Binary options trading in the African continent is still in its primary stages, as the entire region is not known for its economic prowess. Aside from South Africa, other African nations have very little presence in the financial markets, which has led to a somewhat subdued interest in high-risk financial instruments such as Forex and binary options. Therefore, binary options brokers have little to no incentive for setting up a brokerage in Nigeria, or any other African nation for that matter, which largely reduces the number of choices for traders.
However, several countries in Africa have begun adopting numerous expansion strategies to include different innovative financial products into their economy. Countries such as Nigeria are certainly open to the idea of investing in binary options trading and other exotic investment products, as they have a considerably wealthy population that is capable of making large investment decisions for better returns. Several large international companies now offer exclusive binary options services to Nigerian traders. We provide a great resource to help binary options traders from Nigeria to choose a top binary options brokerage for a safe and secure binary trading platform.
Top Recommended Brokers For Nigerian Traders
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Current Legal Status Of Binary Options Trading In Nigeria
Every trader and investor in the world is bound to be worried about the latest controversies surrounding binary options trading. Several countries around the globe have stipulated several norms and guidelines for binary options trading, and it is only natural for traders from Nigeria to be concerned about the legality of binary options trading in the country. Therefore, in simple terms, binary options trading is legal and an accepted form of financial product in the country.
Although there aren’t any regulations in Nigeria concerning binary options trading, there may be religious factors that may contribute to the legitimacy of binary trading as an investment product. For instance, several religious laws around the world, such as Islamic beliefs, prevent traders from trading or investing in any gambling-related products. In some instances, binary options trading may be offered as a gambling alternative, which makes it inaccessible for a large community of traders in the retail investors market. The high/low wagering on financial instruments has several resemblances to betting, with several brokers offering binary options trading alongside their other online gambling and betting services.
Regardless of the religious implications of binary options trading and other beliefs, it is unquestionably safe to assume that Nigeria binary options trading is a legal activity without any regulatory restrictions. Furthermore, traders are also free to invest in any overseas binary options brokers and choose their own preferred investment vehicle, thereby ensuring that traders get access to the best binary trading accounts and services from the global financial markets.
Nigerian Binary Options Financial Instruments & Trading Products
Nigeria binary traders can choose to trade with any overseas binary options brokers, provided the broker in question accepts traders from Nigeria. Therefore, with a vast number of broker choices, traders are guaranteed of the best market access that provides access to several financial markets such as Forex, stocks, indices, commodities, cryptocurrencies, and bonds. These companies allow its traders to invest in any financial asset as offered in their trading account package, with some brokers offering as much as 10,000 different binary options contracts through their brokerage portfolio.
Gaining access to a global pool of binary options brokers provides several benefits to the trader, and it is certainly an advantage for traders from Nigeria. There are a number of different binary options contracts available to traders, where the potential payouts can go from 60% to up to 1500 %. Here are some of the popular trading products offered by top binary options brokers in the world that also accepts traders from Nigeria:
- Classic High/Low Options: Payouts for these products are typically in the region of 60% to 95%, with some products being offered with an option to receive refunds.
- Turbo Options: Turbo options are short-term options with very low expiry times. The expiry times can start form 30 seconds, with the payouts being similar to the classic high/low options.
- Ladder Options: These options offer payouts on the basis of price moving through different predetermined levels, where potential payouts can reach up to 1500%.
- One-Touch/No-Touch Options: These high-risk options offer attractive payouts of up to 500% for a single trade, but the downside risk is higher.
- Boundary/Range Options: The payouts are in the region of 100% to 300%, and depends on the price of an asset fluctuating in a tight range.
- Pairs: Binary options where the performance of one asset is pitted against the performance of another. The payouts are similar to the classic binary options.
It is imperative for all Nigerian traders to be conservative in their approach, without trying to invest their money in all the available assets and binary options contracts. The choice of assets offered by brokers is merely an opportunity to create a diversified portfolio, and should not be considered as an open invitation to invest your money all at once. It is particularly true for first-time investors, who may either be overly excited or overwhelmed, by the massive number of financial products.
Selection Of Trading Platforms For Nigerian Binary Options Traders
Binary options traders from Nigeria have an excellent choice of trading interfaces, mainly as a result of the global coverage of binary trading companies that cater to the Nigerian market. From independent third-party interfaces to proprietary binary options platforms, Nigerian investors can choose from a number of innovative trading platforms to invest in the binary options market. Traders can either trade on an installable platform, or access their accounts on a Web-Based trader. Most brokers prefer the latter, as it is easy for both brokers and traders to trade on the go through support for multiple devices.
Even mobile traders can use the browser-based trading interface for binary options trading on mobile devices such as smartphones and tablets. Mobile traders are further offered independent binary options mobile apps, which support trading on popular mobile operating systems such as Android, Windows, and iOS. The ability to trade with an amazing array of international binary options brokers is certainly a distinct advantage for investors from Nigeria.
Minimum Deposit & Account Conditions Stipulated By Nigeria Brokers
Nigeria trading companies and retail investors usually have access to a surplus income that can be used to invest in other high-yield opportunities. However, the shortage of Nigeria binary options brokers for local investments should not be deterrent for traders, especially since some of the top brokers in the market offer excellent account packages for retail traders. The minimum deposit for some of the top Nigeria-accepted brokers is around $250, but there are brokers that offer a trading account for a minimal amount of $10.
Affluent Nigerian investors can also opt for VIP or premium accounts, where larger investments and account deposits can earn sufficient rewards, access to premium services, and an overall better trading environment. Since international brokers support a wide variety of payment methods, it is possible for traders to use digital e-wallets, credit/debit cards, bank wires, and other offline payment programs for all financial transactions. However, it is essential for Nigerian binary trading companies and individual retail traders to understand that the Nigerian laws state that any transaction above $10,000 should have the sufficient authorisations and clearances from the Government. Traders must specify the source of the funds and the nature of the transactions, which is more oriented for adhering to international Anti-Money Laundering Laws.
Nigerian Financial Regulation
Nigeria does have a thriving financial market and an economy that is regulated by the Securities and Exchange Commission of Nigeria. The currency market and Nigeria’s local currency, known as the Naira, is strictly governed by the country’s central bank, with all other non-banking financial entities falling under the Nigerian SEC. Nevertheless, binary options trading is not regulated but is considered as a legal activity and not subject to any scrutiny. The only consideration is that traders should follow all local regulations while transacting more than $10,000 in a single transaction or over multiple transactions over a specific time period. Such a transaction limit holds true for all local and overseas payments, which becomes quite significant while trading with international binary options brokers.
Is It Safe To Trade With International Brokers?
Traders from Nigeria may feel constrained by the lack of native binary options brokers, which forces them into opening an account at an international broker. It is indeed safe to trade with overseas brokers, but you have to take several precautions while trading with an international company:
- Choose a regulated binary options broker with a license issued by a recognised agency.
- Trade only with an established and mainstream broker that provides an excellent binary options product.
- Try to choose a broker that is located near Nigeria, such as European binary options brokers or brokers located in South Africa.
- Never indulge in any financial transactions with third-party agencies or make payments through external platforms.
- Ensure that the broker accepts traders from Nigeria. Some brokers have strict rules for international traders, and traders must verify that they are able to trade with the company without any legal troubles.
- What Should You Do If A Broker Claims To Be Regulated By The Nigerian SEC?
The SEC of Nigeria has not regulated any binary options brokers, hence, don’t trust any broker that claims to be regulated by the SEC if they can’t provide any verified licenses or certificates.
- Can Nigerian Traders Invest In Binary Options?
The legality of binary options trading in Nigeria allows traders to freely invest in any market, thereby offering the freedom to trade with internationally acclaimed binary options brokers.
- Are Profits From Binary Options Trading Taxable In Nigeria?
Income from binary options trading is treated like any other regular income, which may be subject to taxes that are prevalent in Nigeria. Consult with a tax professional to get accurate information about the taxes applicable for binary options trading.