Overview
The foreign exchange market, or the forex market, is the largest financial market in the world in terms of trading volume. The forex market experiences a daily trading volume of over 89 trillion ZAR ($6 trillion) because of the millions of participants who trade and exchange currencies, whether for business purposes or speculation.
These trades are executed over-the-counter (OTC) in the Spot Forex market, which means that transactions are executed through computer networks around the world.
In addition to being the largest financial market, the forex market is also the most liquid and volatile. Liquidity refers to the number of buyers and sellers and high liquidity means that assets can be exchanged quickly without the exchange rate or market price being affected.
Market volatility refers to the velocity of price changes that occur in the forex market. These factors are what make forex trading such a popular and lucrative activity.
10 Best Forex Brokers in South Africa for 2025
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Here is what you need to know about Forex trading in Nigeria
Nigeria is the largest economy in Africa and one of several major forex markets on the continent. There are over 300,000 Nigerian traders who participate in several financial markets, with a significant rise in female traders in recent years, leading to a total of 46% of female Nigerian traders who have registered trading accounts in the past year.
However, women who participate in trading activities only represent 10% of all traders in the world, but this is a metric that is slowly changing with the emergence of more female traders who pursue a professional careers as forex traders.
Many young people in Nigeria have started trading forex, with the youngest traders between the ages of 25 to 34. Several trusted international forex brokers offer their services to Nigerian traders, and only a few of these offer Nigerian traders the chance to open a Naira-based trading account.
According to statistics, the foreign exchange reserves in Nigeria increased to 33,660 USD in August from the 33,330 million USD recorded at the end of July, which indicates an increase in forex trading in the past three months.
This bodes well where liquidity is concerned for Nigerian traders who want to trade NGN against other major currencies. The Nigerian Naira, or NGN, is the official currency of the Federal Republic of Nigeria.
The currency is managed and distributed by the Central Bank of Nigeria (CNB) and forex brokers who offer Naira-based accounts keep trading balances in NGN, which is useful to Nigerian traders who want to avoid costly currency conversion fees.
An NGN-denominated account also means that client funds are kept in segregated accounts with top-tier local Nigerian banks, which ensures that deposits and withdrawals are fast and convenient.
Because CNB does not regulate forex trading or forex brokers, Nigerian traders must validate whether their broker has regulation with the Financial Conduct Authority (FSCA), Financial Conduct Authority (FCA), or any other reputable regulation to ensure client fund security and a fair, safe trading environment.
Nigerian traders who want to start trading forex may find the process involved of selecting a forex broker tedious and time-consuming, especially when searching for a forex broker that offers Naira-based accounts.
For this reason, we have made a comprehensive summary of the forex brokers who not only offer Naira-denominated accounts, but who are also well-regulated and offer competitive trading conditions that suit the different trading needs and objectives of traders despite their trading experience, skills, and knowledge, from beginner traders to professional investors.
FXTM
Features
FXTM is a popular and reputable ECN and STP broker that has been in operation since 2011, with offices based across the globe and with respective and corresponding regulations and authorization in each jurisdiction to offer comprehensive trading services.
When trading with FXTM, Nigerian traders can trade over 250 financial instruments spread across several asset classes including Forex, CFD, spot metals, Share CFDs, cryptocurrencies, and stocks.
FXTM offers beginner traders a choice in educational tools while advanced traders can expect access to sophisticated, helpful trading tools. Nigerian traders have a choice between several different retail investor accounts that can be registered in either EUR, GBP, or NGN.
Each account has dynamic features and competitive trading conditions that suit different traders with varying trading styles, trading strategies, experience, and trading objectives.
FXTM has competitive and transparent trading costs and fees, especially when compared to other major players in the industry.
Pros and Cons
| PROS | CONS |
| Well-regulated | Inactivity fee charged |
| Over 250 financial instruments offered | |
| Quick and easy funding methods | |
| Multiple account types to choose from | |
| Tight spreads and fast trade execution speeds | |
| Low minimum deposit | |
| Advanced trading tools offered | |
| A choice in education materials | |
| Multilingual customer support |
Tifia
Features
Tifia is a Vanuatu-based STP and ECN forex and CFD broker that has been in operation since 2014. Tifia is an online broker that facilitates the trades from traders across the globe, allowing them to trade across several global financial markets, including:
- Commodities
- Metals
- Indices
- Forex
Trading activities can be done through the powerful, user-friendly, and highly customizable MetaTrader 4 or MetaTrader 5, the leading trading software in the industry.
With these trading platforms, Nigerian traders can expect a wide range of useful trading tools, customizable layouts, technical indicators, an economic calendar, superior charting capabilities, and more.
These trading platforms can be used by beginner and professional traders to fulfill their trading needs and objectives perfectly. When registering with Tifia, traders from Nigeria can expect a choice between three distinct account types, namely:
- Start Account
- Classic Account
- ECN Account
Each retail investor account has unique features and benefits. Each account is designed for a different experience level, with the start account suited to beginner traders, the classic account to experienced traders, and the ECN for professional traders who require the best possible trading conditions.
Another advantage of Tifia is that the forex broker offers Naira-denominated trading accounts, exempting Nigerian traders from currency conversion fees.
Pros and Cons
| PROS | CONS |
| MetaTrader 4 and MetaTrader 5 supported | Offshore broker |
| Daily market reviews and market analysis | Limited trading instruments |
| Quality analysis provided | The best conditions are found on the more premium ECN account |
| Social trading supported | Spreads are not the tightest and commissions are not the lowest |
| Free VPS for eligible traders |
HotForex
Features
HotForex is the trading brand of HFM (Europe) Limited, and it is a reputable and well-regulated multi-asset forex broker headquartered in Cyprus, with strict regulation through its parent company with CySEC, FCA, DFSA, and FSCA, which means that traders from around the world can use this broker to facilitate their trades.
When trading with HotForex, Nigerian traders are given access to a wide range of tradable instruments, including:
- Forex
- Commodities
- Cryptocurrencies
- Bonds
- Shares
- Indices
- Stocks
- CFDs
- Metals
- Energies
HFM and HotForex emphasize client fund security and the provision of a transparent, safe, and fair environment in which traders can participate in trading activities across several global financial markets.
HotForex offers comprehensive trading solutions and the benefit of NGN trading accounts spread across the following account types:
- Micro Account
- Premium Account
- HFcopy Account
- Zero Spread Account
- Auto Account
These trading accounts offer traders a wide range of options according to their unique trading needs and investment objectives, and these accounts can be used in combination with different trading styles and trading strategies on either MetaTrader 4 or MetaTrader 5, two of the most reputable and popular trading platforms.
HotForex also offers the option for a demo account and Muslim traders who follow the Sharia law are granted the advantage of an Islamic Account option, exempting these traders from any interest derived from overnight fees or swap rates.
Pros and Cons
| PROS | CONS |
| Multi-regulated through HFM | Fixed spread accounts are not offered |
| Negative balance protection provided | |
| Member of an investor compensation fund | |
| Funds kept in segregated accounts | |
| Commission-free trading offered | |
| Premium trading tools | |
| Educational materials offered | |
| AutoChartist provided | |
| Free VPS to eligible clients |
Alpari
Features
Alpari is one of the most reputable online brokers that works according to an NDD broker model, using ECN and STP execution models. Alpari has over 2 million registered users from more than 150 worldwide countries.
Established in 1998, Alpari has grown to become one of the best trading brokers in the industry, with offices based in Saint Vincent and the Grenadines, Russia, and Nigeria. Alpari is well-known for offering a variety of financial instruments spread across different asset classes, traded through powerful trading technology.
In addition, Alpari also offers its clients reliable and fast execution speeds, competitive variable spreads, and innovative trading solutions and technology. Since its inception, Alpari has won several industry awards for outstanding services rendered.
When Nigerian traders sign up with Alpari, they have a choice between these account types:
- Micro Account
- Standard Account
- ECN Account
- Pro MT4 Account
Each of these unique account types caters to different experience levels, from beginner traders to experienced, and professional investors. Alpari provides traders with flexible leverage ratios, and some of the best bid and ask prices in the industry.
Pros and Cons
| PROS | CONS |
| Well-regulated by several entities | Limited tradable instruments |
| PAMM Managed Accounts offered | Lack of educational material |
| Signals derived from AutoChartist | Fixed spreads not offered |
| MetaTrader 4 and MetaTrader 5 supported | |
| News streamed from FxWirePro | |
| Multilingual customer service | |
| Competitive spreads and commissions |
7BForex
Features
7BForex is a Nigerian-based STP forex broker that was established in 2019, offering Nigerian-based traders access to several interbank markets. When traders register with 7BForex, they are granted access to a wide range of financial instruments spread across these asset classes:
- Forex
- Gold
- Silver
- Energies
- Stocks
- Cryptocurrency
- Indices
7BForex was initially incorporated in Saint Vincent and the Grenadines as an International Business Company, facilitating trade across several markets through the popular MetaTrader 4 trading platform.
7BForex offers traders a choice between three live trading accounts, including:
- Standard Account – from 5,000 NGN
- Classic Account – from 5,000 NGN
- Elite Account – from 100,000 NGN
7BForex also offers traders the use of a demo account on all live trading accounts, allowing traders to test out the platform and evaluate the trading conditions without risking their capital.
Pros and Cons
| PROS | CONS |
| Intuitive MetaTrader 4 trading software | No standalone trading tools offered |
| Wide range of technical indicators, analysis, and charting from MT4 | Limited funding options |
| Choice of different account types | |
| Educational tools provided |
FAQ
How much capital will I need to start trading forex in Nigeria?
There are many forex and CFD brokers who offer trading accounts from as little as 411 NGN.
What Payment Options are available to Nigerian Forex Traders?
All traditional payment methods are offered to forex traders, including debit or credit cards, PayPal, Skrill, Neteller, direct bank transfers, and several others.
Is Forex Trading Legal in Nigeria?
Yes, forex trading is legal in Nigeria and there are no restrictions placed on forex trading. There has been rapid growth noticed in the Nigerian forex market in the past few years with more Nigerian traders emerging in the market.
Do I pay taxes on profits earned from forex in Nigeria?
Yes, profits that are made from forex trading are considered capital gains and must subsequently be declared and taxed when Nigerians submit their Personal Income Tax Return.
Why should I develop a forex trading plan?
All traders who want to be successful must have a trading plan with sets of rules and guidelines. These not only shape the trading behaviour of a trader, but it also defines their trading and helps to direct trading decisions.
How do I choose a forex trading strategy?
Once traders understand what they want to accomplish with forex trading, and they know their limitations, they can start researching the different trading strategies available, or they can create their own based on their unique trading plan.
What is the best time to trade forex in Nigeria?
According to studies on the forex market, the highest volume and liquidity arise during the overlap between the London and the New York trading sessions. Nigeria is an hour ahead of London, the global financial hub, which means that the best time to trade forex is between 2 pm and 10 pm Nigerian time.
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