Tuesday, June 11, 2024

Is forex trading banned in Nigeria?

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Adetunji Matthew
Adetunji Matthewhttp://www.aidthestudent.com
I’m Adetunji Matthew, an Economist, Social Media Manager, software Developer/Marketer Sales Consultant, and Ecompreneur. I’m popularly known as “Matt” As an artist and designer, I aim to create something brilliant daily. Eager to learn more, I use my free time to get better at w hat interests me, whether it's researching, teaching, or even something entirely new.
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A few days ago, a very dear friend of mine came to me, his face sad, looking sober and dejected. He has heard the rumours that forex has been banned in Nigeria.

He said to me, “ Do you know that the federal government has also banned forex trading?… He continues, “They have banned cryptocurrency, and now forex trading. These are the major ways the boys seem to earn money legitimately despite the economic situation” he said.

From his countenance, I could feel his pain. I saw a man who had lost hope because of the information he had received. 

Moreover, the internet is redolent with questions like… Is forex trading banned in Nigeria? Is OctaFX banned in Nigeria? Is Forex still working in Nigeria?… And the list of questions goes endless. The desperation is strong in the air, and uncertainty is strong. 

And before you panic, seek to know what has happened, and seek to know what they meant by Forex being banned in Nigeria.

This article seeks to clear the uncertainties and fears about the date of Forex trading in Nigeria. Here you will find all you need to know to make an informed choice.

What has happened in recent times?

In other to stem the continuous depreciation of the naira, the Nigeria Apex Bank has sought to initiate and implement several measures. The most notable was the banning of cryptocurrency exchanges by the NCC.

On that note, several crypto exchanges were affected, the likes of Binance, ForexTime, Crypto, FXTM OctaFX, coinbase,  and a list of others.

It said that the government in collaboration with regulatory bodies decided to move against Binance and other crypto exchanges due to reports that currency speculators and those laundering money were using them to execute fraudulent activities. The government have made it clear that these  so-called criminal activities going on on crypto platforms are helping to depreciate the naira

But again, what does this have to do with Forex trading, and how does this mean Forex has been banned in Nigeria? But before making your conclusion, he is another side to the fear of many.

It was reported a month ago that the EfCC raided those selling forex in the street in Lagos. Again, does this constitute the banning of Forex in Nigeria? And here is all you must know below. 

The Truth about the  Fate Forex in Nigeria

When it comes to forex trading in Nigeria, there has never been any legislation, policy or regulation for or against it. Again this means as a Forex trader, you do that at your own risk as there is no law backing you up or prohibiting you from doing such.

But then coming to the news of the government banning Binance, OctaFX and other exchanges, the average Forex trader needs to be concerned. 

But here’s the truth. Binance and most of these popular exchanges are also Forex brokers,  so banning them in Nigeria means a ban not just for those trading crypto, but also for those using them as Forex brokers But the good news is that while these exchanges might be popular, many other Forex brokers were not banned.

Then, talking about the news of the EfCC clamping down on forex traders on the street, this refers to those selling dollars on the black market, who are not recognized by the government. These are measures to mitigate the further falling of the naira.

Having said this, it will interest you to know that Forex trading itself was never bound. And there is no legislation or policy prohibiting the online trading of forex in Nigeria. And with some of these popular exchanges banned, there are a host of other brokers one can use as a trader.

List of trusted forex brokers

Deriv

In Nigeria, Deriv is the leading and number one forex broker. Deriv is a cutting-edge online trading platform that has over 1,000 trading instruments in forex, stocks, indices, commodities, and synthetic indices. Deriv uses an intuitive platform, advanced tools, and security protocols, allowing traders from around the world to trade over 100+ major, minor, and exotic currencies. They are regulated by the Malta Financial Services Authority (MFSA) and the Labuan Financial Services Authority (Labuan FSA), allowing you to trade with safety and ease.

Exness

Exness is a global financial forex broker that provides access to trading various financial instruments including Forex pairs, CFDs on Stocks, Indices, Commodities and Cryptocurrencies. The broker was founded in 2008 and since then, it has attracted clients from all over the globe. Exness has an estimate of more than 1.8 registered customers.  

HotForex

This list of forex brokers in Nigeria includes HotForex as the primary low-cost broker. It is the perfect option for local traders because it has offices around the nation and offers local service. It is highly regulated; some of the regulatory bodies that keep a watch on HotForex are the CySEC, the FSCA in South Africa, and the FCA in the UK.

VT Markets

Sydney, Australia is home to VT Markets, a multi-asset broker. The broker has been in the business for over ten years, and leading regulatory agencies including ASIC, the UK’s Financial Conduct Authority, and the Cayman Islands Monetary Authority (CIMA) closely monitor it. Serving over 70,000 client accounts, VT Markets is an international company. with trading deals of around $100 billion every month.

XM

Established in 2009, XM is a highly regulated broker within the Forex market, providing CFD trading on a variety of assets including shares, commodities, stocks, equities, precious metals, and energy. A large selection of CFD assets accessible on the MT4 and MT5 platforms, low trading costs, swift execution, and a multitude of account options are just a few of XM’s well-known features. Algorithmic trading, scalping, and hedging are all allowed.

Conclusion

While the government seek to curtail money laundering and the free fall of the naira, they have sought to implement several measures. Ban on some of these exchanges are some of them. But there has never been a time when forex trading itself was banned. It will interest you to know that not only individuals trade forex. Retail trading of forex is just a minute fraction of the Forex market. The major traders of the forex, which are called the whales are the commercial banks, multinational companies and a host of others. 

How do I begin Forex as a Nigerian

Trading Forex as a beginner may seem vague, but if you’re willing and determined, you may learn the several steps that will be required to start Forex trading in Nigeria. The first step you must take is to learn the basics of Forex. Then find a Forex broker in Nigeria. You can choose one from the list above. After you have chosen a broker that suits you, you may continue by depositing funds. Having deposited funds and created a live trading account, you should then download a trading platform and start opening and closing trading positions. Getting started in Nigeria is simple, but profiting from the trade consistently requires that you master the act.

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