 1 pips
Regulation(s): CySEC, FSCA
Max. Leverage:
1:2000
Available instruments: 107 currency pairs, 100+ CFDs
Visit Broker
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
Visit Broker
Minimum Deposit: $100
Lowest GBP/USD spread*: 0.9 pips
Regulation(s): CySEC
Max. Leverage:
1:500
Available instruments: 35 currency pairs, 40+ CFDs
Visit Broker
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
Visit Broker

Best CBN Regulated Forex Brokers in Nigeria

No forex broker is licensed by CBN in Nigeria.

Following are the best regulated forex and CFD brokers in Nigeria that are licensed with 2 or more Top-tier regulations.

  1. Hotforex – Multiple Top Tier Regulated Broker in Nigeria
  2. XM Forex – Low cost CySEC regulated broker
  3. Exness – Top tier regulated broker with 100+ currency pairs
  4. FXTM – Best NGN Based Broker with Multiple Regulations
  5. OctaFX – Low Spread CySEC Regulated Broker
  6. Tickmill – Good Commission Based broker with Multiple Regulations

#1 Hotforex – Multiple Top Tier Regulated Broker in Nigeria

Hotforex Nigeria

Rating: 9.0/10

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

Minimum Deposit: $5

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

HotForex is among the best-regulated forex brokers in Nigeria. It holds the regulatory licenses from the Financial Conduct Authority (FCA) of the UK (801701), Financial Sector Conduct Authority (FSCA) of South Africa (46632), and Cyprus Securities and Exchange Commission (CySEC) of Cyprus (183/12).

Apart from multiple top-tier regulatory licenses, HotForex is also fairly transparent with its financials. It has also partnered with the renowned French football club of Paris Saint Germain which further enhances the trust factor.

The spreads at HotForex are lower than some of the regulated brokers but not the best among regulated brokers in Nigeria. With the Micro account type, the average typical spread for gold and EUR/USD is 29 pips and 1.2 pips respectively.

The spreads with the commission-based accounts are as low as 0.1 pip with a commission of 7$ for a round trade of a standard lot.
HotForex offers maximum leverage of 1:1000 with free deposit and withdrawal from local banks in Nigeria. The availability of all the available accounts with Naira as base currency is an additional advantage for traders in Nigeria.

MT4 and MT5 are available trading platforms for all types of devices. The HFmarkets app can be downloaded to analyze markets and track orders but orders can only be executed through the Metatrader app.

The customer support service is also excellent with a live chat window and 2 local numbers for phone support. HotForex requires a minimum deposit of 5$ and offers more than 1000 trading instruments with 58 currency pairs.

#2 XM – Low cost CySEC regulated broker

XM Forex Broker

Rating: 8.2/10

Global Regulation(s): IFSC, CySEC

Minimum Deposit: $5

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

XM offers commission-free forex and CFD trading. It is a CySEC regulated forex broker (120/10) and is not regulated by any other regulatory authority.

XM allows opening the Micro, standard, as well as, Ultra-Low account with 5$ as a minimum deposit. Although, the spreads at both of these account types differ largely. The average typical spread for EUR/USD is 1.6 and 0.8 pips respectively with the Standard and Ultra Low account respectively.

The maximum leverage is 1:888 but decreases with an increase in account balance above $20,000.

The additional services offered by XM for Nigerian clients are not as attractive as other regulated forex brokers in Nigeria. They do not support NGN as the base currency of the account but the clients have 10 other options to choose from.

XM does not have a local office in Nigeria and no local phone support is available for customer support. The support executives can be reached out through the live chat window and email.

#3 Exness – Top tier regulated broker with 100+ currency pairs

Exness logo

Rating: 8.8/10

Global Regulation(s): CySEC, FSCA

Minimum Deposit: $1

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

Exness is a low spread regulated forex broker with a wide range of currency pairs available to trade. It is regulated by FSCA (51024) and CySEC (178/12) hence considered safe for traders in Nigeria.

The spreads are lower than many of the regulated brokers in Nigeria. For gold and EUR/USD, we found the spreads to be 30 pips and 1 pip respectively. The pro accounts incur a commission of 7$ on a round trade of a standard lot.

Exness is the regulated forex broker with the highest maximum leverage ratio. Depending on the account balance, it offers a leverage ratio of more than 1:2000. The minimum deposit and withdrawal amount is 1$ but depends on the method of transaction selected by the client.

It does not have a local office in Nigeria and does not offer local phone support. The trading account can be opened with NGN as base currency. The deposit and withdrawal can be done through internal bank transfer, online bank transfer, credit/debit cards, e-wallets, and cryptocurrencies.

Exness is a low-cost regulated forex broker with very high maximum leverage and low minimum deposit. The research and education tools are limited. It offers trading on 107 currency pairs and 40+ CFDs of metals, indices, and cryptocurrencies.

#4 FXTM – Best NGN Based Broker with Multiple Regulations

FXTM logo

Rating: 8.0/10

Global Regulation(s): FSCA, FCA, CySEC

Minimum Deposit: $50

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

FXTM is a well-regulated forex broker with excellent features for Nigerian clients. It is regulated by FCA (777911) in the UK, FSCA (46614) in South Africa, and CySEC (185/12) in Cyprus (EU).

The spreads and minimum deposit amount are slightly higher than many other regulated brokers in Nigeria like Hotforex, XM, Exness, etc. The spreads at FXTM with the standard Micro account for EUR/USD and gold is 1.8 pips and 45 pips respectively.

The commission-based account incurs a commission of 4$ on a round trade of 1 standard lot. This is lesser than many other regulated brokers in Nigeria. A minimum commission of 0.4$ per each side will be incurred regardless of the trading volume in a trade with this account type.

The Naira (NGN) is exclusively available for Nigerian clients as the base currency of the account. The minimum deposit requirement is 50$ or ₦10,000 to start trading on 63 currency pairs and 500+ CFDs.

FXTM has a local office in Nigeria with local phone numbers for customer support. The support service is excellent while the deposit and withdrawal methods are also free and convenient with local banks in Nigeria.

FXTM is among the safest forex brokers in Nigeria due to multiple top-tier regulations. Exclusive services for Nigerian clients and resourceful research and educational tools are provided by FXTM. This comes at the expense of a slightly higher spread and minimum deposit amount.

#5 OctaFX – Low Spread CySEC Regulated Broker

Octafx logo

Rating: 8.4/10

Global Regulation(s): CySEC

Minimum Deposit: $100

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

OctaFX is a CySEC (372/18) regulated broker that offers trading at low cost but the minimum deposit requirement is high (100$).

OctaFX is not regulated by any top-tier regulatory authority hence the safety ratings are slightly lower. However, this is compensated with lower spreads on available instruments.

The average typical spread for EUR/USD and CFD on Gold is 0.7 pips and 20 pips respectively. There is no commission-based account type at OctaFX.

Naira (NGN) based accounts are not available at OctaFX. There is no local office in Nigeria and local phone support is not available. It supports local GT bank deposits and withdrawals without any additional commission.

The maximum leverage is 1:500 that allows trading on 35 currency pairs and 20 CFDs on commodities, indices, and cryptocurrencies.
OctaFX is a good option to trade forex in Nigeria due to low spreads and no commission. However, it requires a higher minimum deposit and the regulatory compliance is lenient compared to Hotforex, FXTM, etc.

#6 Tickmill – Good Commission Based broker with Multiple Regulations

Tickmill logo

Rating: 8.6/10

Global Regulation(s): FCA, FSCA, CySEC

Minimum Deposit: $100

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

Tickmill is regulated by multiple top-tier regulatory authorities and allows trading on a wide range of currency pairs. It holds the regulatory license from FCA (717270), FSCA (49464), and CySEC (278/15). This makes it considerably safe for traders in Nigeria.

The spreads with the commission-free account type at Tickmill are slightly high but the trading cost is fairly low with the commission-based Pro and VIP accounts. With the Classic account, the average spread for EUR/USD is 1.8 pips and 21 pips for CFD on gold. The spread with the Pro account is 0 with 4$ commission on a round trade of a standard lot.

Tickmill requires clients to make an initial deposit of 100$ to start trading. This is higher than many of the regulated forex brokers in Nigeria. Naira is not available as the base currency of the account.

62 currency pairs and 19 CFDs can be traded with a maximum leverage of 1:500 at Tickmill. The customer support service is decent as there is no local phone number available for customer support in Nigeria.

A complete suite of MetaTrader 4 and MetaTrader 5 is available. We also found the research and educational tools at Tickmill to be much helpful in enhancing trading strategies.

Tickmill is ideal for those who seek low-cost commission-based forex trading with a well-regulated broker.

How to Choose a Regulated Forex Broker?

Each forex trader must know which broker is best suited for oneself. The suitability of a trader with the broker can differ due to multiple reasons. We have highlighted some of the factors that must be considered while choosing a forex and CFD broker in Nigeria.

  1. Safety

    You don’t want to be cheated and conned by the fake brokers in the market. For a safe and sound trading experience, one must always choose a broker that is regulated by tier 1 or tier 2 regulatory authorities like FCA, FSCA, ASIC, and CySEC.

    As there is no CBN or SEC regulation on forex trading in Nigeria, it is important to seek a broker with a regulatory license from reputed financial regulatory authorities. Regulated brokers are less prone to cheat or default. Hence, the third-party risk or counterparty risk can be mitigated by choosing a well-regulated broker.

    Forex trading in Nigeria is not regulated by CBN or any other local financial regulatory authority. Hence clients must look out for the global regulatory licenses held by the broker and the regulation under which they are getting registered. Following are some of the regulatory authorities which regulate majority of the forex brokers accepting Nigerian clients.

    1. FSCA: The Fiancial Sector Conduct Authority (FSCA) is a top-tier financial regulatory authority in the jurisdiction of South Africa. FSCA was previously known as Financial Services Board (South Africa).

    South African clients are registered under FSCA regulation. However, an FSCA license can enhance the trust factor of the broker as it is the highest tier regulatory authority in Africa.

    2. FCA: The Financial Conduct Authority (FCA) is a top-tier financial regulatory authority in the jurisdiction of the United Kingdom. Clients residing in the United Kingdom are registered under the FCA regulation. Registered clients are also protected by up to $100,000 if the broker goes bankrupt or unsettled dispute.

    FCA regulatory regimes are among the most strict as the maximum leverage is 1:30. Nigerian clients are not registered under FCA regulation but a broker with FCA regulation can be considered much safer to trade.

    3. ASIC: The Australian Securities and Exchange Commission (ASIC) is an Australian financial regulatory authority. A broker with ASIC regulatory license can be considered safe but only the clients residing in the Australian Jurisdiction are registered under ASIC regulation.

    4. CySEC: The Cyprus Securities and Exchange Commission (CySEC) is a popular regulatory authority among the international CFD brokers. Cyprus is an island nation in the Mediterranian Sea but it a member of the European Economic Area (EEA).
    A regulatory license from CySEC allows brokers to accept clients from all the member countries of the EEA. Hence, most of the international forex and CFD brokers hold regulatory license from CySEC. Regulation from CySEC makes forex brokers safe but not as that from FSCA, FCA, or ASIC.

    5. IFSC: The International Financial Services Commission (IFSC) is a Financial Services Commission and a government agency of Belize. Belize is a Caribbean country on the northeastern coast of Central America. The entities of broker that are regulated under IFSC of Belize can accept clients from various countries of the world. Nigerian clients can also be registered under IFSC Belize regulation.

    6. FSA: The Financial Services Authority of Seychelles (FSAS) is also an island based financial regulatory authority that regulates international brokers. Nigerian clients are registered under FSA regulation by several brokers. Brokers with only FSA regulation can be considered of high risk compared to those who also have top-tier regulatory license.

    It must be noted that each broker can have multiple regulatory license and also have different legal entities and websites for each regulation. This means that trading condition can be different for clients residing in different countries. Clients must cross check regulatory license from regulator’s website and should also acknowledge the regulation under which they are getting registered.

    The following table describes the regulatory licenses held by the Best Regulated Forex Brokers in Nigeria.

    Broker FSCA FCA ASIC CySEC IFSC FSA
    HotForex
    XM
    Exness
    FXTM
    OctaFX
    Tickmill

    The number of years in the industry, financial transparency, audit report, details of the owners, etc. can also define the safety of traders with the chosen broker. Traders must check regulation and their safety with the broker before opening an account.

  2. Local office in Nigeria

    Apart from the easily accessible websites of the brokers, the presence of a local office can further increase the trust factor. Some traders prefer to trade with regulated brokers that have a local office in Nigeria.

    Availability of local offices also allows traders to take advantage of the customer support service through local phone numbers. Although, it is not essential for a broker to provide local phone support if they have a local office in Nigeria.

  3. Spreads and Fees

    The amount that you pay to the broker can greatly affect the profit and loss booked while trading. The spreads, commission, and all the fees involved in trading must be checked and compared thoroughly before finalizing a broker.

    Many brokers offer multiple account types. The trading, as well as non-trading fees associated with each account type, can be different. The spreads and commission can also differ based on the instrument selected by the trader. High-volume traders, scalpers, and many online traders prefer to trade with negligible spreads. Many brokers offer trading with spreads as low as 0 at the cost of a fixed commission. A commission of 4$ to 6$ is per standard lot for negligible spread is quite common among top forex and CFD brokers in Nigeria.

    The table below describes the average typical spread incurred by the best-regulated brokers in Nigeria for a round trade of 1 standard lot of the following instruments with their commission-free standard account types.

    Broker Name Gold EUR/USD US 500 Index
    Hotforex 29 1.3 0.41
    Exness 30 1 0.15
    XM 35 0.7 0.4
    FXTM 90 1.8 0.6
    OctaFX 20 0.7 0.15
    Tickmill 21 1.8 0.39

     

    All the spreads mentioned are the typical average of variable spreads in pips per lot. It differs based on market conditions and liquidity in the market.

    The table describes and compares the trading fees at concerned brokers. Apart from this, some brokers may also incur non-trading fees that are charged without executing trade orders. The non-trading fees include inactivity fee, deposit/withdrawal fee, currency conversion fee, account opening fee, etc.

    Each forex and CFD broker also charges swap fees if a position is kept open overnight. This fee is charged once for every night the position is kept open. Each broker has its own mechanism to calculate the swap rates that are different for each instrument. Traders should check the swap rates of their preferred trading instruments before choosing a broker.

    Traders must enquire about every component of fees incurred at regulated forex and CFD brokers. The fees should also be compared with other brokers to seek the best available option in the market.

    Traders must note that some of the fake and unregulated brokers try to attract traders by charging substantially lower fees. Hence, fee comparison must be done among regulated brokers only and the fees should never be the only basis for selecting a broker in Nigeria.

  4. Deposit and Withdrawal

    A broker with multiple top-tier regulations and low fees is of no use if the deposit and withdrawal methods are not convenient. Before opening an account with any of the regulated forex and CFD broker in Nigeria, one must check the accepted transaction methods.

    The lower cap on the deposit and withdrawal amount on the preferred mode of the transaction should be checked to prevent inconvenience while transacting. The minimum deposit amount can be different for each of the available methods. The processing time can also be different for each of the funding and withdrawal methods.

    Some brokers charge additional commission for withdrawal and deposit depending on the method selected while many brokers allow free transactions. Currency conversion charges may also be applicable if the deposit currency is different from the base currency of the account.

    Nigerian traders who wish to trade with NGN as base currency must check whether the broker offers Naira based trading account or not.

  5. Trading Platform

    The trading platform is software that is designed to speculate the market and open/close trading positions online. Some brokers also offer their own trading platforms while many rely on third-party trading platforms.

    Metatrader 4 and Metatrader 5 are the most preferred trading platforms for forex and CFD trading globally. Some traders also prefer the cTrader trading platform.

    Traders must ensure that the trading software available with the regulated broker is user-friendly. They should also make themselves familiar with the terminologies and features to make better trading decisions.

    A demo account can be quite useful to check all the details of the trading platform before opening a real account.

  6. Customer Support

    This may not be the most important factor to consider before choosing a forex broker but can be very helpful. It is always good to choose a forex broker that offers diligent customer support service. Traders must ensure that their queries are solved within time and the connectivity with the support executives should be fast and convenient.

    Most of the forex and CFD brokers in Nigeria offer live chat support to assist the clients. Traders can raise random queries on the live chat window before opening the account to check how supportive the staff is. Although, registered clients are generally served before unregistered clients.

    The availability of local Nigerian phone support can be highly advantageous for Nigerian clients. The phone support reduces time to solve queries and provides confidence to the traders. The best-regulated forex brokers generally provide excellent customer support service.

  7. Research and Education
    The research and education tools are most important for the traders to enhance their skills and supplement their abilities. Traders cannot increase the probability of successful trades if adequate research is not done.

    Best regulated forex and CFD brokers in Nigeria offer a variety of tools to assist in the research and analysis of the market. Experienced traders always seek a broker that provides useful research tools. New traders must learn the basic terminologies, features, and strategies before entering the high-risk forex and CFD market. Hence, they should always seek a broker that provides multiple sources of learning and augment their knowledge into the market.

    Tools like Autochartist, algorithmic trading, automated trading, etc can be useful for experienced traders. Regular news fees and updates on international economic activities can greatly assist in the fundamental analysis of the forex and CFD market.

    Educational articles, videos, seminars, webinars, guides, etc can help a new trader to grasp the knowledge required to become an efficient trader.

Frequently Asked Questions – CBN Regulated Brokers in Nigeria

Which CBN Regulated broker is best for forex trading in Nigeria?

Currently no forex brokers are regulated in Nigeria.Hotforex, XM, Exness, FXTM, OctaFX, and Tickmill are regulated by Forex top-tier regulations & are among the best-regulated forex brokers that accept traders in Nigeria. Each broker has distinct features and trading conditions. Hence, one must check and compare every forex broker comprehensively before opening an account in Nigeria.

Is forex Trading banned/illegal in Nigeria?

Online Forex trading is neither banned nor illegal in Nigeria. It is not yet regulated by any local regulatory authorities like CBN or SEC but interested individuals in Nigeria can trade forex through offshore regulated brokers.

Brokers regulated by FCA, ASIC, FSCA, and CySEC are considered safe for trading forex and CFDs in Nigeria.

Which forex broker has office in Nigeria?

HF Markets, FXTM, and many other brokers have offices in Nigeria. Brokers with a local office in Nigeria generally offer local phone support and NGN as base currency with local bank transfers.

Is OctaFX a regulated broker in Nigeria?

No, currently none of the brokers accepting Nigerian clients is regulated in Nigeria. The Nigerian clients at OctaFX are registered under offshore regulation of St Vincent and Grenadines FSA. Since OctaFX is not regulated by any top-tier regulatory authority, the third-party risk of choosing OctaFX is slightly higher.

Which is the best broker for forex trading in Nigeria?

HF Markets, Pepperstone, Exness, FXTM, eToro, and Tickmill are among the best forex brokers that accept Nigerian clients. Each brokers has its pros and cons and is ideal for different types of traders. It is important to check and compare all the features and trading conditions before opening an account with a broker.

How can I trade CFDs & forex?

You can trade forex by opening a trading account with a Top-tier regulated forex broker. All the best forex brokers in Nigeria require you to submit your KYC documents for ID & Address proof. Once your account is verified, you can then download the broker’s platform & start trading.

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