10 Best ECN Brokers in Nigeria 2023

As online trading becomes more popular in Nigeria, traders looking for efficient and transparent trading experiences must choose the correct broker. Because of their direct market access, competitive pricing, and order execution transparency, ECN (Electronic Communication Network) brokers have emerged as a favoured choice for many traders.

In this blog post, we will look at the 10nbest ECN brokers in Nigeria in 2023 to help you make an informed decision about your trading path.

What is an ECN broker?

On the Forex market, there are two types of brokers: those that act as intermediaries between traders and liquidity providers and those that connect the two parties directly. The first type is known as an STP broker, while the second is known as an ECN broker.

An electronic communications network (ECN) broker is a financial intermediary that allows its clients to execute orders on financial markets using an electronic communications network (ECN).

Because this broker is solely an intermediary, it does not accept these orders on its books and instead just matches them between market players.

Because ECN brokers frequently use numerous liquidity sources, the spread (difference between buy and sell prices) is typically lower. Instead of giving bigger spreads, the ECN broker is compensated through a fixed commission per trade.

Benefits of ECN Brokers

ECN brokers provide numerous advantages. Take a look at the following:

1. Lower Bid and Ask Spreads

ECN brokers aggregate price quotes from liquidity suppliers, providing greater liquidity. As a result, spreads are narrower, which benefits short-term, high-frequency traders in particular.

2. Quick trade execution

ECN is an automated mechanism that immediately matches market participants’ orders. Because the broker just processes trades, there is no dealing desk risk, such as price requotes, that could delay execution.

3. Flexibility

Because ECN brokers do not have dealing desks, they have greater operational flexibility. Meanwhile, an ECN network enables traders to trade over-the-counter (OTC), even when the market is quiet, without a conflict of interest with the broker as a counterparty.

4. Flat Commission Rate

ECN brokers charge a volume-based commission rate while decreasing or, in some cases, eliminating the spread. Because total fees are only a simple calculation away, this strategy enables better transaction planning.

Drawbacks of ECN Brokers

ECN brokers provide numerous benefits, but their business model is not without drawbacks.

1. Market Fragmentation

Market fragmentation is the phenomenon of the same asset trading at multiple prices. With ECN brokers, this could occur if the underlying asset sees a drop in liquidity when executing a large order outside of peak market hours.

2. High minimum account values and trade sizes

ECN brokers profit from trading volume. Still, offering a service to a customer is a cost that must be recovered. Hence ECN brokers sometimes impose larger minimum account and trade amounts.

3. Less User-Friendly 

ECN broker platforms may not always provide extensive charting capabilities, news feeds, or other elements that may be useful to traders. Traders who seek these features should test ECN brokers before committing.

10 Best ECN Brokers in Nigeria 2023

1 – Pepperstone

Pepperstone’s low-cost ECN trading service, quick trade execution, and variety of third-party trading platforms have made it popular among both seasoned traders and serious beginners all around the world.

Pepperstone’s Standard Account features no commissions and spread fees averaging 0.69 pips on the EUR/USD, making it one of the most affordable trading accounts accessible. For traders who want raw spreads, the Razor Account features spreads as low as 0 pips on the EUR/USD and a cost of 7 USD per trade. Both accounts are suitable for scalpers and other traders that rely on bots for automatic trading, as the average execution speed is less than 30ms.

Pepperstone supports all three major trading platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, which is simpler to use but retains the complex automation tools found in MT4 and MT5. Serious beginners looking for an ECN broker should be aware that Pepperstone has dropped its minimum deposit requirement, though it still recommends a minimum deposit of $200 USD.

Pros

• Well regulated
• Tight spreads
• Great platform choice
• Wide range of assets

Cons

• Limited market analysis

2 – OctaFX

OctaFX is a famous ECN broker that offers reasonable spreads and access to different financial markets. OctaFX has earned a great reputation among Nigerian traders for its devotion to transparency, client satisfaction, and technological innovation. OctaFX is the broker of choice for investors all over the world who want to trade CFDs on extremely favourable terms, such as lower entry requirements and short to medium-term trading methods.

OctaFX was founded in 2011 and has since risen to be at the forefront of the industry. OctaFX provides excellent services to both traders who prefer live trades and investors who prefer copy trading.

Today, OctaFX is delighted to service over 6.6 million consumers worldwide as a financial market intermediary. The company’s primary focus is on the Asia-Pacific region, specifically India, Indonesia, Malaysia, and others. OctaFX is a well-known broker that has received over 60 honours.

3 – FBS 

FBS only provides one ECN trading account, yet the trading conditions are extremely competitive. The FBS ECN Account is the only ECN account with a negative spread on the EUR/USD, reaching -0.1 pips at times but averaging 0 pips. At 6 USD round turn, commissions are also lower than the industry average. Professional traders will also appreciate the 500:1 leverage provided, as well as the limitless amount of open or pending orders.

Pros

• Tight spreads
• Low minimum deposit
• Excellent Education
• Excellent market analysis

Cons

• Limited range of assets
• Extreme leverage

4 – Vantage FX

Vantage FX ticks several boxes for Nigerian traders seeking a professional-grade ECN/STP broker, including support for both the MT4 and MT5 trading platforms, STP execution to prevent slippage, and a diverse variety of markets to trade, including FX pairs, indices, commodities, and share CFDs.

Vantage FX offers three types of accounts: Standard STP, Raw ECN, and Pro ECN. Professional traders will be interested in the Pro ECN account, which has a 20,000 USD minimum deposit, spreads starting at 0.0 pips, and a round turn charge of only 4 USD.

With spreads beginning at 0 pip but a little higher cost of 6 USD round turn, the Raw ECN is also a great offer. Additionally, Vantage FX includes support for the ZuluTrade social trading platform, which gives users access to a sizable network of seasoned investors and successful trading strategies. Users of ZuluTrade can find profitable traders who are graded by the unique ZuluRank performance rating system and monitor their trades as they are executed in their own trading accounts.

Pros

• Well regulated
• Tight spreads
• Fast and free withdrawals
• Great platform choice

Cons

• Limited assets
• High minimum deposit on Pro Account

 

5 – ThinkMarkets

The ThinkMarkets ThinkZero Account offers ECN pricing on the MT4 and MT5 trading platforms. Trading fees and conditions are comparable to other brokers on this list, with EUR/USD spreads as low as 0 pips and a round-turn commission of 7 USD.

ThinkZero Account holders, on the other hand, receive a personal account manager and leverage of 1:500. The main allure here is access to ThinkMarkets’ stable of cryptocurrencies, which includes DASH, Monero, and Shiba Inu. Cryptocurrency traders will also have access to customer assistance 24 hours a day, seven days a week, so weekend crypto trading will not be suspended due to technical concerns.

Pros

• Low minimum deposit
• Well regulated
• Great platform choice

Cons

• Limited market analysis
• Non-transparent spreads

6 – Exness

Since 2008, Exness Trading Company has been active in the Forex market. The broker operates legally in over 130 countries, adhering to the local rules in each nation.

The Exness group of enterprises is regulated by the following regulatory authorities: the FCA (UK), CySEC (Cyprus), the FSA (Seychelles), the CBCS (Curacao and Saint Martin), the FSC (British Virgin Islands), the FSC (Mauritius), the FSCA (South Africa), and the CMA (Kenya). In the case of a force majeure, the broker is also a member of the Financial Commission and offers up to EUR 20,000 in insurance coverage per client.

CySEC (Cyprus Securities Commission), FCA (Office of Financial Regulation and Supervision of Great Britain), and FSA (Office of Financial Regulation and Supervision of the Republic of Seychelles) licenses govern the service. The broker is the market leader in Forex ratings. The monthly trading turnover of the corporation is $325.8 billion USD. The broker presently offers CFDs on bitcoin, equities, over 120 currency pairs, energy, and metals.

Exness’ service offers traders advantageous working conditions, including minimal commissions, rapid order execution, and fund withdrawal. Depending on the needs of the trader, there are numerous choices for starting an account. A demo account is offered, which serves as a training account for both novice and professional traders.

7 – FXTM 

Traders seeking an ECN account with high leverage will be drawn to FXTM’s Advantage Account right away. Maximum leverage is 2000:1, which is unusual for ECN brokers. This high leverage is complemented with minimal trading fees, with spreads on the EUR/USD starting at 0 pips and a round-turn commission of 4 USD, which is cheaper than most other ECN brokers.

The Advantage Account, which is available on both the MT4 and MT5 trading platforms, requires a minimum deposit of $500 USD. The Advantage Plus Account has a wider average spread of 1.5 pips (EUR/USD) and no commission for traders who prefer commission-free trading.

On the MT4 platform, the Advantage and Advantage Plus accounts both enable trading on 48 currency pairs, three spot metals, 14 spot CFDs, and trading on 33 currency pairs and 2 spot metals on the MT5 platform. FXTM also offers FXTM Invest, a robust copy-trading platform.

Pros

• Good for beginners
• Excellent Education
• Well regulated
• Low minimum deposit
• Copy trading accounts

Cons

• Expensive withdrawals

Read Also: 10 US-regulated Forex Brokers With High Leverage 

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8 – IC Markets 

For new traders seeking an ECN broker, IC Markets offers one of the most inviting environments. Not only does IC Markets have inexpensive trading fees, but it also has a library of organized training material and expert-led webinars.

Beginners can also benefit from IC Markets’ superb 24-hour technical support. Trading fees on IC Markets’ two Raw Spread Accounts are the lowest, with variable spreads averaging 0.1 pips on the EUR/USD. They both carry a little charge every trade because they are Raw Spread accounts.

IC Markets also offers a no-commission Standard Account, however, spreads start at 1 pip, implying trading expenses are close to the industry average. Another key selling point for IC Markets is the variety of trading platforms, which includes MT4, MT5, and cTrader. IC Markets pricing is based on 25 distinct liquidity providers, which keeps trading fees low.

 Pros

• Well regulated
• Tight spreads
• Wide range of assets
• Great platform choice

Cons

• High minimum deposit
• Limited market analysis

9 – FP Markets 

FP Markets offers 60+ FX pairs, equities, metals, indices, commodities, and cryptocurrencies to trade on the MT4 and MT5 trading platforms.

With typical spreads of 0.1 pip for EUR/USD, 0.2 pip for GBP/USD, and 0.1 pip for USD/JPY, FP Markets’ pricing is comparable to Pepperstone and other industry-leading ECN brokers. Most deals are executed in about 40 milliseconds utilizing an Equinix server cluster, which is substantially faster than other ECN brokers.

As a result, FP Markets is a great broker for scalping and EA trading on Metatrader trading platforms. The commission is also modest, at 6 USD every lot round turn, with a minimum deposit of merely 100 AUD (or currency equivalent).

Pros

• Well regulated
• Tight spreads
• Good range of accounts
• Great customer support

Cons

• Expensive withdrawals

10 – Axi 

For three reasons, Axi, formerly known as AxiTrader, stands out: First off, it’s an MT4-only broker, so you can stop looking if you want to use any other trading platform.

Second, it’s an ECN broker with inexpensive costs, no need for a minimum deposit, and two straightforward accounts: one with commission and one without. And finally, it has a wonderful selection of trading tools that it gives away without charge to its customers.

These include the MT4 NexGen plugin from Axi, which comes with a correlation trader, an advanced sentiment indicator, and an automatic trade log. The free trading tools Autochartist, MyFxbook, and PsyQuation are also available.

And, while its trading account fees aren’t the lowest available, they are lower than the industry average. The Pro Account offers good value, with EUR/USD spreads averaging 0.1 pips and a 7USD cost.

Pros

• Low minimum deposit
• Tight spreads
• Innovative trading tools

Cons

• MT4 only
• Limited range of assets

Choosing the best ECN broker is important for profitable trading in Nigeria. The 10 ECN brokers in nigeria mentioned above have built their reputations via their dedication to openness, competitive pricing, cutting-edge technology, and exceptional customer service. Consider variables such as regulation, trading conditions, available platforms, customer support, and instructional resources when selecting an ECN broker. Remember to undertake thorough research, determine your trading needs, and match them to the broker’s services. You can improve your trading results by working with the correct ECN broker.