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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
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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
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
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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
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): 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 0.6 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 or a Naira-based trading account. 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
  2. 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 offshore entities. 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.

    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.

  3. Local office in Nigeria
  4. 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.

  5. Spreads and Fees
  6. 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.

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

    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.

    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.

  7. Deposit and Withdrawal
  8. 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.

    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.

  9. Trading Platform
  10. 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.

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.

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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