Nigerian forex brokers


As thousands of traders in Nigeria were scammed on the internet by unregulated financial institutions using Ponzi schemes over the recent years, a group of on line foreign currency trading brokers in Nigeria, the Association of On Line Forex Trading Agents, has started an initiative to restore lost confidence in online trading by engaging various government agencies to see to the regulation of the business.


Apparently the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are the bodies who have the power to establish a regulatory framework for trading in OTC derivatives. After the bill is drafted by their representatives, it has to be approved by the national assembly and the President in order to become a law. All of these steps are expected to take at least 2 years.


Currently, however, there are no specific rules governing online foreign exchange trading in the country Yet, it is not illegal, and Nigerian residents are targeted by many brokerages, as their demand for financial services is growing and the local market is promising as any emerging one. In fact, many foreign forex brokers already have physical presence in Nigeria, including InstaForex, Alpari, AvaTrade and FXTM.


At present the brokers with the greatest market share in this country are FXTM, InstaForex, Liteforex, Alpari, FxOpen and MTrading. Only two of them hold a license from a reputable financial regulator - FXTM is regulated by CySec and FxOpen is regulated by ASIC and FCA. FxOpen however runs also an unregulated forex brokerage, registered in a small island in the Caribbean Sea.

 

As there is no substantial legal framework for online forex and binary options brokers operating in Nigeria, no authority is overseeing their business activities. The CBN regulates mainly the interbank currency market.



Nigerian forex brokers

Broker Country Regulation Min.deposit Leverage Review
Cyprus CySec $5 1:1000 Review Website
UK, Australia FCA, ASIC $1 1:500 Review
Belize IFSC $200 1:500 Review
Nigeria FinaCom $100 1:1000 Review
Russia Central Bank of Russia $1 1:1000 Review
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