Many brokers offer a lot of options when it comes to opening accounts with them. All these accounts require a minimum account balance. This would ensure that a sizeable position could be taken in trading and a good profit could be earned on positive market movements.

However, it should be kept in mind that a position would depend on the balance maintained and the leverage offered by the broker. Trading positions also depend on the lot size that one opts for.

One can trade in Standard lots , units , Mini lots 10, units or Micro lots units. Knowing this information is very helpful as this would help in determining the level of risk one can take and what position to take in the trades. The broker offers a leverage of and 0.

Generally, the very liquid forex pairs have changes in the range of of pips. So, one can generate a good return if you invest wisely with low leverage.

However, the risk appetite should also be kept in mind. Regulated forex brokers like FXPesa, Scope Markets Kenya , PepperStone Kenya allow traders the option to fund trading account in KSh. using local bank trasfer via bank account in Kenya. With this method it can generally take upto 24 hours for the broker to credit your trading account. Generally both these methods are instant for funding, and it takes few hours in case of withdrawals. But it takes few days for withdrawals in your bank account.

It is really important to understand the risks, so you can take preventive action to minimize them. Forex deals with exchange rates and currency pairs.

Forex market is quite volatile. As per the global financial markets, the fluctuations in exchange rates could be various economic, geopolitical, social, etc. The currency pair which can give a profit today may incur a loss tomorrow. Therefore, to cover the volatility risk, one has to study the exchange rates and currency movements very carefully. In forex trading, the risks of incurring huge losses should be covered using hedging instruments like derivatives.

High leverage means trading on the capital which is not owned or is borrowed. So, if the leverage is high then the losses on that becomes a double burden on the investor to pay off. To safeguard the money invested and to cover oneself from any fraudulent practices, one must always trade with regulated brokers.

The risk-reward ratio should be calculated before investing as the markets are volatile and an investor should be sure how much money is expected to be gained and what is the maximum loss that can be incurred.

The predictable loss should always be less than the predictable profit. There must be a limit stop loss order in place that protects against loss to the minimum. Remember, Trading CFDs are risky instruments as they involve a leverage.

The loss incurred may be more than the money invested. Hence, these products should be tracked and tested on demo before trading live. The traders in the financial markets lose money, as losing is one of the aspects of trading.

Most traders use Technical analysis in their trading, but it is still important to learn both. Fundamentals affect the outlook of an economny. A bad economy would mean a bad currency, and vice versa. So it is important to undertand the basics of Fundamental trading. Technical analysis involves trading based on the charts, reading the patterns, using charting tools, indicators etc.

to figure out the currency's movements. Traders that use technical analysis read the chart using methods like candlestick patterns, Supply Demand, trendlines, support resistance etc. Below is an example of how a trading chat looks like. A technical trader would analyse different time frames as well during analysis. If you are just starting out, it is really important to spend as much time as you can to learn about the concepts of Forex, CFD trading; it's risks, strategies etc.

Once you have learned the basics, start by opening a demo account with a broker of your choice. Trade using that demo account until you have a good strategy that works, and has been tested over a period of months minimum. Ony once you are fully comfortable, then you can start by investing real money. Start with low capital, and trade mini lots only. Follow all the money management lessons.

Enter your email to get the link to download the PDF version of this Forex Trading in Kenya PDF guide. Forex Trading in Kenya Complete Guide for Beginners. Download PDF Guide. Emmanuel — Last Updated February 11, Summary of Best Online Forex Brokers for Beginners in Kenya in Forex Broker Highlights Average Fees EURUSD Account Minimum Current Offers Learn More.

Chapter 1 What is Forex Trading? How does Forex market work? By trading in the forex market, you can exchange one currency for the other. Example of Real Life Foreign Exchange Trading Let's say you have 20 US Dollars, but you want Kenyan Shillings instead.

Chapter 2 Currency Trading Terminology. In this chapter, we will cover important terms like Currency Pairs, Pips, Leverage, Spread etc. Let's go. Currency Pairs In the forex market all currencies are traded in pairs, against each other.

It is the biggest financial market in the world and has very high liquidity. The forex market participants include businesses, banks, speculators, institutions, etc. Some of the trades in the forex market are speculative in nature and a part of it is from retail traders.

Retail traders come to the forex market to speculate, hedge against currency and interest rate risk, etc. The activities that take place in the forex market are what determine the exchange rate of any currency pair. The higher the demand for a currency, the higher its exchange rate.

The forex broker is a regulated participant who acts as a bridge between the forex trader and the market. The broker is a middle man who places buy and sell orders for retail traders and some brokers also offer research services as well if required by the trader.

The forex broker charges a fee for their services. That being said, retail traders need to pass through a forex broker that accepts retail traders if they are to access the market. There are several forex brokers in Kenya to choose from. There are two types of brokers.

They are classified based on their execution model. Here is the breakdown. Dealing Desk Broker: Dealing desk brokers take the opposite side of your trades.

When you buy a currency pair, they sell. When you sell, they buy. Because of this, when you lose a trade, they make money off it, leading to a conflict of interest. This is why traders tend to prefer non-dealing desk brokers.

Non-dealing Desk NDD Broker: NDD brokers do not take the opposite sides of your trades and they are divided into two. This type is referred to as an ECN broker. The second type is the STP brokers.

Retail forex traders are individual investors who wish to trade in the forex market for personal gain. They account for an estimated 5. Retail traders are in the market mostly for speculative reasons. They hope to profit from differences in exchange rates between currencies. Their presence in the forex market is to create policies that can affect the currency, intervene and stabilize the currency through increasing or decreasing interest rates, performing Open market operations in some situations, etc.

Central banks can also devalue their currency to make exports of their country more competitive to international buyers. In short, the Central bank plays a major role in deciding the value of a currency. Commercial Banks make up the interbank market where they trade forex with other banks in very large volumes. These volumes are large enough to dictate the bid and ask prices for any currency. They trade on behalf of themselves and their customers.

Big companies that operate in different parts of the world have to trade in the forex market to hedge risk and also for business purposes. A company hoping to buy raw materials from another part of the world may need to convert its currency to be able to pay the supplier at the other end. Big companies who have business operations in other parts of the world may also want to convert and repatriate their profits in a stronger currency to hedge against the risk of currency depreciation.

Depending on the currency that you want to trade, some sessions can be better than others. The best time to trade the majors is when some of the major sessions overlap. At this time, market participation and liquidity are high, and spreads are at their lowest. All the countries participate in the forex market and their currencies are represented as three-letter codes.

However, we will focus on the popular currencies here. The popular currencies and their codes are listed below. They usually have the USD on one side of the quote either as a base or quote currency.

Examples in order of popularity are:. These are currency pairs involving a major currency and a currency of a smaller economy. These smaller economies are often referred to as emerging economies. Examples are. The base currency is usually on the left while the quote currency will be on the right.

Here is an illustration below. When you go long buy on a currency pair, the base currency is being bought while the quote currency is being used to pay for the base currency. It is the other way round when you go short sell on a currency pair. Currencies are always traded in pairs at an exchange rate. The exchange rate is how much of the quote currency is required to buy the base currency. The Bid price is the highest price a forex trader is willing to pay to buy the base currency from the broker.

Forex brokers quote these two prices on their trading platforms. They are always obvious that you cannot miss them. Certain terms are widely used in forex trading and understanding is very important. We shall discuss some common terms below. Unlike some businesses, it could take years to become a successful Forex trader making it a key barrier to potential investors that lack patience.

As per the statistics from most brokers. The learning curve is a major contributor to this failure rate, especially for those traders that take shortcuts. With the potential of huge losses in the market, Forex trading is among the riskiest undertakings in the finance industry.

Some of the contributors to losses include a lack of trading strategy and poor risk management. Other elements such as fundamental market changes, high broker fees, inadequate knowledge, and greed also greatly contribute to losses. Fraud mostly happens through engaging potential brokers that operate illegally in the market. Without proper regulation, a broker could end up disappearing with your funds as there is no way to hold them accountable.

As a trader, you should always ensure to use a genuine broker to avoid losing your investment. You can do this by confirming a broker status with the capital markets authority CMA. There are numerous legal Forex trading brokers in the country. This list comprises both local and international brokers.

The choice of the right broker depends on your expectations as a trader. This is because brokers operate differently and each is unique. Below are some of the Forex trading brokers with the capital market authority CMA license to operate in Kenya. However, other brokers operate in the market both local and international but lack the CMA license. It is key to note some risks exist by trading with unlicensed brokers. For a beginner, it is better to settle among on a broker under government regulation.

The Process of Company Registration in Kenya. There are different types of Forex traders in the market. The type of trader is dependent on the trading style more so the amount of time you are spending in the market. These are traders who hold trades for very little time. This could mainly be in seconds or minutes. Scalpers target to make many trades with small returns. A key characteristic of scalping is that it requires a trader to be present during the trade duration.

Scalping is also highly risky and hence it requires experience and good risk management skills. These are traders who ensure all trades open and close within a day. Day traders ensure they are out of the market by the close of a trading day. Just like scalpers, day trading requires experience and availability. Risk management is also key to ensuring there is a return after closing the trades.

Swing traders hold a trading position between 2 days to a few weeks. They are patient and target price swings to enter the market. It requires less attention to the previous two. Swing trading is ideal for traders with other engagements and can only spend a few hours analyzing the market. This is the ideal trading style for beginners as it gives you adequate time to study the market before making trading decisions.

However, as you gain experience, you can transit the short time frame trading. Finally, position traders target to hold trades between a few months to years.

This is a long-term trading style that works as an investment. Position trading requires a great understanding of the fundamentals in the market.

Position traders also ignore the short-term price movements such as scalpers and day traders. One key element that you must have as a position trader is patience. This is because the market takes a long time to reward. With the Forex trading business getting popular in the country, it presents numerous opportunities to make an extra income with the potential of becoming a full-time job for successful traders. However, it requires adequate learning and experience to become a successful trader.

Your preference trading style will be determined by key elements such as time availability, risk management, and experience. Normally currencies exist in pairs meaning you trade one against the other. All You Need To Know About Forex Trading in Kenya. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Skip to content. Forex Trading. By Robert Kariuki Mar 20, Benefits of forex trading , Best forex trading brokers in Kenya , Broker , CMA , EGM securities , Forex , Forex Kenya , Forex trading , Forex trading in Kenya with MPESA , Forex trading pairs , Forex trading strategy , HFM investments Kenya , How long do you take to become profitable in Forex trading , How much money do forex traders make in Kenya , How much money do you need to start forex trading , Is forex trading in Kenya profitable , Is forex trading legit in Kenya , Kenya , Lot size , Pepperstone , pepperstone markets Kenya , Requirements to start forexx trading in Kenya , Scopemarket , STOCK , Trader , Types of forex traders in Kenya , what is the best forex trading broker in Kenya.

By Robert Kariuki. Related Post.

Tim Fries is the cofounder of The Tokenist. He has a B. in Mechanical Engineering from the University of Michigan, and an MBA from the University Meet Shane.

Shane first starting working with The Tokenist in September of — and has happily stuck around ever since. Originally from Maine, All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.

Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

Now more than ever, choosing a regulated broker with a proven history of trust and success is crucial. In this article, we will not only highlight brokers that are considered safe and regulated, we will outline where each broker shines, its fee structure, and go over the trading tools and platforms offered. We will follow this with a guide on everything you need to know about trading forex in Kenya.

com is one of the biggest names in currency trading — and for good reasons. They combine competitive pricing, powerful research tools, and allow you to choose from a variety of user-friendly platforms.

com offers clients access to 91 currency pairs, as well as stocks CFDs, 20 stock index CFDs, and 9 cryptocurrencies. The spreads offered by the brokerage are competitive overall — with an average spread of only 1. The minimum deposit for FOREX. Speaking of platforms, FOREX. com offers clients a couple of choices. When it comes to research, FOREX. com offers a steady stream of market analysis conducted by its in-house team of experts.

The broker also offers useful trading ideas, as well as a plethora of educational content, platform tutorials, and a weekly webinar. Overall, FOREX.

com offers plenty of advantages without any major flaws — the only things that we could find to be substandard were the customer service and lack of fundamental data — but these things are easy to overlook when you look at the big picture.

com has a solid all-around offering — both novices and weathered investors will find plenty of useful features with this brokerage — and because of that, it has earned the first spot in our review. Investor Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Pepperstone is an online forex broker based in Australia, offering a collection of CFDs too. Aside from Kenya, Pepperstone is one of the leading forex brokers across the globe.

Professional traders in Kenya will be offered a leverage of up to , while retail are limited to However, the upsides and downsides of this should be carefully considered, ensuring that your leverage matches your goals and needs. Over 60 currency pairs can be traded, but the leverage levels for these cannot be changed, which is a downside. The highlights of its fees include no trading fees, activity fees, or withdrawal fees. Pepperstone clients could be hit with forex and non-trading fees, but overall, these are lower than other competitors in Kenya.

If you are planning on trading CFDs, then keep an eye out for potentially high CFD financing rates. The Razor account in particular offers spreads from just 0.

Pepperstone offers an award-winning customer support team. Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. AvaTrade is an online CFD broker based in Ireland since its humble founding in The Irish firm offers low spreads on more than financial instruments.

Importantly, AvaTrade is financially regulated across five continents out of seven continents. AvaTrade offers a total of five account types with fees and spreads all depending on the account type chosen.

Taking a specific look at the AvaTrade Account BVI , traders will gain access to 55 currency pairs with fixed spreads, plus a variety of CFDs to choose from on stocks, indices, cryptocurrencies, and commodities. Spreads with the BVI account begin at 0. Clients will gain access to a leverage of through this account.

Opening an account with AvaTrade is quick and easy, and you can relax knowing that the customer support time can be reached through live chat, phone, or email, in a range of languages.

Founded in , XM is a highly regulated forex broker, offering traders a strong selection of nearly 60 currency pairs and CFDs. Clients will also gain access to five cryptocurrency CFDs covering Bitcoin, Litecoin, Dashn, Ripple, and Ethereum.

Since its founding, XM has amassed over 2. XM is a solid choice for investing in international stock exchanges. Many have classified XM as one of the best online brokers for forex and CFDs. This global broker offers four account main options: Standard, Micro, Shares Accounts, and XM Ultra Low.

With each account, traders will get high-quality trading conditions, and access to MetaTrader4. The micro accounts can hold EUR, USD, GBP, JPY, AUD, HUF, RUB, SGD, and ZAR.

A benefit of this account is the lack of commission charges. This account also offers negative account protection as well as trading bonuses, along with no deposit bonus, making it a favorable choice for beginner traders. XM clients can access more than 1, instruments across 7 asset classes, including 55 forex pairs, eight commodities through futures CFDs, five futures CFDs, and two spot metals.

As is typical with Forex, the fees depend on the account used. In general, XM offers tight spreads as low as 0. In essence, XM clients will be offered a leverage of between to This will depend on your account type, asset type, and trade size.

All fees will vary depending on the asset class, and can include a minimum and maximum trade size and margin percentage. All information per account is clearly laid out. Standard non-trading fees apply. Founded in in New York, FXCM was originally banned in the US as a result of fraud charges. It has since restored its reputation and Jefferies Group, the new owner, is a well-known and trusted firm.

The range of markets offered by FXCM is narrow and the pricing is standard, but this firm stands out with its robust trading tools and quality market research. FXCM offers 39 currency pairs, 82 CFDs, copy trading, and spot trading.

Overall, FXCM has low trading fees and no withdrawal, deposit, or account fees. However, its over fees are pretty average, and an inactivity fee will apply to accounts that have been lying idle for a year or over. Though no side-by-side comparisons are available to help determine the real costs. The firm offers a folder of quality basic forex training lessons and a lengthy video archive of well-produced lessons. The FXCM customer support responds quickly and can be reached through phone, live chat, and email.

But the team is not available on weekends, unfortunately. Established in , FXTM makes our list of the top forex brokers in Kenya. The FXTM MetaTrader offers currency pairs in the lower range, in comparison to other leading forex trading platforms.

In total, there are only 33 currency pairs, and two CFD spot metals XAUUSD and XAGUSD. The cTrader platform, on the other hand, offers 4 assets classes, including a bigger selection of 70 currency pairs, stock indices, and seven pairs of metal trading. On a positive note, forex traders in Kenya will gain access to one of the highest leverages offered in the forex industry.

Each FXTM account differs in fees. Traders using the ECN account will benefit from low spread charges, but the catch is that there is a commission charge. Opening an FXTM account is quite a hassle free process, and should be up and running within two working days.

The minimum deposit, like the fees, will depend on the account type. FXTM offers support to its clients through live chat, phone, and email, in a whole range of languages to meet the needs of traders across the globe. Languages include English, German, Frechna, Italian, Polish, Chinese, and Russian, among others. In this section, we aim to explain everything you need to know about forex trading , including the basics to get you started trading forex in Kenya.

Foreign exchange, also known as forex, is the exchange of currencies on the currency market. Traders can buy or sell currency pairs at the current exchange rate, which fluctuates over time. The goal is to buy a currency in the hopes that it will increase in value, allowing the trader to sell it and make a profit. Not too long ago, trading on the foreign exchange market was restricted to banks, governments, and large institutions. However, in under 20 years, the forex market has seen a drastic increase in retail traders and speculators through the emergence of more low-cost trading platforms.

Yes, forex trading in Kenya is legal. The forex trading market in Kenya has been regulated by the Capital Markets Authority, the regulatory authority in Kenya, since If you are a forex trader in Kenya, ensure that you only trade with brokers that are regulated to operate legally in Kenya.

Before choosing a forex broker in Kenya, ensure that it is well regulated by a reputable financial regulator. This is because forex brokers licensed by the regulator are held accountable to the rules and guidelines enforced by the concerned authority.

This ensures the safety of your funds, and protects you from bankruptcy or fraud.

Whether you use fundamental analysis or technical analysis as a forex trading strategy, the truth is that it is difficult to anticipate the trajectory of forex price movement. Lower spreads can have a major impact on profits and losses booked by the trader. It is generally the last decimal in the quote. Brokers by License. Regulation s : ASIC, CySEC.

Categories:

• Forex Brokers
• Forex
• Binary Options online
• Binary Options
• Forex Bitcoin