Forex trading in Kenya with mpesa is very popular. Mpesa was first introduced in Kenya in 2007 by Safaricom, which is the country’s leading telecommunications company. M in the name stands for Mobile while pesa means money in Swahili language.
While mpesa was first introduced in Kenya, the company has expanded to several countries, including: Egypt, Ghana, India, Congo, Tanzania, and Mozambique.
How does Forex trading with mpesa work in Kenya
Currency trading using a mobile funding method called mpesa has become the most popular method in Kenya due to the convenience and accessibility it offers. Mpesa is a mobile money transfer service allowing users to send and receive money, pay utility bills, and make purchases through their mobile phones. Mpesa Forex withdrawals and deposits are widely accessible in Kenya, even in remote areas where traditional banking services are not available. This contributes to an increasing number of mpesa users.
It should be noted that mpesa is not a trading platform or a forex broker. It’s just a payment method widely used in Kenya for depositing and withdrawing funds from forex trading accounts.
Here is an overview of how you can use mpesa Forex trading possibilities in Kenya:
- Find an FX broker: to start FX trading using mpesa, first you need to find a broker that accepts payments from the mobile funding option. Make sure to open an account with a regulated broker that offers low trading fees, low spreads and access to trading instruments of your interest. In addition, you should also take into account the broker’s customer support, available trading platforms and trading accounts.
- Register, fund your account, and trade: registration process with most of the brokers is fully digital and typically concludes within a day. Account verification may take a couple of days as the broker needs to review your documentation. Be noted that not all brokers are accepting payments through mpesa.
- Withdrawals: be noted that to be able to withdraw funds from your account using mpesa, you need to have a verified trading account. For verification brokers are usually asking from you two types of documents that you can upload online. You need to provide the broker with the proof of your residence and proof of your identity. You can use a driving license, international passport, or government issued ID as proof of identity. As for the proof of residency, you can upload scanned or digital copies of your utility bills or bank statements.
Creating mpesa account
In order for traders to trade FX using mpesa, first they need to have an account. The account opening is simple and only takes a few steps:
- Go to the mpesa office or visit the mpesa agent near you. These agents can also be found at Safaricom retail shops. You can also use an online option and check the company’s webpage or contact the customer service for agent location.
- When you visit the Safaricom agent, do not forget to take your identity documents with you. You will be required to have a government issued ID card or passport with you.
- The next step is to fill out a registration form and provide the company with your personal information, such as your full name, contact information, and details about your birth, and other information.
- Once the agent has verified your information, the company will link your phone number to your mpesa account. Which is typically done by inserting your SIM into a registration device provided by the company.
- Set up your pin to make sure your account is secure. The pin code consists of 4 digits that you will use in all of your future transactions. For Forex trading using mpesa, make sure you don’t lose the pin code.
- Once your pin is set, you can activate your account. You will receive a confirmation SMS on your registered phone number as soon as the process is concluded.
Drawbacks and benefits of mobile trading apps
Modern Forex and CFD (Contracts for Difference) brokers are offering easy access to trading to their clients. Traders can trade using desktop programs, online platforms, and mobile apps. And with the help of the mobile funding service, they can use mpesa FX trading in Kenya.
It should be noted that mobile trading comes with certain dangers. While it is highly convenient to trade and keep track of your trades easily using your mobile, analyzing and planning trades becomes very difficult. Day traders especially need large computer screens to digest market data better and make informed decisions. Trading without good planning and analysis can easily turn into gambling.
Mobile trading apps are highly useful for a number of reasons, such as:
- Controlling your trades from anywhere in the world.
- Serving as an insurance in an event of power outage, or break down of your computer
- Convenience to fund your account, withdraw funds, and analyze your trades.
FAQs on trading Forex in Kenya using mpesa
What is mpesa in Kenya?
Mpesa in Kenya is a mobile payment system that allows its users to send and receive money, pay utility bills, and make purchases through their mobile phones. Mpesa originated in Kenya, but the platform has expanded to various countries in the Middle East, Africa and Asia, including: Egypt, Ghana, India, Congo, Tanzania, and Mozambique.
Can I deposit and withdraw from Forex market in Kenya with mpesa?
Yes. However, make sure that your forex trading account is verified. While most brokers enable their clients to deposit funds and start trading with unverified accounts, when it comes to withdrawals, only verified account holders can withdraw money from their trading accounts. This is done for legal reasons by regulatory bodies.
Can you trade Forex on phone using mpesa?
Yes, mpesa is a mobile money-transfer service. You can fund your Forex trading account using mpesa, and trade using a mobile trading app provided by your broker. To learn how to trade Forex with mpesa, first you need to have a mpesa account and Forex trading account with a broker that supports payments using the mpesa.