SEC moves to tighten online forex trading rules

A file photo of the Securities and Exchange Commission building

The Securities and Exchange Commission is set to use a dedicated forum at the 2026 Lagos Finance Summit to engage stakeholders on its proposed rules for online forex trading and contracts for differences.

The Regulation Forum, scheduled to be held during the summit from October 14 to 16 at the Landmark Event Centre, Victoria Island, Lagos, is expected to bring together forex brokers, introducing brokers, CBN-licensed banks, technology providers, legal practitioners and traders.

The Head of Marketing and Promotion at the Lagos Finance Summit, Musa Kabul, in a statement on Monday, said the proposed rules are aimed at strengthening regulation of Nigeria’s retail forex and CFD market through higher capital requirements, tighter operational standards and enhanced protection of customers’ funds.

Under the draft framework, market-making forex brokers would be required to maintain a minimum paid-up capital of N3bn, while straight-through-processing and electronic communication network brokers would face a N2bn threshold.

Technology and platform providers serving the market would also be subject to a proposed minimum capital requirement of N5bn.

Kabul said the forum would provide market participants with an opportunity to examine the proposals and contribute to the regulatory process.

“The Regulation Forum will provide a platform for market participants to examine the proposed rules, raise their concerns and make recommendations that can contribute to the development of an effective regulatory framework,” Kabul said.

The draft rules, published by the SEC on September 1 following the enactment of the Investments and Securities Act 2025, have not yet taken effect and remain subject to stakeholder consultations and consideration by the Commission.

• Poor funding, infrastructure crippling agric lending — CBN
• Trading Without Installation: Why Web Terminals Matter for Active Traders
• Capital market ecosystem to converge in Lagos

Another key proposal is the segregation of client funds, with brokers required to keep customers’ money in separate accounts with banks licensed by the Central Bank of Nigeria.

The SEC is also proposing greater oversight of offshore trading platforms that target Nigerian residents, potentially extending the Commission’s regulatory reach beyond locally based operators.

For existing operators, the proposed framework would provide three months to apply for registration and six months to comply with the new requirements once the rules become effective.

Kabul said the proposed capital requirements could have significant implications for existing operators and prospective entrants into Nigeria’s retail forex and CFD market.

The consultation process could therefore shape how the final rules address capital requirements, registration, customer-fund protection and the treatment of offshore platforms serving Nigerian traders.

The Regulation Forum is expected to produce a written industry response to the SEC, giving participants an avenue to submit concerns and recommendations on the proposed framework.