Nigeria, India, Brazil Emerge Highest-cost Markets for Retail Investment Platforms

Sunday Ehigiator

Nigeria, India and Brazil have been ranked among the most expensive markets for retail investment platforms globally, according to a new cross-border analysis by The Investors Centre (TIC).

The study, which reviewed trading costs across 50 countries, revealed that investors in Nigeria, India and Brazil face significantly higher platform-driven trading expenses compared to investors operating in major global financial hubs.

The report examined fees charged by major investment platforms including Capital.com, Trading 212, Binance, eToro, Plus500 and Interactive Brokers.

The analysis focused strictly on platform-level costs such as spread markups, foreign exchange (FX) conversion fees, overnight financing charges and withdrawal or inactivity fees, excluding government taxes and statutory levies.

The report placed Nigeria as the highest-cost environment for retail investors, attributing the ranking to wide FX conversion spreads, limited broker competition and funding friction, especially for investors trading dollar-denominated assets or cryptocurrency.

India ranked second due to higher financing charges and broader FX margins affecting leveraged and cross-currency transactions, while Brazil’s third-place ranking was linked to currency volatility pricing and elevated funding and conversion costs.

The study noted that while zero-commission trading has become common across several markets, hidden charges such as spread markups and currency conversion costs now represent the most significant trading expenses.

It warned that these less visible fees can accumulate over time, particularly for active traders or investors holding leveraged positions overnight.

By contrast, mature financial centres such as the United States, United Kingdom and Singapore were identified as lower-cost markets due to deeper liquidity, stronger competition among brokers and more efficient FX systems.

According to the report, intense broker competition in the United States has compressed spreads and funding costs, while the United Kingdom benefits from high fintech density and transparent pricing. Singapore’s efficient FX markets and competitive funding rates also contribute to reduced trading costs.

Co-Founder and Senior Trading Analyst at The Investors Centre, Thomas Drury, said the findings underscore how commission-free marketing can mask actual trading expenses.

“In mature financial hubs, competition has largely eliminated visible commissions. What differentiates markets today is execution quality, FX efficiency and financing competitiveness,” Drury said.