In Nigeria's volatile financial landscape, day trading is a popular strategy for investors looking to profit from short-term market changes. To engage in efficient day trading, you need a dependable online broker who can meet your individual requirements.
In this article, we will look at how to find the best online broker for day trading in Nigeria 2024, the legality and tax consequences of day trading, the advantages and downsides of this trading method, and key starting recommendations.
1
RoboForex - Best for day trading in Nigeria
RoboForex is a well-established brokerage company offering a broad spectrum of trading opportunities for active traders and investors alike. With an impressive selection of over 12,000 financial instruments - including currency pairs, CFDs on stocks, indices, metals, energies, and futures - RoboForex provides a versatile trading environment.
The broker boasts competitive trading conditions: tight spreads starting from 0 pips, high leverage up to 1:2000, and fast execution speeds. The broker also offers the CopyFx investment program, which allows traders to copy the strategies of successful investors and earn passive income. Additional perks include instant fund withdrawals and some of the industry’s highest affiliate payments (up to 84%).
RoboForex prioritizes reliability and client satisfaction, establishing itself as a trusted partner for traders worldwide.
👍 Advantages of trading with RoboForex for traders from Nigeria:
•Availability of favorable trading conditions and a minimum deposit
•Unique investment program CopyFx
•Highest affiliate payments: up to 84% of the fee paid by the referral
•Market launch - STP and ECN
•Instant withdrawal of funds
•Minimum deposit - $10
👎 Disadvantages of RoboForex for traders from Nigeria:
•A small number of currency pairs - 36, for accounts: Pro, Pro-Cent, ECN, Prime
•Lack of tools when trading on the R StocksTrader platform
2
Revolut - Best for day trading in Nigeria
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
👍 Advantages of trading with Revolut for traders from Nigeria:
•In addition to stock trades, customers can trade cryptocurrencies and precious metals.
•The broker offers commission-free trading plans.
•The minimum number of shares to buy is 0.00000001.
•There are no minimum deposit requirements.
•Social trading is available, which allows newcomers to the stock market to copy trades of successful traders.
•Communication with the support service via chat is available in the mobile application 24 hours a day.
•There is no fee for opening and maintaining a trading account.
👎 Disadvantages of Revolut for traders from Nigeria:
•Stock trading is currently only available to UK residents.
•Operations in precious metals and cryptocurrencies are not regulated by supervisory authorities.
•The company does not offer fiduciary management of its investment portfolio.
3
Ninjatrader - Best for day trading in Nigeria
Ninja Trader is a Forex broker that has been providing brokerage services in the derivatives and foreign exchange markets since 2003. The main specialization of the company is in the futures and futures options markets. The broker is a licensed company with domicile in the United States. Ninja Trader also has offices in Germany and the Netherlands, but these are more representative functions.
👍 Advantages of trading with Ninjatrader for traders from Nigeria:
•availability of algorithmic trading using proprietary systems; there are more than 850;
•proprietary trading platform, which is one of the best products for trading in the derivatives markets (like MetaTrader 4 for Forex).
👎 Disadvantages of Ninjatrader for traders from Nigeria:
•high trading costs. In addition to the commission for the contract, there are exchange and regulatory fees, a fee to the trade provider (intermediary broker);
•the initial deposit is from USD 400. But that amount has nothing to do with fees associated with the US stock market;
•the broker is tailored exclusively for the US futures and options markets;
•a deep understanding of the principles of the derivatives market and the rules for working with exchanges is required;
•chat and phones contacts are missing;
•there are cases of neglect of client risks. Ninja Trader was fined in 2014 by its regulator for irregularities under its rules.
4
Easy Equities - Best for day trading in Nigeria
Easy Equities (EasyEquities) is a US stock broker providing financial services in the international market. The company opens access to South African, American and Australian markets and provides an opportunity to trade fractional shares. Investors can choose an individual or corporate account and there are also accounts for children. EasyEquities is a part of two licensed financial services companies — First World Trader and Purple Group.
👍 Advantages of trading with Easy Equities for traders from Nigeria:
•Demo accounts with two base currencies to choose from: USA and ZAR.
•Low trading commissions and zero non-trading fees.
•An account for children under age.
•No required minimum deposit amount.
•A possibility to invest independently or use investment offers of the broker.
•Residents of the majority of countries can open an account with the broker.
•Fractional shares are among trading instruments available to traders.
👎 Disadvantages of Easy Equities for traders from Nigeria:
•Deposit and withdrawal take several days.
•The broker offers very few methods of contacting customer support.
•There is no information about the authorities regulating the operation of Easy Equities.
5
TradeZero - Best for day trading in Nigeria
TradeZero is a Bahamian broker that provides its clients with access to the interbank market for stock trading. The platform allows you to trade limit orders for NYSE, Amex, and Nasdaq securities for free. Leverage, depending on the parameters of the order, ranges from 1:2 to 1:6. There are no templates for day trading. The broker has developed four trading platforms - ZeroPro, ZeroWeb, ZeroFree, and ZeroMobile, which make it possible to trade with maximum comfort, regardless of the level of the trader and his preferences. The platforms integrate technical analysis tools, news, and analytics.
👍 Advantages of trading with TradeZero for traders from Nigeria:
•The broker allows you to trade all stocks that are listed on the NYSE, Amex, and Nasdaq exchanges.
•In addition to shares, trading in ETFs and options is available on objectively favorable terms.
•Limit orders greater than $1 and containing up to 200 shares are not subject to commission.
•The broker has proprietary software for working from a desktop, in a browser, and on a mobile device.
•Transparent pricing policy, fixed deposit/withdrawal commissions.
•No commissions on the first deposit.
•The broker provides an extensive pool of educational materials for traders of different levels.
•Fast technical support in live chat, and there is a multi-channel call center and email.
👎 Disadvantages of TradeZero for traders from Nigeria:
•The minimum deposit is $500. It does not charge a commission, but this is a significant amount, which sometimes repels beginners.
•Use of the ZeroPro and ZeroWeb software with professional functions $59 per month.
•Technical support is not around the clock or on weekends.
•Service priority is given to premium accounts.
Commissions & Fees
Brokerage fees are the amount of money that you pay for using the services that a brokerage offers in order to perform trading and manage investments. The brokerage fee structure and regulations vary from broker to broker, and there are two primary fee types which are:
Trading Fees: This type of fee is only charged when you perform a trade. It can be a conversion fee, margin rate, financing rate, spread, or commission.
Non-Trading Fees: This type of fee isn't directly related to your trading activity, and it can include inactivity fee, withdrawal fee, deposit fee, etcetera.
RoboForex Commissions and Fees
Our experts have checked this company for trading and non-trading commissions. In the trading commission category, the broker's spread was considered, and as a non-trading commission, it charges an additional fee for withdrawing funds.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Pro |
$13 |
No |
|
Pro-Cent |
$13 |
No |
|
ECN |
$3 |
No |
|
Prime |
$1 |
No |
Revolut Commissions and Fees
During our analysis of trading conditions, it was found that Revolut limits the number of trades without commissions. Depending on the account type, 1-5 transactions per month are free. There is a monthly subscription fee of £2.99-£12.99 on different accounts, which can be reduced by 20% if you pay in advance for a year. The broker charges a fee of 1 USD for additional orders. Since stocks listed on American exchanges are offered for investment, the fees are calculated in USD and then the funds are converted to the account currency at the current exchange rate. For transactions in cryptocurrency, the commission is 1.5-2%, and for transactions in precious metals, it’s 0.5-1.5% of the transaction volume. The amount of interest depends on the selected trading account. No additional hidden commissions were revealed.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From £2.99 |
No |
|
Plus |
From £2.99 |
No |
|
Premium |
From £2.99 |
No |
|
Metals |
From £2.99 |
No |
Ninjatrader Commissions and Fees
Experts at Traders Union have analyzed NinjaTrader conditions for explicit and implicit fees. There are no hidden fees. Since the broker is an intermediary on the US and European stock exchanges, it is not responsible for the level of the spread and there is no data on the site. There are additional commissions of exchanges, banks, partners, and brokers-partners.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Futures |
$50 for ‘mini’ contracts |
Yes |
|
Options |
From $0,59 |
No |
Easy Equities Commissions and Fees
Traders Union analyzed Easy Equities trading and non-trading commissions and fees. Easy Equities does not charge non-trading fees (for funding the account, using the trading platform, account servicing). Trade execution fee is 0.25%, minimum commission is USD 0.01. Withdrawal fee depends on the base currency of the account. Specifically, traders who use ZAR as their base currency do not pay a withdrawal fee, while for international withdrawals in USD the fee is set by the bank.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
ZAR |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
USD |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
AUD |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
TFSA |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
RA |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
|
EasyProperties |
from $0.01 |
No withdrawal fee, on withdrawals in USD the fee is charged and its amount depends on the bank, through which the transaction is performed |
TradeZero Commissions and Fees
All limit orders with a share value of $1 or more and a volume of up to 200 shares are commission-free. All other orders are subject to a commission of $0.005 per share. The cost of the option contract is $0.59, the OOS commission is $0.055, and the ORF fee is $0.0388 per contract. The commission for all deposits (except the first) is fixed at $25, and for all withdrawals, it is $50. Trades involving a broker are subject to a fee of $30. For paid software (ZeroPro and ZeroWeb), the company charges $59 each month.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From $1 |
Yes |
|
Premium |
From $1 |
Yes |
How to choose online broker For Day Trading in Nigeria
Choosing the best online broker is a vital step for Nigerian day traders. Here are some helpful hints to assist beginners in making an informed decision:
Tip 1: Trading platform
Select the top online broker for day trading who offers a powerful and user-friendly trading platform. In a fast-paced trading environment, the platform should give real-time data, comprehensive charting capabilities, and a flawless execution procedure, allowing you to make quick judgments.
Tip 2: Trading instruments
Choose a broker who provides a wide range of trading instruments, such as stocks, Forex, cryptocurrencies, commodities, and indices. A varied collection of solutions helps you to capitalize on a variety of market opportunities.
Tip 3: Cost and fees
Consider the broker's cost structure, which includes commission rates, spreads, and other expenses. Competitive pricing can have a big impact on your day trading profitability, especially if you execute multiple deals per day.
Tip 4: Customer support
Customer service that is dependable is vital. Check if the broker provides timely and helpful customer service. You might require assistance with technical concerns, account inquiries, or trading-related inquiries.
Tip 5: Educational resources
Choose a broker who offers instructional resources and trading tools. These materials can help newcomers comprehend market dynamics, trading methods, and risk management practices.
Is Day Trading legal in Nigeria?
Yes, day trading is allowed in Nigeria; there are no specific laws forbidding or restricting day trading activities. Nigerian traders are free to engage in day trading as long as they follow general financial regulations and tax obligations and utilize authorized brokers.
Do day traders pay taxes in Nigeria?
Yes, profits from day trading are subject to capital gains tax in Nigeria. Capital gains from the sale of shares or other securities are taxed at a 10% rate if held for less than five years. The tax authorities consider day traders to be business owners because this is their principal source of revenue. As a result, they must register their day trading operation as a business and pay taxes on net trading earnings every year. Day traders must maintain correct trading records and file capital gains tax filings.
Pros and cons of Day Trading
Pros:
Profit potential
Profit potential is one of the most appealing aspects of day trading. Day traders seek to profit from short-term market swings, which can result in large gains. Trading opportunities abound throughout the day, allowing competent day traders to profit swiftly. While the profit possibility is attractive, keep in mind that with high reward potential comes considerable risk.
Independence
Day traders have a considerable degree of autonomy in their business. They can create their own schedules, choose the assets they want to trade and make their own trading decisions. This level of independence can be appealing to those who like to work on their own terms and handle their own pursuits.
Market access
Day trading gives traders access to a wide range of markets and asset classes, providing abundant opportunities for diversification and flexibility in their trading methods. Day trading allows you to discover and engage in several markets, whether you are interested in stocks, currencies, cryptocurrencies, commodities, or indexes.
Quick feedback
Day traders get almost immediate feedback on their trades. The quick feedback loop allows traders to make changes and improvements quickly. This instant feedback on the effectiveness of their tactics and decisions encourages skill growth and adaptation to changing market conditions.
Cons:
High risk
One of the most obvious disadvantages of day trading is its high risk. The fast-paced nature of trading, as well as the pursuit of immediate profits, can result in large losses. Day traders frequently use leverage, which multiplies the risks and can result in severe financial losses.
Stress
Day trading may be a very demanding activity. The necessity for quick decisions, frequent market monitoring, and the need to execute trades precisely can all have an impact on a trader's mental and emotional health. The high-stress environment of day trading may not be ideal for everyone, and traders must acquire good stress-management strategies.
Capital requirements
To engage in numerous trades effectively, day traders require a considerable amount of funds. For some people, the financial requirements can be a barrier to admission, limiting their participation in day trading. Traders require sufficient capital to cover margin obligations, potential losses, and trading costs. The particular capital requirements may differ depending on the assets traded and the broker's policies.
Emotional discipline
Day trading success is dependent on strong emotional control and disciplined trading tactics. The rapid pace of day trading might lead to rash decisions motivated by fear or greed. Emotional control is essential for risk management, and a lack of it can result in large losses.
How to Day Trade in Nigeria?
Here are some pointers for beginners wishing to get started with day trading in Nigeria:
Education and preparation
Begin your day trading experience by learning everything you can about the financial markets. Discover the many asset types, such as stocks, currencies, cryptocurrencies, commodities, and indices. Understand the role of various assets, how economic factors affect them, and how their market dynamics differ.
Choose a reliable broker
Choosing a reliable online broker is a critical step for each day trader. Begin by carrying out extensive research on the various Nigerian internet brokers. Examine their reputation, trading platforms, fee structures, and customer service quality. Check if the broker has access to the assets you want to trade.
Develop a trading plan
A well-defined trading plan is required before you begin your day trading journey. Begin by establishing specific and attainable trading objectives. Specific goals will govern your trading approach, whether they involve earning a stable income, building wealth, or diversifying your investing portfolio.
Risk management
Implementing effective risk management is critical to your success as a day trader. Set stop-loss orders for each transaction to begin. These orders function as a safety net, limiting potential losses. By setting a stop-loss at a specific level, you can avoid riding out a losing trade in the hope that it will reverse.
Practice with a demo account
Before putting your money in danger, it's best to practice with a demo account or paper trading account supplied by your selected broker. This useful resource allows you to become familiar with the trading platform and fine-tune your approach without putting your money in danger.
Summary
Many brokers are available for traders from Nigeria, but not all of them offer good conditions. In this review, TU experts chose the Best online brokers for day trading in Nigeria 2024. These are the most trusted companies that offer the best conditions for traders. You will also be able to review the general assessment of each broker.
Overall score of the best Online Brokers For Day Trading in Nigeria
| RoboForex | Revolut | Ninjatrader | Easy Equities | TradeZero | |
|---|---|---|---|---|---|
|
Overall score |
9.71 |
7.69 |
7.03 |
4.75 |
4.42 |
|
Execution of orders |
8.95 |
9.2 |
8.1 |
5.44 |
4.79 |
|
Investment instruments |
9.73 |
9.8 |
8.7 |
5.86 |
5.21 |
|
Withdrawal speed |
9.71 |
9.6 |
8.5 |
5.5 |
4.85 |
|
Customer Support work |
9.17 |
9.4 |
8.3 |
5.8 |
5.15 |
|
Variety of instruments |
8.75 |
9.1 |
8 |
5.28 |
4.63 |
|
Trading platform |
6.86 |
9.9 |
8.8 |
6.02 |
5.37 |
|
|
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FAQ
What brokerages are best for day trading?
FXTM, XM, AvaTrade, Pepperstone, and FP Markets are popular day trading platforms in Nigeria. Look for low-cost brokers who provide strong platforms, market access, and educational resources.
How to day trade with only $1,000?
With a small account, stick to stocks/ETFs under $10, trade smaller FX lots, and utilize tight stops. Limit each trade to 1-2% of total capital. Be patient and only engage in high-probability trades. Gaining experience is more essential than chasing riches.
What do most day traders use?
To identify patterns and trends, most day traders use price charts and technical indicators. MetaTrader 4, TradingView, and broker charting programs are all common tools. Scanners aid in the identification of probable trading setups.
Do you need 25k to day trade?
To day trade without limits in the United States, you must have a margin account with at least $25k in equity. Most brokers in Nigeria do not apply such restrictions, allowing you to day trade with any account size, but it is still risky with fewer funds. Begin slowly and practice risk management.
Is it possible to work with offshore brokers?
It is best not to work with offshore brokers. However, if you have chosen such a company, you need to check and analyze it very thoroughly. There are offshore brokers with good reputations. Before you start working with such a company, deposit the minimum amount and start trading. Once you’ve worked with the broker for a little while and checked how it operates and how quickly it processes withdrawals, you can start depositing higher amounts.
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.
How much money do I need in order to start working in the financial markets?
The initial capital depends on the assets you plan to trade. However, in the majority of cases, $300-500 is a good amount for a start.
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 Online Brokers For Day Trading by Countries
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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.