Best Forex Proprietary Trading Companies in Nigeria
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If you're too busy to read the entire article and want a quick answer, the best Forex proprietary trading companies in Nigeria is FundedNext. Why? Here are its key advantages:
- Is legit in your country (Identified as Spain
) - Has a good user satisfaction score
- Equity simulators to enhance trading performance
- High profit split
Top Forex prop firms in Nigeria:
Topstep - for unlimited time for prop traders to hit their profit targets
FundedNext - beginner-friendly offers (free trial, trade copying software is allowed)
FTMO - This prop firm offers prop traders the best profit splits
Traddoo - loyal trading conditions (no minimum trading days, no consistency restrictions)
The5ers - offers traders immense support, instant funding, and quick account scaling
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
- Cons
- 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.
- 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 5 prop trading accounts for Nigerians
We compared the top 5 proprietary trading firms that welcome clients from Nigeria. Our evaluation focused on several important criteria to ensure a thorough and relevant comparison for Nigerian traders.
Managed amount up to: Indicates the potential for growth and earning with the firm.
Profit split up to, %: Reflects how much of the profits traders can retain.
Supported markets: Shows the diversity of trading opportunities available.
Trading Plan, min: Assesses the accessibility and entry requirements for traders.
TU overall score: Provides an overall quality rating based on multiple factors, including safety and user feedback.
| Funding Up To, $ | Profit split up to, % | Supported markets | Min. Price, $ | TU overall score | Open account | |
|---|---|---|---|---|---|---|
| 4 000 000 | 95 | Currencies, indices, cryptocurrencies, commodities and futures | Array | 9.87 | Open an account Your capital is at risk. |
|
| 4 000 000 | 95 | Forex, CFDs on indices, cryptocurrencies, and precious metals | Array | 9.83 | Open an account Your capital is at risk.
|
|
| 200 000 | 90 | CFDs on: currency pairs, gold, oil, global indices, stocks, cryptocurrencies, ETFs | Array | 9.79 | Open an account Your capital is at risk.
|
|
| 2 500 000 | 90 | Forex, indices, cryptocurrencies, metals, energies (oil, gas) | Array | 9.75 | Open an account Your capital is at risk.
|
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| 2 000 000 | 95 | Forex pairs, CFDs on indices, commodities, and cryptocurrencies | Array | 9.71 | Open an account Your capital is at risk.
|
What are the challenge conditions for the top 5 proprietary trading firms in Nigeria?
| Trading Plans | Price, USD or EUR | Profit target, $ | Daily loss, % | Max. loss, % | Managed amount, USD | |
|---|---|---|---|---|---|---|
|
Stellar Challenge 1 Step |
65 |
600 |
3 |
6 |
6 000 |
|
|
Pro Challenges 1 Step Pro |
65 |
500 |
3 |
6 |
5 000 |
|
|
Essential |
119 |
2000 |
5 |
6 |
20 000 |
|
|
One Phase |
49 |
500 |
3 |
8 |
5 000 |
|
|
1 Step |
114 |
1500 |
4 |
6 |
15 000 |
Rules and Regulation
- Regulation
Prop firms don’t require licenses, but registration is obligatory. The absence of registration and contact details may indicate fraud. If the operation model of a prop firm implies financial relations, except for payment for the challenge, the license is mandatory.
- Investor protection
The country’s regulator is the SEC (the Securities and Exchange Commission of Nigeria). Among other things, it is responsible for identifying illegal companies disguised as prop firms and brokers. Prior to opening an account with a prop firm, make sure it is not on the regulator’s blacklist. Also, find out what broker it partners with and whether it is also listed as suspicious.
- Taxation
The progressive income tax rate is applied in the country. It ranges from 7% to 24% subject to the taxable amount. Income of less than NGN 300,000 is not taxable.
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.
FAQs
What are the best Forex prop firms in Nigeria?
Top Forex prop firms in Nigeria include FTMO, Smartprop, MyFundedFx, Blue Guardian, DT4XTRADER, 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.
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).
