A stockbroker buys and sells trading assets on your behalf in return for a fee. It acts as an intermediary between you as an investor and the trading markets. A broker may offer a fully managed service and make decisions for you, provide advice or carry out your transactions as instructed. Generally, stockbrokers will operate under financial regulation in one or more countries. Want to know if trading is the right option for you? Read Signs You Are Ready To Live Trade.
The 9 Best Stockbrokers in Nigeria
Now that you know about the different types of brokers and what to consider in your search, here are the best stockbrokers to use if you live in Nigeria. XTB is a forex and CFD broker regulated by FCA, CySEC, KNF, CNMV, and IFSC. Its research offering includes analytical tools accessed through its platform, Market Newsfeed, forex price tables, and a market calendar. The XTB ‘Learn to Trade’ section includes courses via the Trading Academy, live webinars, and articles. For clients outside Europe, XTB customer service cover is 24/7, by telephone or email. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Pepperstone is a CFD broker with a focus on forex, regulated by FCA, BaFin, CySEC, ASIC, DFSA, SCB, and CMA. Pepperstone’s research provision includes daily articles, videos, weekly webinars, economic calendar, AutoChartist software, Smart Trader Tools, and Delkos risk management tools. Educational resources include articles, trading guides, webinars, MetaTrader 4 course, forex trading course, and educational videos. Pepperstone offers 24/5 customer service by telephone, email, or live chat. To find out more, read our Pepperstone Review. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. It offers a 20% welcome bonus up to $10,000, according to regulation and a free 21-day demo account with $100,000. Instruments include:
Metals Commodities Stocks FX Options Oil ETFs Options Crypto currencies CFDs Indexes Shares Spread betting Indices Forex Bonds
AVATrade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877) Ava Trade Markets Ltd. is regulated by the B.V.I Financial Services Commission. It is also highly regulated in Australia, South Africa, Japan, Middle East, Cyprus and Israel You can not trade with AvaTrade in the US, North Korea, New Zealand, Iran or Belgium. Mínimum deposit of $100, no withdraw limit and no fees.
The parent company of SwitchMarkets.com (Royal ETP) is regulated by ASIC and CySEC as well as some other lower-tier jurisdictions, while client funds are segregated in Tier 1 banks – which makes it more secure. With SwitchMarkets.com you can trade:
62 Forex pairs 8 metals 21 indices 86 share CFDs 4 cryptocurrencies
There are just two account types available, which makes getting started a breeze – you can decide to go for a Standard account that offers zero commission and spreads as low as 0.6 pips, or a Pro account which has spreads from 0.0 pips and a $7 per lot round turn commission instead. Each account has a minimum deposit of just $50. For international traders, and those that want flexibility in both deposits and withdrawals, there are multiple options – from the usual credit and debit card to PayPal and eWallets like Neteller and Skrill, for example. Deposits and withdrawals are simple, fast and free. The education available on the platform is also simple – several ‘cheat sheets’ covering all you need to know about trading, from terms to strategy, all in downloadable PDF formats and all for free. There are several tools available on the platform to improve your trading strategy, including a Market Heat Map, lot size and Forex profit calculators, and even EA tools. As a relatively new broker, traders will find many offers to entice them to sign up – from a free VPS to a credit bonus. This broker is not available in the US or Japan but offers several options for international traders without hidden costs. Risk warning: Trading OTC derivatives is risky; please read our PDS and disclaimer before trading with us. We encourage you to seek your own independent advice and to consider your own financial situation, needs and objectives prior to making any decisions. FXTM is a global forex and CFD broker regulated by FCA and CySEC. FXTM offers plenty of research resources under its Market Analysis section, including a Market Outlook newsfeed, podcast, economic calendar, Forex News Timeline, videos, and articles by the FXTM team of market analysts. FXTM has a generous education offering that includes e-Books, seminars, webinars, educational guides, videos and articles. Customer service is available Monday to Friday, from 6.00 a.m. to 6.00 p.m., by telephone, email or live chat, in a wide range of languages.
AvaTrade is a global broker, multi-regulated by the Central Bank of Ireland, B.V.I Financial Services Commission on the British Virgin Islands, ASIC, FSCA, FSA, FFAJ, and ADGM – FSRA). Beyond the research tools offered by the range of trading platforms that you can use through AvaTrade, you can also find an economic calendar, research tools offered by third-party provider Trade Central, and a trading calculator. The AvaTrade educational offering is extensive and suitable for all levels of expertise, including videos, articles, and an e-Book. Customer service is available 24/5 by telephone, email, or live chat, in a range of languages. For more information on this broker, read our AvaTrade Review.
Saxo Bank is regulated by FCA, FSA, the Swiss Federal Banking Commission and several other global regulatory bodies. Its platform provides a range of technical analysis tools and interactive charts. Research resources are to a high standard, including real-time newsfeed, commentary by trading experts, stock market reports and trading idea generators. Saxo Bank’s educational resources include courses, videos, events and webinars. Saxo Bank customer service is 24/5 and can be reached by email or telephone. To find out more, read our Saxo Bank Review.
Interactive Brokers is regulated by FCA, US SEC, and CFTC. Its range of research resources includes technical analysis tools, a newsfeed and a Traders Calendar. Educational resources and courses are provided through IBKR Campus, including Traders Academy, webinars, Traders Insight, blog, and Student Trading Lab. There are also videos and a trading glossary. The customer service is 24/5 by telephone or live chat. For more, read our Interactive Brokers Review.
Regulated by the tier-2 CySEC only, OctaFX is a forex and CFD broker. This single tier-2 regulation means that OctaFX is not as safe as the other brokers listed in this article. Clients trading in forex is especially at risk. Its research offering is more limited than many of its competitors, including a daily market commentary, forex news, webinars, and access to AutoChartist. OctaFX educational resources focus on forex and include webinars, videos, and a trading glossary. Customer service is available 24/5 by email and telephone.
Full-Service Brokers
Trading research and advice Carrying out transactions for you Portfolio building and analysis Tax advice Portfolio reports Wealth management
You will generally be assigned a personal broker to handle your portfolio. A full-service broker is the most expensive but generally provides access to an extensive research and analysis team.
Discount Brokers
Online Stockbroking Firms
Most online stockbrokers also provide research and educational resources.
How Do Stockbrokers Make Money?
All types of stockbroker earn money from the commission and fees they charge their customers. Beyond trading, this might include charges for:
Leverage Deposit and withdrawal fees Account inactivity
A stockbroker may also earn interest on uninvested client funds.
Are Stockbrokers in Nigeria Regulated?
To trade on the Nigerian stock exchanges, a stockbroker must have authority from the Central Bank of Nigeria. However, any stockbroker you use must have tier-1 regulation, for instance, FCA (Financial Conduct Authority) and ASIC (Australian Securities & Investment Commission). Such financial regulation provides you and your money with greater security.
Key Considerations Before You Choose a Stockbroker in Nigeria
When deciding which brokerage to use, there are several crucial factors you should consider at the start.
What Service Do You Need?
What kind of service do you want a brokerage to provide? The type of questions you should ask yourself include:
Do you want a fully managed service that will carry out the trading for you but also provide research and advice? Do you have the confidence to make all the trading decisions yourself and, therefore, want a broker who will conduct your transactions without offering advice? Would you like to trade online but also have access to research and education resources? Would you prefer one-to-one advice and personalized service? How much money do you want to spend on trading and fees? What volume of trading do you intend to carry out?
Your answers will point to the best type of stockbroker for you.
Listen to Other Traders
Which brokerage firm is recommended because of a positive track record and which have been reviewed in a less favorable light by other traders? Find a wide range of reviews and recommendations to build a genuine picture. Remember that different traders have different stockbroker requirements, so look for reviews from traders who share your market preferences.
Is the Stockbroker Regulated?
Regulation, especially tier-1 regulation, is a crucial indicator that a stockbroker carries some level of security for clients and their money. Any brokerage should clearly state who it is regulated by on its website.
Do You Want to Deposit and Withdraw in Nigerian Currency (Ngn)?
Check whether the stockbroker permits account deposits and withdrawals in Nigerian currency. If not, how will you handle this?
Does the Broker Keep Client Funds Separate For Safety?
Does the stockbroker keep client funds in a separate account to its own money? A stockbroker who banks client money along with its own may accidentally or intentionally use client funds for its own purposes. Separating client and broker money into different accounts provides more security for the client and an extra level of transparency.
What Assets Does It Trade?
If you are interested in trading forex or commodities, it makes no sense to use a stockbroker that does not offer either of these trading assets. Before you sign up to use a broker, first find out what financial markets it trades in.
What Are the Trading and Non-Trading Fees?
Ask the stockbroker to provide a list of all the trading and non-trading fees you would be expected to pay. For example, does the broker charge a flat fee or a percentage fee? Is there a maximum commission charge? Non-trading or administrative charges might include deposit and withdrawal fees.
What Trading Platform Do You Want to Use and Why?
A stock trading platform is a software that can be downloaded, or accessed online or via a mobile app. A trading platform enables you to carry out trading transactions and analyze your portfolio performance. What trading platform does the stockbroker provide? Some stockbrokers will offer third-party trading platforms like MetaTrader, while others will use its own in-house platform. Further considerations might include:
What type of client access does the broker offer to that platform? What analysis tools does the platform provide? To what extent can you customize platform charts? Does the platform suit your level of expertise? Do you have free access to the platform, or does the broker charge a fee?
To find out more, read our MetaTrader Review.
Does It Provide Social Copy Trading?
Social copy trading is increasingly seen as a path into trading for individuals new to the process. It combines copy trading, where a trader copies the transactions of more experienced traders, with building trading knowledge by learning from the trading community, conducting your research and taking advantage of trading educational resources. If you are interested in social copy trading, look for brokers who provide all of the following:
Copy-trading Research and educational resources Access to a community of traders
For more information, read What Is Social Copy Trading?
How Good Are the Analytical Tools?
Technical analysis provides valuable information on what trading assets to buy or sell. If you intend to personally decide what to trade, then the technical analysis tools offered by the broker’s trading platform can be an important factor in deciding which is the right broker for you. For instance, does the platform provide a range of indicators such as moving averages or trading volume? Is it easy to customize the platform charts to find the exact information you need?
How Good Are the Educational Resources?
If you want to build your trading knowledge, your stockbroker can be a great place to start. Educational resources they may provide include:
Articles News-feed Videos Webinars Courses
What Is Its Customer Service Like?
Whichever type of brokerage service you use, check whether what it offers meets your individual needs. For instance:
24/7 coverage or 24 hours Monday to Friday Multi-lingual Contact by telephone, email or live chat
Once you are qualified and registered, you could be able to earn an average of three million Naira per year.
Pepperstone FXTM Saxo Bank
The exact one you choose will depend on your personal needs and requirements. For many people, platforms allow them the flexibility to make their own decisions and control their investments. In Nigeria, stockbrokers earn an average of three million Naira per year. Your earning potential can be increased by ensuring that you are registered with an appropriate regulatory body. You will also need to be given authority from the Central Bank of Nigeria. It is also a good idea to be regulated by a tier-1 regulator such as the Financial Conduct Authority. The exact age will depend on how long it takes you to gain your degree and register with the appropriate bodies. This is why you should make sure that you choose a stockbroker who is registered with an appropriate regulatory body. This will give you some security with the knowledge that your stockbroker is answerable to a governing body that is dedicated to looking after people’s investments.
Do you want to carry out trading transactions personally, or would you, rather instruct a broker to do that for you? What markets are you interested in, for instance, forex or stocks? Do you want financial advice, and research and educational resources? How much money do you have to spend?
When considering a broker, check how well regulated they are, what other traders think about them, and whether they bank client funds separately to their own. How well are you and your funds protected? WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
