Kenya is an amazing African country that has a huge potential to become a major world player in the financial industry. But as of now, 16% of Kenyans are living below the poverty level. For many Kenyans, Forex trading can be very tempting to make an extra buck without leaving the country. For becoming a successful Forex trader in Kenya there are places to avoid and places you do not want to miss. In this guide below, we are going to explain which places are the best for trading Forex from Kenya and we also name several places every Kenyan needs to avoid.
Understanding FX Trading Kenya
Before we jump into places and the broker selection process let’s briefly summarize Forex trading specifics in Kenya. Forex trading or foreign exchange is an international financial market where market participants are buying and selling different currencies to make a profit. The main market participants of Forex are international banks, big hedge funds, businesses, and traders. The Forex market in Kenya is a very active place where many traders are trading currencies daily. With the local regulator overseeing Forex activities in the country, it is safe to access markets and develop trading strategies without leaving the country. The Capital Markets Authority (CMA) is the regulatory body in Kenya responsible for regulating the capital markets including Forex. Since there is a local regulator present in the country, many popular brokers are providing trading platforms and services to Kenyans. Many Kenyans are working abroad and sending money back to their families, and Forex brokers and trading platforms are facilitating many of these transactions. As a result, Forex trading in Kenya plays an important role in the country’s economy. With the regulatory framework in place to trade currency Kenya is a part of the global financial system and Kenyans can enjoy a safer trading environment.
Where to trade FX in Kenya?
Finding a safe place to trade FX in Kenya can be a key factor in success. The one key place Kenyans can trade Forex without leaving their home country is through regulated brokers that offer sophisticated trading platforms with competitive terms. These terms must include low minimum deposit requirements, low spreads, and commissions and provide a secured place for Forex trading. To make trading safe there are several key factors that Kenyan traders have to take into account.
Regulated Forex brokers
When selecting the solution to access financial markets in Kenya the one key option is through a Forex broker. It is critical that the broker is regulated by Kenyan CMA and that it provides policies that promote transparency and client safety. Regulated brokers are using segregated bank accounts to save client funds without the ability to touch them. Another important policy of regulated brokers is negative balance protection. When trading with leverage it is possible to lose more than your trading capital resulting in debts to the broker. To avoid this, negative balance protection must be in place preventing traders from going into minus numbers. Regulated brokers with physical offices are the number one place Kenyans can trade safely. Almost all brokers offer a free demo account to test trading skills. A demo account is a free trading account that offers a trading experience without risking real money. Since a demo account mimics the live trading experience it is the best solution to learn trading skills. Without trading a demo account beforehand it is impossible to make money on Forex markets. Finding a well-regulated broker that also offers a free demo account is key to becoming successful when you want to trade Forex Kenya.
Online trading platforms
The means through which brokers provide access to Forex markets are trading platforms that offer charting and advanced trading capabilities. These platforms allow traders to buy and sell currencies and set risk management orders in place such as stop loss and take profit orders. Popular online trading platforms are MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView. These platforms are popular in Kenya and worldwide, and it is recommended that traders master any one of these platforms. A particularly popular platform is MT4 which offers all features any trader may need. Familiarizing yourself with MT4 will enable you to trade with any broker as most Forex brokers are offering the MT4 platform.
Forex trading schools
Trading schools in Kenya can be a great solution for beginners who want to learn Forex trading and put their theoretical knowledge into practice under the guidance of experienced traders. Schools can provide education and training on Forex trading strategies, risk management, and market analysis. The two popular Forex trading schools in Kenya are Forex Trading Kenya and Forex Academy Kenya. Schools are also great as they allow students to share trading ideas and ask questions about topics they do not understand. Being part of a trading community will allow traders to gain enough knowledge and skills to become profitable in the long term. Trade FX Kenya after getting an education from one of these schools should become much more profitable.
Some banks are offering Forex trading services in Kenya and they could be used by investors who have large sums of money and want to exchange or trade it. Since banks have higher commissions, their services may not be flexible and cost-effective for small traders. But still, banks are reputable institutions and they could be used by professional traders or businesses.
Places to avoid trading Forex in Kenya
It is important to be aware of places that might pose a threat to your profitability when trading Forex markets from Kenya. Regulations, offices, and customer support may be a primary concern for selecting a proper place not to get scammed and trade Forex conveniently. Below are several places and aspects traders from Kenya will have to avoid.
Forex brokers without offices in Kenya or in Africa
A potential red flag to watch out for when trading Forex is a broker that has no physical office in any of Kenyan major cities. If a broker only has a website and does not provide a physical address or phone number it could be a sign of a scam and fraud. A legitimate Forex broker always tries to establish its physical presence in Kenya and is registered with relevant regulatory authorities.
Unregulated Forex Broker
Regulations mean a broker has to adhere to rules and regulations and is under regulatory scrutiny to prevent potential fraudulent operations. Using an unregulated trading platform can lead to sudden market manipulation and losses. Operating outside of the legal framework gives bad actors the ability to scam their customers and steal money from them. Avoiding unregulated brokers can be a first step towards becoming a successful Forex trader in Kenya. When in Kenya trade Forex only with regulated brokers that adhere to the regulator’s requirements.
Brokers with poor customer service
You need to contact the broker to resolve any issues that may arise during trading activities. You must receive good customer support when in need or it will be much harder to trade profitably. Live chat is the most essential part of quality customer support and can potentially save traders from frustration and losing money.
Brokers that promise unrealistic returns or get rich quick advertisements
This one seems self-explanatory but still, many traders fall victim to unrealistic promises that trading Forex can make them millionaires overnight with just one single indicator. If someone is telling you that you can make big money quickly from trading, there is a high chance of them being scams and fraud. Forex just like any other career and business requires substantial education and time resources and it takes some time to master trading and become profitable. If anyone is guaranteeing profits and has a trading strategy that has a 100% win rate then you can be sure they are scammers.
Final thoughts on currency trading Kenya
In conclusion, Forex trading can be an attractive endeavor for those who want to make extra money in Kenya. But it is essential to approach Forex markets with extra caution and well-tested trading strategies. Since the regulatory framework is strong in Kenya with the CMA overseeing Forex brokers operating within the country, it is easier to find a safe broker that is well-regulated. Regulated brokers provide advanced trading platforms enabling Kenyans to access Forex markets 24/5. With this said it is very important to avoid certain places like unregulated brokers, brokers with poor customer support services, and the ones offering unrealistic get-quick-rich schemes. Trading schools and banks can also provide a safe place for trading Forex. Brokers that offer low spreads, low commissions, and are well-regulated are the best option for Kenyans who are trying to become profitable Forex traders and several popular schools can aid them in their development.
FAQs on where to trade Forex in Kenya
Where is the best place for Forex trading in Kenya?
The best place for trading in Kenya is through regulated Forex brokers and Forex trading schools that offer a place to learn Forex trading under mentorship. Many reputable brokers are also offering a decent amount of educational materials together with secured trading platforms to access markets no matter the location of the trader.
How to choose the right place to trade Forex in Kenya?
Finding a proper place to trade Forex can be a determining factor for success and profits. Make sure the broker is regulated and does not offer unrealistic results. Also, trading schools can help beginners greatly to learn and access markets.