Like the rest of the world, binary options trading in Nigeria has been gaining popularity over the past few years. This is largely due in part to the lucrative profits which binary traders potentially stand to earn for every successful trade. In addition, this trading type is extremely simple to understand and easy to trade. While all these developments might be tremendously exciting for a beginner trader, it is essential that when you start trading binaries in Nigeria, you do so on the right footing. The step is finding the right broker to trade with. While there are hundreds of brokerage firms out there on the internet, not all of them were created equal. This is where we come in, by providing our readers with the guidance and recommendations on picking the right firm to trade with. Our top picks for recommended brokers in Nigeria are reviewed for their strengths such as:
- Having wide range of instruments to trade with
- Reputable and Regulated
- Supporting several account funding methods which are suited for Nigeria binary options traders
Best Brokers in Nigeria
Most of the binary options brokers that are servicing traders in Nigeria are offshore. Although there is a wide array of choices when it comes to which broker to sign up with, we highly recommend our readers to stick to reputable and regulated companies to avoid being scammed. To assist our readers in Nigeria with their selection, we have come up with a list of reputable companies which cater specifically to the needs of these investors.
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In Nigeria, the main regulatory body that is in charge of regulating the financial services industry is the Nigerian Securities and Exchange Commission (SEC). Formed in 1979, it is mandated to supervise the Nigerian Stock Exchange to ensure orderly and transparent dealings of securities traded.
However with regards to online trading activities, the SEC do not regulate both forex and binary options trading. This is largely due to the fact that there is a lack of a regulatory framework to govern online trading even though the concept of online trading has existed in Nigeria since 2004 when online forex trading was first introduced.
Nevertheless even with the lack of regulatory oversight in the online trading industry, Nigerians took to online trading like ducks to water when they discovered the lucrative returns which they could potentially earn from trading forex online. Due to the over eagerness and lack of trading experience, the end result was many Nigerian forex traders got their fingers burnt. With mounting losses and a loss of confidence in the industry, many Nigerians began to shy away from online forex trading. It wasn’t until the introduction of binary options trading when Nigerians began switching from forex trading. Unlike forex trading where traders can face the possibility of losing more than they invest, with binary trading the trader’s losses is just limited to what he paid for his premium. In addition, the trader gets the chance to nearly double his money within a span of a few minutes.
Although there are currently no regulations governing binary trading activities in Nigeria, there have been recent calls to the SEC to come up with a regulatory framework to regulate the online trading industry. As to whether new regulations will be imposed by the SEC that remains to be seen. As for now, Nigerians are free to trade in binaries without any legal impediments from the SEC.
Deposit Methods Available In Nigeria
With online forex trading established since 2004, Nigerians binary options traders will have no problems in trying to fund their trading accounts with the same methods which forex traders use. As such, traders in Nigeria can use bank wire transfer, credit cards and popular eWallets to fund their trading accounts. Even if the trading account is with an offshore brokerage firm, there are no significant fees involved in the transfer of funds.
- Is it legal to trade binaries in Nigeria?
Yes. Nigeria like most countries around does not forbid their citizens from investing in this over the counter trading type.
- Are binaries regulated in Nigeria?
No. They are not regulated as currently there is no regulatory framework to support regulation for this area.
- How to trade binaries in Nigeria?
To trade, a Nigerian based investor must first sign up for a trading account with a broker. This involves filling out personal details and depositing funds.
If you are thinking of supplementing your income with online trading, now is the best time to do it once you have access to the right broker. Just ensure that before you commence live trading, you spend some time to research and study the markets in order to be familiar with the market environment. As an added plus for new traders, the list of brokers that we recommended all have a comprehensive educational section on their website. These materials are all provided free of charge and as such new traders should take advantage of the opportunity to learn more before they take the plunge.