Economy
Traders Union Presented A Fake Forex Brokers List in Nigeria For 2023
TU experts suggest that over 300,000 traders exist in Nigeria, making it the second-largest in Forex trading growth on the continent, only after South Africa. Many Nigerians are drawn to Forex trading due to its potential for both experienced and new traders to earn money. The trading industry is regulated by the Central Bank of Nigeria. However, just like in any country, there is a risk of falling prey to scams and losing money. In this content, Traders Union analysts will share a fake Forex brokers list in Nigeria and discuss how to differentiate between fake brokers and legitimate companies.
Nigerian Forex Broker Blacklist
According to TU experts, the swiftly growing market in Nigeria is attractive to both traders and honest brokers, but it also attracts financial scammers. These scammers cleverly pretend to be trustworthy companies and unlawfully offer their services to investors. A fake broker can steal a significant amount of money even before the trader realizes they’ve been scammed. Below is a list of phony Forex brokers in Nigeria, each of which will be discussed along with the signs of fraud found.
- STForex
STForex has been active in the global financial market since 2014 and is registered offshore in Saint Vincent and the Grenadines. This island state lacks regulation for binary and Forex brokers. The company doesn’t possess a valid license. It attracted potential victims by offering learning courses and promising profitable trades in various assets. However, it failed to fulfill its promises and instead took clients’ funds. Key indicators of fraud include:
- Unexplained account blocks.
- Lack of legitimate business documents.
- False endorsements from pseudo-analysts.
- Numerous negative comments on different websites.
- Unauthorized trade actions.
- Attempts to extort money.
- KS-Securities
KS-Securities claims to be managed by a well-known Austrian company and to be regulated by authorities in Austria, Italy, and Germany. These claims are false, and the company is marked as fraudulent. Signs of fraud include:
- False statements about licenses.
- Blacklisting by multiple regulators.
- Scam withdrawal processes.
- Complete control of the platform by scammers.
- Poor client services.
- Negative reviews.
- LibraMarkets
LibraMarkets enticed beginners by promising diversified trading experiences and favorable terms. Despite starting in 2018, it has gained a negative reputation with numerous complaints. The lack of regulation left deceived clients with losses. Signs of fraud include:
- Unjustified account blocks and restricted access.
- Missing funds.
- Imposing unfavorable bonuses.
- Ignoring client complaints.
- Pressuring more deposits after significant losses.
What You Need To Know To Protect Your Investments
The global Forex market is appealing to traders, but scammers are also present, aiming to take your money. Many scammers attract unsuspecting investors with promises of huge profits and help in trading.
To protect yourself, perform a thorough analysis before choosing a broker and giving him your money. This helps you avoid losses and find a reliable financial partner. Let’s talk about key points to consider when choosing a broker, according to Traders Union analysts.
- Confirm broker’s legality: Ensure the company operates legally in Nigeria and holds them accountable for any misconduct. Reputable brokers share license information on their website.
- Verify licenses: Check the broker’s license on the regulatory authority’s website by using the document number or company name to see if they are regulated.
- Study the broker’s website: A good broker provides essential information on its website, including plans, legal details, risk disclosure, contract specifics, payment methods, and customer support channels.
- Avoid profit guarantees: A broker cannot promise profits, as it’s an intermediary. Be cautious if a broker claims surefire profits, quick gains, or secret strategies.
- Read customer reviews: Real client reviews reveal a lot about a broker. If a broker has many negative reviews, indicating issues with withdrawals or unfair practices, it’s best to avoid them.
Conclusion
Being cautious when selecting a Forex broker is crucial to safeguard your money. Remember, scammers are present in the market, but you can avoid them by following the advice of analysts at TU. By checking the broker’s legality, verifying licenses, studying their website, staying wary of profit guarantees, and reading real customer reviews, you can make informed choices and find a trustworthy financial partner.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
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