Even if trading in binary options is legal in many countries, it is still subjected to many online scams. As a result, the Governments of many countries have issued a set of guidelines to protect their traders and brokers from such scams.
In this article, we will specifically discuss binary options legal in Nigeria or not? We will discuss all the rules and regulations that the citizens need to follow for a safe investment and ethical investing.
Binary options are not that easy to trade with. Thus the government advises its citizens to trade only if they are sure about all the necessities from the broker. In addition, the regulations highlight the steps the traders and brokers should follow before they start trading.
To start experimenting and learning the basics of trading, you can sign-up on Quotex and start trading without losing any money.
What you will read in this Post
What are Binary Options?
Binary options are short-term trading contracts with limited risks. If you are a new trader, then start experimenting with binary options for a safer side. Binary options have various names, ‘all or nothing, ‘fixed returns,’ and ‘digital options’
One can make good profits by monitoring the short movements of the commodity, index, or asset. In the case of binary sections, you need to make your call soon; in some cases, it might be less than a minute.
Most of the trading considering the binary options is happening online through digital platforms. If you want to start trading, you need to add a little amount to your account and an extra amount to buy the asset, index, etc. The minimum amount will change according to the platform you are dealing with.
Once you place a trade, you cannot withdraw, and your money is locked depending on the contract period. You need to confirm the initial sum you deposited and a record of profit or loss during the trading; it is necessary to map down an effective strategy during trading.
Are Binary Options Legal In Nigeria Or Not?
Yes, binary options are completely legal in Nigeria, but the Government has certain regulations that the trader and broker must follow before and while trading. Here is a detailed description of the updated regulations and legalities issued to their traders and brokers by the Government of Nigeria.
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.
Education Centers For Nigerian Traders
For a transparent and straightforward trading experience, the brokers are encouraged to go through education centers for Nigerian traders to gain all the possible knowledge. Moreover, it helps the Nigerian traders to clarify their doubts from someone qualified.
The Nigerian traders can use the FAQ section of the broker or online broker platform or use customer support to get their knowledge on point. In addition, the trader can reach out to the broker through an email, phone call, or live chat. This information is usually available on the platform itself.
There are various education centers for Nigerian traders that provide excellent knowledge about binary options. In addition, they can get access to various materials online for making better trading decisions. They will learn about various terminologies and topics before they start trading; it is suggested to minimize the risk of losing money.
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 type of 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 the 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, Online Business
If you are a Nigerian citizen, investing through 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 the fraud inside or outside the country.
- Investing in binary options is subjected 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 the imposter websites, and it is really popular in the scam market. They can steal the name, 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 license for brokers. Thus, they need to trade with the offshore brokers, and it is subjected to high risks.
- If you want to register on an online trading 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.
Frequently Asked Questions
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.
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 is subjected to various risks, but you can certainly minimize them by taking calculated risks and finding a balance.