Trading in financial markets requires the right choice of a broker, as security of traders’ funds, their profit and opportunities depend on it. Before you start working with a company, it is important to comprehensively assess it. Traders Union analysts have already done it for you. The experts prepared a review of the Best Futures Trading Brokers in Nigeria for 2024. Five companies that enjoy huge popularity in Nigeria were selected and compared between each other.
1
FBS - Best in Nigeria for 2024
The FBS brokerage company offers very attractive trading conditions for traders living all over the world. The minimum trade volume is 0.01 lot for all trading accounts. The minimum deposit is EUR 10 and the spread is 1 pip. Traders can connect an Islamic account option to all live accounts, allowing them to trade according to Sharia law. Popular and exotic currency pairs, indices, futures, and metals are offered as trading instruments.
2
FxPro - Best in Nigeria for 2024
Traders registered with FxPro find the trading conditions of the company some of the most attractive in the Forex Market. First of all, these are narrow spreads and zero commissions for trading stocks.
FxPro broker company has many tools that simplify the technical and fundamental analysis and a variety of charts. You can work with a broker on the MetaTrader 4, MetaTrader 5, Edge, and cTrader trading platforms. It is possible to trade online on various operating systems: Windows, Mac, iOS, Android. TradingView charts were added on FxPro Mobile app, so the app now has advanced charting, indicators, chart tools, and other features.
3
InstaForex - Best in Nigeria for 2024
Trading conditions depend on the regulation of the broker:
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FSC. The conditions are more loyal here. With a $1 deposit you can open positions on almost any asset with leverage of up to 1:1000. This broker also offers PAMM accounts and a social trading service. This means that clients invest money in traders and their signals, traders in their turn are successful in trading and earn on fees as well.
Note how the lot volume is being calculated. In the FAQs, you can find information that the broker uses lots of 10,000 basic units instead of standard 100,000 units. This provides for a reduced pip’s value.
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CySEC. The conditions here are stricter due to regulators’ requirements. The minimum deposit is $200 and leverage is up to 1:30 without a confirmed professional trader status. There are managed diversified stock portfolios and synthetic stocks/ETFs instead of PAMM accounts and social trading.
Spreads are from 0 pips subject to the account type and the asset, regardless of the regulator.
4
Admirals - Best in Nigeria for 2024
Admirals trading conditions are suitable for any category of traders, regardless of their trading experience. There are 5 account types which differ in platforms, spread/fee, and asset type. Trade and Zero accounts with a minimum deposit of $25/$100/$250, subject to the regulator, are opened on MT4 and MT5 and are intended for trading CFDs on any type of assets. The Invest account with a minimum deposit of $1 is only available on MT5. This account type is intended for trading stocks and ETFs on the stock market.
How to buy/sell on AdmiralsStrict adherence to regulatory requirements is the reason for restrictions on leverage. For retail clients, maximum leverage is 1:20-1:30. Upon confirmation of the “professional trader” status, it increases to 1:500. For the JSC regulated broker, leverage for all traders is up to 1:500. Spreads depend on the account type. On the Trade account on both platforms it is from 0.5 pips, on the Zero account it is from 0 pips with an additional fee per lot of $1.8-$3 for currency pairs and metals. Both account types also have a fixed fee for trading stocks and ETFs.
There are no restrictions on use of strategies and tools: scalping, hedging, algorithmic trading, arbitrage, and carry trade are allowed. Hedging is only prohibited on the Invest account. Also, there is no negative balance protection on the Invest account.
Admirals AI-based analytical research terminal provides traders with advanced tools to enhance their trading experience. It is free for all clients, providing powerful analytical features to inform investment decisions based on news, sentiment, and price movements. The terminal is powered by Acuity's AI technology and seamlessly integrates with the MT4 and MT5 platforms. Key features of this new terminal include:
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Corporate calendar tool that helps stock traders stay ahead of upcoming corporate events.
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Economic calendar to help traders navigate macroeconomic events and market volatility.
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NewsIQ tool that detects trading opportunities by combining news data with other datasets.
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Integration with Dow Jones for financial news and insights.
5
IronFX - Best in Nigeria for 2024
IronFX is regulated by multiple reliable bodies, in particular CySEC, FCA, FSCA. IronFX provides clients with the best terms for active trading. The minimum amount for replenishing an account is $100, the leverage is 1:30. IronFX offers demo accounts so traders can test the platform and practice strategies. The Company serves retail and institutional customers from over 180 countries.
TOP 5 Comparison
In order to choose the Best Futures Trading Brokers in Nigeria in 2024, TU analysts chose 5 best brokers in this country. In the table below, you can see a basic comparison of these companies. Experts selected only the most reliable brokers that are popular among traders in Nigeria.
| FBS | FxPro | InstaForex | Admirals | IronFX | |
|---|---|---|---|---|---|
|
Trading platform |
MT4, Mobile Trading |
MT4, Mobile Trading, MT5, cTrader, FxPro Edge |
MT4, MultiTerminal, Mobile Trading, MT5, WebTrader |
MT4, MT5, WebTrader, Mobile platforms |
WebTrader, MetaTrader4 |
|
Min deposit |
$1 |
$100 |
$1 |
$250 |
$100 |
|
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
|
Trust management |
No |
No |
Yes |
No |
No |
|
Accrual of % on the balance |
No |
No |
No |
No |
No |
|
Spread |
From 0.2 points |
From 0 points |
From 0 points |
From 0.5 points |
From 0 points |
|
Level of margin call / stop out |
40% / 20% |
25% / 20% |
30% / 10% |
50% / 0% |
40% / 20% |
|
Execution of orders |
Market Execution |
Market Execution |
Instant Execution |
Exchange execution, Market Execution |
STP, Market Maker, ECN |
|
No deposit bonus |
$5 |
No |
No |
No |
No |
|
Cent accounts |
Yes |
No |
Yes |
No |
No |
How to choose futures trading Broker in Nigeria
Here are 5 tips for beginners on how to choose a futures trading broker in Nigeria:
Regulatory compliance
First, always verify the broker's regulatory compliance. Is the broker licensed by a reputable financial oversight body? For example, the National Futures Association (NFA) in the United States enforces strict guidelines. A licensed broker adheres to stringent regulations, providing an extra layer of security against fraudulent activities.
Execution and technology
Speed and reliability matter in trading. Look for a broker with a track record of quick and dependable trade execution. Also, the trading platform should be user-friendly but feature-rich. Features like real-time quotes, advanced charting tools, and one-click trading can make a real difference in your trading experience.
Account conditions and fees
Inspect the broker's account offerings carefully. What are the leverage and margin options? What about commissions and spreads? And don't overlook initial deposit requirements and the procedures for deposits and withdrawals. Each of these elements affects both your trading profitability and convenience.
Market access
A broker's market access can be a game-changer. Make sure the broker provides access to a variety of markets and trading instruments. Whether you're interested in trading equity, commodities, or forex futures, a wide selection allows you to diversify your portfolio and seize more opportunities.
Customer support and education
Last but not least, evaluate the broker's customer support and educational resources. A dependable broker should have a responsive support team to handle your queries or issues. Look also for a range of educational materials, like webinars, tutorials, and articles, to help you sharpen your trading skills.
Is futures trading legal in Nigeria 2024?
Yes, futures trading remains legal in Nigeria as of 2024. The Nigerian government hasn't put forth any laws specifically restricting or banning the practice. That said, you should tread carefully when it comes to futures trading with cryptocurrencies.
The Central Bank of Nigeria has been quite clear on its stance against cryptocurrencies. It has prohibited financial institutions from processing transactions involving Bitcoin and other digital currencies. Violating these rules can result in severe penalties.
So, if you're considering trading futures that involve cryptocurrencies, it's smart to seek legal or financial advice. Get all your facts straight to avoid any unpleasant surprises down the road. Keep an eye on any regulatory updates, especially those related to cryptocurrencies, to ensure you're trading within the bounds of the law.
Is futures trading taxable in Nigeria 2024?
As of 2024, Nigeria doesn't have a specialized tax structure exclusively for futures trading. Instead, general tax laws like the Capital Gains Tax Act (CGTA) and the Companies Income Tax Act (CITA) apply. These laws determine how income from futures trading gets taxed.
In contrast, under Section 1256 of the U.S. Internal Revenue Code, futures traders often face more favorable tax conditions than equity traders. They're subject to a maximum total tax rate of 26.8%.
Because tax laws can be complex and subject to change, it's wise to consult a tax professional for tailored advice. Your specific circumstances can significantly affect your tax obligations. So, getting expert guidance will ensure you meet all legal requirements while optimizing your tax strategy.
Pros and cons of futures trading
Here are the pros and cons in a more concise bullet-point format:
👍 Pros
• Amplified returns for experienced, risk-tolerant investors
• Access to leverage and hedging
• Low initial costs
• Standardized, regulated contracts
• Portfolio diversification options
• Low entry barriers
• Advanced trading strategies available
Note that futures trading involves high risks, especially due to the leverage. Thorough research and consideration of your financial goals, risk tolerance, and budget are crucial before diving in.
How to start futures trading in Nigeria?
Here's an in-depth guide on how to start futures trading in Nigeria, following your designated subheadings.
Step 1: Understand what futures trading is
Get a grip on the basics first. Futures contracts are legally binding agreements that enable you to buy or sell commodities, assets, or securities at a predetermined price on a future date. You can trade futures in a myriad of asset classes, from livestock and oil to soybeans. The objective is to capitalize on price movements, either by going long if you anticipate prices to rise or short if you expect them to fall.
Step 2: Choose a futures broker and open an account
Your next move is picking a broker that aligns with your needs. You have several options, including international players like Charles Schwab, TD Ameritrade, and E-Trade. Look for a broker that offers competitive fees, a robust trading platform, and an array of markets to trade in. Reviews and testimonials can be helpful, but make sure they come from credible sources.
Step 3: Fund Your account
Time to put some money in the game. After selecting a broker and opening an account, you'll need to fund it. Payment methods usually include bank transfers and credit card payments. Be aware of the fees tied to each method and make sure you meet any minimum deposit requirements set by the broker.
Step 4: Choose a futures contract type and market to trade In
Now, pick your playground. Different futures contracts and markets come with varying risk profiles and potential returns. For example, commodities like oil and gold have different volatility characteristics than financial futures like currency or stock indexes. Choose a market you understand well, as a deep understanding will enhance your trading decisions.
Step 5: Develop a trading strategy
A plan is non-negotiable. Set your profit goals and know when to exit if things don't go your way. Your strategy could involve technical indicators, fundamental analysis, or a combination of both. Whether it's trend following, scalping, or swing trading, focus on mastering one or two strategies first before diversifying your approach.
Step 6: Start trading
You're all set to hit the market. Armed with your chosen futures contract and strategy, you can begin trading. Always be aware of the associated risks, which can be substantial in futures trading. It's often a good idea to start small, learn the ropes, and gradually increase your exposure as you gain more experience.
TU Expert Review for the best Futures Trading Brokers in Nigeria
Financial expert and analyst at Traders Union
Anton joined Traders Union as a financial expert and analyst in 2013. He performs comprehensive internal testing of brokers as a trader. Essentially, Anton “test drives” brokers: he checks the operation of the website and user account, the speed and effectiveness of customer support team, stability of the software, deposit and withdrawal processing times, legal documents of companies and also all additional services (VPS, affiliate programs, contests, bonuses, educational programs, etc.). Based on the results of his “inspections”, he prepares expert conclusions about the operation of brokerage companies in the Forex, stock and binary option markets and also of the cryptocurrency exchanges.
His opinion as for the best Futures Trading Brokers in Nigeria is posted below.
FBS - TU Expert Review
The FBS broker fulfills its obligations as a partner to Traders Union and is recognized by the members of the Union as a company that offers clients optimal trading conditions. The FBS brokerage company provides traders with several trading accounts to choose from: a free demo account and several types of real accounts with different conditions. This allows its clients to choose the best option based on the trading strategy and financial instrument, as well as individual requirements. The broker provides all traders with negative balance protection. Considering all this, we can say that the FBS broker is suitable for both novice traders and professionals of foreign exchange trading. It should be noted that the company's support service works around the clock, 7 days a week, and you don't have to wait long for an answer. The broker's website is simple, you can understand it intuitively.
FxPro - TU Expert Review
FxPro is one of the brokers that successfully combines marketing policy and technological development. The company has been in the market for more than 17 years and has been able to maximize its technical potential. Average order execution is up to 14-30 ms, while the market average is 100-150 ms. Average spreads for the EUR/USD pair range from 0.3 to 0.8 pips, and expansion at moments of fundamental volatility does not exceed 30-50%. You can check these numbers by installing a script for MT4/MT5. But there are no doubts that they are true. This is largely thanks to such liquidity providers as Barclays, Citibank, and RBS banks, which are FxPro's longtime partners. Trading conditions are ideal for everyone, regardless of experience level. Novice traders can improve their skills on demo accounts, which can be opened for any trading platform (cTrader, MT4/MT5, or FxPro Edge). All platforms, except FxPro Edge, support custom indicators, scripts, and Expert Advisors. There are auxiliary tools in the user account such as market sentiment, which is an indicator displaying the current position volumes and their number in both directions, volatility of currency pairs, analytics and tools of Trading Central, and news feed with streaming information. The number of payment methods is limited, but this is required by regulators. To compensate for this, FxPro guarantees instant processing of withdrawal requests and quick crediting of money. First impressions of the broker are positive, therefore it is rightfully included in the rating of the TU Top best companies. Check it out by opening a free demo account.
InstaForex - TU Expert Review
The InstaForex Team is professional and reliable. I highly recommend this service. They offer optimal trading conditions that are suitable for both novice and professional traders. Clients can work with various types of accounts, use a minimum order of 0.01 lots and more than over 2,500 Forex trading instruments. InstaForex has been working with the Traders Union for many years. We analyzed thousands of customer reviews which were overall positive. Many customers were particularly impressed with their excellent customer service. One such customer said “Its experts are doing everything to solve the financial and technical problems encountered by users as soon as possible”. The user-friendly interface of the website allows you to quickly find and analyze relevant information on both active and passive trading. InstaForex always cares about its customers - it provides favorable conditions for trading, as well as Customer support in an expeditious manner. It is these features that gives it a high rating of reliable Forex brokers of the Traders Union.
Admirals - TU Expert Review
Admirals is a universal broker for over-the-counter Forex trading and exchange trading of stocks with tools for both active trading and passive investing. Following the rebranding in 2021, the company focused on the development of its technical functionality. Traders can use the StereoTrader trading panel with smart automation of executing trades, Trading Central technical analysis tools, volatility protection tools, the Supreme Edition plug-in, and other applications for free. More than 3,000 CFDs are available for trading almost all types of assets, including ETFs, bonds, cryptocurrencies, and more than 4,500 stocks on 15+ stock exchanges globally. Average spread starts from 0.3-0.6 pips subject to the asset and account type, which is a relatively good indicator for a CFD broker. Although cent accounts are not provided, Admirals offers a good scope of educational materials. Step-by-step usage of acquired knowledge on a demo account allows novice traders to approach the “professional” status. Recently, the broker's technical product line has been expanded with a social trading platform. Now Admirals’ clients can earn extra profit by delivering signals or, on the contrary, subscribe to trades of successful traders and copy them to their accounts. When you first discover the functionality of the broker and its security guarantees, you get a positive impression of Admirals, because the company is included in the TU Top 10 every month.
IronFX - TU Expert Review
Over the years of cooperation with Traders Union, IronFX has established itself as a partner that strictly fulfills its obligations. The broker offers accounts for both beginners and professionals. The IronFX website has a convenient multilingual interface. Data on trading conditions are presented in full and described in as much detail as possible. In the process of working with IronFX, clients can trade the following financial instruments: currencies, metals, indices, commodities, futures, and stocks.
Summary
Many brokers operate in Nigeria, but not all of them are reliable or offer attractive trading conditions. TU experts selected 5 companies and rated them based on collected data. By reviewing them, you will learn about the Best Futures Trading Brokers in Nigeria 2024 and will be able to evaluate the pros and cons of its closest competitors.
Overall score of the best Futures Trading Brokers in Nigeria
| FBS | FxPro | InstaForex | Admirals | IronFX | |
|---|---|---|---|---|---|
|
Overall score |
8.28 |
8.5 |
7.83 |
8.43 |
6.98 |
|
Execution of orders |
9.5 |
8.25 |
8.85 |
7.65 |
6.85 |
|
Investment instruments |
6.96 |
8.9 |
7.1 |
9.31 |
8.87 |
|
Withdrawal speed |
9.57 |
6.5 |
6.9 |
8.57 |
7.23 |
|
Customer Support work |
7.58 |
8.9 |
7 |
8.2 |
7.03 |
|
Variety of instruments |
7.02 |
9.27 |
8.02 |
8.75 |
8.02 |
|
Trading platform |
9.03 |
9.2 |
9.1 |
8.09 |
3.88 |
|
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FAQ
What is the best brokerage to trade futures?
FxPro stands out as a top choice for trading futures. The platform offers an array of futures contracts across commodities, currencies, and indices. It also provides advanced trading tools and competitive spreads, making it a popular choice for both beginners and experienced traders.
Can You trade futures on MT4?
Yes, you can trade futures on the MetaTrader 4 (MT4) platform. MT4 is known for its user-friendly interface and powerful charting tools, which can be particularly useful for futures trading. However, it's crucial to check if your chosen broker supports futures trading on MT4, as not all brokers offer this feature.
Which broker is best for trading in Nigeria?
Both FxPro and InstaForex come highly recommended for trading in Nigeria. FxPro offers a comprehensive suite of trading options, including futures, while InstaForex is known for its robust customer service and user-friendly platform. Your choice between the two will depend on your specific needs, trading style, and the assets you wish to trade.
How do I choose a futures broker?
To choose a futures broker, check for regulatory compliance and a valid license. Assess the trading platform's features and ease of use. Consider account offerings like leverage, fees, and market access. Lastly, evaluate customer support and educational resources. Make sure all these factors align with your trading needs.
What factors are important when you are choosing a broker?
When you are choosing a broker, it is important to make sure it is a reliable company, consider its fees, the list of trading instruments, deposit and withdrawal methods and other factors. It is important to study a broker in detail, before opening an account with it.
What learning instruments can a broker offer?
Brokers offer various educational options. These include full-fledged educational courses, or video tutorials, articles, and books. Companies also often hold seminars and webinars.
Does the choice of a beginner differ from the choice of an experienced trader?
Yes. A novice trader should primarily consider the availability of educational tools and a demo account, as well as basic assets. A more experienced trader is interested in wider opportunities on advanced account types, a wider choice of instruments for technical analysis, and a greater number of trading instruments.
What commissions and fees should I take into consideration when I am choosing a broker?
The commissions and fees in the financial markets are divided into trading and non-tradings ones. Trading fees are the fees that are charged directly during trading (spread, commission per lot, etc.), while non-trading fees are the ones charged outside the trading process (for example, account fee, inactivity fee, deposit and withdrawal fee).
Best Futures Trading Brokers by Countries
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
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).