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5 Best CFDs to Buy in Nigeria

Best CFDs to Buy in Nigeria

The 5 Best CFDs to Buy in Nigeria revealed. We have carried out extensive research into which Contracts for Difference (CFDs) are the best option for Nigerian traders in international markets.

5 Best CFDs to Buy in Nigeria Revealed (2022)

 

 

What are CFDs?

Without holding the underlying securities, a trader could swap the difference in price between the opening and closing prices of a financial instrument using a contract for differences (CFD).

 

Day traders use CFDs because of the leverage they provide when trading more expensive underlying assets.

 

Insufficient industry regulation, the possibility of low liquidity, and the requirement to maintain a sufficient margin to cover leveraged losses all contribute to making CFDs a high-risk investment.

 

5 Best CFDs to Buy in Nigeria

Bitcoin

Unlike coins or tokens, which require purchasing a portion of Bitcoin and storing it in a digital wallet until the time of sale, cryptocurrencies as CFDs are traded against the US dollar in a manner like FX CFDs.

 

Similarly, leverage may be used during crypto CFD trading, which magnifies earnings. Therefore, traders may deposit a little amount of capital, known as margin, and increase their market exposure via leverage.

 

Profit or loss is still depending on the whole position size, with leverage that can boost both earnings and losses.

 

Gold CFDs

Gold is the most frequently traded metal, and appropriately so. Its exceptional toughness, malleability, and conductivity make it a highly desired and in-demand metal for industrial and jewellery applications alike.

 

Like the prices of most other commodities, gold’s price is determined by the market forces of supply and demand. When you combine the strong demand for gold with its restricted supply, you have all the conditions for a valuable commodity that retains its worth over time.

 

However, this does not imply that the price of gold is constantly increasing. It is impacted by risk emotion, market uncertainty, and inflation patterns, as do all other traded assets. In times of economic disaster, however, gold retains its worth superior to most financial instruments.

 

While equities and currencies are susceptible to war, political or economic disasters, and budgetary mismanagement by governments, gold’s scarcity offers it a greater chance of maintaining its value.

 

Based on these features, gold is often favoured by traders seeking long-term investments. You could seek bullish or neutral markets, as well as price trends and reversals, using stock indexes.

 

For instance, a strong stock market is often indicative of robust economic circumstances, resulting in decreased investment demand for gold. A negative market, on the other hand, is suggestive of deteriorating fundamentals and might cause investors to seek safety in gold.

 

Nasdaq 100 Index

The NASDAQ 100 comprises the 100 biggest non-financial firms listed on the NASDAQ stock market. The weight of each company in the index is determined by its market capitalization, hence the greater a firm’s market cap, the greater its impact on the index.

 

Contract for Difference (CFDs) is a cost-effective and efficient method of trading the NASDAQ 100. In general, brokers provide CFDs based on the cash index (USTECH) and the underlying futures contract (NAS100.fs).

 

When trading the index using CFDs, you may bet on the direction of the underlying asset (the NASDAQ 100) without owning any of its components. You will have access to leverage and the ability to both go long and short.

 

This could be particularly helpful during a recession, and most investors want to avoid rebalancing their portfolios due to the high expenses and extreme difficulty of timing the market.

 

Instead of selling a substantial portion of your portfolio in anticipation of a price decline, you might bet on dropping prices using CFDs.

 

If you keep holdings for a short timeframe, you could select USTECH because of its modest spreads. If you are a long-term trader, though, you might prefer the NAS100.fs since there are no swap costs.

 

Oil/Energies

Among the most actively traded assets worldwide, crude oil has a significant impact on the cost of other products such as gasoline and natural gas. However, the ripple effect of crude oil prices affects the global prices of stocks, bonds, and currencies.

 

Despite rising interest in the renewable energy industry, it remains a key global energy source. Crude oil is one of the best commodities to trade on a futures contract due to its busy market and widespread recognition among traders across the globe.

 

The volatility of oil prices makes it a favourite for swing and day traders seeking a competitive advantage.

 

EUR/USD

The EUR/USD is the most actively traded currency pair in the world, making it one of the “Major Currency Pairs” in foreign exchange.

 

The EUR/USD is one of the most actively traded ‘Main Currency Pairs’ on the foreign exchange market since it represents the world’s two biggest economies and major currencies, the U.S. dollar, and the Euro.

 

It is a very liquid currency pair in forex trading, and its narrow spread makes it popular among traders. In every significant pair, the U.S. dollar is stated either as the Base or the Counter currency.

 

The Federal Reserve Bank (FED) controls and determines the number of U.S. dollars in circulation, while the Federal Open Market Committee (FOMC) is mandated by U.S. law to supervise the nation’s open market activities.

 

The Euro is both the world’s biggest reserve currency and the official currency of the European Union. This currency’s central bank is the European Central Bank (ECB), which handles the Eurozone’s monetary policy.

 

How to choose the Right CFD Broker in Nigeria

Traders could not have picked a more favourable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

 

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

 

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

 

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

 

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

 

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.

 

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee. When switching brokers, your new firm could pay some or all your transfer expenses.

 

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

 

Annual costs, inactivity fees, trading platform subscriptions, and additional charges for research or data are all examples of the kind of expenses you should be aware of.

 

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

 

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

 

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

 

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

 

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

 

The Best CFD Brokers in Nigeria

In this article, we have listed the best brokers which offer CFD trading to traders. We have further identified the brokers that offer additional services and solutions to traders.

 

Best MetaTrader 4 / MT4 CFD Broker in Nigeria

Overall Rating

4.9/5

Rated #2 of 
Recommended FX Brokers

💰Minimum Deposit

$10

💰Sign-up bonus

No

🌐 Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA

📱 Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

📈 Total Pairs

97

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker Website

 

Overall, Exness is the best MT4 CFD Broker in Nigeria. Exness is a MetaTrader-only broker that sources its market execution and liquidity from ADS Securities, FXCM Pro, and other suppliers.

 

Exness provides Nigerians with a selection of 5 retail accounts with EUR/USD spreads beginning at 0.0 pips. Nigerians can anticipate a 60%/0% Margin Call and Stop-Out, respectively.

 

Best MetaTrader 5 / MT5 CFD Broker in Nigeria

Overall Rating

4.8/5

Rated #1 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

ASIC, FSA, CBI, BVI,FSCA,FRSA,CYCES, ISA, JFSA

📱 Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

📈 Total Pairs

55+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, AvaTrade is the best MetaTrader 5 CFD Broker in Nigeria. AvaTrade is both a Straight-Through-Processing (STP) and Market-Making (Market-Making) broker that provides trading through a range of strong trading platforms, including MetaTrader 5.

 

AvaTrade’s MT5 features some of the most innovative tools, copy trading, MQL5, and the industry’s most potent mobile app. AvaTrade also provides a few customized trading platforms that may be used in conjunction with MT5.

 

Best CFD Broker in Nigeria for beginners

Overall Rating

4.7/5

Rated #37 of
Recommended FX Brokers

💰Minimum Deposit

USD 200

🌐 Regulators

ASIC, CySEC, FSA, SCB

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

65

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, IC Markets is the best CFD Broker in Nigeria for beginners. IC Markets is a major and well-known True ECN broker that gives Nigerian novices an abundance of instructional resources.

 

The 10 “Getting Started” classes and exploration of Web TV, Webinars, and Podcasts could help Nigerians get started with trading CFDs in different asset classes using IC Markets.

 

Best Low Minimum Deposit CFD Broker in Nigeria

Overall Rating

4.6/5

Rated #70 of
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

ASIC, DFSA, FCA, FSA

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

66

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

Axi

 

Overall, Axi is the best Low Minimum Deposit CFD Broker in Nigeria. Axi was created by traders and provides some of the industry’s most competitive trading conditions. Nigerians may pick from three retail investor accounts with a minimum deposit of 0 NGN.

 

Axi provides market execution with costs of $7 per round trip and zero-pip spreads on the Pro Account.

 

Best ECN CFD Broker in Nigeria

Overall Rating

4.9/5

Rated #10 of
Recommended FX Brokers

💰Minimum Deposit

USD 10

🌐 Regulators

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

📱 Trading Desk

MetaTrader 4, MetaTrader 5 and cTrader, TradingView

Crypto

Yes

📈 Total Pairs

1000+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, Pepperstone is the best ECN CFD Broker in Nigeria. Pepperstone is a well-known ECN broker whose liquidity is provided by GAIN Capital, Prime Limited, LMAX Limited, and others.

 

When traders execute transactions on more than 80 instruments, they may anticipate consistently swift market execution and zero pip spreads on important instruments such as EUR/USD.

 

Best Islamic / Swap-Free CFD Broker in Nigeria

Overall Rating

4.6/5

Rated #32 of
Recommended FX Brokers

💰Minimum Deposit

USD 10

🌐 Regulators

CySec, FSCA 

📱 Trading Desk

MetaTrader4, Metatrader 5

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, FXTM is the best Islamic / Swap-Free CFD Broker in Nigeria. FXTM is a popular broker in Nigeria, with a decent market share and local support. FXTM is famous for its flexible account options, which may be converted to Islamic Accounts.

 

When Muslim traders move their accounts to FXTM’s swap-free platform, they do not have to worry about bigger spreads, administration costs, or extra charges. Instead, they can take advantage of FXTM’s competitive swap-free trading.

 

Best Forex Trading App

Overall Rating

4.8/5

Rated #8 of
Recommended FX Brokers

💰Minimum Deposit

$5

🌐 Regulators

SVGFSA

📱 Trading Desk

MT4, MT5

Crypto

Yes

📈 Total Pairs

80

☪️ Islamic Account

Yes

📊 Trading Fees

Very Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Official Website

 

Overall, OctaFX is the best forex trading app. In addition to MT4 and MT5 mobile, OctaFX provides an Android-only proprietary app. Nigerians can easily use the application to deposit and withdraw cash, manage their accounts, and see their transaction history.

 

Best Naira Trading Account CFD Broker in Nigeria

Overall Rating

4.8/5

Rated #6 out of 66
Recommended FX Brokers

💰Minimum Deposit

USD 5

🌐 Regulators

CySEC, FCA, FSA, DFSA, FSCA, CMA

📱 Trading Desk

MT4, MT5

Crypto

No

📈 Total Pairs

50+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, HF Markets is the best Naira trading account CFD Broker in Nigeria. HF Marketplaces offers Nigerians access to over 1,000 markets. Additionally, HF Markets provides NGN-denominated accounts and bilingual customer service.

 

HF Markets has a large market share in Nigeria, making it one of the greatest brokers in the country and Africa overall.

 

Best Lowest Spread CFD Broker in Nigeria

Overall Rating

4.7/5

Rated #3 of 
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

CySEC, FCA, FSA, FSCA, Labuan FSA

📱 Trading Desk

MT4, MT5

Crypto

Yes

📈 Total Pairs

62

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, Tickmill is the best lowest spread CFD Broker in Nigeria. Tickmill obtains its liquidity from providers like Barclays, which enables it to provide market execution on trades with spreads beginning at 0 pips on key instruments such as EUR/USD, gold, energies, and more.

 

Best Nasdaq 100 CFD Broker in Nigeria

Overall Rating

4.5/5

Rated #68 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

IFSC, CySec, ASIC

📱 Trading Desk

MT4

Crypto

Yes

📈 Total Pairs

55

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

XM

 

Overall, XM is the best Nasdaq 100 CFD Broker in Nigeria. XM provides millions of subscribers in more than 196 countries. On retail accounts, XM provides high leverage levels with negative balance protection.

 

Nigerians may begin trading the Nasdaq 100 with XM for as little as 400 NGN, with access to micro-lot trading and up to 1:888 leverage on key instruments.

 

Best Volatility 75 / VIX 75 CFD Broker in Nigeria

Overall Rating

4.8/5

Rated #38 of 
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF.

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

80

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, IG is the best Volatility 75 / VIX 75 CFD Broker in Nigeria. IG is the most popular option when it comes to CFDs on the VIX 75. This is due to IG’s competitive trading environment and many trading platforms.

 

IG also provides a variety of helpful tools and information, including an economic calendar, podcasts, trading ideas, and analytical tools.

 

Best NDD CFD Broker in Nigeria

Overall Rating

4.5/5

Rated #224 of
Recommended FX Brokers

💰Minimum Deposit

$20

🌐 Regulators

CYSEC, ASIC, FCA and NBRB licence Seychelles coming soon

📱 Trading Desk

Market maker

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, Capital.com is the best NDD CFD Broker in Nigeria. Capital.com provides a single live account with a variety of tradable products.

 

Capital.com is a competitive ECN and STP NDD broker since it provides commission-free trades with spreads beginning at 0.6 pips.

 

Best STP CFD Broker in Nigeria

Overall Rating

4.7/5

Rated #23 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

ASIC, CySEC

📱 Trading Desk

MT4, MT5

Crypto

Yes

📈 Total Pairs

60

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, FP Markets is the best STP CFD Broker in Nigeria. FP Markets is a low-cost broker that provides Nigerians with a vast array of tradable products.

 

FP Markets provides seven retail accounts and STP market execution, with liquidity from Goldman Sachs, Credit Suisse, and others.

 

Best Sign-up Bonus CFD Broker in Nigeria

Over 16 000 000+ Traders

Overall Rating

4.7/5

Rated #71 of
Recommended FX Brokers

💰Minimum Deposit

USD 1

🌐 Regulators

IFSC, FSCA (south africa), ASIC, CySEC

📱 Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

📈 Total Pairs

250

☪️ Islamic Account

No

📊 Trading Fees

Low

Welcome bonus

$140 (Find out More)

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

FBS

 

Overall, FBS is the best sign-up bonus CFD broker in Nigeria. FBS allows Nigerians to open an account with a minimum deposit of 400 NGN, which is a bonus.

 

However, FBS also provides newly enrolled traders with a no-deposit sign-up bonus and the opportunity to win an extra sign-up bonus upon account verification.

 

Conclusion

While CFD trading has many potential benefits, it also carries with it certain potential hazards due to the use of leverage. Nigerian traders who decide to trade CFDs must ensure that they have a solid risk management strategy in place and that their broker offers negative balance protection.

 

FAQ

When should I buy CFDs?

Speculators who believe prices will rise will establish a position by purchasing CFDs, while those who believe prices will fall will start a position by selling CFDs. To determine whether to buy or sell, you must carry out a technical analysis of the CFD instrument.

 

How do CFD brokers make money?

CFD brokers make money from the spreads that they charge traders. If ECN CFD Brokers charge low spreads, they typically take their fee from a flat commission fee on the trade.

 

Why do CFD traders lose money?

Because CFDs are extremely complex financial instruments that have an inherently elevated risk of loss because of leverage used to open larger positions. While traders can make more profit, they also expose themselves to more risk when they use leverage.

 

Are CFDs safe?

While CFDs are a way for traders to earn a profit from the markets, they are extremely considerable risk and traders must ensure that they have the necessary risk management in place and that they only risk what they can comfortably afford to lose.

 

Can CFD trading result in a negative balance in your account?

Yes, your account can go into a negative quickly with CFD trading. You can lose more money trading CFDs than you initially put up as margin owing to the leverage that traders and speculators might choose to engage.

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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