Are Binary Options legal in Nigeria or not?

It is common knowledge that binary options trading has previously become a popular alternative among Nigerian investors who do not have big sums of funds reserved for ongoing asset trading. Now it has established itself amongst the most prominent sorts of digital investments, particularly among Nigerian and African investors.

Binary options trading is based on a straightforward concept. Based on your perspective, you have two simple possibilities to pick from up or down. The value of the instrument you choose will change inside a given timeframe and instead will rise or fall, which is what binary options are built on. As a trader, your ‘goal’ is to correctly estimate which course the prices will follow in a defined time period. This means you’ll also be capable of predicting how much money you’ll make or lose depending on the results of a certain deal.

Nigerians have established an ambition of making a significant income, but they do not wish to break any laws or approach the area foolishly. As a result, you should check out our post on binary options regulation in Nigeria. You’ll also receive a list of the best-known brokerage firms that can provide you with authentic and dependable services for your investing demands. To have a comprehensive picture, read all the way to the conclusion!

Are Binary Options legal in Nigeria or not?

Binary options are acceptable in Nigeria, and there are no restrictions. Investors in the nation have the option of using a licensed or unregistered broker network. It is entirely up to the investors to decide what they hope to gain out of this type of trade.

However, it is usually preferable to work with a brokerage that is licensed to work on a global basis. Moreover, investors should familiarise themselves with all of the rules and restrictions set by the nation’s regulators for Binary trading options in Nigeria. Whether or not the brokerage is licensed to deal in the nation is determined by regulatory authorities.

You may use websites and listings to confirm that the brokerage you pick is properly licensed to provide broking services. You are not bound by any law to pursue the road of respecting the guidelines. And it’s for your money’s sake! The government has allowed binary trades, but it wants to provide warnings about frauds perpetrated by unlicensed companies.

Binary Options regulations in Nigeria

At the moment, there is no provincial or state licensing for binary options brokerage firms in Nigeria. Furthermore, there is no regulating agency in Nigeria that oversees this type of trading; thus, while people are technically permitted to engage in binary options using foreign firms, individuals are solely liable for their own fates if problems occur.

The Central Bank of Nigeria has set a $10,000 limit on the number of single transactions permitted by dealers. It also provides minimal guidance in aspects of choosing an overseas brokerage considered acceptable for trading with. Brokerages in the below-mentioned jurisdictions who are licensed by the proper authorities are regarded as ‘reliable’:

• Cyprus (The Cyprus Securities and Exchange Commission (CySEC)
• UK (Financial Conduct Authority (FCA)

Nigerian citizens are not authorized to deal with brokerage firms from the following jurisdictions if any restrictions apply:

• Australia
• Japan 
• USA

This gives you a lot of options when it comes to picking a brokerage. However, we do advise you to stick to the criteria and choose one from the approved list, which is recognized for strictly enforcing guidelines.

Best Binary Options brokers in Nigeria

Here, we have listed the 3 best brokers in Nigeria that are properly regulated and are reliable:

#1 Quotex

Quotex is a business title of Awesome Ltd, a Seychelles-based corporation supervised by the International Financial Market Relations Regulation Centre (IFMRRC). In November 2020, the company was recognized as a licensed brokerage. The broker aims to integrate advanced instruments with basic digital option products.

Citizens of the Canada, United States, Germany, and Hong Kong have only cryptocurrencies as payment choices. However, investors from such countries can create accounts.

Quotex.io is the most well-known name among binary brokers. It’s a website that debuted in 2020 and since then has swept the internet by surprise. Quotex.io provides binary trading options to many nations worldwide, including Nigeria. Quotex.io, in reality, operates within the IFMRRC legislation and provides ideal tools inside the network for Nigerian users.

You can sign up for a Quotex.io registration through the official site, the Smartphone app, Facebook, Gmail. You’ll be offered $10,000 in fake money to trade with after you join in, but you won’t be free to retrieve your earnings.

On this website, customers can access a wide range of digital information. It has a staggering amount of active traders.

It has grown significantly since its inception in 2020. A few of the network’s most key characteristics are as follows:

• It has a wonderful, customizable, and user-friendly UI
• It includes a tool for determining leverage
• You may receive a price in secs and handle the risk in actual time
• Availability of a safe wallet
• You may invest in 410 different digital contracts on this website

#2 IQ Option

IQ Option commenced operations on binary options in 2013 and has since been amongst the industry’s best-known firms. It is located in Cyprus and is controlled by CySEC as well as various government organizations. This company has a well-designed UI. Clients can use this platform to set up an account in minutes and start trading immediately. After you register for this website, you will be free to trade in a practice account with $10k in imaginary money.

Once you comprehend how the program operates, you can open an actual account and deal in Etf, Commodity markets, Fx, Equities, Cryptocurrencies, and Derivatives.

It is one of the most well-known broker companies, providing great user satisfaction. 

Some of the platform’s main characteristics are the following:

• Users get a 50% extra bonus on their first payment, and there are no trading fees
• There are over a hundred analytical signals
• Beneficial tutorials

#3 Pocket Option

Pocket Option was founded in 2017. Gimbell Ltd owns this system, which is governed by the International Financial Market Relations Regulation Centre (IFMRRC).

Its introduction into the sector had a big effect, and it has become one of the most trustworthy systems in the business. To attract clients, the site offers 50+ funding alternatives and over 100 trade-in assets.

And over 130 assets are available to investors on the Pocket Option Trading Platform. Commodity, FX, equities, cryptocurrencies, and indexes are all options.

The system only supports one sort of trade. It employs the simplest straightforward binary options trading strategy, with basic “high” and “low” choices. The expiry time can be chosen between one minute and four hours. They provide massive pay-out as high as 128 percent.

Pocket option platform is inextricably networked, and you can interact with other users from all across the globe using the developed online chat. This is beneficial for newbies since they can converse with and gain knowledge from the experts.

The platform provides all the features that a user may want. A few major factors include the following:

• Comes with 150 instruments to trade, and there are no funding or withdrawal charges
• A vibrant and cutting-edge trading platform
• A 100% reward on your initial deposit
• You can start trading as low as $1

Education for users from Nigeria

Users from Nigeria must fight with their lack of awareness of binary options inside the jurisdiction. It is a forecast-based trading approach that enables you to forecast if an asset’s value will rise or fall. You can either make a gain or make a loss based on the successes or failures of your trade!

To reduce the risk of loss in your trading with Binary options in Nigeria, it is critical to use the proper strategy. You cannot simply allocate a significant sum in any instrument with the biggest payoff. Conversely, you should experiment with the hit-and-miss strategy and little bets. If the demo account isn’t providing you with the best advice, invest the minimal amount in the real account.

The lowest trade size is calculated by the broker’s standards. Assessing the outcomes of your early limited trades can help you become accustomed to the asset’s extreme volatility in the market. You’ll quickly be capable of foreseeing price changes inside the charts, giving you the ability to invest largely. You must maintain your tolerance while trading in binary options! It is due to the fact that you should not anticipate becoming wealthy by focusing solely on a single trade.

Curiosity is an evident attitude following a pair of profitable trades. Binary options trading with a legitimate broker does not promise to eradicate risk elements altogether. However, with certain incentive and bonus elements, you can stay secure in your invested capital because you will not lose your actual funds. As a result, even though you win the very first 10 transactions, it is critical that you restrain your desire. To achieve effective forecasts, you must always keep to the tactics and signals.

You can use the signaling tools and trade indications provided by brokerage platforms. It will provide you with a clearer idea about how to conduct binary trades on the site. If you have any remaining concerns, you can simply create a trial account to test your abilities and ideas before committing to a real account.

Conclusion

With the above-provided information, you should have a good idea of how to look for binary options in Nigeria. It is now permitted and unregulated, but the authorities do have the right to enact a decision at any moment! As a result, it is preferable to approach a regulated and authorized brokerage to function in other nations. It will keep you secure, even if the CBN implements strict laws on this type of trade in the nation.