Deposits and withdrawals with local methods
What you learn in 3 minutesThis lesson shows what it costs to move money in and out of a trading account using bank transfer, USSD or cards, and how long each step takes.
What a 0.10 lot EUR/USD trade costs around one deposit
| Step | Amount | Note |
|---|---|---|
| Deposit sent | ₦50,000 | the amount leaving the bank account |
| Bank transfer fee | ₦50 | varies by bank and by amount |
| Amount credited after fees | ₦49,950 | ₦50,000 minus ₦50 |
| Broker's conversion rate | ₦1,600 per 1 unit of the account currency | this rate varies between brokers and changes daily |
| Account balance after conversion | about 31.22 units | ₦49,950 divided by ₦1,600 |
| One pip on 0.10 lots of EUR/USD | 1.00 unit of the quote currency | a standard lot is 10 units per pip, so 0.10 lots is 10 x 0.10 |
| One pip as a share of the deposit | about 0.032 of the balance | 1.00 divided by 31.22, rounded |
The broker may round the conversion rate, add a deposit or withdrawal charge, or quote a different rate for money going out than for money coming in. Check the fee page before sending anything.
The mistake people make here
The common mistake is to deposit with a card because it is the fastest, then try to withdraw to a bank account, and find the withdrawal is refused or delayed because it must return by the same route. Use one method for both directions from the start. Another mistake is to compare only the transfer fee and ignore the conversion rate, which is usually the larger cost. Read the broker's deposit and withdrawal page before the first payment, not after.Check yourself
A deposit of ₦80,000 is charged a ₦100 transfer fee and converted at ₦1,600 per unit. What is the balance?
₦80,000 minus ₦100 is ₦79,900. ₦79,900 divided by ₦1,600 is about 49.94 units.
On that balance, what is one pip on 0.20 lots of EUR/USD worth in units of the quote currency?
One standard lot pays 10 units per pip, so 0.20 lots pays 10 x 0.20, which is 2.00 units per pip.
If the broker's conversion rate were ₦1,650 instead of ₦1,600, how much smaller is the balance on a ₦79,900 deposit?
₦79,900 divided by ₦1,600 is about 49.94 units. Divided by ₦1,650 it is about 48.42 units. The difference is about 1.52 units.
In Nigeria
- Currency
- The naira, written ₦ and coded NGN
- Common funding methods
- Bank transfer, USSD and cards
- Regulator
- SEC Nigeria
- Instrument in the examples
- EUR/USD, around 1.0850
- Timing
- Bank transfers often take longer to arrive than card payments, and the exact time varies between providers