The Securities and Exchange Commission (SEC) has intensified efforts to strengthen the regulation of online forex and Contracts for Difference (CFD) trading in Nigeria, warning investors against misleading profit claims and the risks associated with digital trading platforms.
The Commission disclosed that its draft rules on online forex and CFD trading are currently under review following submissions from stakeholders, as the second Africa Forex Trading Expo (AFTE) opened at the Balmoral Convention Centre, Victoria Island, Lagos.
In a keynote address at the event yesterday, the SEC said the Investments and Securities Act, 2025, particularly Section 3(3)(o), empowers it to register and regulate online forex trading activities, platforms and intermediaries.
The Commission explained that it had released the draft regulations for public comments and that different departments within the regulatory body were reviewing the responses received from stakeholders.
According to the SEC, the proposed framework seeks to establish the categories of operators required to register, the activities they are permitted to undertake and their obligations to customers.
It also addresses cross-border arrangements and offshore operators whose activities target Nigerian residents, subject to applicable laws.
The Commission cautioned investors against confusing easy access to online trading platforms with investment safety, noting that technological sophistication does not necessarily translate into investment quality.
“Accessibility should not be confused with safety, and technological sophistication should not be mistaken for investment quality,” the SEC said.
It warned that the ability to open an account and execute trades does not mean investors fully understand leverage, transaction costs or the possibility of losing their entire investment.
The regulator identified five priorities underpinning its proposed regulatory approach: establishing a clear framework for market participation; ensuring operators demonstrate fitness, competence and financial soundness; promoting transparency and fair treatment of clients; protecting client funds and providing effective complaint-handling mechanisms; and strengthening supervision and enforcement.
It further stressed that registration alone would not guarantee compliance, insisting that operators must remain subject to continuous regulatory supervision.
The SEC also urged investors to exercise caution when dealing with platforms promising guaranteed profits or unusually high returns with little or no risk.
It advised traders to verify the regulatory status of trading platforms through its official channels and avoid unsolicited investment offers.
For operators, the Commission called for compliance to be integrated into their business models, with investor interests placed at the centre of product design and distribution.
It also urged industry players to invest in cybersecurity and market-integrity technology, strengthen cooperation with regulators and develop local expertise and institutions across Africa.
Speaking at the opening of the expo, Director of organiser Azelia Expo Limited, Zack Kiratu, said the growth of the forex trading industry must be accompanied by greater responsibility, particularly in addressing financial literacy gaps, unrealistic expectations, inadequate risk management, questionable marketing practices and consumer protection.
“A bigger market is important, but a more credible market is even more important,” Kiratu said.
He identified innovation, trust and opportunity as the three critical elements required to shape Africa’s digital financial markets, urging the continent to move beyond being a consumer of financial products to actively participating in their design and development.
“Africa’s digital finance revolution is not something we should merely observe. It is something we must actively participate in and help shape,” he added.
The expo is being held under the theme, “Africa’s Digital Finance Revolution: Trading, Technology and Opportunity.”
In the opening keynote, presenting sponsor FundingPips said its mission was to bridge the gap between trading talent and access to capital.
The proprietary trading firm disclosed that it had recorded more than $330 million in payouts, served over three million traders and established a presence in more than 195 countries. It also said five Nigerian traders had received nearly half a million dollars in payouts.
The company, however, emphasised the importance of discipline and risk management, urging traders to prioritise survival and consistency rather than attempting to win every trade.
“Hustle gets you into the game. Discipline keeps you in the game,” the presentation stated.
Similarly, workshops and masterclasses held alongside the main programme focused on trading discipline, strategy development and risk management.
Exinity (FXTM) Client Education Specialist, Pius Ogbu, in a masterclass titled “From Strategy to Execution,” highlighted the distinction between a trading plan and a trading strategy, stressing the need for traders to define entry points, stop-loss levels, targets and trade-management rules before executing transactions.
Founder of Spark FX Academy, Citadel Egigba, also led a workshop titled “Beyond the Candlesticks,” where participants were introduced to market structure, liquidity and points of interest through practical chart analysis.
The expo continues today, Thursday, November 12, with discussions on Nigeria’s position as Africa’s fastest-growing digital trading economy, women shaping the continent’s financial future and the challenges confronting forex traders.
Other sessions will focus on risk management and strategy validation, while the closing ceremony will feature competition awards, recognition of sponsors and organisers, and the announcement of AFTE Kenya 2027.
The event is expected to attract more than 5,000 participants, over 50 speakers and more than 60 exhibitors from more than 20 countries. Sponsors include FundingPips, Headway and FXTM.
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