SEC Draft Rules Propose ₦3bn Capital Requirement for Forex Brokers and 1:2 Crypto CFD Leverage Cap
Nigeria’s Securities and Exchange Commission has published draft rules that would reshape retail forex and CFD trading. The proposal requires market-maker forex broker-dealers to maintain ₦3 billion in paid-up capital, while STP and ECN brokers would need ₦2 billion. Trading-platform providers would face a ₦5 billion minimum. The rules would cap retail leverage at 1:400 for major currency pairs, 1:300 for several other CFDs, and 1:2 for cryptocurrency CFDs. Binary options would be prohibited for retail traders. The draft also restricts deposit bonuses, excessive trading rebates and unapproved influencer promotions that portray trading as a route to luxury. Offshore brokers serving Nigerians would need a Category-A licence and a local operating presence. Client funds would have to be segregated in CBN-licensed banks, while firms would be required to meet cybersecurity, record-keeping and risk-management standards. The proposal is not yet in force. Existing operators would have three months to apply and six months to fully comply after the rules are enacted. Retail traders using offshore platforms should watch for updates on whether their brokers intend to seek Nigerian licences.
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