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
Russia No $1 1:1000 Review

Related News

Plus500 boasts record revenue, new customers in 2016

Feb 07 2017 10:09:08 Jonathan Smith in Brokers

Plus500, one of the leading European forex and CFD brokers, reported record revenue and numbers of new customers in 2016.    According to the preliminary unaudited report for the year, the broker had a net profit of $117.2  million, up 21% from 2015 and revenues of $327. Read more

FXCM gets $7 mln fine from CFTC, sells US business to Gain Capital

Feb 07 2017 08:31:03 Jonathan Smith in Brokers

In a surprising twist of regulatory fate, FXCM – the largest US retail forex broker – got banned from doing business there and was fined $7 million by the CFTC, all in the fateful afternoon of February 6, 2017. The reason: misleading customers and regulators. Read more

GMO Click Securities to launch virtual reality forex trading app

Jan 27 2017 08:49:21 Jonathan Smith in Brokers

 GMO Click Securities, Japan's largest forex broker, announced the launch of its virtual reality forex trading app for smpartphones GMO-FXVR Trade. Read more

BDSwiss binary options broker pays €150 000 in settlement

Jan 23 2017 14:22:35 Jonathan Smith in Brokers

 The Cyprus Securities and Exchange Commission (CySEC) said it has reached a €150 000 settlement with the forex and binary options broker BDSwiss. The sum has already been paid to the coffers of Cyprus. Read more

XM is only forex broker in World Finance 100 2016 list

Jan 18 2017 12:47:05 Jonathan Smith in Brokers

XM, a European forex broker regulated by UK's FCA and the Cyprus Securities and Exchange Commission (CySEC), said it has been included in the World Finance 100 list for 2016. Read more