How to Invest in Forex Without Trading In Nigeria
Nigerians are known for having a hunger for success, so they seize any chance that will boost their bank account. However, Forex trading is among the best investments offering such opportunities to Nigerians, but the complexities of trading scare some potential investors.
But not being able to trade should no longer be a threat. A managed Forex account in Nigeria allows citizens to generate passive income even when they do not sit in front of a screen to trade.
Continue reading to learn about the 7 managed Forex accounts in Nigeria and how to invest in Forex without trading.
7 Best managed Forex account (2023)
FxPro Pamm account - best for investors seeking to have multiple PAMM managers
RoboForex CopyFx - best for traders in need of a low initial deposit copy trading account
IC Markets PAMM - best for novice traders looking for a top-tier platform
FP Markets - best PAMM account Forex broker for beginners
FBS - best cent account with bonus
FXOpen - best for ECN, STP, micro, and crypto trading accounts
Forex4You Copy Trading - best for professional traders
Best Managed Forex Accounts in Nigeria 2024
The solution to your requirement for a stress-free passive income experience is a managed forex account, which can be a PAMM or copy trading account. The best-managed Forex accounts in Nigeria provide traders with user-friendly trading platforms and advanced trading tools. This type of account ensures traders have a great adventure in the Forex market, coupled with some top benefits and monetary incentives.
Again, managed Forex accounts in Nigeria allow traders to decide the amount they wish to invest. Here are the top PAMM and copy trading accounts by top Forex brokers accessible in Nigeria.
FxPro Pamm account
The first on the list of managed forex accounts in Nigeria is the FX PRO PAMM. This account, which is widely regarded as the best PAMM account, offers a fantastic source of passive income. By pooling their funds, traders profit from the success of another seasoned trader using this managed forex account.
FxPro offers flexible trading conditions and blazing-fast executions for trading in foreign exchange and contracts for difference (CFDs). And this applies to multiple instruments, such as energies, stocks, cryptocurrencies, metals, indices, forex, and metals. FxPro is a low-risk PAMM account with an expertly crafted, fully automated trade system that can manage some potential risks.
Key Features
You can use expert advisors with a PAMM account from FxPro.
The FCA, CySEC, SCB, and FSCA all have global jurisdiction over FXPro.
Several platforms, such as MT4, MT5, and cTrader, are available on the FxPro PAMM account.
FxPro integrates a wide range of more than 2100 instruments, high leverage up to 1:500, and trading with 0.01 micro-lots.
FxPro offers the most profitable PAMM account while letting traders select from multiple PAMM managers.
👍 Pros
•The FxPro PAMM account has the highest profit margin.
•It enables traders to choose from a variety of PAMM managers.
•They offer incredibly competitive spreads with no commissions, making them a fantastic choice.
•There is a service where you can receive comprehensive reports on the performance of your FXPro PAMM account.
👎 Cons
•FxPro is not ASIC regulated, and you can only trade CFDs and Forex.
RoboForex CopyFx
Although its services are distinct from those of a PAMM account, RoboForex CopyFx is ranked among the best-managed forex accounts in Nigeria. RoboForex's proprietary investment, CopyFX, allows users to follow the trades of profitable traders and profit from their trading strategies or engage in independent trading.
It allows time-constrained investors to trade profitably without conducting background checks. As a result, you won't need to worry about trading strategies because you can copy them on this platform. But the minimum investment on the RoboForex CopyFx platform starts at $100.
Key Features
The products available include Forex, CFDs, stocks, indices, ETFs, commodities, and cryptocurrencies.
Maximum leverage is from 1:2000
Trading with RoboForex CopyFX offers traders functionality, flexible optional preferences, and an open settlement system.
The MetaTrader 4, MetaTrader 5, cTrader, and trader trading platforms are available on RoboForex CopyFx.
👍 Pros
•RoboForex CopyFx is user-friendly and appropriate for beginning traders.
•With RoboForex CopyFx, you can trade on standard or cent accounts.
•You can trade with as many accounts as you want without any limitations.
•You will be paid a commission or a fixed percentage of the investors' profits as a CopyFX Trader in exchange for allowing them to copy your trades.
•Tools of the highest caliber are available to traders to aid in trading.
👎 Cons
•For copying trades, strategy providers charge high commissions.
IC Markets' PAMM
Among the many managed forex accounts in Nigeria, the IC Markets PAMM account is specifically designed to meet the needs of different traders. It is the go-to option for traders looking for passive income opportunities in the forex market. Due to the services and features present in their PAMM accounts, IC Markets-managed Forex accounts are among the top 5 Forex brokers for 2023.
Although the minimum deposit at IC Markets starts at $200, the IC Markets PAMM account is undoubtedly simple to operate and provides real-time reporting. Research and education have recently improved, and overall, IC Markets is considered low-risk, trustworthy, and reliable.
Key Features
On a standard account, IC Markets provides narrow spreads of 0.0 to 0.6 and fees of $0 to $3.5.
Spreads start at 0.1 pip and have a maximum leverage of 500:1.
IC Market's managed Forex account integrates MT4, MT5, cTrader, and WebTrader.
Funding methods are wire, cards, Skrill, Neteller, and WebMoney.
IC Markets' managed Forex account supports market stops, limit trade orders, and automated trading (expert advisors).
👍 Pros
•It features an intuitive interface that enables real-time performance reporting (performance and commissions) and real-time trading parameter adjustment.
•The IC Markets MT4 server and the MAM software are directly connected.
•For those who enjoy scalping, automated trading, and learning to trade, the IC Markets PAMM account is a top option.
•It provides an impressive selection of platform plugins.
👎 Cons
•The minimum deposit can be high for some Forex traders in Nigeria.
Tickmill Copy Trading
Tickmill's copy trading account is among the best-managed forex accounts in Nigeria and offers traders advanced trading tools. Nigerians can trade with a managed Forex account without having any fundamental trading knowledge. And it is refreshing to know that Tickmill is a suitable broker for professional traders and novices.
With a minimum deposit of $100, traders can begin copying trades made by professionals on their first day of trading on the Forex market. Regardless of their trading strategy, users can minimize transaction costs thanks to the low commission fees. Without a doubt, Tickmill is the best Collcopy trading platform for newcomers.
Key Features
Tickmill offers traders access to real-time market data, technical analysis tools, customizable charts, and cryptocurrency trading.
Tickmill provides you with low spreads starting from 0.0 pips and an ultra-fast execution speed of 0.15 seconds on average.
The maximum leverage is 1:500, and a demo account is available.
The MQL5 Signals system, another standout feature, notifies traders via the MT4 platform when to move in the asset markets.
This managed Forex account supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
👍 Pros
•No trading fees apply, and the inactivity fee is minimal.
•Utilizing Tickmill for copy trading offers convenience, risk management, and access to precise statistics.
•Account opening with Tickmill is quick, simple, and entirely digital. It also has low forex and non-trading fees.
•Tickmill offers different rewards to its clients, including the $30 Welcome Account and the Trader of the Month Award.
👎 Cons
•Unlike other brokers, the broker levies inactivity or non-trading fees.
FBS copy trading account
If you're looking to trade currencies, metals, and stocks with a regulated broker without originating the trading strategies, FBS-managed Forex accounts are the solution. A FBS copy trading account is among the best passive income options for every Nigerian who wants to profit from the ever-growing Forex market.
You can copy the trades of more than 600 experts thanks to its convenience and quick execution.
Key Features
CFDs on stocks, indices, and metals are among the markets to copy.
The minimum investment for copying is 1 USD.
You can add traders to your favorites list for further comparison there. You can look up and choose a manager using search.
The MT5 platforms are available on FBS-managed Forex accounts.
👍 Pros
•On the page of the strategy provider, you can view details about traders before copying their trades.
•Using the user-friendly copy trading app, you can select from different expert categories, including wise choice, top-rated by various metrics, most popular, etc.
•You can choose a trading account with low spreads and managers' commissions.
•CopyTrade from FBS stands out for its exclusive mobile device design and is accessible on Android and iOS-based smartphones and tablets.
👎 Cons
•The CopyTrader FBS application lacks detailed data on trading instruments, poor charts or infographics, and rudimentary trader statistics.
FxOpen
FxOpen is a top managed forex account provider and broker. This platform offers high-level service, tones of excellent trading conditions, new and innovative technology, and compatibility with MT4. The main advantages of FxOpen include profitable trading conditions, great trading variety, the ability to reduce commission fees, PAMM services, and auto-trading capabilities. This platform does have some downsides, including a lack of educational materials and a lack of actual PAMM accounts.
Forex4You
Forex4you is a top managed forex account provider and copy trading broker. This platform offers a wide range of passive and active trading services, an excellent reputation in brokerage, low minimum deposits, and a wide range of assets to trade. The main advantages of Forex4you include excellent trading conditions, no trading restrictions for algorithmic trading, a great social trading platform Share4You, respectable insurance policies, and great customer support. This platform does have some downsides, including a lack of MT5 integration.
Managed accounts services are excellent for passive investing with the leading forex brokers of 2023. Essentially, a managed forex account is a type of currency trading account that a professional trader or money management team will use to make trades on your behalf. Such accounts charge a fee for this service, but that fee is often quite negligible and can definitely be worth it.
A managed forex account can take the burden of day trading off the plate of passive investors and less active traders as such accounts provide access to different markets and assets beyond stocks and bonds. Nevertheless, any trading account should be considered high risk as the objective is usually to better optimize investment capital and take advantage of more frequent opportunities to make money in the markets. This is where utilizing the benefit of a more experienced trader or trading team to work on your behalf can pay off.
Because there is a large amount of online free and paid information about learning how to trade and do it yourself, most traders do not consider workable alternatives. They also frequently fail to assess the degree of difficulty and time commitment required to learn how to trade themselves. By using a managed forex account investors can continue to receive revenue from their company while their money is working for them generating extra income. Think of it like owning a boat. How many ex-boat owners can you find that will recommend it as a good idea? Maybe renting a boat would work fine.
Rules and Regulation
Licensing in Nigeria
Nigeria's regulation of Forex falls under the purview of the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN):
- Forex trading itself is legal for Nigerian residents.
- Unlike Malaysia, Nigeria doesn't have a central body solely dedicated to Forex regulation.
- There's some debate on the involvement of regulatory bodies like the Securities and Exchange Commission (SEC) or the Central Bank of Nigeria (CBN) in overseeing Forex brokers.
- Requirements and process for obtaining a Forex broker license in Nigeria are unclear. Information about "ready-made licenses" you might find online should be approached with caution.
Investor protection in Nigeria
Investors in Nigeria are protected by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). Forex investor protection is a complex issue due to the absence of a well-defined regulatory framework.
Taxation in Nigeria
Forex traders are required to report their trading income to FIRS (The Federal Inland Revenue Service) and pay income tax on their profits at the applicable tax rates. Nigeria operates a progressive income tax system, with tax rates ranging from 7% to 24% for individuals, depending on their total taxable income.
Types of Forex Investment Accounts
The main types of managed forex accounts that are offered by brokers include forex copy trading, PAMM accounts, MAM accounts, advisory services, managed portfolios, and some other rarer types of accounts. It is worth noting that some of these “types” of managed accounts are technically not managed accounts at all, but are very closely related, as they utilize the expertise of more experienced market participants.
Forex Copy Trading
Copy trading can be a part of a managed forex account, but it is a concept all of its own. Copy trading is simply the process of finding an expert trader with high profits and mimicking each and every one of their trading movements. Many traders will monitor major exchange networks and follow famous traders in order to make the best possible trading choices. Some platforms even automate this process, like eToro. You might be able to request that the manager of your managed account uses copy trading.
PAMM/MAM Accounts
PAMM, or Percent Allocation Management Module, is an account management system that uses ratios to determine volume and returns. The activity of the account owner, such as trades, profits, and losses, is split between managed portfolios using the PAMM ratio.
MAM simply refers to Multi-Account Manager accounts. These accounts make it possible for a money manager to assign different ratios of leverage to different subaccounts, if the investor prefers. This makes managed accounts owners who have a high-risk tolerance gain better opportunities to invest.
Advisory services
Advisory services can be a part of a managed forex account, but such services are very different from simply having an account. With a basic managed forex account, you can briefly consult with your money manager and leave the entirety of trading to them. With advisory services, you’ll be able to meet with a financial advisor. That financial advisor will provide holistic portfolio recommendations to help you build your wealth. Such advisors with offer consultations that detail strategies, best practices, and market recommendations. When you open a managed account, you might be able to receive advisory services for free.
Managed Portfolio
A managed portfolio is an investment portfolio that a professional forex trader or financial expert will make investments through on behalf of a client. Managed portfolios are pretty much synonymous with managed accounts, though it is worth noting that managed portfolios tend to include a diverse range of investments that go beyond just forex trading. Typically, a client will pay a financial advisor a flat fee or monthly fee to manage their account and make trading choices, though this fee will be based on the size of the portfolio itself.
Generally, a 1% to 2% annual fee applies.The manager will usually take a portfolio allocation approach with a focus on more traditional assets, such as stocks, bonds, ETFs, and mutual funds.
Other Services
Managed forex accounts can include individual accounts, which are solo accounts based on an individual client’s financial goals and requests. Such accounts typically require a minimum deposit of around $10,000 to get started. Pooled accounts are also quite popular among newbie investors. Pooled accounts deal with a number of different investors in one single account. A client can open an account that is managed by one investor, who oversees the trading decisions of the entire account. Usually, the minimum deposit for such an account is a lot lower at about $1,000 to $2,000 to get started.
How much can I earn?
There are no static amounts to earn from managed Forex accounts in Nigeria. This is so because the profits from a PAMM or copy trading account depend on different variables, including the account type, the manager's abilities, and potential management fees. Although a successful manager may take between 30 and 50 percent a month, no investment account can guarantee a static gain.
What are typical minimum investments?
While different managed Forex accounts in Nigeria generally have a $100–$500 minimum investment, some platforms may charge more.
FAQ
How much does a Forex account manager charge?
While some might be free, Forex account managers charge 10–40% of the profit. Some Forex managers request 50% of your profits, while others offer a 60/40 split.
How do I open a Forex-managed account?
Selecting a trustworthy Forex broker is the first step in opening a managed Forex account; the next is locating a managed account provider. Fill out an application form and provide some personal and financial information to open an account. Then, fund your account so the managed account manager can distribute the money among different Forex trades.
Which broker is best for Forex investments in Nigeria?
RoboForex, Tickmill, and IC Markets are among the brokers you can trust for Forex investments in Nigeria.
What are the best Forex investments in Nigeria?
Investing in a managed Forex account is among the best ways to invest in Forex in Nigeria. This is because you don't have to develop trading strategies to get the best results yourself.
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).