Best Forex Proprietary Trading Companies in Nigeria
Best Forex prop firm in Nigeria is Topstep
Top Forex prop firms in Nigeria:
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Topstep - for unlimited time for prop traders to hit their profit targets
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Fidelcrest - for fast-track qualification
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FTMO - This prop firm offers prop traders the best profit splits.
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SurgeTrader - allows the diversification of investment portfolios.
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5%ers - offers traders immense support, instant funding, and quick account scaling.
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BluFX - provides traders with instant account funding of up to $50,000.
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5.7
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5.28
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6.68
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The best Forex prop firm in Nigeria allows prop traders to diversify their investment portfolio with different tradable assets. These proprietary forex trading companies provide excellent trader support, immediate funding, rapid account scalability, and performance coaching. But first and foremost, is Forex prop trading a good idea in Nigeria?
Let's find out before taking a peek at the best prop trading firms in Nigeria.
Is Forex prop trading a good idea in Nigeria?
Forex prop trading is a progressive process where skilled investors get to trade long or short daily. And this is without being responsible for the funding of the account that they are trading with. Instead, this account is being funded by Forex prop firms that invest for direct market gain by offering prop traders an opportunity to use their skills to trade for them.
In essence, a prop firm is a company that provides money to traders for trading with the understanding that, subject to the company's terms and conditions, they will receive a portion of the profits. From the above explanation of Forex proprietary trading firms and considering the state of Forex trading in Nigeria, it is a good idea.
Forex prop firms in Nigeria give traders the funds they need to trade stocks, commodities, futures, derivatives, and currencies. And with an increasing number of prop traders in Nigeria, there is a chance for those with little capital to get their hands on their dream trade. After assessing these traders, forex prop firms fund the account they will use for trading.
Trading with prop firms allows traders to generate higher returns due to the increased trading capital, which enables a higher profit margin even with lower risk. However, prop traders in Nigeria can greatly benefit from proprietary trading, but there are also disadvantages.
👍 Pros
•For the Forex prop firms in Nigeria, it means higher quarterly and annual profits. An institution can realize 100% of the profits from a proprietary trading process.
•There is no trading risk for any individual trading account for the Nigerian prop traders. To get your funding, you simply need to have the skill that the Forex prop firm requires.
•Because prop firms are aware that losses are a part of trading, a trader is politely under pressure to turn a profit for the company.
•Each prop trader decides what to trade, and the proprietary trading companies provide valuable support.
•For "undercapitalized" traders in Nigeria, proprietary trading involves leverage and provides a simple entry point into the market.
•Because they give traders a choice of several platforms, proprietary trading ensures diversification.
•Prop firms guarantee traders higher returns if the trade thrives due to the increased trading capital they provide.
•Prop trading allows for a better profit margin even with lower risk.
👎 Cons
•Because it requires exceptional trading skills and has difficult requirements, it is not for every trader in Nigeria.
•Again, the strict rules that govern the trading structure might be uncomfortable for a trader who wants to trade without protocols or daily targets.
•Some Forex prop companies may be able to profit cunningly from exceptional traders who use winning trading techniques. Without informing the traders, they might copy and teach these traders' strategies to computers using machine learning.
•Some Forex prop firms charge a fee for the software prop traders utilize, and the majority of prop firms only provide day trading.
Top 6 prop trading accounts for Nigerians
1 Topstep
Topstep is an international proprietary trading company registered in the USA. The company has been providing financial services since 2012 and offers exclusive trading terms for clients from different countries. Topstep provides financing of real trading accounts of its clients if they prove the skill to make trades and manage risks on a simulation account. Traders can trade CME Group futures and currency pairs. Trading on real accounts is carried out through the ECN broker Equiti Capital.
2 Fidelcrest
Fidelcrest offers 13 accounts to suit different types of traders, providing access to more than 1,000 financial instruments. Known for its robust training programs and exceptional support services, the prop firm offers profit splits of up to 90%.
There are two main accounts available at Fidelcrest, Micro Trader and Pro Trader, both of which offer Normal and Aggressive settings. Each risk type is funded at three different levels.
Depending on the risk type, the Micro account has funding between $25,000 and $50,000. A difference between the two lies in the profit targets, the minimum number of trading days, and the maximum loss limits. Micro Trader, for example, has a maximum overall loss limit of 10% and a profit target of 5%. There is a maximum loss of 20% with Aggressive risk, and a maximum profit target of 15%.
Currently, ProTrader accounts are funded between $150,000 and $1 million, of which $1 million is only available for Normal Risk accounts. Both accounts can be leveraged up to 1:100.
Each account type is evaluated in two steps, depending on the minimum number of trading days, maximum daily loss limit, and maximum overall loss limit. The KYC program at Fidelcrest requires that you submit documents in addition to meeting the trading parameters.
The fees for different types of accounts and risk levels vary. It costs between $104 and $474 to open a Micro Normal risk account. The prices for Micro Aggressive accounts range from $157 to $579, while those for ProTrader accounts range from $685 to $2,848.
How does Fidelcrest Challenge Work?3 FTMO
To qualify for a funded trading account at FTMO, you must go through a rigorous three-step process:
Enter the FTMO Challenge, where you must meet the profit targets within 30 days.
Begin the 60-day Verification Procedure, during which you must demonstrate that you can repeat your FTMO Challenge success.
After completing the two-step review procedure with the FTMO Challenge and Verification, you will be contacted by FTMO with an offer to trade their capital on accounts ranging from $10,000 to $400,000.
A great fact to note is that FTMO’s stronghold is its currencies. This is the best place to consider a forex funded account, if you enjoy trading currencies. You can trade 44 currency pairs as well as 10 cryptocurrencies. Furthermore, cash indices, commodities, and stock CFDs are available for trading.
The free versions of the three most popular forex trading platforms, MetaTrader 4, MetaTrader 5, and cTrader, are accessible.
The fee is paid once per FTMO Challenge. While the funded account currency might be USD, GBP, EUR, CZK, CAD, AUD, or CHF, the challenge fee is exclusively charged in Euro. The participation price for the 10k account begins at 155 EUR. The 25k is 250 EUR, the 50k is 345 EUR, the 100k is 540 EUR, and the 200k is 1,080 EUR. Traders receive capital ranging from $10,000 to $400,000 and an 80/20 split on profits. Whatever the profit a trader earns on the capital given, they will receive 80% of it.
In addition to that, there is a Scaling Plan for funded accounts that allows traders to enhance the Profit Split in their favor up to 90:10 with account sizes up to $2,000,000.
4 SurgeTrader
SurgeTrader offers 75% profit splits to funded traders who meet their trading criteria. It's the perfect prop firm to diversify your investment portfolio with a variety of tradeable assets.
SurgeTrader has only one phase of evaluation, unlike many other prop firm trading entities. Traders of all skill levels can choose from six packages. With its Starter Package, you get $25,000 in instant funding and a 10% profit target. There’s a maximum trailing drawdown of 5%. The Starter Package is ideal for beginners who want to avoid aggressive accounts.
With a $1 million funding size and 75% profit split, the Master Package is the highest-tier account. A 10% target is set, along with a four-percent daily loss limit and a five-percent maximum trailing drawdown. If you have a lot of confidence in your abilities, this package may be for you.
Additionally, this prop firm offers a wide variety of tradable securities, including crypto and gold, as well as popular stock indices. It’s possible to leverage up to 1:10.
A top proprietary trading firm, SurgeTrader requires all of its clients to undergo evaluations. You need to pass only one phase of the SurgeTrader Audition process. It’s not necessary to earn over 10% of your account balance in order to pass the audition.
Audition fees range from $200 to $6,500 per account. There’s no limit to how many times you can take the audition. You can use credit/debit cards and PayPal to make payments and withdrawals.
Is Surge Trader safe?5 The5ers
The 5%ers are known for their unique ways of handling forex funded accounts. These methods may be beneficial to traders who would like to try something different.
The 5%ers take a completely different path from the other apps on this list. Each funded trading account is a live, real-money funded trading account funded by The5ers and tradeable by subscribers.
All forex majors such as EUR/USD, USD/CHF, and key cross-currency pairs such as AUD/CAD and GBP/JPY are tradable assets. Each trader must complete the Level 1 Program with a profit target ranging from 10% to 25%.
The Level 1 Program will be closed once the profit target has been archived by trading according to the guidelines. Profit will be distributed in accordance with the profit split, and a new trading account on the next higher financing level will be established with you as a Portfolio Manager Partner. The entry cost ranges from $275 to $875. The 5%ers offer a 50/50 split on profits.
6 BluFX
The BluFX proprietary trading firm cooperates with 20,000 traders across the globe. It has physical offices in the UK and UAE, but its partners can be anywhere in the world without regional restrictions. BluFX does not have initial fees or challenges, and after completing the registration and verification, a trader immediately gets a real account with a balance of $10,000-$100,000. Balance, profit target, trading hours, and other parameters differ depending on the plan. On the Pro plans, a trader can manage up to $1 million, and 29 currency pairs are available. The BluFX prop firm cooperates with several liquidity providers, and selecting a broker is ad hoc. The trading is performed through cTrader only. The minimum monthly fee is $99. Profit is shared 50/50 on all plans.
Are international prop trading firms legit in Nigeria?
Yes, international prop firms are legit in Nigeria. Some of the proprietary firms that are operational at the moment in Nigeria are international prop trading firms. The regulatory landscape for prop trading firms operating in Nigeria may differ, so you may have to inquire if any local laws and regulations apply to such firms. Currently, there are Nigerian-based prop trading firms with locations in Abuja and Lagos.
Interestingly, the Nigerian government strives to give successful forex traders access to sufficient resources or proprietary firms. The Nigerian government is taking these measures to empower young people with the education and support they need to improve their standard of living. These prop firms may be traditional trading companies or online brokers.
How to withdraw money from a prop trading account?
You must understand that different Forex prop firms in Nigeria have their own exceptions to how traders can withdraw money from their prop trading accounts. While the firm and the trader splits the profits, the broker's share ranges between 20% to 35 %, while the trader's share is between 80% to 90%. Here are the primary ways to withdraw money from prop trading accounts at most Forex prop firms in Nigeria.
Depending on the Forex prop form, you can withdraw your profits by clicking the withdraw profits button on your trader dashboard.
Next, enter the withdrawal amount.
Before posting your profits to your account, check the allowed financial services offered by the prop firm. You can withdraw money from some Forex trading firms via PayPal, bank wire, ACH transfer, cryptocurrency, and a number of other third-party payment processors.
Although some top prop firms don't charge any commissions for withdrawals, don't be surprised if your choice of firm demands a fee.
Forex prop companies like Smart Prop and FTMO permit withdrawals every month. However, after 14 calendar days since the first trade on the account, you can place a payout on-demand. After receiving the invoice, the payouts are processed within 1-2 business days. You need at least $100 in profit before you can ask for a payout.
For instance, suppose a trader with a funded account of $100,000 boosts a profit of $20,000 when they take their 80% profit, or $18,000. The prop firm would also redeem 20% of the available profits, which is around $2,000. And by leaving behind some earned profits, traders ensure they avoid a trailing drawdown.
If you keep your profit on account and allow it to grow, know that the prop firm will always withdraw their portion of the profit. However, allowing your profits to sit on the account longer will raise your balance and drawdown buffer.
How to choose a prop trading account in Nigeria
Traders who sign a contract with a prop firm become funded traders and receive funding from the broker to trade entirely at their discretion. Understanding the requirements to trade for a prop firm presents profound difficulties for some traders. As a result, they quickly lose their account days after gaining it.
Additionally, choosing a genuine firm can be difficult due to the numerous attractive deals and benefits these forex prop firms offer. However, this is why it is essential to do comprehensive research before committing. So, to choose a prop trading account in Nigeria, a trader must ensure the following;
Expertise: First, the trader must prove they know their way around the financial markets, as several prop firms will be testing their trading abilities.
Prop firm reputation and services: Next, find the Forex prop firms in Nigeria that offer services that fit your trading plans and experience. The first thing to consider is the prop firm's reputation, which can be checked by checking review forums or sites like Trustpilot.
Trading techniques and rules: Ensure you learn about the platform's trading protocols and restrictions to ensure they suit your trading style.
Services: Verify the available markets, leverage, customer support, and daily and overall drawdown limits for each prop firm.
If the Forex prop firms are a good fit for your trading requirements, you can now open an account and fund it just like you would fund a typical trading account. This is your initial assessment because you must use this money to generate additional revenue.
Is prop trading in Nigeria free?
While an experienced trader can make money trading for a Forex prop firm in Nigeria, there is a subscription fee you have to pay during your enrollment. This means that the answer to the question: "Is prop trading in Nigeria free?" is systematically "no." Since you have to pay a sign-on fee, prop trading in Nigeria comes with a price.
FAQ
What are the best Forex prop firms in Nigeria?
Top Forex prop firms in Nigeria include FTMO, Smartprop, MyFundedFx, Blue Guardian, DT4XTRADER, BLUFX, and e8Funding.
Is prop trading legit in Nigeria?
Yes, prop trading is legit in Nigeria and remains a great solution to access trading capital quickly.
Do prop traders make a lot of money?
Proprietary trading, though frequently perceived as risky, is a lucrative endeavor, particularly if you're employed as a trader at a reputable prop trading firm. If trading is truly your passion, you can expect to make between $100 and $200.
How do I become a prop trader?
Because prop traders are individuals who are knowledgeable about the capital market, you need to have a bachelor's degree in finance, business, or mathematics. Also, ensure you are familiar with the various trading strategies and risk management techniques used in Forex and can control your emotions when things don't go your way. Then, strive to pass the Securities Trader Representative Exam (Series 57) and Securities Industry Essentials (SIE) to become a licensed prop trader.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
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Team that worked on the article
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).