Some countries regulate the Forex trading market carefully restricting and limiting the brokers’ activity. This allows for a safer trading for the customers, but it also closes out the market for other brokers damaging the competition — making it so that the remaining Forex brokers offer quite a low level of services.
In Nigeria Forex isn’t overregulated; according to the foreign exchange manual issued by the Central Bank of Nigeria in November 2006 everyone can participate in the foreign currency exchange activities as long as they are conducted via the banks or brokers registered with such banks (authorized dealers).
Spot Forex market (the one that is use for on-line leveraged trading where actual currencies are not delivered) faces even less restrictions and regulations from the Nigerian government. Unlike U. S. there is no a regulating body for such Forex brokers, so any legal company with a registration in Nigeria or some other country can accept traders from Nigeria.
This makes the Nigeria Forex brokerage industry a free and open market allowing the residents of Nigeria to choose from very many on-line Forex brokers. Unfortunately such variety brings in certain dangers — there are many scam brokers that seek to steal traders’ money and there are also brokers that claim to be offering excellent services but in reality offer nothing more than high spreads and some poor trading platform. So, a great care should be applied in choosing a Forex broker — it is a good idea to select only those brokers that were checked by the experienced traders and are known for their quality. A good and honest Forex brokers rocomend by Nigeria Forex Trader is INSTAFOREX, so you could easily start trading without having to do your own due diligence on any broker.
It is possible, that in the near future, Nigerian government will change the way of Forex market regulation. If more problems will be encountered by the Nigerian citizen, government can introduce some institute to register and regulate all Forex brokers. If this happens, the brokerage market will be very limited for a period of time. But until this happens, residents of Nigeria can enjoy the completely free Forex trading.
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