The Best Forex Brokers in Kenya – Comprehensive List of Brokers
Forex trading has flourished rapidly in recent years. Kenya is one of those countries where trading hit its peak and shows no signs of slowing down. Forex trading is completely legal in Kenya and regulated by the CMA – the state’s main financial authority. With the help of a decent online Forex broker, you can start trading instantly. The majority of transactions are executed in dollars. People in Kenya can expect a regulated trading environment.
In this guide, we will explore specifics and characteristics of FX trading in Kenya, as well as, the best brokers and how to find them.
Best Kenya Forex Brokers – Why We Chose Them?
Finding a regulated and good broker in Kenya might be difficult, but we have already done the heavy lifting. Here we have compiled a list of the best Kenyan Forex brokers. These FX brokerage firms have proved to be decent operators, providing a wide array of services to customers. To categorize these brokers we have used a comprehensive methodology. Have a look at the top Forex brokers in Kenya below:
How We Chose The Best Kenya Forex Brokers?
When it comes to choosing top Kenyan brokers, we used our methodology of finding the best brands. During the selection process first, we paid attention to the regulation and licenses of the company. Then we had a look at the available currencies and whether they support local ones. Payment methods also had a major role. Next, we reviewed important trading features of CMA regulated Forex brokers in Kenya such as spread, leverage, available assets. We have already stressed the importance of customer support and if it is provided in the native language. Finally, we checked account types and their diversity.
- Regulation – Forex trading in Kenya is safe and regulated. We have also mentioned that the CMA is the country’s main financial regulator. We had a look at the available licenses. The majority of our brokers have licenses obtained from FCA and CySEC, both of which are high authority regulators.
- Local-currency accounts – Available Forex brokers in Kenya support trading not only with traditional currencies but also with a shilling, which is Kenya’s national currency. You can search for different currency pairs and start trading immediately.
- Loyal payment methods – Before you start trading in Kenya you should make sure that rapid execution of transactions is ensured. Two of the most popular payment methods in Kenyan regulated forex brokers include M-Pesa and PayPal, however, you can deposit money on your balance via credit cards and mobile accounts. This sector is developed at a high level in the African country.
- Spread Sizes – When you are trading Forex in Kenya you need to pay attention to trading features and conditions, such as the spread. Spreads normally start from 1 pip on Kenyan Forex brokers. They could be both variable and floating and conditions are usually available on brokers’ websites.
- Asset Diversity – Forex is not the only instrument you can trade in Kenya. You can also have a look at other assets such as CFD, Indices, Stocks, Shares, Precious Metals. Asset diversification is necessary because a lot of investors are focused on other instruments, which they find more profitable.
- Customer Service in Native Language – The official language in Kenya in addition to Swahili is English and it goes without a question that all of the abovementioned brokers have English available as the primary language for contacting. Customer service plays a huge role and it is at a decent level.
- Account Type Diversity – There are several account types worth mentioning. If you are a Muslim you can trade with an Islamic account. In addition, standard and cent accounts are available as well.
How are Forex Brokers in Kenya Regulated?
Forex brokers in Kenya should meet specific requirements before they start functioning inside the country. First, the CMA, the country’s main regulator, needs to approve these brokers. They should be registered and licensed by the CMA. It should be pointed out that before we got an environment where Forex trading is highly regulated in Kenya, it was not always the case.
Before 2016 Kenyans traded with unregulated brokers that increased the risks of fraudulent activities. The 2016 Finance Act was a turning point in regulating the market and the CMA took the leading role in that regard. The main goal of the regulatory framework is to provide customers with transparency and protect the funds.
KYC requirements need to be addressed. Know Your Customer is a concept that includes getting information from customers regarding their identity. This is done to alleviate the fears of money laundering and fraudulent activities.
How to Start Forex Trading in Kenya – Step by Step?
You are probably wondering about how to start trading Forex in Kenya. The process is not complicated and you need to follow several steps. First, you should find a broker and the ones we offer to guarantee the best experience and favorable conditions. Then you need to choose the type of account you are going to use. It is generally a good idea to start trading with a demo account first and then move to live trading. It is also recommended to check additional details such as spread, leverage, trading platforms, and educational material.
Find a Broker
The first step is finding a Forex broker. Here the broker’s license is the most important thing you should pay attention to because it determines the overall performance of the brand. At the same time, licensed brands in Kenya are more reliable and trustworthy. The CMA ensures that all brokers have decent licenses from authority regulators. CySEC, FCA, FSCA are some of the major names when it comes to license and regulations.
The license ensures that the services provided by the broker are put in a regulatory framework. Your funds and personal data are in safe hands and the chances of fraudulent activities are put to zero. Find a broker with the license and in compliance with the offered conditions.
When you find a good broker you can always look for the better one. There is no perfect broker and each of them has its advantages and disadvantages. When you have several brokers into consideration the best thing you can do is to compare them. This could include the reviews and feedback from other traders, licenses, trading features – everything that comes to your mind. When choosing a broker in Kenya, pay attention to the available currency pairs. The more options you have – the better. It should necessarily have shilling as an available option.
Take a good look at leverage. Usually, Forex brokers in Kenya won’t offer more than 1:500 leverage. Spreads start from 1 pip which is a normal amount. As for the bonuses, they rarely exceed 100$ and you need to make the deposit first before you receive any kind of bonus funds.
Choose Your Account
Choosing an account is the trickiest part, mainly because novice traders do not know what to do. There are several types of accounts among Kenyan Forex brokers: Standard, Cent, and Islamic. Standard accounts have several variations and they are primarily created for experienced traders, who already have some knowledge and experience. Cent accounts are usually suitable for beginners. As the name itself suggests, the balance on cent accounts is displayed in cents. Traders in Kenya who are just starting can pick this account.
If you practice Islam, you can go for the Islamic account which is available in our provided list of Kenyan FX brokers. In contrast to standard and cent accounts, Islamic accounts come with different conditions and are pretty popular among traders.
Subscribe to Educational Material
Without knowledge, reading, and watching different tutorials, it is difficult to make any progress in Forex trading. If the broker has educational stuff, we can recommend the broker’s platform. The majority of Forex brokers in Kenya have educational material available online. You can subscribe to them – sometimes without paying additional cents. They include ebooks, tutorials, and masterclasses by successful traders. Recently, Video on Demand is becoming increasingly popular. You do not need to download anything, as everything is available directly on the website. You can enhance trading, get more information, which is proportional to the profits you are going to earn by trading. You should always search for such material because they are key to success.
Start With a Demo Account
A demo account is a perfect possibility for rookie traders to get some experience and acquire basic knowledge in trading. Demo trading happens in a simulated environment. Forex brokers in Kenya will offer you to register on a Demo account first before you move to real trading. The concept of Demo accounts is simple and straightforward – you create an account, where trading resembles the real one. You are given virtual money, which is impossible to withdraw of course. After you make some money it will remain with you. With demo trading, there is no fear of losing something from your pocket and at the same time, you get valuable experience. Some brokers have a limited period of time imposed on using demo accounts. They are usually available for 30 days and after that, the access to this account expires.
However, you should not go too deep with demo accounts. As beneficial as they are, we can note some disadvantages. When you do not have fear of losing real money, you make risky trades. The same concept does not apply to live trading where even small trades could make difference.
Switch to Live and Start Trading
After you have mastered the basics of a demo account and got some experience in virtual trading, you can now move to live trading. When you start real trading in Kenya, consider in advance how much money you are going to invest in trading. Start with a small amount and gradually increase the balance. Losses happen frequently in trading, but it should not hamper you from making progress.
Live trading also includes choosing an account properly, as we have already mentioned above. Have a closer look at leverage – do not choose the maximum amount, because leverage is a double-edged sword and it could cause some losses if you do not know what to do with it.
Risks of Forex Trading in Kenya
Even if you pick up all the information and advice that we have just reviewed above, still Forex is a risky activity and no one is insured from losses. There are certain risks regarding FX trading which every Kenyan trader should take into account before embarking on a trader’s path. Here we have a list of risks:
- Trading without knowledge – this is the most common mistake that traders make frequently. If you do not have the basic knowledge you will be in trouble, but fortunately, Forex brokers in Kenya have all the necessary tools to help you including demo accounts
- Emotional Trading – Trading and emotions are strongly interconnected with each other. Sometimes, after losses, you might risk a massive amount of money as a result of rage and it will only backfire. Keep your emotions in check and do not let them overpower you.
- Internet Connection Problem – When we talk about trading, an Internet connection is instrumental. If there is a poor connection, most likely you will be disconnected and lose your chance to earn profits. You need to get an Internet connection from Kenyan Internet service providers.
Frequently Asked Questions on Kenya FX Brokers
Is FX Trading Legal in Kenya?
Yes, Forex trading in Kenya is completely legal. In fact, the CMA is the main regulatory body that supervises the operation of Forex brokers inside the country. They should meet specific requirements to be eligible for offering services to customers.
How Profitable is FX Trading in Kenya?
There is no straightforward answer to this question. It all depends on your experience and knowledge. Luck also plays an important role during trading. In general, if you choose a good broker and follow a strategy, chances of decent profits will increase notably.