How to Choose the Best Broker in Nigeria?

Nowadays, Forex is considered the most liquid and largest market worldwide. Currently, almost 10 million FX traders are on the earth. And about 1.3 mln of the dealers live in Africa. Thus, the problem of finding a proper online broker is extremely relevant in this region. This is especially true for Nigeria.

Experts advise cooperating only with trustworthy online brokers (e.g., FBS). Unverified broker websites often charge too high a commission for low-quality services. Nay, such an approach to trading is fraught with significant financial losses. So, for those looking for the best broker in Nigeria, local experts developed a set of recommendations. Let’s look into them in more detail.

Features of Choosing the Best Broker in Nigeria

The operation of online intermediaries must be carried out according to current laws. International and local authorities regularly supervise reputable brokers. Moreover, the intermediaries should have corresponding licenses. The absence of permits for the brokers to conduct business frequently indicates their dishonesty.

How to Recognize a Scammer?

First, dealers should pay attention to the size of the spreads. For example, a too high value difference between currencies in a currency pair usually indicates the intermediary’s desire to get as many clients as possible but not to offer optimal Forex trading conditions. The other scammer’s features are:

1. Slow trade execution. Forex downtime and delays can cause numerous troubles.
2. Too low leverage. The latter characterizes a trader’s purchasing power. E.g., if dealers deposit $10 and the leverage is 1:1000, they will be able to trade within $10,000. Thus, the higher the leverage, the higher the trader’s earnings.
3. Small selection of trading accounts and tools. It reduces the efficiency of trading.
4. No demo profile. The latter serves to work out strategies, get acquainted with different terminals, etc. The absence of a demo account indicates the broker’s desire only to start making money on traders as soon as possible.

Additionally, it’s worth noting the presence of unreliable terminals. Using little-known trading platforms increases the risk of being hacked.

Cashouts and Top Ups

Reputable brokers commonly propose multiple withdrawal and deposit options to their customers. Moreover, such transactions should be carried out quickly. Sometimes, the profit amount depends on the speed of the account replenishment. And withdrawals should occur within a maximum of a few business days.

What Should Be Known About Official Agreements With Brokers?

Usually, unscrupulous intermediaries impose certain obligations on their clients. It helps such brokers earn more. Therefore, when concluding an agreement with an intermediary, the contract mustn’t contain:

• tips and advice on investing;
• pleas for certain deals;
• guarantees and forecasts of future results;
• incomprehensible or general wordings.

The presence of such clauses in the contract is often associated with specific obligations on the traders’ part. Dealers should also make sure that there are no contradictions in the agreement. This is because unscrupulous intermediaries use such techniques to manipulate the traders’ actions when cooperating with them. Furthermore, the dealers should carefully read the contracts’ parts in small print. To find a bona fide online broker in Nigeria, local dealers, for example, may visit fbs.com.