Checking a broker in the local register
This lesson shows where the register is, what to type into it, and which answers mean the licence does not cover what you were offered.
What the register actually holds and what it leaves out
The register of SEC Nigeria is a list of firms and individuals that hold a licence from the commission. Each entry shows the legal name of the licence holder, the activity the licence covers, and the status of that licence. The register does not show whether a firm is good to deal with, how quickly it pays, or what its platform is like. It answers one question only: is this legal name allowed to do this activity in Nigeria. A firm can be on the register and still be a poor choice for other reasons.
The activity field matters as much as the name. A licence for dealing in securities is not a licence for receiving money for offshore currency trading. A licence for portfolio management is not a licence to hold client funds for margin products. If the activity on the entry is not the activity you were offered, the licence does not cover what you were sold. The register entry is a record of permission, not a general approval of everything a company does.
The register is free to search and it is open to anyone. There is no fee, no account, and no need to contact the firm first. You can check a name before you send any money at all. The cost of the check is ₦0. The cost of skipping it can be the whole amount you were about to send, because an unlicensed firm is not accountable to SEC Nigeria for what happens to your deposit.
What the payment page tells you that the register does not
The register shows who holds the licence. It does not show where your money goes when you pay. Those are two different questions. A licensed firm can still ask you to send money to a different company name, a payment processor, or an individual. That does not automatically mean fraud, but it does mean the firm you checked is not the firm receiving your naira. Ask for the reason in writing before you send anything.
The payment page may also add charges that are not in the register entry. A bank transfer may carry a transfer fee. A card payment may carry a card fee. A USSD payment may carry a network charge. These vary between brokers and between payment methods, so no single figure fits all. Read the fee schedule on the broker's own site and add those costs to your deposit before you decide the total amount you are risking.
The name on the payment instruction is the name that matters for your bank. If that name is not the licensed legal name you found in the register, you have a separate question to resolve. Put it in writing. Ask which company receives the money, and what relationship it has to the licence holder. Keep the reply. If the reply is vague, treat that as information about the firm, not as a delay to work around.
How the check fits into the money you are about to send
You plan to send ₦250,000. The check costs nothing but a few minutes. If the register entry matches the legal name and the activity you were offered, the licence covers the firm you would be paying. If the entry matches only the brand name from the advertisement, the licence does not cover the firm you would be paying. In that second case the full ₦250,000 is at risk, because there is no licensed entity to hold to account.
The amount at risk is not reduced by the size of the deposit. A smaller deposit does not make an unlicensed firm safer. The same mismatch that puts ₦250,000 at risk puts ₦25,000 at risk in the same way. The check is the same either way, and it costs the same: nothing. The only thing that changes with the amount is how much you would lose if the check is skipped.
One pip on EUR/USD near 1.0850 is 10 units of the quote currency on one standard lot. At a naira rate of ₦1,600 to the dollar, that is ₦16,000 per pip on one standard lot. On 0.10 lots it is ₦1,600 per pip. These figures change as the exchange rate changes, so recompute them with the rate you actually see. The point of the figure is scale: a single pip can be a large amount in naira, which is why the register check comes before the first trade, not after.
Checking one name against the register on 14 May 2025
| Step | Amount | Note |
|---|---|---|
| Date of the check | 14 May 2025 | Write the date down. A register changes. |
| Name typed into the register | the exact company name from the terms page | Not the brand on the advert. The legal name in the client agreement. |
| Result returned | one entry, status shown as active | The register shows the status. Read it. |
| Activity on the entry | the entry lists what the firm may do | Compare it with what you were offered. |
| Deposit you were about to send | ₦250,000 | The amount at risk if the entry does not match. |
| Cost of the check | ₦0 | The register is free to search. |
The broker may quote a different legal name on the payment page, may route the transfer to a third party, and may add card or transfer charges on top. The register entry, not the website, is the thing you are checking.
Doing it once, step by step
Do these six steps in order, once, before you send any money to a firm you have not checked. Each step takes minutes and costs nothing.
- 01
Open the client agreement and copy the full legal name
Find the client agreement or the terms document on the firm's site. Copy the full legal name exactly as it appears there, including any words like Limited or Holdings. Do not use the brand name from the advertisement. The legal name is the one the register uses.
- 02
Search that exact name in the register of SEC Nigeria
Go to the register and type the full legal name into the search field. Read the result that matches the name, not a similar name. If no entry matches the full legal name, stop and treat that as your answer. A near match is not a match.
- 03
Read the activity listed on the entry
Open the entry and read the activity field. Compare it with what you were offered. If the entry covers a different activity, the licence does not cover what you were sold. Write down the activity exactly as the register states it.
- 04
Check the name on the payment instruction
Look at the account name your bank or card would pay. If it differs from the licensed legal name, ask the firm in writing which company receives the money and why. Keep the reply. A clear written answer is useful; a vague one is also useful information.
- 05
Add the payment charges to your deposit figure
Check the fee schedule for bank transfer, USSD and cards. These charges vary between brokers, so read the figures on the firm's own site. Add them to your deposit to get the true amount leaving your account. The register check itself adds ₦0.
- 06
Decide before you send, not after
If the legal name matches and the activity matches, the licence covers the firm you would be paying. If either does not match, the licence does not cover what you were offered. In that case the full amount you were about to send is at risk. The check is free, so there is no cost reason to skip it.
The mistake most people make here
The common mistake is to search the brand name from the advertisement, see a similar name, and stop there. Instead, open the client agreement and copy the full legal name, then search that exact name and read the activity listed on the entry. If the entry covers a different activity from the one you were offered, the licence does not cover what you were sold. If the name on the payment instruction is a different company again, treat that as a separate question and ask for it in writing before sending anything.Check yourself
You plan to send ₦250,000. Two firms are on the register: one entry matches the legal name and the activity, one matches only the brand name. How much is at risk with the second firm, and what does the check itself cost?
The full ₦250,000 is at risk, because the entry that matches only the brand name does not cover the firm you would be paying. The check costs ₦0, because the register is free to search.
EUR/USD is near 1.0850. One pip on one standard lot is 10 units of the quote currency. If the naira rate is ₦1,600 to the dollar, what is one pip worth in naira on one standard lot?
10 x ₦1,600 = ₦16,000 per pip on one standard lot. On 0.10 lots it is ₦1,600 per pip. These figures change as the rate changes.
Questions that come up next
How do I find the register of SEC Nigeria?
Go to the SEC Nigeria website and look for the section called registers or licensed entities. The register is free to search and needs no account. You can type a name into the search box and read the result. If you cannot find the page, call the commission and ask where the register sits.
What exactly do I type into the search box?
Open the client agreement or the terms you were sent and copy the full legal name of the company. That is the name to type, not the brand name from the advertisement. Search the exact legal name, including words like Limited or Plc if they appear. A close match is not a match.
The register shows a licence, but for a different activity. Is that a problem?
Yes. A licence covers only the activity listed on the entry. If the entry says dealing in securities and you were offered offshore currency trading, the licence does not cover what you were sold. The firm may be allowed to do something else, but not this. Treat the activity field as the part that decides the answer.
The payment page asks me to send money to a name I did not check. What should I do?
Ask the firm, in writing, why the payment name differs from the licensed name. Do not send anything until you have a written answer you understand. A licensed firm can still use a payment processor, but you should know who is receiving your naira and why. If the answer is vague, stop.
Does checking the register cost me anything?
No. The register is free to search and open to anyone. You do not need an account or to contact the firm first. The check costs ₦0. The cost of skipping it can be the whole amount you were about to send.
If a firm is on the register, is my money safe?
No. The register shows only that the legal name is allowed to do the listed activity in Nigeria. It does not show how the firm treats clients, how fast it pays, or what its platform is like. A firm can be on the register and still be a poor choice for other reasons. The register answers one question, not all of them.
In Nigeria
- Regulator
- SEC Nigeria keeps the register of licensed capital market operators.
- What to search
- The full legal name from the client agreement, not the brand on the advert.
- What to read
- The status of the entry and the activities it lists.
- Cost of the check
- ₦0. The register is free to search.
- Payment methods
- Bank transfer, USSD and cards. Check the name on the payment instruction against the register entry.
The words used on this page
- register
- The public list kept by SEC Nigeria of firms and individuals that hold a licence from the commission. Each entry shows the legal name, the activity covered, and the status. It is free to search and open to anyone.
- legal name
- The full company name written in the client agreement, not the brand name used in adverts. This is the name that appears on the register if the firm is licensed. You copy it exactly and search for it.
- activity
- The type of business a licence allows, such as dealing in securities or portfolio management. A licence for one activity does not cover another. If the activity on the entry is not what you were offered, the licence does not cover it.
- payment instruction
- The name and account details you are told to send money to. This name can differ from the licensed legal name. That is a separate question to ask in writing before sending anything.
- pip
- A small move in a currency pair's price. On EUR/USD near 1.0850, one pip is 0.0001. On one standard lot, one pip is 10 units of the quote currency, which is the US dollar here.
- standard lot
- A fixed size for a trade, often 100,000 units of the base currency. On EUR/USD, one pip on one standard lot is 10 US dollars. At a naira rate of ₦1,600 to the dollar, that is ₦16,000 per pip.
What to take away
- The register of SEC Nigeria is free to search and shows the legal name, the activity covered, and the licence status.
- Search the exact legal name from the client agreement, not the brand name from the advertisement, and read the activity field.
- If the payment instruction names a different company, ask for the reason in writing before you send any money.
- The check costs ₦0. The cost of skipping it can be the whole deposit.