Introduction
Trading currencies can be technical and risky. A comprehensive introductory guide to online forex trading in Kenya, such as the one we have presented in this article, is a valuable resource. This guide includes everything you need to know on forex trading in Kenya for beginners. Our aim is to show you how to make money through forex trading in Kenya.
Online forex trading in Kenya has become a successful career for many people today, especially the unemployed population. As more people become interested in trading, there is need to give them guidance to avoid being defrauded. It is easy for one to fall prey to the many scammers in the market in such a profitable market.
As professional forex traders, we would like to give helpful information about the forex market to acquaint newbies with the trading market. This guide shall help you understand how to make money through forex trading in Kenya and the role of Forex in the global money market. We will also explain the fundamental dynamics of forex trading and show you how to start your forex trading career in Kenya.
We would love to see you succeed as a forex trader, and we are glad to be part of your journey. We hope that the information you learn today puts you on a successful career path as a forex trader.
What is Forex Trading?
Forex is a shortened word for foreign exchange. Forex is a transaction that involves the change of one currency to another. Currencies are essential in the money market because they enable the purchase of goods and services locally and internationally. For instance, if a Kenyan wants to purchase goods from Uganda, he/she needs to change the Kenyan currency to Ugandan currency for the trade to occur. Similarly, a foreign tourist can not pay Euros to enjoy the beautiful scenery on the Kenyan coast. Instead, the tourist has to exchange the Euros to Kenyan shillings at the current exchange rate. This exchange is known as forex trade.
For a deeper dive into Forex Trading. Proceed here.
What is the Forex Market?
The foreign exchange or the FX market is the international market where financial institutions and investors trade national currencies. The forex market is exceptional because there is no centralized point where the exchange occurs; trades occur between computer links from traders around the globe. Therefore, the trades are similar to purchasing goods over the counter, just that they are conducted electronically. Despite the forex market being open 24/7, it is only available for five and a half days per week. Although currency trades occur worldwide, there are five main financial centers. These are; Paris, London, Singapore, New York, Zurich, Tokyo, Hong Kong, and Frankfurt. For this reason, the forex market is extremely active, and prices constantly change.
Why is it Easy to Trade Currencies?
With the advent of the internet, currency trading has become simple. Before the internet, currency trading required a lot of capital, and most forex traders were hedge funds, wealthy individuals, and multi-national corporations. The internet brought about a retail market that enabled average individuals to trade forex. It provided easy access to the international exchange market through secondary brokers. This made forex trading in Kenya possible.
How do I Become a Forex Trader in Kenya?
Through this forex trading in Kenya for beginners guide, you will know what becoming a trader entails and how you can build a successful forex trading career in Kenya. Since Kenya enhanced its regulation on forex trade in 2017, the forex market has become safer and more secure for retail traders. All you need to trade forex in Kenya today is a viable trading plan, a money management strategy, a reliable online forex broker, and patience. To start online forex trading in Kenya, follow these steps.
i) Get a modern device (a laptop, tablet, or smartphone) to access the internet.
ii) Get educated and trained about forex trading. Invest in learning about the dynamics of the forex market.
iii) Find a trusted forex broker that accepts Kenyan clients. Ensure you understand their terms and conditions of service before investing with them.
iv) Download the broker’s trading platform to your smartphone, or access it through the internet.
v) Make a deposit to your trading account through payment methods that are accepted by your trader.
vi) Start trading and earning your profits.
How Much do you Need to Start Forex in Kenya?
It is not expensive to start forex trading in Kenya. There are various brokers in the forex market, and all of them require different minimum balances. Most Kenyan brokers generally offer a minimum of $5 or 500 Kenya shillings. Although $5 is a reasonable amount, we recommend opening a trading account with a minimum of $500. With a sizable amount, it is easier to earn more profits when market shifts are positive. Generally, the most liquid and most traded currencies can have changes of up to 100 pips. Therefore, good returns can be generated when the investment is wise, with low leverage. However, day traders are advised not to risk more than 1% of their available balance when trading. For instance, if your account has $500, each trade should risk a maximum of $5. This way, the loss is not heavy and can be easily recovered in future trades
Which is the Best Forex Trading Platform in Kenya?
There are numerous forex trading platforms, but here is a list of the five most recommended trading platforms in Kenya.
FX pesa
One of the most famous online trading platforms in Kenya is Fx pesa. FX pesa is an EGM securities forex broker located in Nairobi. They are the best Kenyan brokers because the CMA of Kenya regulates them. It is considered one of the ideal platforms for forex trading in Kenya for beginners. FX pesa is a safe non-dealing desk Kenyan broker, which means there are no intermediaries during trades. Profit margins are therefore higher because transaction costs are relatively lower. FX pesa has two trading accounts; the Executive and the Premiere trading accounts. The executive account requires a $5 deposit because it is a standard account. FX pesa offers 66 currency pairs and CFD offerings which can be traded on their platform. FX pesa has a physical office in Nairobi and a support contact that works around the clock.
Scope Markets Kenya
After EGM securities (FX pesa), Scope markets was the second forex broker to be regulated by the CMA. Scope Markets and Fx Pesa are the most famous online trading platforms in Kenya. Scope markets has two types of accounts; Gold and Silver. The Gold account is premium because it offers lower spreads than the Silver account. The Gold account also has a commission of $7 for every standard lot for a round turn. The Silver account is the standard version, but its average fee is relatively high. For instance, on a major currency pair like the EURUSD, the average fee can be 1.7 pips.
Exness-Low Spread Forex Broker
The Exness forex broker is one of the largest forex and commodity brokers because of its large trading volume. They are based in Cyprus, but they allow Kenyans to sign up and trade using their platform. Exness is one of the most trusted trading platforms because top regulators regulate it like the FCA, AND, and CySEC. The Exness trading platform can be accessed using two account types; the Standard and the Professional account. The Standard account requires a minimum deposit of $1 with a minimum spread of 0.3 pips for major currencies. The Professional account requires a deposit of $500, but both accounts have a maximum leverage of 1:2000. Such features ensure Exness a place in the top online trading platforms in Kenya.
FXTM
FXTM is an ECN account broker located in Mauritius. It is regulated by the CMA and is considered safe for use by Kenyans. It offers two account options; the Standard and ECN accounts with a maximum leverage of 1:20000. The Standard account offers no commissions, and the minimum deposit required is $100. The ECN account requires a minimum deposit of $200, and it offers commissions of up to $4 per lot for ECN MT4 and MT5 accounts. Besides trading, FXTM offers trading education and tutorials with special features such as swift order execution and superfast client approval.
XM Trading
XM trading is one of the most affordable platforms for online currency trading in Kenya. It’s also a CFD trading platform. It has a large number of trading instruments ranging from forex to energy, CFDs on precious metals and indices. CySEC and ASIC regulate it, and it offers very competitive trading fees. XM has four straightforward account options. The XM Ultra-Low Account requires a minimum amount of $50, with a maximum leverage of 1:8888. The Standard and Micro accounts require a minimum deposit of $5, with the same leverage. The XM share account is used for equity trading, and it requires a minimum deposit of $10,000 with no leverage.
Where can I Trade Forex in Kenya?
Since trading forex online is legal in Kenya, it is possible to trade forex through licensed and regulated FX brokers. There are four trading platforms in Kenya that are licensed: FX pesa or EGM securities, Exinity Group (FXTM), Pepperstone Kenya, and Scope Markets. We have done extensive research and written truthful reviews on the best forex brokers in Kenya. You can check out our reviews on different brokers and compare their fees and margins before deciding what best suits you. We also have beginner-friendly forex trade guides to help you start online forex trading in Kenya. Feel free to refer to our articles if you need any information on forex trading.
How do you trade forex for beginners?
Multiple sources indicate that there are dozens of steps for Kenyans to follow before they start forex trading. The journey of forex trading in Kenya for beginners can be summarized through the following steps.
i) Learn the basic currency pairs.
ii) Learn about the MT4 and MT5 trading software.
iii) Practice trading using demo accounts.
iv) Find a reliable trading platform and service provider.
v) Use resources such as video tutorials and guides to learn more about trading. You can also enroll in forex trading training in Kenya.
vi) Test the swiftness of the service provider’s support system.
vii) Learn about various trading strategies and practice using them in your demo account.
- ix) Track your progress weekly and daily if possible.
- x) Start investing in live accounts and real trades.
How to Make Money Through Forex Trading in Kenya: Is Training Needed?
To make money as a forex trader in Kenya, training is an essential element of a successful forex career. Getting into online currency trading in Kenya can be tricky. This forex trading in Kenya for beginners guide is part of the training as it introduces you to the fundamentals of trading.
Training equips you with the knowledge to efficiently navigate trading platforms and familiarizes you with the market operations and strategies that will increase your chances of success. You can educate yourself through free materials from the internet or attend forex trading classes physically or virtually. You can also practice using demo accounts until you are confident enough to trade with money.
Several institutions offer forex trading training in Kenya, and one of the most recommended ones is Brains With Concepts (BWC). Brains With Concepts equips students with the right skills and mindset to execute trades with precision. With more than five years’ experience in the trading industry, BWC offers extensive training on the fundamentals of forex trading. In addition, BWC offers lifetime mentorship, giving people a chance to join an insightful trading room. The course can be accessed at the BWC website, and it costs $299. After graduating from the course, one is ready to start trading independently.
Online Forex Trading in Kenya using Mpesa; Is it Possible?
After reading the forex trading in Kenya for beginners guide, we learn that forex trading in Kenya through MPesa is possible, but only a few brokers support M-Pesa transactions. The only traders who accept M-Pesa deposits and withdrawals are those that the Capital Markets Authority regulates. So far, these trading platforms are; FX pesa, Scope Markets, Pepprstone Kenya, and FXTM. If you are determined to join online currency trading in Kenya, you shouldn’t let the lack of Mpesa support on some platforms stop you. There are other payment solutions that are effective.
How To Make Money Through Forex Trading in Kenya: Is Forex Trading a Scam?
Although online currency trading in Kenya is a legitimate business, many people perceive it as a scam. Forex trading is a risky business, and there will always be profits and losses. If one becomes too greedy, they may lose their money and label forex trading a scam. Secondly, if one falls into the prey of scammers who pretend to be brokers, they may lose their investment, labeling forex a fraudulent business. Besides, people who have been scammed through online businesses before will assume that forex trading is a scam because of past experiences.
Before investing money, it is important to do extensive research about forex trading and its dynamics. This forex trading in Kenya for beginners review reveals the most reliable forex trading platforms in Kenya. It is crucial to know your broker and ensure their trading platform is regulated. Above all, be patient, and have a money-management strategy that ensures rainy days are catered for because there will be days when losses occur. To master the art of trading, it is advised that one attends an institution that offers forex trading training in Kenya.