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Proprietary trading has been a great way that traders can make the most out of the financial markets. This creates the need for understanding these proprietary trading firms in Kenya.
Proprietary trading firms are companies that engage in proprietary trading. These can be listed on a stock exchange or a privately owned limited liability company. They are private traders who take businesses risks to earn money.
Proprietary trading is the term used for the activities of investment banks, hedge funds, and other privately controlled funds which trade financial instruments for their own account.
By doing this, they attempt to make profits by speculating on the movement of market prices without necessarily aiming at controlling any particular asset.
Basically, it is when one applies his skill, knowledge, and experience along with finance capital towards making key business decisions such as funding, product development, risk management, etc.
It’s done for the purpose of earning profit from price movements in securities traders either within or outside an organization’s owned account. Read on to find out how top prop trading firms work and see a list of proprietary trading firms you can make use of in Kenya.
How Proprietary Trading Firms in Kenya Work
Proprietary trading firms in Kenya work by investing their clients’ money in trades themselves. They don’t bet on equities, options, bonds, or futures with money entrusted to them by the firm’s clients (as investment banks and asset management companies do).
Since proprietary trading firms are also responsible for managing the risk associated with these investments they will sometimes open accounts at other brokers. Opening accounts to other traders is done for the purpose of hedging risk and for improving liquidity. By creating more buying power, these firms can have a larger financial impact on the market.
The traders at proprietary trading firms are experts in the financial markets who use their knowledge to take advantage of market conditions by making trades that target specific securities or instruments.
Oftentimes, they’ll execute trader-specified orders “on-the-close” which is basically when an order is placed close to 4:00 pm EST each day and expires at midnight EST.
These orders were created specifically for proprietary traders so that they have enough time throughout the day to make trades but also are able to let them expire if need be.
The Best 5 Proprietary Firms in Kenya
FTMO is a proprietary trading firm in Kenya that was founded in 2014. It is one of the best prop firms in Kenya if you are looking for traders that make money being on the sell-side of positions. Also, it is among the remote prop trading firms since it’s not headquartered in Kenya.
The company has a unique way of garnering new clients which makes them one of the best proprietary trading firms in Kenya. The firm does not accept referrals from brokers or other prop firms in Kenya. Instead, they request potential clients complete their online application form and then send it back to them.
Their returning client base is impressive as well so this is definitely a top proprietary trading firm in Kenya. It works hard at maintaining its good reputation by giving individualized attention to each trader. They educate their traders on strategies while also limiting risk exposure through using various brokerage accounts with different discretionary limits.
2. Akuna Capital
Akuna Capital is one of the best prop trading firms in Kenya. Their headquarters are located in Nairobi. The company employs around 20 people as of 2015 with six of those being traders and is another remote prop trading firm, but still located in Kenya.
In order to fund its operations and support charitable projects backed by the firm, Akuna Capital hosts an annual gala dinner/auction where attendees have the opportunity to bid on items donated by companies around the world.
The firm has garnered the attention of traders in the securities industry for its consistent performance which has also allowed it to secure several partnerships with local and international firms.
3. Stonehage Investment Management Ltd.
Stonehage is a prop firm in Kenya headquartered in Nairobi. It was founded by Paul Stonehage in 1993. The company employs around 67 people of which 41 are traders spread across three offices – two in Kenya, and one office in Luxembourg.
It is well known for juking the markets with its very shrewd and smart trades that have earned it a lot of money. Stonehage has also built up a reputation for being one of the busiest proprietary trading firms in Nairobi, on the Nairobi Securities Exchange (NSE) thanks to its high trading volumes.
It trades in excess of $200 million worth of shares every day. In fact, by 2006, Stonehage’s market share had increased from less than two percent to 20% (a number which is still rising). Clearly, this is one of the best proprietary trading firms in Kenya.
4. Alpha Proprietary Ltd.
Headquartered in Kenya, Alphapro started off as an agricultural seed corn firm which later branched into proprietary trading after realizing there was more opportunity and growth in this industry.
It trades a total of US$1 million every day on average. By 2012, Alpha Proprietary had become one of the largest financial prop firms in Kenya in terms of market capitalization (the value of its shares) at the NSE.
This remarkable growth can be attributed to their excellent execution capabilities and risk control standards they adhere to which have enabled them to be more successful than most other companies operating in this industry across Africa.
5. Difel Ltd.
Difel Ltd is one of those prop firms in Kenya that will have you asking yourself if they are in the trading industry or research sector. This is because their success and growth have been based on market insights that they provide to their clients.
Difel’s business model is unique as it provides both proprietary trading services alongside research and analysis, giving them an edge over other firms operating in this industry.
By being more successful than most of its competitors, Difel has also managed to become a regional presence with offices in Kenya, Tanzania, South Africa and Uganda allowing it to be rated among the largest financial firms operating in these countries. Whenever you talk of the best prop trading firms, Difel will alywas be on that list.
Which is the best Proprietary Trading Firm in Kenya?
Judging from the list, picking the best of the best forex prop trading firms in Kenya would be hard given that they all come with different strengths and weaknesses. They all sound just as great, they all have great results when it comes to their proprietary trading history. Visit the websites of all the best proprietary trading firms we’ve given above to learn more about them before starting on your journey of proprietary trading.