CFD Overview
Contracts for Difference as more commonly referred to as CFDs which is a unique financial instrument where counter parties made settlement differences pertaining especially to future contracts through cash instead of physically delivering an asset to the buyer.
CFDs are offered by various brokers and they allow traders to exchange the difference in the price movement of a specific asset by making use of a contract through which a trade is entered and exit without the trader taking ownership of the underlying asset.
CFDs unlike conventional futures contracts, does not have an expiration date and the trader cannot own the underlying asset, they are merely speculating on the price movement of the underlying asset.
CFD contracts have the ability to roll over into the next trading day as long as the contract can be supported by the account margin value of the trader.
The following financial instruments, or assets, can be traded as CFDs:
• Stocks
• Bonds
• Forex
• Cryptocurrencies
• Commodities
• Futures, and
• Indices
View the Best Forex Trading Brokers in Nigeria
List of 10 best CFD Forex Brokers in Nigeria
1. Plus500
Plus500 is an Israel-based Global CFD and Forex broker which was founded in 2008 and is listed on the London Stock Exchange. Plus500 is regulated and authorized by the FCA and the ASIC.
In opening an account with Plus500, traders will have to pay a minimum deposit of $100 which provides them with access to financial instruments such as CFDs on Forex, commodities, cryptocurrency, stocks, shares, and more.
Plus500 does not charge commissions on trades and traders can expect variable spreads which depend on the financial instrument being traded.
The maximum leverage offered is between 1:5 up to 1:300 depending on the regulating entity under which the account is opened, whether ASIC or FCA.
Withdrawals can be easily made by using either Bank Wire Transfer, Credit Card, Skrill or PayPal, with some fees charged depending on the payment method.
2. XTB
XTB has been in operation since 2004 and is based in the UK, Germany, France, Spain, Poland, and Belize with regulation and authorization through ACPR, BaFin, CNMV, FCA, IFSC, and KNF.
The minimum deposit required when Nigerian traders open an account is $250, providing traders with options in trading CFDs, Forex, commodities, cryptocurrencies, stocks, shares, and more.
Traders have the option between a standard and pro account, with the maximum leverage that Nigerian traders will have access to is 1:200, spreads that start from between 0.28 and 0.35 pips along with commissions from between $0 – $2.5.
Deposits and withdrawals can be made by using a variety of payment methods such as Bank Wire Transfer, Credit/Debit Card, and several e-Payments. Some fees may be applied depending on the payment method.
3. eToro
eToro is an Australian, Cyprus, and UK-based broker regulated and authorized by the ASIC, FCA, and CySEC. eToro has been in operation since 2006 and offers Nigerian traders the option to trade CFDs, Forex, commodities, stocks, shares, indices, and more.
When opening an account with this broker, Nigerian traders will have to pay the minimum deposit of $200, providing them with access to trading various CFDs with variable spreads, commissions from $0, and leverage up to 1:400.
When depositing or withdrawing funds, Bank Wire, Credit/Debit cards and e-payments can be used with zero deposit fees charged, but with a $25 fee for withdrawals done by non-professional traders.
4. XM
XM is based in Australia, Cyprus, Belize, and the UK with authorization and regulation through ASIC, CySEC, and the IFSC. XM has been in operation since 2009 and offers Nigerian traders CFDs on Forex, commodities, stocks, shares, and more.
The minimum deposit to open an account starts from as little as $5, and Nigerian traders have a choice between the Micro, Standard and XM Zero Account with spreads that start from 0.0 and 1.0 pips depending on the account.
While commissions are not charged on the micro and standard account, commissions of $3.5 are charged on the XM zero account. The maximum leverage that is offered is 1:880.
Deposits and withdrawals can be made through Bank Wire Transfer, Credit/Debit cards, and various e-payments with fees charged on some payment methods.
5. ATFX
Based in the UK, ATFX is authorized and regulated by FCA and CySEC, and has been in operation since 2014.
The minimum required deposit is $100, providing Nigerians with access to trade various CFDs, Forex, commodities, cryptocurrency, stocks, shares, and more. The maximum leverage is 1:400, and commissions start from $0 to $3.
ATFX has various accounts offered, with spreads starting from 0.0 on the premium account and up to 1 pip on the standard account.
Deposits and withdrawals can be done through Bank Wire Transfer, Credit/Debit cards and various e-payments with zero fees charged on either deposits or withdrawals.
6. IQ Option
This broker is based in Cyprus with authorization and regulation through CySEC. IQ Option has been in operation since 2014 and offers Nigerians with access to CFDs on Forex, stocks, cryptocurrencies, commodities, indices, and ETFs.
The minimum deposit in opening an account is $10 and Nigerian traders can expect variable spreads depending on the financial instrument traded along with zero commissions charged on trades.
Deposits and withdrawals can be done through a variety of payment methods such as Bank Wire Transfer, Credit/Debit cards, and a variety of e-payment methods with fees charged when using some methods.
7. AvATrade
AvATrade has been in operation since 2006 and is based in Australia, Ireland, South Africa, Japan, and the British Virgin Islands with authorization and regulation through ASIC, BVI, CBI, FFAJ, FSA, and FSCA.
The minimum deposit required when Nigerian traders open an account is $100, providing them with access to trade CFDs, ETFs, Forex, commodities, stocks, shares, and more. The maximum leverage offered is 1:400 with fixed spreads from 0.9 pips.
Commissions are not charged on trades and when depositing or withdrawing funds, Nigerian traders can make use of Bank Wire Transfer, Credit/Debit cards, and various e-payments. Deposit/Withdrawal fees may apply to some payment methods.
8. IC Markets
IC Markets has been in operation since 2007 and is based in Australia and the Seychelles operating under the authorization and regulation of the ASIC.
The minimum deposit required when Nigerian traders open an account is $200 with various financial instruments that can be traded such as CFDs, Forex, commodities, metals, energies, stocks, shares, and more.
The maximum leverage provided in 1:500 with variable spreads that start from 0.0 with $3.5 commissions charged on trades when using the True ECN account, and 1.0 pips and zero commissions on the standard account.
Deposits and withdrawals can be made through Wire Transfer, Credit/Debit Cards, and various e-payments with some fees that may be charged depending on the payment method used.
9. Trading 212
Trading 212 is based in Bulgaria and the UK and this broker is regulated and authorized by FCA, and FSC, and has been in operation since 2006. Trading 212 offers trade in CFDs, Forex, commodities, stocks, shares, cryptocurrencies, and more.
To open an account, Nigerian traders pay a minimum required deposit form as little as $1 and are offered with variable spreads and maximum leverage of 1:300 along with zero commissions charged on trades.
Various payment methods can be used when depositing or withdrawing funds such as Bank Wire Transfer, Credit/Debit Cards, Apple Pay, Google Pay, and several others with zero fees on withdrawals charged by Trading 212.
10. FXTM
FXTM has been in operation since 2011 and is based in the UK, Cyprus, South Africa, and Mauritius with authorization and regulation through CySEC, FCA, FSC, and FSCA.
From as little as $10, Nigerian traders can open a trading account, providing them with access to various CFDs, Forex, commodities, cryptocurrency, stocks, shares, and more.
The maximum leverage offered is 1:300, with floating spreads from 1.3 pips and zero commissions when using the standard account, and spreads from 1.5 on the cent account with no commissions.
Deposits and withdrawals can be done through a variety of payment methods such as Wire Transfer, Credit/Debit Cards, Crypto-wallets, and numerous e-payments with fees charged when using some of these payment methods.
Final Thoughts When looking at CFD Forex brokers, Nigerian traders have a wide variety to choose from along with various accounting options that cater to the needs of both beginner and more experienced traders.
The minimum required deposits are fairly low, with average to low trading and accounting fees charged.
All these brokers are well regulated and reputable, so Nigerian traders can rest assured in knowing that their funds are secure, and that they are protected.