Forex Trading in Nigeria
Are you looking to start Forex Trading, but don’t know what to do, which broker to choose, and have other questions.
Don’t worry, we have tried to answer all these questions in our guides for beginner traders in Nigeria.
Featured Brokers
Our best rated forex brokers in Nigeria - based on factors including fees, support, platforms, ease of deposit & withdrawals, and more..
Hotforex
- EUR/USD Spread from 1.2 pips with Premium Account
- Regulated with FCA, CySEC
- 49 currency pairs & 100+ CFDs
- Min. Deposit: $5
Avatrade
- Fixed EUR/USD Spread of 0.9 pips
- Regulated with FSCA, ASIC
- 55 currency pairs & 1000+ CFDs
- Min. Deposit: $100
XM Forex
- EUR/USD Spread of 0.8 pips with Ultra Low Account
- ASIC, CySEC Regulated
- Trade 57 Currency pairs & 1000+ CFDs
- Min. Deposit: $5
OctaFX Nigeria
- EUR/USD Spread as low as 0.6 pips with MT4 Account
- CySEC Regulated
- Trade 28 currency pairs & 10+ CFDs
- Min. Deposit: $100
How to Trade Forex in Nigeria
- Learn the basics of Online Forex Trading & Forex market
- Open Account with a well regulated Forex Broker
- Practise on demo trading account
- Build your Forex Trading Strategy & learn about the risks
- Deposit capital for Live account once you are consistantly profitable on demo
- Continue Learning
Read our guides on the basics of forex trading for traders in Nigeria for complete beginners. Learn about the concepts of CFDs, Forex trading, Bitcoin trading & more .
Forex Trading Resources
Best Forex Brokers
Popular FX Broker Reviews
Forex Trading Guides
Forex Trading for Nigeria: Q&As
What is Forex Trading?
Forex trading involves buying & selling of currencies to make a profit from the change in price.
Let’s say, that you believe that Euro is going to be stronger against US Dollar in the next 1 month. You can in this case place a buy order on EURUSD, and the difference in price movement will be your profit or loss.
Ex: Let's say that you buy EUR by selling USD at current price of EUR/USD at 1.1000. After a month, as you expected, it rises to 1.2000, then your Euro is now worth more against US Dollar. And you would have made a profit in this case.
But, if the EUR goes down to 1.000 against USD, then your Euro is now worth less, so you would make a loss in this case.
All the trading can now be done via online trading platforms without actually holding these currencies physically.
Let’s say, that you believe that Euro is going to be stronger against US Dollar in the next 1 month. You can in this case place a buy order on EURUSD, and the difference in price movement will be your profit or loss.
Ex: Let's say that you buy EUR by selling USD at current price of EUR/USD at 1.1000. After a month, as you expected, it rises to 1.2000, then your Euro is now worth more against US Dollar. And you would have made a profit in this case.
But, if the EUR goes down to 1.000 against USD, then your Euro is now worth less, so you would make a loss in this case.
All the trading can now be done via online trading platforms without actually holding these currencies physically.
How can you start trading forex in Nigeria?
You would need to choose a forex broker & then signup on their platform to trade.
There are 100s of Forex trading platforms that accept traders from Nigeria. But as per our research, Hotforex, Avatrade & XM have the lowest fees, and really competitive offerings of CFDs.
There are 100s of Forex trading platforms that accept traders from Nigeria. But as per our research, Hotforex, Avatrade & XM have the lowest fees, and really competitive offerings of CFDs.
How much do I need to start trading Forex?
You can start with as low as $5 capital, as most brokers nowdays offer accounts with really low minimum deposit requirements & let you trade larger positions via high leverage.
See our comparison of forex brokers in Nigeria & their deposit requirements. But, we strongly advise against using too much leverage. And you should trade on demo account first to learn about the basics of trading. Only once you are comfortable with your strategy & it is profitable on demo, then you should consider funding a live account with low capital. If you are profitable with low capital then you can consider to increase capital for higher position size.
See our comparison of forex brokers in Nigeria & their deposit requirements. But, we strongly advise against using too much leverage. And you should trade on demo account first to learn about the basics of trading. Only once you are comfortable with your strategy & it is profitable on demo, then you should consider funding a live account with low capital. If you are profitable with low capital then you can consider to increase capital for higher position size.
What are the risks of Forex trading?
Forex trading is very risky & you must not trade forex without understanding these risks:
- High Leverage: Using too high leverage can put your entire capital at risk. Leverage allows you to place a trade larger than your capital through margin borrowed from your broker. Using such a tactic can be harmful if the position goes against you, as you will be losing a lot more. Never use more than 1:5 leverage.
- Lack of Risk Management: Most traders lose because they don't have any strategy for managing the risks. You can never be 100% sure of a trade, hence you must always use proper risk to reward ratio. If the risk for a trade is too high & the reward little, then you must not place such a trade. Make sure that your risk to reward to 1:2 or higher, and you are not risking more than 2% of your account on a single trade.
- Unregulated Broker: There are so many brokers that attract traders with false claims. Stay away from brokers that promote forex as a money making scheme. Only trade with reputed & regulated brokers that have regulation with multiple Tier 1 & Tier 2 regulators like FCA, ASIC, CySEC, FSCA.
- Volatility: Many currency pairs in the forex markets can be highly volatile on some days. So make sure that you have a proper risk management plan & follow the news.