The Best Forex Proprietary Trading Companies In Lagos 2024
The best Forex proprietary trading company in Lagos is Topstep
Top prop trading companies in Lagos are:
Topstep - Profit split 100% up to $5,000, then 80% afterward.
BluFX - Profit split up to 90%.
Fidelcrest - Profit split up to 90%.
The Funded Trader - Profit Split up to 90%.
The5ers - Profit share up to 100%.
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In the bustling financial hub of Lagos, where opportunities abound in the world of foreign exchange trading, discerning traders seek the expertise and support of Forex proprietary firms. These firms, often known for their cutting-edge strategies and market insights, play a pivotal role in empowering traders to navigate the dynamic Forex landscape. In this comprehensive guide, we delve into the top Forex Proprietary firms in Lagos, including notable names like Topstep and BluFX, among others.
Our ratings encompass firms with offices in Nigeria or those that warmly welcome Nigerian clients, ensuring that local traders have access to reliable and reputable partners. Whether you're a seasoned trader or just stepping into the Forex arena, join us as we explore the top prop trading companies, their offerings, and why they deserve your attention in the thriving Nigerian Forex landscape.
What is prop trading?
Proprietary trading (also known informally as Prop trading) refers to when a financial institution such as a commercial bank, a brokerage firm or even an investment bank directly trades or invests in activities in the stock market. These organizations can trade bonds, stocks, commodities, derivatives, currencies, and other instruments.
These institutions use their own funds for trading and investing in the stock market and not their clients’ money. So on top of the commission from processing trades for their clients, they can earn the full profits from engaging in the trades as well.
Top 5 prop trading accounts in Lagos
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 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.
3 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.
4 The Funded Trader
The Funded Trader works with the Eightcap broker. Users can trade currencies, indices, gold, and commodities; cryptocurrencies are only available during the challenges. The minimum leverage is 1:2, the maximum is 1:200. All styles of trading, including scalping, are allowed. This proprietary trading firm allows copy trading (with some restrictions). The Funded Trader offers four account types with balances ranging from $25,000 to $400,000. The initial fee is refundable, its amount depends on the type of account and its balance. For example, the initial fee for a Standard account with a balance of $100,000 is $549. Traders start with a profit split of 80%, but it can be increased up to 90% while the rest goes to the prop firm. The Funded Trader regularly holds promotions whereby it offers traders discounts and special conditions. It also offers a typical partnership program.
5 The5ers
The5ers 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 5ers 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 5ers offer a 50/50 split on profits.
Is Forex prop trading a good idea in Lagos?
Forex proprietary trading in Lagos involves trading with capital provided by a proprietary trading firm. Traders use the firm's funds and earn a share of the profits while bearing a portion of the losses. Here are some pros and cons highlighted by TU experts.
👍 Pros
• Skill demonstration: Forex prop trading offers an opportunity for traders in Lagos to showcase their skills without risking their own capital.
• Funding: Successful traders can access substantial capital from these firms to amplify their trading activities.
• International reputation: Many of these proprietary trading firms have well-established international reputations, providing clients in Lagos with a sense of security and trust.
👎 Cons
• Qualification challenges: Qualifying for these programs can be stringent, often requiring traders to pass rigorous assessments.
• Strict rules: Proprietary trading firms typically impose strict rules and risk management protocols, which can limit trading freedom.
• Profit sharing: While traders can keep a portion of profits, they also share a percentage with the firm, reducing overall earnings.
• Risk of loss: Although these are not personal risk accounts, traders can still incur losses, and these losses might be deducted from their profit share.
Are international prop trading firms legit in Lagos?
Yes, international prop trading firms operate legitimately within Nigeria, offering traders a credible avenue to access well-funded trading accounts. These platforms empower traders to participate in the foreign exchange market with substantial capital at their disposal.
How to choose a prop trading account in Lagos?
By considering the following factors highlighted by Traders Union, you can make an informed decision when selecting a prop trading account in Lagos, ensuring that it meets your trading needs and aligns with your financial goals.
Regulatory compliance: Ensure that the prop trading firm is regulated by relevant authorities such as the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). Regulatory oversight helps protect your interests and ensures the legitimacy of the firm.
Funding and leverage: Evaluate the amount of capital the firm provides to traders and the leverage ratios offered. Choose a trading account that aligns with your risk tolerance and trading goals. Keep in mind that higher leverage can amplify both gains and losses.
Trading platform and tools: Assess the quality and functionality of the trading platform provided. Look for features such as real-time data, analytical tools, and ease of use. A robust trading platform is essential for effective trading.
Profit sharing and fees: Understand the profit-sharing arrangement and any fees associated with the prop trading account. Determine how much of your profits you'll retain and how much goes to the firm. Transparent fee structures are preferable.
Risk management policies: Investigate the firm's risk management policies and rules. Some prop trading firms have strict risk controls in place, while others may offer more flexibility. Choose an account that aligns with your risk management strategy.
Is prop trading in Lagos free?
Prop trading in Lagos is not typically free. While traders can access funds provided by prop trading firms to trade, most prop trading firms have subscription fees, and traders may also be subject to profit-sharing agreements. The subscription fees can vary significantly depending on the specific prop trading firm and the terms of the arrangement. These fees may range from 90,000 naira or more substantial initial capital contribution. Additionally, traders often agree to share a percentage of their trading profits with the firm.
FAQs
Which is the best prop firm for Forex?
The determination of the "best" prop trading firm for Forex can vary depending on individual preferences, trading goals, and qualifications. Some well-known prop trading firms for Forex include Topstep, BluFX, and FTMO, among others.
Which prop firm is the best?
The best prop trading firm can differ for each trader, as it depends on their specific needs and circumstances. Factors such as trading experience, risk tolerance, and the type of assets you want to trade can influence your choice. Conduct thorough research, read reviews, and consider the reputation, fees, and trading conditions of various firms to determine which one aligns best with your objectives.
What is better than FTMO?
Several prop trading firms operate in the Forex space, each with its own advantages and disadvantages. While FTMO is well-regarded, it's essential to explore alternatives like Topstep, BluFX, and others to find the one that offers the best fit for your trading style, preferences, and goals. Consider factors such as funding amounts, fees, and trading conditions when making comparisons.
Are Forex prop firms worth it?
Whether Forex prop firms are worth it depends on your trading objectives, skills, and willingness to adhere to the rules and risk management policies of the firm. Prop trading can provide access to substantial capital and a chance to earn profits without using your own money, making it attractive to many traders. However, it's not without challenges, including strict rules and profit-sharing arrangements. Traders should carefully evaluate whether the benefits align with their goals and risk tolerance before engaging with a Forex prop trading firm.
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
Winnifred Emmanuel is a freelance financial analyst and writer with years of experience in working with financial websites and businesses. Her expertise spans various areas, including commodities, Forex, stocks, and cryptocurrency. Winnifred tailors her writing to various audiences, including beginners, while also providing useful insights for those who are already familiar with financial markets.
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).