In Nigeria, forex trading is legal. But, traders need to be aware that there are scam and fake forex brokers in Nigeria that need to be avoided. Although fraudulent brokers have been prohibited, many still continue to operate and scam people of their funded.
The forex market is very liquid, volatile, and active, which has made it possible for dishonest people to take advantage of naive investors. These dishonest people, often known as fraudsters, are widespread around the world and are particularly active in Nigeria.
For Nigerian forex traders, it is vital to research how legit a platform is before depositing money to trade, so you don’t fall for scam and fake forex brokers in Nigeria.
Read Also: Best Forex Broker in Nigeria
Table of Contents
- 1 List of 10 Scam & Fake Forex Brokers in Nigeria
- 2 How to Identify Scam & Fake Forex Brokers
List of 10 Scam & Fake Forex Brokers in Nigeria
The Financial Markets Authority (FMA) in New Zealand has banned Oracle FX, a fraudulent broker as a response to many negative reports they have received about Oracle FX. Everyone should exercise caution when dealing with Oracle FX because it is not a registered organization with any regulatory authority.
Swiss Assets FX
Swiss Assets FX is a scam and fake forex brokers in Nigeria that claims to be a regulated organization that provides investment services on its official website. The broker asserts that the Swiss Securities and Exchange Commission, which does not exist, has regulated and authorized them.
Without the required authorization, Swiss Assets FX has been offering financial services to traders from all over the world.In a warning against the broker, FINMA, Switzerland’s main market regulator has cautioned both local and foreign traders against using the broker.
Aviant Marketing Limited, an offshore company established in the Marshall Islands and holding a license from the Marshall Islands Banking Commission, is the owner and operator of Broker XP. On the website, M&A Mergers and Acquisitions Consultancy LP is listed with a second license. The broker is infamous for its cold calls and aggressive marketing, seeking to induce traders to deposit cash in order to gain thousands of dollars in profits each month.
The broker’s website states that its headquarters are in the UK, however, the name of the broker is not associated with any legitimate registrations or authorizations. 100XFX broker’s address is in Saint Vincent and the Grenadines, which is known for housing shady brokers due to lax licensing regulations.
Citibank Europe Plc’s clone firm is CT-Trade. The clone states that the original company’s address, 71-75 Shelton Street, London, WC2H 9JQ, United Kingdom, is where Citibank Europe plc regulates it. Therefore, much like the original firm, the copy should likewise be in possession of a UK FCA license. However, neither the UK nor any other nation has granted the CT-Trade a license. The firm would need to pay USD 50,000 and provide USD 100,000 in capital in addition to customer deposits in order to receive the STP license from the UK’s Financial Conduct Authority.
Scam broker Forex Birds claims to be a registered business in the United Kingdom, however it is impossible to confirm this. There isn’t much information available about Saint Vincent and the Grenadines-based Forex Birds Ltd, and some reviews claim that this broker is a scam. In a warning against the broker, the National Securities Market Commission (CNMV) informs forex traders that the company might not offer investment services.
This broker has received warnings from the Financial Conduct Authority (FCA) in the UK, which states that the broker is not permitted to offer services in the UK. Many forex traders have voiced their concerns to the broker, and many more have experienced problems with account closure and money withdrawal, which is a sign of a shady broker.
Fx Option Trade247
This broker asserts that it is governed by the Cyprus Securities and Exchange Commission (CySEC) and the National Futures Association (NFA) of the United States. However, the broker is just a copy of an authentic company, and these credentials are bogus. They claim to provide more than 250 financial instruments to traders worldwide. However, this broker is an unlicensed and unregulated broker that claims that its trading services enable traders to conduct trading activities across trading platforms.
Calibur Capital Markets (TCM) Limited owns and runs the Calibur online broker. Calibur, however, is an unlicensed cloned company. Our investigation shows that Calibur has been blacklisted by CySEC as a result of several claims that the broker’s website is a forex scam because it does not belong to a legal, regulated organization.
According to the broker’s website, it is overseen by the Cyprus Securities and Exchange Commission (CySEC) and accredited by the Financial Sector Conduct Authority in South Africa as a Financial Services Provider (FSP) (FSCA). Further examination, revealed that the FSCA license number does not exist on the market regulator’s record while the CySEC regulation is owned by a legal business.
Although the broker claims to be licensed and registered in the Republic of Georgia, but this could not be confirmed. The Hauling Free Industrial Zone, where the broker claims to have a license, is not a market regulator.
One of the biggest Nigerian investment frauds, FX NextGen is an offshore broker that preys on unwary online traders. Nigerian traders who attempt to search for a trading opportunityon foreign marketplaces run into dubious schemes like FX NextGen. FX Nextgen Limited has already received a warning from the FMA in Austria, informing the firm that it is not permitted to conduct banking operations.
How to Identify Scam & Fake Forex Brokers
Below are some steps you can take to identify scam forex brokers in Nigeria:
- Check to see if the broker is accredited by reputable agencies like the FSCA, CySEC, FCA, and others.
- Compare the license and regulation numbers of the broker against the market regulators’ registry.
- Look for information about the company’s history, finances, location, and other important details. Scam brokers do not usually provide all this information.
- Keep an eye out for any advice from regulatory bodies not to use that broker, such as warnings.
- Be wary of unsolicited advice, particularly if the broker is quite insistent regarding deposits.
- Examine forums and online reviews to see how other clients feel about the broker.
It is essential to use a regulated forex broker in Nigeria to ensure that your funds are protected. Also, if there are any problems, the market regulator can ensure that it is resolved. Additionally, forex brokers must accomplish their financial goals and offer a secure trading