Seven best high leverage forex brokers in Nigeria

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Forex Trading Overview

The Foreign Exchange, or simply just known as Forex, Market is the most liquid market in the world based solely on the fact that it sees around $5 trillion worth in transactions that are executed in a day.

Forex trading has seen a substantial increase in recent years with the advent of technology and as networks connect more and more people from right around the world and Nigeria has not been left in the dark in this regard.

Forex trading has exploded in the African country despite the fact that it has always been seen as one of Africa’s poorest countries with nearly no interest in currency trading.

But this has changed significantly, and more Forex brokers are accommodating Nigerian traders, and it has become increasingly easier for Nigerian traders to join the vast world of Forex Trading.

What is leverage, and how is it applied?

Leverage trading is also known as trading on margin and it is a system that involves traders being granted with the ability to open positions that are substantially larger than their own capital, or the initial deposit that the trader funds their account with.

When opening a position, there is a margin requirement, which is a certain percentage of the position which is determined by various factors such as changes between positions, the broker, platforms, market conditions, and several others.

Leverage is the ratio between the value of the position and the investment which is needed while margin is the percentage of the position needed.

Brokers offer differing levels of leverage and often brokers are restricted by regulatory entities that authorize and regulate such brokers due to the risks involved with leveraged trading.

Leverage increases the chance of gains, but simultaneously, it also increases the risks involved with losses that can be incurred which may exceed the capital of the trader, and thus some regulatory entities place strict limits on some brokers.

In a scenario where the trader wishes to open a position with a margin requirement of $3,000, and the trader is provided with leverage of 1:400, instead of paying the full amount, the leverage can be applied.

This means that for every $400 in actual value, the trader will be liable to invest $1 of his own capital which will mean that, with the 1:400 leverage applied, he will need $7.5 to cover the margin requirement.

Which Forex Brokers offer Nigerians with high leverage of 1:400, and more?

1.  XM

XM is a broker that is well-regulated by ASIC, CySEC, and IFSC, which has been in operation since 2009.

XM is globally established with over 2.5 million clients in over 196 countries and offers favourable trading conditions which includes access to a variety of financial instruments spread across numerous asset classes.

When using this broker to facilitate trades, Nigerian traders can except leverage of up to 1:880, along with tight and variable spreads, low commission charges on trades and various options when deposits and withdrawals are made.

2.  OctaFX

OctaFX is a broker based in Saint Vincent and the Grenadines which is well-regulated by FSA SVG, and CySEC, and which has been in operation since 2011.

OctaFX provides flexible accounting options which cater for a variety of traders despite varying levels of experience, knowledge, skill, needs, and trading objectives.

Nigerian traders can expect maximum leverage of up to 1:500 when trading with this broker along with commission free trading, variable and fixed spreads, powerful trading platforms, and more.

3.  FBS

FBS is a Belize-based broker that has been in operation since 2009 and which is strictly regulated and authorized by both IFSC, and CySEC.

Although FBS offers limited tradable financial instruments, trades can be executed by making use of leverage of up to 1:3000, providing Nigerian traders with ample opportunity for great gains.

In addition, FBS offers trading with low commission charges, spreads which range between fixed and variable, powerful trading platforms and various ways in which deposits and withdrawals can be made.

4.  AvATrade

AvATrade is a well-known broker with a global reach in a variety of countries along with regulation and authorization in six jurisdictions through regulatory entities which includes ASIC, BVI, CBI, FFAJ, FSA, and FSCA.

AvATrade has been in operation since 2006 and has favourable and attractive trading conditions which includes tight and fixed spreads, zero commission charges on trades, various tradable financial instruments, and leverage of up to 1:400.

5.  Pepperstone

Pepperstone has been in operation since 2010 and has become quite a well-known and trusted broker through its comprehensive trading conditions and the fact that it is strictly regulated by ASIC, FCA, and DFSA.

Pepperstone’s trading conditions include a variety of tradable financial instruments, tight and variable spreads, ultra-low commissions, and leverage of up to 1:500.

6.  IC Markets

IC Markets is based in Australia and the Seychelles and has been operating since 2007 under the strict regulation and authorization provided by ASIC.

As an ECN broker, IC Markets offers attractive trading conditions which cater for both beginner and experienced Nigerian traders in offering a variety of tradable financial instruments, variable spreads, and low commission charges on trades.

When trading with IC Markets, Nigerian traders can expect leverage of up to 1:500 along with the provision of powerful trading platforms, fast execution, and a variety of ways in which deposits and withdrawals can be made.

7.  InstaForex

InstaForex is a market maker broker in Cyprus, Saint Vincent and the Grenadines, and the British Virgin Islands which holds authorization and regulation with respective regulatory entities such as CySEC, BVI, and SVGFSA.

When trading with InstaForex, Nigerian traders can expect comprehensive trading conditions which includes access to a wide variety of financial instruments, spreads which are between fixed and variable, and zero commissions charged on trades.

InstaForex provides leverage of up to 1:1000 and the execution of trades through the use of the most powerful trading platforms along with an array of ways through which deposits and withdrawals can be made.

Final Thoughts

These are some of the best Forex brokers who cater extensively for a variety of traders, and who welcome Nigerian traders. Apart from comprehensive trading conditions offered, Nigerians can make use of the advantage that high leverage is offered by these brokers.

Pro tip: Consider signing up for Exness Nigeria too. It’s one of the fastest growing trading platforms in the country.

Nigerian traders, however, need to heed with caution when making use of such high levels of leverage as it may increase the chances of great gains, but when used incorrectly, it may pose the risk of incurring substantial losses that may exceed the trader’s capital.

When using such high levels of leverage, traders need to ensure that they make use of risk management tools such as stop loss and take profit and trailing stop, amidst others, along with ensuring that the broker offers negative balance protection.

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