Forex trading has gained significant traction among middle-class Kenyans and young adults seeking online income opportunities. While the exact number of Kenyans relying on forex trading is hard to pinpoint, it’s well over 100,000. As the forex market sees a continuous influx of new brokers, especially with Kenya providing steady demand, it’s crucial for traders, particularly beginners, to understand the vital role a broker plays in their trading success. Regulators like the Capital Markets Authority (CMA) ensure these brokers operate reliably, safeguarding traders’ interests and upholding fair terms and conditions.
In this guide, we’ll present the list of CMA-regulated forex brokers in Kenya. Before delving into the specific licensed brokers, let’s briefly introduce Forex Trading and the role of the CMA.
CMA Regulated Forex Brokers in Kenya
Despite being in operation for decades, the CMA only licensed its first forex broker in 2017. Consequently, the number of CMA-regulated forex brokers in Kenya is relatively small compared to other countries. The CMA is the sole regulatory body for capital markets in Kenya. Their regulations are considered liberal, with minimal limitations and restrictions for forex traders and broking companies.
Surprisingly, the CMA does not specify minimum or maximum deposit requirements for brokers and traders. Regarding taxation, forex traders are subject to a 5% tax on all net earnings from forex.
With numerous brokerage firms in the market, here are some of the CMA-licensed forex brokers in Kenya:
1. EGM Securities (Trading as FX Pesa)
EGM Securities was the first to receive a CMA license (license #107), which is a significant advantage as many Kenyan forex traders prefer locally regulated brokers. EGM Securities is part of the global Equity Group, with operations in various regions.
They are recognized as a Non-Dealing Desk (NDD) broker, providing direct access to Interbank exchanges. They utilize both Straight Through Processing (STP) and Electronic Communication Networks (ECN) for trade execution, sometimes as hybrids. This allows forex traders to trade directly with interbank exchange rates without intermediary brokers.
EGM Securities offers trading in currency pairs, stock CFDs, commodities, metals, and indices. A minor drawback is that their support system could be more dedicated.
They offer three account types: Premiere, Executive, and Islamic accounts, which vary in margin calls, minimum deposits, commissions, spreads, and leverage. The Executive account is generally considered the standard for EGM Securities.
For EUR/USD currency pairs, they have a standard spread of 1.6 pips, with the lowest spread at 0.2 pips. The minimum deposit with EGM Securities is $200, with a maximum leverage of 400:1. EGM Securities supports MetaTrader 4 and 5 (PC and mobile), web platforms, and Mac.
Commissions for the Premiere account are $7 ($3.5 for opening and $3.5 for closing). They also charge an overnight cost for overnight trades, and deposit/withdrawal fees. A notable advantage is their acceptance of M-Pesa for deposits and withdrawals, making EGM Securities a safe option for Kenyan forex traders due to its CMA regulation.
2. Scope Markets (SCFM Limited)
Scope Markets Kenya (SCFM Limited) has been among CMA-licensed forex brokers since 2019 (license #123). They are also regulated by CySEC and FSCA, which are top-tier regulatory agencies.
Their trading execution is via STP, ensuring no conflict of interest between traders and the brokerage firm. This prevents situations where brokers might manipulate markets to the detriment of traders.
Scope Markets Kenya offers three account types: Gold, Platinum, and Silver, differing in commission, leverage, liquidity, and spreads.
The Silver account (average account) has an average spread of 1.1 pips on the EURUSD currency pair. The minimum deposit with Scope Markets is $20, making it highly affordable, especially for beginners. The maximum leverage offered is 400:1, supported by MetaTrader 5 on PC, Mac, and Android.
For the Gold account, Scope Markets offers variable spreads with an average of 1.2 pips and 500:1 leverage, with no commissions. The Gold account also includes a signals package. The Platinum account has variable spreads (often with no spread), 500:1 leverage, an account manager, and a $3 per lot commission.
Overall, Scope Markets charges a $7 commission for opening and closing trades ($3.5 each). They have no deposit, withdrawal, or inactivity fees. They also accept M-Pesa for withdrawals and deposits, making Scope Markets a preferred licensed forex broker in Kenya.
3. Pepperstone (Pepperstone Markets Kenya Limited)
Pepperstone is a globally recognized broker regulated by CMA (under Pepperstone Markets Kenya Limited, license #128), ASIC, BaFin, CySEC, DFSA, FCA, and SCB. They offer STP trading executions to avoid conflicts of interest and are known for low trading fees. Their EUR/USD spread is 1.1 pips, with a minimum deposit of $200, and a maximum leverage of 1:500. They are supported on MetaTrader 4 and 5, web trading platforms, and cTrader for PC. While a safe option, they do not currently accept M-Pesa for deposits or withdrawals.
4. Exness (Exness KE Limited)
Exness (under Exness KE Limited, license #162) is a CMA-regulated broker in the Kenyan market, also regulated by other top-tier institutions. They are known for low fees, tight spreads, excellent customer support, and educational resources on strategies and market analysis. Their standard account requires a minimum deposit of $1, while the other account has a minimum deposit of $500, but their leverage is high at 1:2000. They cater to both experienced and beginner traders and accept M-Pesa for deposits and withdrawals.
5. Hotforex (HFM Investments Limited)
HotForex, now known as HFM, is a CMA-regulated broker in Kenya (under HFM Investments Limited, license #155). It offers four account types: Micro, Premium, Zero, and HFCopy. Spreads on the Premium Account start from 1.4 pips for EUR/USD.
The platform supports 53 currency pairs and over 1,000 CFDs on commodities, metals, and more, with leverage up to 1:400. Traders can access MT4 & MT5 on web, mobile, and desktop.
Deposits are easy via M-Pesa (KES 1,000 minimum) and Dusupay (KES 600 minimum). Withdrawals are free, with instant M-Pesa processing and no fees for deposits/withdrawals.
HotForex also provides responsive customer support through live chat, email, and phone, including a Kenyan contact number.
6. FXTM (Exinity Capital East Africa Limited)
Exinity Capital East Africa Ltd, operating as ForexTime FXTM in Kenya, is a licensed ECN-type broker under the CMA (license #135). They offer competitive spreads, with EUR/USD starting from 0.0 pips on the Advantage Account. Other accounts include Micro and Advantage Plus, with spreads starting at 1.5 pips.
The MT4 and MT5 platforms are available, and the minimum deposit starts at just $20. The Advantage Account has a commission of $0.40 to $2 per lot, while Micro and Advantage Plus accounts have no commission or charges.
Deposits are free, but certain withdrawal methods may incur charges. FXTM supports various payment options, including wire transfers and e-wallets like Skrill and Neteller. Customer support is responsive, with instant live chat and email responses within a few hours. They also accept M-Pesa.
7. Windsor Markets Kenya Limited
Windsor Markets Kenya Limited is a CMA-licensed broker (license #156). They offer a range of trading instruments and platforms, catering to both new and experienced traders. Specific details on their account types, spreads, and minimum deposits would require a direct visit to their website or contacting their support. Being CMA-regulated, they adhere to local regulations for client fund protection and fair trading practices.
8. Ingot KE Limited
Ingot KE Limited is another CMA-regulated forex broker in Kenya (license #173). As a licensed entity, they are expected to provide a secure and compliant trading environment. Traders interested in Ingot KE should visit their official website to explore their trading conditions, platforms, and account offerings.
9. Admirals KE Limited
Admirals KE Limited (formerly Admiral Markets) holds a CMA license (#178). This global broker has expanded its presence in Kenya, offering a variety of trading instruments including forex, indices, commodities, and more. They are known for providing MetaTrader platforms and various account types. As a CMA-regulated broker, they are committed to investor protection and regulatory compliance.
10. FP Markets Limited
FP Markets Limited is a CMA-licensed broker in Kenya (license #193). This Australian-based broker is globally recognized and offers competitive trading conditions, including tight spreads and fast execution. They support popular platforms like MetaTrader 4 and 5. Their CMA license ensures they operate under the regulatory framework designed to protect Kenyan traders.
Advantages of Trading With Forex Brokers Regulated by CMA
i) Transparency and Fair Dealings: Forex brokers regulated by CMA are transparent and cannot engage in unfair practices with their users. Their trading operations adhere strictly to established laws.
ii) Fund Safety: Trader funds are kept safe and segregated from the company’s operational funds, preventing misuse.
iii) Customer Support: Regulators ensure that every broker provides adequate and responsive customer care support, allowing traders to get quick assistance for any issues.
iv) Prevention of Malpractices: Regulators prevent licensed forex brokers from engaging in malpractices or fraudulent activities that could compromise their traders’ interests.
v) Favorable Fees and Spreads: Thanks to regulatory requirements, forex traders often benefit from competitive fees and and spreads, leading to potentially higher profits.
vi) Innovation and Opportunities: Having a regulated broker often means partnering with a firm that is actively seeking new opportunities and improving its services.
vii) Market Integrity: Regulated forex brokers are prohibited from distorting the market, ensuring that traders receive fair and accurate pricing.
FAQ
Which is the Best Forex Broker in Kenya?
The “best” forex broker can be subjective and depends on individual trading needs. However, FX Pesa (EGM Securities) is often considered a top choice for Kenyan traders due to its strong local presence, CMA regulation, competitive fees, and M-Pesa integration. Other highly regarded options include Scope Markets, Pepperstone, and Exness due to their regulation and features.
Which is the Most Reliable Forex Broker in Kenya?
The title for the most reliable forex broker often goes to EGM Securities (FX Pesa). Their long-standing CMA regulation, excellent trading accounts, competitive options, reliable payment methods (including M-Pesa), and robust trading tools contribute to their high reliability.
Is Exness Regulated in Kenya?
Yes, Exness is regulated in Kenya under Exness KE Limited (license #162) and they are among the best brokers with M-Pesa option.
Which are the Forex Brokers in Kenya With M-Pesa Option?
The following CMA-regulated forex brokers in Kenya accept M-Pesa as a deposit or withdrawal option:
- FX Pesa
- Exness
- FXTM
- Hotforex (HFM)
- Scope Markets Kenya
Does CMA regulate Pepperstone?
Yes, Pepperstone is a CMA-licensed forex broker in Kenya under Pepperstone Markets Kenya Limited (license #128), meaning that they are indeed regulated by CMA. They are a safe option for most forex traders.
Is FXTM Regulated in Kenya?
Yes, FXTM is a CMA-licensed forex broker in Kenya. They operate under Exinity Capital East Africa Limited (license #135).
Parting Shot for Forex Traders in Kenya
Every single name in the list of CMA-licensed forex brokers in Kenya named above comes with a list of advantages and disadvantages that will affect how you carry out your trades. Understand what and how these advantages and disadvantages work out for you and whether you can live with them or they cost you too much. Choosing a brokerage firm regulated by CMA is much better since they will be bound by rules that have taken into consideration the needs of the local region1, providing a safer and more transparent trading experience.