How to Trade Forex in Nigeria: A Step-By-Step Guide • Benzinga – Benzinga

Wealthlandnews May 20, 2022
Updated 2022/05/20 at 6:00 AM

Want to jump straight to the answer? The best forex broker for most people is definitely or CedarFX.
Many experts, including famed investor George Soros, call Africa the world’s fastest growing middle class, and Nigeria is leading the way on the continent. Alongside a consumer spending boom and widespread commercial construction, modern Africa is marked by a growing interest in retail investment opportunities.
The accessible, decentralized nature of the forex market connects investors around the world, and Nigeria is 1 of the countries taking full advantage of the market. A recent report from Dailyfx, a leading forex research firm, tells us that forex attracts upwardly mobile Nigerians looking for stable, consistent investments. If you are looking to trade on the forex market in Nigeria, here is what you need to know.
Follow these steps to get connected with the worldwide forex market:
If you want to trade forex successfully, you need a core strategy. You’ll also need a working knowledge of multiple strategies so you can understand the reasoning behind short term moves.
This lightning fast strategy attempts to skim just a few pips (basis points) off of each trade. If you are a scalper, you may only hold a trade for a second or 2 before exiting. You should have a working knowledge of indicators, and you need a fast trading platform and Internet connection with no latency — timing is everything in scalping. This strategy relies more on a knowledge of how charts move rather than the fundamentals pushing the long-term movement of currency pairs.
A forex day trader performs intraday trades and is in all cash by the end of the day. Day traders want to avoid large overnight moves. This is less of an issue in the forex market because it trades 24 hours a day. However, traders can still avoid the weekend pause with this strategy. Day trades may last for the entire trading period or can last for only a few seconds.
Swing positions look to profit from short-term moves. These positions may be held for a number of days, but they don’t have to. Swing traders may need to understand the fundamental macroeconomics behind a currency pair in order to make money. Because the potential time frame of a swing trade is longer than a scalp or a day trade, news items and macroeconomic conditions can exercise more influence over them.
Potential trading is also known as long-term trend trading. These traders are looking for large shifts in the price of a currency pair. If you’re a patient trader who doesn’t care about small, short-term chart moves, this type of trading may be for you. You’ll need to have a good knowledge of market fundamentals and the infrastructure of the individual currency you’re trading.
Let’s say NGN/USD is trading at 0.002575/0.002595 and you think the price will rise, so you prepare to buy the pair. You want ₦1,000,000. The margin rate of this currency pair is 4.02%, so you will only need $103.92 in your account.
The NGN/USD price moves up and is trading at 0.003010/0.003030 after 4 hours. You have enjoyed a move of 4.15 points, and your profit is (₦1,000,000*0.003010)-(₦1,000,000*0.002595) or $415.
There are many ways to make money with forex. Here are some of the more popular vehicles.
Study a number of forex brokers before committing yourself. The broker you pick could make a difference in your trading strategy.
FXTM, aside from being a lovely brokerage house, helps traders learn how to make the most of their investments. Copy trading and webinars teach you quite a bit about how to trade forex, eBooks give you the opportunity to teach yourself and videos review old webinars and explain the basics of speculating in foreign currencies.
FXTM allows you to use MT4 and MT5. This makes it easy to use robo-advisors or trading bots. Download the MT4 or MT5 platforms on your computer or mobile device so that you can easily start trading.
As an added bonus, you can easily live chat, call or email FXTM for assistance with account issues. With this range of customer service options, you feel a connection to the platform that you don’t get with “hands-off” brokers.
With over 50 currency pairs, FXTM allows you to focus on the most profitable pairings. If that isn’t enough, you can look into CFDs that focus on commodities, stocks or indices. You can diversify your portfolio through the platform, and you might even trade spot gold or silver. Allowing FXTM to improve your investing experience helps you increase your net worth and build wealth from the bottom up.
OctaFX is a multi-platform trading company, allowing for FX trading in the manner you prefer. You can use MetaTrader 4, MetaTrader 5 and cTrader depending on your comfort level, along with web, desktop, Android and iOS versions of each platform. OctaFX even offers a comparison chart so you know what you get with each trading platform.
Featuring negative balance protection and funds security, OctaFX goes above and beyond with several account levels. Moreover, OctaFX offers an Islamic account with no interest and fixed fees.
With contests, giveaways and a robust referral program, you can earn more simply by using OctaFX over other trading companies. You can even join the CopyTrading program where you copy master traders, thus increasing your net worth.
When you visit CMTrading, you are entering a platform that allows you to take advantage of advanced technology for forex, CFD, commodity, index and cryptocurrency trading. This platform is the perfect option for Nigerian traders who want to enter the market but want to avoid sites that might feel unsafe or seem difficult to use.
You can trade on MT4 or the Sirix Web Trader. There’s also a social trading partner called CopyKat. Irrespective of what you try, you get all the resources you need to make something out of your forex investments.
If you’re new to trading, you can attend webinars, watch videos, read FAQs or reach out tot he customer service team 24/5 for more information. Choose from one of 4 account types. If you prefer, you may also open an Islamic account to ensure you are managing your money properly.
While the platform is not yet available in the U.S., it brings the power of foreign currencies, alternative tokens, CFDs and commodities to your desktop.

Founded in 2012, South Africa-based online broker CMTrading gives clients award-winning access to more than 150 tradable assets, including the foreign exchange market (forex), contracts for difference (CFDs), commodities, indices and cryptocurrencies. 
In addition to the globally recognized MetaTrader 4 (MT4) trading platform, CMTrading also supports the Sirix Web Trader platform and a social trading platform called CopyKat. The broker provides a wide range of trading tools on its website as well as mobile trading apps for the Sirix and MT4 platforms. CMTrading offers extensive educational resources for less-experienced traders that include live seminars, webinars, e-books and training videos. While CMTrading services clients in more than 190 countries, the broker does not currently accept U.S.-based customers. is ranked as the No. 1 U.S. forex broker. The company has oversight from the 2 main U.S. financial regulators: the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC).
It also has oversight from regulators in the U.K., Australia, Japan, Canada, Hong Kong, Singapore and the Cayman Islands.
Accounts at can be funded with just $250 USD. The broker lets you trade micro lots if your preference is to start trading with smaller amounts. It also offers an Islamic account option in addition to keeping client accounts segregated from its own funds. offers several web-based, desktop and mobile trading platforms, which include the MetaTrader 4 and 5 platforms from MetaQuotes in addition to NinjaTrader.
Clients also have access to the company’s proprietary Advanced Trading Platform for desktop computers and its Web Trading platform if you prefer to trade via a web browser.
Due to U.S. restrictions, has a maximum leverage ratio of only 50:1 available to clients who trade currencies.
eToro is a social trading platform with over 10 million account holders worldwide. It has provided forex products and more to retail clients for over 10 years. 
eToro has some impressive features. The most popular include CopyTrader, the Social News Feed and CopyPortfolios.
CopyTrader and CopyPortfolio allow you to locate a successful trader and copy their strategy. You can copy up to 100 traders with this feature.
With the Social News Feed, trader updates from those in your network can be accessed in a Twitter-like thread. Traders are able to get alerts based on certain market factors and can discuss markets and their strategies.

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
AvaTrade has been facilitating online trading since 2006 and has offices all over the world.
With the firm’s intuitive and simple interface and the solid customer support team, you can easily navigate the complex investing world. It also provides specialized educational content for beginners like its Trading for Beginners section.
Avatrade offers multiple trading softwares, including an in-house platform. AvaTradeGO and MetaTrader 4 are available. And you can copy trades of experienced traders with automated trading softwares like ZuluTrade, DupliTrade or MQL5.
Open your account with a minimum deposit of $100 via credit card or wire transfer.
Read Benzinga’s full AvaTrade Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
When you trade with Pepperstone, you can invest in CFDs, forex, stocks and crypto. The platform gives you quite a bit of versatility, including allowing you to trade in a number of different countries.
Operating out of Australia, the platform offers access to:
If you want to learn more about Pepperstone, you can check out Benzinga’s review here.

Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders. 
Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.
There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.
Whether an online forex broker is based in Nigeria or somewhere else, the best online brokerage should generally have these 11 elements covered:
Another important consideration is the trading software the broker supports. While some brokers offer clients a proprietary trading platform, many provide market access and platforms from 3rd parties such as MetaTrader 4 and 5 from MetaQuotes, as well as cTrader and NinjaTrader.
There are some basic terms that every forex trader must know:
Connecting your personal economy to the world can be an exciting proposition. Forex gives anyone from any country the ability to move in the global economy. With skill, you can improve your financial valuation, create a stable income and build a nest egg.
Forex is unregulated in Nigeria.
There are several to include Pepperstone, FXTM and IC Markets., registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade.
Disclaimer: Please be advised that foreign currency, stock, and options trading involves a substantial risk of monetary loss. Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. All information contained on this website is provided as general commentary for informative and entertainment purposes and does not constitute investment advice. Benzinga will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on this information, whether specifically stated in the above Terms of Service or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Financial engineering has created many exotic instruments with the potential of generating considerable returns. However, one should always bear in mind the high risk involved with such operations.
Advertiser Disclosure: TD Ameritrade, Inc. and Accretive Capital LLC are separate, unaffiliated companies and are not responsible for each other’s services and products.
Editorial Disclosure: Reviews are as determined by Benzinga Money. Opinions expressed here are solely the author’s and have not been reviewed, approved or otherwise endorsed by reviewers.

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