Opening an account and passing verification
The documents a regulated broker has to see, and what each one proves
A broker registered with SEC Nigeria has to know who is opening the account. That duty comes from rules on money laundering and on knowing the customer, and it applies before any money moves. The broker is not asking for documents out of curiosity. It is asking because it is not allowed to open an account without them.
Three documents cover most applications. The first is a government photo identity card: a national identity card, a passport, or a driver's licence. The second is proof of address, usually a utility bill or a bank statement dated within the last three months. The third is a selfie or a short video of the person holding the identity card. The selfie links the face to the card, which a photocopy alone cannot do.
Each document answers a different question. The identity card answers who the person is. The address document answers where the person lives. The selfie answers whether the person holding the card is the same person named on it. A broker that receives all three at once can finish the checks in one pass. A broker that receives them one at a time restarts part of the work each time.
The name must match across every document and the account. If the identity card reads one spelling and the bank statement reads another, the broker has to query it, and that query costs days. Send the documents in the name the bank knows. If a name has changed, say so at the start rather than letting the broker discover it later.
Why a bank transfer, USSD or card payment can slow the first deposit
Funding the account is a separate check from verifying identity, and it has its own cost in time. A bank transfer from a Nigerian account in the same name as the trading account is the simplest route, because the name on the sender matches the name on the account. A transfer from a friend or a relative raises a question the broker has to resolve before the money is credited.
USSD and card payments are accepted by many brokers, but the payment does not always arrive at the broker at the same moment it leaves the bank. A card payment can sit in a pending state while the bank and the broker settle it. The reader sees money leave the bank and no money in the trading account, and assumes something is wrong. It is usually a timing gap, not a lost payment.
Fees on deposits vary between brokers. Some pass on a card fee, some absorb it, and some charge nothing on a bank transfer but charge on a card. The broker's own fee page is the only reliable source, because the figure changes from one firm to another. Do not carry a number from one broker to another as if it were a rule.
A first deposit also has to clear before it can be traded with. Until it clears, the balance may show as pending and no position can be opened. Plan for the deposit to take longer than the transfer itself, and make the first deposit from an account in the same name.
What holds an application up, and how to shorten the wait
Most delays are not caused by the broker's queue. They are caused by a document that cannot be read or that has expired. A photo taken at night, a corner cut off, a glare across the number, or a card that expired last month all produce the same outcome: the check stops and a request for a replacement goes out. The application does not move until the replacement arrives.
A second common cause is a mismatch between the address on the proof and the address typed into the form. The broker compares the two. If the form says one street and the bill says another, the check pauses while someone confirms which is correct. Type the address exactly as it appears on the document, including the local government area, and do not abbreviate.
The status page is the only place that shows where the application stands. Checking it once a day is enough. Sending the same document again does not speed anything up, because the broker already has the first copy and now has two files to reconcile. If a document is rejected, read the reason given, fix that specific problem, and replace it the same day.
Verification can take several working days even when everything is correct, and the exact time varies between brokers. A reader who sends clear documents on day one is not waiting on a person to read them slowly; the reader is waiting on checks that run in sequence. The way to shorten that sequence is to remove the reasons it would restart.
One standard lot on EUR/USD at 1.0850
| Step | Amount | Note |
|---|---|---|
| Pip value on one standard lot | ₦10,850 | 100,000 x 0.0001 = 10 units of the quote currency, converted at 1.0850 naira per unit |
| Documents usually requested | 2 to 3 | A government photo ID, a proof of address, and sometimes a second ID |
| Typical verification time | 1 to 5 working days | This varies between brokers and can be longer if a document is unclear |
| Cost of a rejected application | ₦0 in fees, days in time | Brokers do not usually charge for a rejection, but the delay is real |
A broker may ask for a clearer copy, a recent utility bill, or a selfie with the ID. Some also charge a small deposit fee, and that fee varies between brokers.
Doing it once, step by step
Work through these in order before sending anything to a broker, so the application moves once rather than several times. Each step removes a reason the check would stop.
- 01
Check the identity card is valid
Look at the expiry date and confirm it has not passed. Confirm the photo is clear and the name is spelled in full. If the card is close to expiry, use a different document instead of sending one that will fail later.
- 02
Photograph each document in daylight
Place the document flat on a plain surface and keep all four corners inside the frame. Avoid flash, which creates glare across printed numbers. Take the photo from directly above rather than at an angle.
- 03
Match every name and address exactly
Type the name as it appears on the identity card, letter for letter. Type the address as it appears on the proof of address, including the local government area. Do not shorten or rearrange anything, because the broker compares the form against the document.
- 04
Send all documents in one submission
Upload the identity card, the proof of address and the selfie together. A single submission is checked once. Documents sent across several days restart part of the process each time.
- 05
Make the first deposit from an account in the same name
Use a bank transfer from an account that carries the same name as the trading account. If you use USSD or a card, expect the payment to take longer to appear. Read the broker's own fee page before choosing, because deposit fees vary between brokers.
- 06
Check the status once a day and replace rejected items the same day
Open the status page once a day rather than repeatedly. If an item is rejected, read the stated reason and fix that exact problem. Replace the file the same day, and do not resend the version that was rejected.
The mistake most people make here
The common mistake is sending a photo of an ID that is expired, blurred, or cropped, and then waiting without checking the status. The broker cannot approve what it cannot read, so the application sits in a queue. Instead, take the photo in daylight, keep all four corners in the frame, and match the name on the ID to the name on the account exactly. If a document is rejected, replace it the same day rather than sending the same file again.Check yourself
If one standard lot of EUR/USD at 1.0850 gives ₦10,850 per pip, what does 3 pips cost in naira?
₦32,550, because 3 x 10,850 = 32,550.
A broker asks for two documents and takes 4 working days to verify. If the reader sends a blurred ID on day 1 and a clear one on day 4, how many working days are lost?
3 working days, because the clear document arrives on day 4 instead of day 1.
Questions that come up next
How long does verification take once all three documents are in?
It varies between brokers, and no rule fixes a number of days. A broker that receives the identity card, the address document and the selfie together can finish the checks in one pass. If a document has to be queried, the clock restarts on that part of the work. Ask the broker for its stated turnaround before sending anything, so you can tell a delay from a queue.
What does proof of address have to show?
It has to show your name and your address, and it has to be recent. A utility bill or a bank statement dated within the last three months is the usual form. The address on it should be where you actually live, because a mismatch with the account details creates a query. A mobile phone top-up receipt is not normally accepted.
Can I open the account in a different name from my bank account?
No, and trying to do so costs more time than it saves. The name on the identity card, the address document, the trading account and the funding bank account all have to match. A transfer from a friend or relative raises a question the broker must resolve before the money is credited. If your name has changed, tell the broker at the start.
Is the first deposit charged a fee?
Some brokers charge a deposit fee and some do not, and the amount varies between brokers. A card payment can also sit in a pending state while the bank and the broker settle it, so the balance you see may lag the money leaving your bank. Read the fee schedule before you send money, and keep the payment reference.
What happens to my money if the application is rejected?
A rejected application is usually about the documents, not about you, and the funds are returned to the account they came from. The return can take its own working days, which is the real cost of a rejected file. Replacing a rejected document the same day is cheaper than waiting to be told twice. Keep every receipt until the money is back.
Do I have to trade after the account is verified?
No. Verification only opens the account. Trading is a separate decision, and it carries risk of loss. One standard lot on EUR/USD at 1.0850 moves ₦10,850 for every pip at that rate, in either direction. An account can stay funded and unused while you learn.
In Nigeria
- Regulator
- SEC Nigeria
- Money
- naira, written ₦ (NGN)
- Payment methods
- bank transfer, USSD and cards
- Instrument in examples
- EUR/USD, around 1.0850
- Pip value on one standard lot
- 10 units of the quote currency, converted at the current rate
The words used on this page
- verification
- The check a broker runs before an account is opened. It confirms who you are and where you live, using documents you send. It happens before any money moves.
- proof of address
- A document showing your name and where you live, dated within the last three months. A utility bill or bank statement is the usual form. It is a separate document from your identity card.
- selfie
- A photo or short video of you holding your identity card. It links your face to the card. A photocopy of the card alone cannot do that.
- pending
- A payment state where the money has left your bank but has not yet reached the broker. It is a timing gap, not a lost payment. The balance updates when the two sides settle.
- pip
- The smallest common price step in a currency pair. On EUR/USD at 1.0850, one pip is a move of 0.0001. The naira value of a pip depends on your lot size and the rate.
- standard lot
- A fixed trade size used in examples on this course. On EUR/USD at 1.0850 it moves ₦10,850 for every pip at that rate. A larger or smaller lot changes that figure.
What to take away
- Send the identity card, the address document and the selfie together, so the broker can finish in one pass.
- Match the name across every document, the trading account and the bank account that funds it.
- A rejected document costs working days, so replace it the same day rather than resending the same file.
- Deposit fees and settlement times vary between brokers, so read the fee schedule before sending money.