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Africa‘s largest economy is Nigeria. The nation’s population, along with its demographic makeup, is one of its advantages. Given the present rate of population increase, Nigeria is predicted to have a larger population than the US by 2030.
Access to trading platforms like those of binary options brokers can boost the economy as the citizens would also have a passive source of income.
We have compiled a step-by-step guide for our fellow new traders who want to become established binary traders in Nigeria.
What you will read in this Post
A step-by-step guide to trade binary options in Nigeria
This guide will refer to the top three brokers who allow traders from Nigeria to make a trade. For further information, please visit their sites.
#1 Pick an available binary options broker in Nigeria
There are plenty of binary brokers in Nigeria to choose from on the internet. Though, one should only go with those which are regulated.
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
100+ Markets
- Accepts international clients
- High payouts 95%+
- Professional platform
- Fast deposits
- Social Trading
- Free bonuses
300+ Markets
- $10 minimum deposit
- Free demo account
- High return up to 100% (in case of a correct prediction)
- The platform is easy to use
- 24/7 support
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
from $10
(Risk warning: Trading is risky)
100+ Markets
- Accepts international clients
- High payouts 95%+
- Professional platform
- Fast deposits
- Social Trading
- Free bonuses
from $50
(Risk warning: Trading is risky)
300+ Markets
- $10 minimum deposit
- Free demo account
- High return up to 100% (in case of a correct prediction)
- The platform is easy to use
- 24/7 support
from $10
(Risk warning: Your capital might be at risk)
1. Quotex
Quotex.io is at the top of the list of binary brokers. It’s a platform that debuted in 2020 and has since swept the globe. Nigeria is one of the majority of nations on the planet to use Quotex to trade binary options. In actuality, Quotex.io is governed by the IFMRRC and has features on the site that are ideal for Nigerian traders.
A total payout of up to 100% is guaranteed by Quotex.io. Therefore, the payment percentage never falls below 70%, even under the most adverse circumstances. However, due to the asset’s fluctuating performance and liquidity issues, payout percentages have decreased. Therefore, before trading with a particular asset, you can examine its payment %.
(Risk Warning: Your capital can be at risk.)
2. Pocket Option
Gembell Limited launched Pocket Options in 2017.
Users may easily and quickly register an account to begin trading thanks to its intuitive user interface. In addition, you won’t have any trouble using this platform if you’re starting because it has versions for the web, desktop, Android, and iOS.
The fact that this broker admits traders from around the world, including the USA and Canada, is one of the reasons it has become so well-known. However, one drawback is that it only provides trading in binary options.
Users may easily and quickly register an account to begin trading thanks to its intuitive user interface. In addition, you won’t have any trouble using this platform if you’re starting because it has versions for the web, desktop, Android, and iOS.
The fact that Pocket Option admits traders from around the world, including the USA and Canada, is one of the reasons it has become so well-known. So is one drawback that it only provides trading in binary options.
(Risk Warning: Your capital can be at risk.)
3. IQ Option
IQ Option is yet another trustworthy broker for Binary options trading in Nigeria. The trading platform is intuitive and has proactive features to help Nigerian traders leverage the maximum potential of binary options trading. IQ Options also consists of trading tools, which are embedded within the platform. It is to help traders make accurate predictions.
Also, IQ Option assures you to give out a maximum payout of 95%. It demands you to put up a minimum deposit of $10 and a minimum trading amount of $1. This broker platform is great for not just professionals but also beginners.
The best part about it is that it has a mobile application to its name, which helps you gain access to your binary options trading needs anytime & anywhere. The entire portfolio of the financial instruments available within the platform is good and gives Nigerian traders a plethora of options to trade.
(Risk warning: You capital can be at risk)
#2 Sign Up for a Trading Account
Once you have picked your broker, it’s time to proceed further.
Like any other digital account, you have signup with the broker, either with a Google profile or Facebook. After completing the signup, it’s time to pick the right account type for yourself.
You can start with a basic version if you are new to the game. However, if you know how binary trade-in options in Nigeria work, you can go for their premium accounts.
(Risk Warning: Your capital can be at risk.)
#3 Use demo or live accounts
It is in the best interest of all reputable and well-known binary options companies for you to develop careful and secure trading habits. They aren’t attempting to steal the money you wish to invest.
Rather, they want to establish a long-term relationship with you. If you are new to this sort of trading, we strongly advise using a free binary options demo account if it is offered. Just be aware that there may be a deadline before you are required to invest actual money.
#4 Pick an asset to trade
Each broker has a different range of assets they allow you to trade. Most brokers offer options on well-known assets such as renowned stock indices like the FTSE, S&P 500, or Dow Jones Industrial, as well as major forex pairings like the EUR/USD, USD/JPY, and GBP/USD. Additionally, commodities like oil, gold, and silver are frequently provided.
Many binary brokers also allow you to trade individual stocks and other securities. Though the platform will not offer all stocks, you can generally select from 25 to 100 well-known stocks, like Google and Apple.
As demand dictates, these lists continue to expand.
Every trading platform displays the asset lists properly, and most brokers also post their complete asset listings online.
Also included in our reviews are currency pairs and this information.
Binary trading in cryptocurrencies is also extremely popular. Cryptocurrencies are well-liked binary assets because of their volatility. The most widely traded coins are still Bitcoin and Ethereum. However, some brokers list 50 or more other coins.
#5 Make an analysis
One can trade almost anything with binary, including stocks, currencies, indices, and commodities. From the price of natural gas to the stock price of Google, you can wager on anything. Choose an asset that delivers promising returns and one you are familiar with.
If you’re a short-term trader, you’ll probably be more interested in 30-second, 1-minute, and end-of-day expiry timings. You must strike a balance between price movement and binary options trading volume.
Even while making more trades increases your chance of making more money, making fewer, more precise trades is preferable. Additionally, choose a time that goes well with your trading style.
Size does matter in the game of binary options. The potential return increases with your investment. On the other hand, keep in mind that your entire investment is at risk. Therefore, you need an efficient money management strategy that will let you execute enough transactions while yet guarding against losing all of your money.
(Risk Warning: Your capital can be at risk.)
#6 Place the trade
There are a few steps you must do while trading binary options to conduct a profitable trade:
The first step is clearly understanding what you want to achieve. Before entering a trade, you must be aware of your objectives and investment goals.
There are a variety of brokers available, so you must conduct thorough research to select one that is reliable and provides the services you require.
#7 Wait for the result
The moment of truth! Usually, the wait isn’t that long (milliseconds), and your result would be on screen.
If your predictions worked in your favor, you would earn a certain profit on your deposit, or you will end up paying for losses.
(Risk Warning: Your capital can be at risk.)
Is binary trading legal in Nigeria?
Like many other regions of the world, Nigeria’s population has recently shown an interest in stock and forex trading, maybe due to the potential financial rewards. But, to be clear, this does not imply that everybody who trades will always make money; on the opposite.
Nigerian citizens may trade stocks and foreign currencies as long as they follow the rules and regulations that apply to their industry.
Surprisingly, forex trading in Nigeria is not strictly controlled like in many other countries, such as the USA. This might be partly related to the fact that it is still a relatively new phenomenon progressively gaining popularity among citizens.
Brokers must adhere to certain rules to trade on behalf of their clients, and forex trading in Nigeria is governed by the Central Bank of Nigeria.
Additionally, since trade profits are subject to taxation in the nation, they must be declared as such to stay out of trouble with the law.
Parallel to that, some rules must be followed when trading stocks in Nigeria, and getting started is said to take just two days. Opening a trading or brokerage account, opening a Central Securities Clearing System (CSCS) account, and obtaining a Clearing House Number are the stages (CHN).
The Nigerian Stock Exchange (NSE), which allegedly has about 169 listed companies, can be used to invest in and conduct trading after this procedure is finished, and the necessary documentation is submitted.
It is significant to note that, despite the growing popularity of stock trading, one must be aware of a number of trading and transaction costs.
To safeguard the local currency, which continues to function in an economy with a fixed exchange rate, the Central Bank of Nigeria has put in place monetary constraints. For example, traders are not permitted to deposit more than $10,000 in one trade, and withdrawals exceeding $10,000 may, by law, be flagged and detained by the local banks until sufficient proof of the source of the funds is produced.
Payment methods for traders in Nigeria
Every Nigerian citizen must self-declare their yearly income and pay the appropriate amount of Personal Income Tax, which is determined on a sliding scale. Binary options are included in the category of trading-related income.
Always make careful to keep complete records of all trading activity, even losses, since The Federal Inland Revenue could at any moment require them. Additionally, you will be required to pay Capital Gains Tax on any profits unless binary options trading is your only source of income.
How to make deposits and withdrawals?
In Nigeria, only MasterCard and VISA-issued cards are available as credit or debit cards. As a result, the only cards one may use to deposit and withdraw money are those issued by local banks and have token security.
In contrast to withdrawals, which can take up to two days to process, deposits are processed immediately. On binary options platforms, one cannot use local currency-denominated cards online.
Nigerian binary options traders can use any means open, including bank wiring from domestic accounts.
With some limitations, Nigerian binary options traders can also use digital wallets like Skrill, Neteller, and Payza. Only local currency may process Skrill withdrawals made with a local bank account in mind. You may withdraw only Euros from an overseas Skrill account for deposit into a domestic bank account.
Binary Options terms and conditions for Nigeria
Do not miss the terms and conditions of the binary options before you start trading in Nigeria. It will ensure your safety while trading in the market. The broker that you are dealing with must be straightforward and transparent.
Whenever a trader logs in on a digital trading platform, a lengthy document that you need to read before you click I accept appears on the screen. You cannot afford to skip the reading process, as it might be harmful to your stand if something terrible happens while trading. It might also lead you to some future obligations that you might not want.
The terms and conditions document includes important information from the trader’s side about what tools and processes they use on the platform. The broker also mentions the conditions where rights protect them.
If the trader does not understand any parts of the terms and conditions, they should always contact customer support instead of skipping the reading part and accepting it all. Most of the time, customer support is open 24*7, especially in the case of binary brokers; they are seen to be active the whole day, as the market does not stop.
(Risk warning: You capital can be at risk)
Verification of Trader’s Identity
Each trader is supposed to go through the process of KYC or Know Your Customer policy. It is necessary for safe trading and to avoid any hacking or scams. The brokers need to put out a set of requirements from their customers to know who their customers are.
Many traders hate providing KYC, but the broker needs to ensure that all the safety criteria for trading are met. It minimizes the possibility of somebody else taking away your profits or trading through your money. Here is the list of minimum requirements for a KYC:
- Your recent bank statement or an alternative proof of residence
- Driver’s license or some other document issued by the government of Nigeria
- An ID card / passport
- Any recent utility bill
If the trader cannot provide the broker with the above documents, they are not eligible for trading in binary options on any online trading platform.
Investing through offshore brokers
If you are a Nigerian citizen, investing through an offshore online business is not very complex but risky.
Here are the pointers you should look out for:
- The businesses or brokers based outside Nigeria and are not licensed by The Nigerian Government are hard to map out by the Government Specialist.
- The binary traders from Nigeria should look out for the type of binary indicators the broker is offering.
- The Nigerian Government cannot recover your money if you lose it in fraud inside or outside the country.
- Investing in binary options is subject to a personal choice by the Nigerian Government. It is not illegal, but in scams, the government plays no role in it.
- Be very careful with imposter websites, as it is really popular in the scam market. They can steal the name and logo and even hijack the actual website used by the company.
Here is the link to decoding an imposter website.
Choosing the online broker carefully
This is a major regulation that the citizens of Nigeria need to follow. Choosing the online broker carefully after checking all the necessary details will help you in retaining your money.
Here are some points you need to look for:
- The country does not have any licenses for brokers. Thus, they need to trade with offshore brokers, and it is subjected to high risks.
- If you want to register on an online trading binary platform, you need to provide a permanent address and other necessary identity-based documents to the government.
- If the financial provider deals in retail trading, they must be registered with a third-party dispute resolution scheme.
- If anything goes wrong, or you feel you have been scammed, you need to provide the details of the platform to the government, and if it is a registered platform, your money will be easily recovered. If not, your money is gone.
- In some particular types of investments, the financial provider is supposed to be licensed by the Government of Nigeria.
- Even if the financial provider is registered with the government, they can still do wrong.
(Risk warning: You capital can be at risk)
Regulations in Nigeria explained:
Nigeria doesn’t have any local brokers for binary options trading. Therefore, people need to prefer offshore brokers for this purpose. This trading form gained popularity in the country in 2010 but was eventually taken down by the FBI and other higher authorities for diverse disruptions.
In fact, this trading form gained exposure once again in the year 2015. And this time, Binary options trading in Nigeria was implemented with some strict regulations for brokers across diverse jurisdictions.
The payment companies such as PayPal and PaySafe need to add Nigeria within their service range. With it, the payment options that were unavailable to the Nigerian traders were retained, and they took this opportunity to participate in binary options trading aspects. As of now, no such laws are imposed upon Binary options trading in Nigeria. Moreover, there are no country regulations that are mandatorily being imposed upon the traders.
Nigerian traders are free to decide whether they want to trade binary options or not. In fact, the country’s regulatory authorities continue to advise citizens to follow safer measures while trading binary options. But, the country authorities will not take any responsibility for the capital losses that the individuals experience within this trading format or by the broker.
The Nigerian traders of binary options have accessibility with almost all offshore brokers that are operating under several jurisdictions and international regulations. But, they are not permitted to trade with brokers of Japan, Australia, and the US, due to unavoidable country-wise policies.
Conclusion: Is Binary Options trading legal in Nigeria? – Yes!
If you live in Nigeria and think of trading in binary options, you need to consider that the Government will not protect you in case of fraud. Be very careful with what platform you are using since the government does not provide any license to the brokers.
If you are new to trading, you need first to experiment and learn the market. Then, you can start experimenting with your pattern mapping skills on Quotex by signing up and practicing investing without losing any money.
Trading is a complex domain, and it takes years and years of practice to understand the market. Still, the trading market is highly subjective and subjected to various risks, but you can minimize them by taking calculated risks and finding a balance.
(Risk warning: You capital can be at risk)
Frequently Asked Questions
Here are some of the questions traders from Nigeria often ask:
How can one trade Binary Options In Nigeria?
One can easily start trading in Nigeria, but there are no licensed brokers in the country. Thus the traders need to look out for offshore brokers to invest their money. The Government of Nigeria does not play any role in protecting its citizens from scams.
Is it possible to use Expert Option In Nigeria?
Yes, it is possible to use expert options in Nigeria, as Nigeria authorizes that platform. The expert option provides you with possibly accurate and real-time market data for safer trading in binary options. These platforms are created by leading analytical agencies.
Is trading binary options in Nigeria secure?
Trading with a broker in binary options in Nigeria is much safer than other high-risk trades. It’s basic and uncomplicated, and before making a choice, you know exactly how much you might stand to gain or lose. Likewise, you won’t lose money if you don’t know what you’re doing with your investments.
Can binary options trading in Nigeria be profitable?
There are only two outcomes: winning or losing a specific amount of money. There aren’t any additional costs or commissions involved either.
