Generally, there are five major factors to consider when choosing a broker and they are:
Level of regulation: You need to know if the broker is subject to the regulations of the Central Bank of Nigeria and if they operate accordingly. A lack of regulation should be a red flag and set off alarm bells in your mind.
Trading platform: How does the trading platform look? Is there a registration number on the website that can be verified? Is a demo account available where you can test strategies and other account features?
Currency pairs being offered: What kind of currency pairs does the broker have on offer? Is it just the minor pairs or exotic pairs that have low liquidity? Are major pairs that have high liquidity and are more profitable available?
Account features: how are charges and commissions deducted and what are the percentages? What kind of leverage and margin accounts are offered? And what are the terms of deposit and withdrawal?
Customer service: Is the customer service reliable? Can they provide succinct answers to your inquiries?
Negative Balance Protection (NBP) requires brokers to diligently monitor and manage trading accounts. Brokers must take action when a client's account balance falls into negative territory. They typically reset the account balance to zero or set a margin closeout rule at 50%, and any negative amounts are reimbursed once all open positions have been settled.
Basically, if the broker's "licensed", then it's just as good as "regulated". It means that the broker has obtained a license to operate as a broker in the country and is protected by its laws. Just like regulated brokers, if there is a legal issue, it will be resolved in the area of origin of the broker's license.