I stumbled across a warning from SEC that Nigerians trade forex at their own risk. Is forex trading legal in Nigeria? If not, what is stopping Nigerian authorities from licensing forex brokers?
I read a warning from the Securities & Exchange Commission (SEC) in Nigeria saying retail forex traders are trading at their own risk. It makes me wonder if forex trading is legal in Nigeria. I mean Nigeria is the giant of Africa so what is stopping them from regulating & actually issuing licenses to forex brokers?
If countries like Kenya & South Africa can regulate forex trading and issue licenses why cant Nigeria do the same thing? So sometimes i get to wonder if forex trading is truly legal in Nigeria.
Forex Trading is not regulated in Nigeria, but it is not strictly illegal also. It is a grey area, where there is no regulation as of now.
So, Nigeria based forex traders are trading at their own risk. There will be no investor protection in case you are depositing funds with a scam broker, and they run away with your money.
The only way you can protect yourself is to either avoid trading forex & CFDs if you are from Nigeria. Or trade via reputed CFD brokers only that have been in the industry for 10-15 years, and licensed by FCA, ASIC, FSCA or similar regulators.
i guess a lack of political will is why retail online forex trading is not yet regulated in Nigeria. But hopefully that could change whenever a government that supports it comes along. We need as youth need to demand this from our leaders during election season. You see how Trump is crypto friendly in America, same could happen in Nigeria.
the Nigerian government has no control over what forex brokers do, if you opan an account with any forex broker you are dealing with a foreign company so if something goes wrong it is not the Nigerian governments business.
However Nigerians have been trading forex with these foreign brokers for years and only a few bad incidents have occured to my knowledge. So, its your risk to take.
Another emerging threat is prop firms and those ones are not regulated in any country at all but people still trade with them.
Its not as bad as they make it seem, many Nigerians still trade forex and withdraw their profits successfully. Just choose a broker that is well regulated from countries with strong economies like the United Kingdom, Australia, etc. avoid brokers solely regulated from countries with weak economies