10 Scam/Fake Forex Brokers in Kenya
The 10 Scam/Fake Forex Brokers in Kenya revealed. We tested the Scam/Fake Forex Brokers for Kenyan Traders.
This is a complete guide to Scam/Fake Forex Brokers in Kenya.
In this in-depth guide you’ll learn:
- What is a Scam/Fake Forex Broker?
- How to spot a scam/fake forex broker in Kenya?
- What to do when you traded with a fake/scam forex broker?
- How to know how a fake forex broker looks?
- Forex scammer list
And lots more…
So if you’re ready to go “all in” with the fake/scam forex brokers in Kenya…
Let’s dive right in…
CySEC, FCA, FSA, FSCA, Labuan FSA
FSA, Cysec, FSCA, FSC
What is a scam/fake forex broker?
👉 Scam brokers are not often real brokerage firms or online platforms. It is most probable that they are unincorporated individuals who promote themselves as broker businesses.
👉 Frequently, they are seasoned Internet users who can construct bogus information on the site they developed. These sites’ proprietors lack a license and are consequently not overseen by market regulators such as CMA.
👉 In addition, Sometimes these frauds lack even the most fundamental Forex market expertise as they are merely running such schemes to trick Kenyans out of their funds.
👉 We have compiled our own Forex scammer list below to see which brokers to watch out for.
1. Blackstone 500
👉 This broker is a global internet trading firm that provides access to a vast array of financial products. The United Kingdom’s Financial Conduct Authority (FCA) has issued warnings against this broker, indicating that the broker is not permitted to offer services in the UK.
👉 Several forex traders have voiced worries about the broker, while others have experienced issues cancelling their accounts and withdrawing cash, which is symptomatic of a fraudulent broker.
2. Fx Option Trade247
👉 As part of its trading service, this unlicensed and unregulated broker provides worldwide traders with over 250 financial instruments.
👉 The broker states that users may engage in trading activities across sophisticated trading platforms utilizing advanced charting and trading tools, technical indicators, and more.
👉 This broker claims to be regulated in the United States by the National Futures Association (NFA) and in Cyprus by the Cyprus Securities and Exchange Commission (CySEC). However, these credentials are fraudulent, and the broker is a copy of a real enterprise.
👉 24FX was a Cyprus-based Forex broker owned and run by Rodeler Ltd that claimed to be licensed by CySEC and MiFID.
👉 It was established in 2014 and claimed to provide worldwide traders with the chance to trade Forex, Commodities, Indices, and Stocks using the most advanced market technologies in a transparent trading environment.
👉 24FX claimed to provide a choice of accounts to accommodate traders of all sorts and experience levels. Each ascending tier was meant to be accompanied by a variety of perks, including narrower spreads, more trading incentives, and access to a personal customer support representative.
👉 However, 24FX has since been reported as a scam broker and there have been several warnings not to deal with this broker. Currently, this broker’s website is inactive because of the number of reports against it.
4. Aduno Capital
👉 Aduno Capital was owned and managed firm of ADUNO Capital Group Ltd, a German company. Aduno Capital provided European investment services, having offered access to several financial markets in Europe, North America, and Asia-Pacific.
👉 While Aduno’s website states that it is registered with the Malta Financial Services Authority (MFSA), the Financial Services Commission of Hong Kong (FSC), and the Financial Conduct Authority of the United Kingdom (FCA), the registration numbers are given on that page belong to other regulated brokers.
👉 In addition, the Austrian Financial Market Authority has previously barred Aduno Capital from providing services that need a valid license. Consequently, Aduno Capital is unable to provide its services in several places.
5. AGM Markets
👉 AGM Markets appears to be a legal business, licensed in both Cyprus and Italy. The website was only available in Italian and most traders would assume that this is because of local law. However, this company and its sister company, ACMarketsFX, were complicit in fraudulent activities.
👉 Foreign exchange broker AGM Markets claims to be a company that provides trustworthy services to consumers and businesses in more than 140 countries. BaFin in Germany has banned the company because it is a copy of AC Markets in Europe.
👉 The license numbers on the website did not appear on registers as belonging to AGM Markets, but other brokers who are legitimate and in operation.
6. FX FutureGen
👉 FX NextGen is an overseas broker and one of the major Kenyan investment frauds preying on unwary internet traders. Kenyan traders searching for overseas trading opportunities encounter bogus scams such as FX NextGen.
👉 The broker claims registration in the Republic of Georgia, however neither its registration nor its license could be confirmed. The broker claims to be licensed by the Hauling Free Industrial Zone, but this organization is not a market regulator.
👉 The FMA in Austria has already issued a warning against FX Nextgen Limited, prohibiting the company from conducting financial operations.
👉 YardOption was established in 2020 and provides services as a broker for digital currencies, foreign exchange, and stock indexes.
👉 Another red indicator is that they briefly disabled their website and to add insult to injury, YardOption is based out of Saint Vincent and the Grenadines, a shady offshore lactation farm.
👉 St. Vincent and the Grenadines is well renowned as a prime offshore haven for unscrupulous brokers.
👉 YardOption’s fraudulent nature is further supported by repeated statements from the government of Saint Vincent and the Grenadines that it does not oversee the foreign currency market.
👉 Instead of going with the market standard of MT4 or MT5, YardOption developed its own trading platform. However, the quality of their software makes this a subpar choice.
👉 The withdrawal amount will be deposited into your account within five business days, as per their terms and conditions. After five months of inactivity, the broker will begin charging $30 per month as a “dormant account commission.”
👉 According to previous customers of YardOption, refund requests are denied, and withdrawals are not approved by this scam website, resulting in traders losing substantial portions of money.
👉 Traderia is a brokerage that boasts prime market conditions for trading FX, together with strong liquidity and consistent trade execution. Pro Star Griffith Corporate Limited, a Saint Vincent and Grenadines-based corporation, is the owner and operator of Traderia.
👉 Traderia is a fraudulent broker since it is not licensed to provide investment goods, financial instruments, or facilitate foreign exchange transactions.
👉 Capital88 Limited, an offshore corporation domiciled in the Marshall Islands, is the owner of Capital88. To make matters worse, the Marshall Islands and other islands have grown known for lax or non-existent regulation.
👉 Capital88’s website claims that it provides traders from all over the globe, including those from Kenya, access to more than a thousand different financial products.
👉 It also states that it is supervised by the Financial Supervision Commission in its own country. Despite this, Capital88 has been impeded by the CNMV, the Spanish National Securities Market Commission.
👉 Traders should be aware that the broker is not permitted to provide investment services, investment advice, or any other ancillary services.
👉 TF Trading Ltd., an offshore corporation based in the Marshall Islands, is the owner of TurboForex. TurboForex, as stated on its website, is a prominent supplier of CFD brokerage services for foreign exchange, commodities, and stocks/indices.
👉 There are several phone lines with area codes from the United Kingdom, New Zealand, Australia, Brazil, Norway, Sweden, and other countries, but the firm provides no information regarding its physical location or, more critically, its regulation.
👉 TurboForex is neither based in nor regulated by any of these regions. In addition, CNMV has previously issued a warning stating that TurboForex is not authorized to provide investment services in Spain.
How to choose the right Forex Broker in Kenya
👉 Kenyan traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
👉 This is the first vital component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Kenyans must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
👉 Kenyans must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Kenyans must consider what they wish to trade and what is available.
👉 Customer Support is another crucial factor and Kenyans must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
👉 A trading platform is the Kenyan trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ Status of International Markets
➡️ Price movements
➡️ Market sentiments
➡️ Whether there is a volatile market
➡️ Exchange Rates
➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Forex Brokers in Kenya
👉 In this article, we have listed the best Forex brokers that offer CFD and forex trading to traders in Kenya. We have further identified the forex brokers that offer additional services and solutions to Kenyan traders.
Best MetaTrader 4 / MT4 Forex Broker in Kenya
USD 100 / 11560 KES
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 Overall, AvaTrade is the best MT4 forex broker in Kenya. More than 1,260 different financial products are available for trading on AvaTrade’s MetaTrader 4 platform, giving traders access to a wide variety of marketplaces.
👉 AvaTrade has been around for 16 years and has a solid reputation and several honours to its name.
Best MetaTrader 5 / MT5 Forex Broker in Kenya
USD 100 / 11660 KES
CySec, FSC, FSA, BaFin, NFA
MetaTrader 4 , MetaTrader 5
50 Forex Pairs and 20 Crypto Pairs
Account Activation Time
👉 Overall, BDSwiss is the best MetaTrader 5 forex broker in Kenya. Kenyans may open one of four retail accounts with BDSwiss to trade in a variety of marketplaces.
👉 MetaTrader 5, which is available through BDSwiss, is accessible from any web-enabled device, including smartphones and tablets.
Best Forex Broker for beginners in Kenya
👉 Overall, XM is the best forex broker for beginners in Kenya. XM offers Kenyans a dynamic demo account and a range of educational materials. Kenyans can start trading on the demo account and use the guidelines provided before they establish a real capital account.
Best Low Minimum Deposit Forex Broker in Kenya
👉 Overall, Fidelity Investments is the best Low Minimum Deposit Forex Broker in Kenya. When Kenyans trade with Fidelity Investments they are assured that they are dealing with a well-regulated entity.
👉 Kenyans can easily establish a trading and investment account through Fidelity’s app for 110 KES, providing them access to a range of financial markets.
Best ECN Forex Broker in Kenya
USD 5 / 578 KES
MT5, MT4, OctaTrader
Account Activation Time
👉 Overall, OctaFX is the best ECN forex broker in Kenya. OctaFX uses ECN technology to ensure that 97.5% of orders are filled without any slippage. OctaFX provides fast transaction execution speeds with a variety of trading platforms and respectable leverage ratios (up to 1:500).
Best Islamic / Swap-Free Forex Broker in Kenya
USD 0 / 0 KES
CMA, CySEC, FSC, FSCA
MetaTrader 4 and MetaTrader 5, HFM Trading App
Account Activation Time
👉 Overall, HF Markets is the best Islamic / Swap-Free forex broker in Kenya. HF Markets is among the most well-known companies in Kenya, with a market share of <5%.
👉 Traders with several accounts on HF Markets may easily convert any of them to Shariah-compliant Islamic accounts.
Best Forex Trading App in Kenya
👉 Kenyans may monitor their open positions and get real-time market data with the Trade Nation app.
Best Kenyan Shilling Trading Account Forex Broker in Kenya
USD 10 / 1156 KES
CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA
MetaTrader 4 and MetaTrader 5
Account Activation Time
👉 Overall, Exness is the best Kenyan Shilling trading account forex broker in Kenya. Exness offers a KES-denominated account to Kenyans.
👉 This provides Kenyan traders with the freedom to deposit and withdraw in local currency without fearing currency conversion fees.
Best Lowest Spread Forex Broker in Kenya
USD 1 / 116 KES
IFSC, FSCA (South africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading platform.
$140 (16 373 KESFind out More)
Account Activation Time
👉 Overall, FBS is the best lowest spread forex broker in Kenya. FBS is unique among brokers in that it provides not just Cent and Micro accounts but also a selection of four additional account types for more experienced traders.
Best Nasdaq 100 Forex Broker in Kenya
👉 Overall, Tickmill is the best Nasdaq 100 forex broker in Kenya. Three retail investor accounts on Tickmill provide Kenyan traders with competitive trading conditions and access to the Nasdaq 100.
👉 Kenyans may now engage in the dynamic CFD trading environment on Indices thanks to Tickmill’s provision of MetaTrader 4 and 5.
Best Volatility 75 / VIX 75 Forex Broker in Kenya
USD 0 / 0 KES
Account Activation Time
👉 Overall, IG is the best Volatility 75 / VIX 75 forex broker in Kenya. Kenyans have a selection of robust trading platforms from IG.
👉 Kenyans have a variety of account kinds to select from depending on their requirements and trading goals.
Best NDD Forex Broker in Kenya
USD 1 / 116 KES
Account Activation Time
👉 Overall, InstaForex is the best NDD forex broker in Kenya. InstaForex is a versatile forex and CFD broker that offers some of the best ECN and STP execution across its four retail accounts. InstaForex also offers new Kenyan traders a $1,000 no-deposit bonus.
Best STP Forex Broker in Kenya
👉 Overall, Axiory is the best STP forex broker in Kenya. Because of the broker’s connectivity to Equinix datacentres, Axiory processes all orders in less than 200 milliseconds.
👉 With the use of dynamic trading accounts, Axiory provides a variety of marketplaces that may be traded.
Best Sign-up Bonus Broker in Kenya
USD 1 / 116 KES
Account Activation Time
👉 Overall, SuperForex is the best sign-up bonus broker in Kenya. SuperForex offers a choice between 11 retail accounts and Kenyans can earn a sign-up bonus of $88 without having to deposit funds first.
👉 SuperForex offers a range of instruments that can be traded over MetaTrader 4 and the SuperForex App.
Regulated versus Unregulated Brokers
👉 Understanding the distinction between registered and unregulated brokers is important because making the right choice of broker is crucial. There are essential distinctions to bear in mind before settling on one.
👉 To boil it down to its essential component, financial gain is the driving force for the prevalence of unlicensed brokers.
👉 Many brokers cannot afford to pay the regulatory body’s fees and become licensed. It might just be that they are a newer or smaller company and not an indication of any flaws in their methods.
👉 Be aware of brokers who seem unwilling to play by the rules. There will be no watchdog organization to safeguard you, and you should constantly be prepared to fall victim to deception and trickery. If you do your research, regulated brokers will be your best bet.
👉 Some of the differences that distinguish regulated and unregulated brokers relate to:
👉 Those brokers who fall under the jurisdiction of a regulatory agency are subject to additional requirements and must provide their clients with additional services.
👉 It is helpful to be able to contact the person managing your assets if you have any queries or concerns. In contrast to registered brokers, unregulated brokers are not obligated to provide a single point of contact for all client inquiries.
👉 Moreover, the cost of being a licensed broker is high; for that reason, no rational broker would ever risk losing that status.
👉 You can therefore rest easy knowing that a registered broker will act per the rules and regulations. You can also quickly check into the broker’s history and see if there have been any mishaps.
👉 When investing, you must always have full transparency where your funds are concerned. Only the most reputable forex brokers are subject to government oversight, so they all act openly and honestly.
👉 Thus, you will know exactly what is going on with your money, and your broker is required to provide regular updates.
👉 You should be forthright about your expectations in this area with unregulated brokers since they are not subject to the same laws and regulations.
👉 This is not to imply that unregulated brokers would wilfully withhold information from you, but rather that you should exercise extreme caution when working with them.
👉 Having peace of mind regarding the security of your funds will allow you to confidently invest in the foreign exchange market. You may be certain that a registered broker will conduct your trades fairly and legally.
👉 The broker’s ability to get regulatory approval is indicative of its reliability and should be celebrated.
👉 When working with ECN brokers, technology will play a much more integral part, thus this is already crucial. When interacting with innovative systems and processes, particularly those involving your money, you must take all precautions possible to safeguard yourself.
The Importance of forex regulation
👉 Multiple pieces of legislation passed by parliaments establish regulatory organizations and outline their mandates, jurisdictions, and strategies for enforcing forex trading laws and regulations.
👉 All participants in the foreign exchange market, including brokers, financial service providers, investment banks, signal sellers, and others, are legally obligated to follow the regulations enacted by regulatory bodies.
👉 To avoid fines, jail time, or other repercussions, forex brokers, commercial banks, investment banks, and other businesses must adhere to the regulations set out by the various regulatory bodies in the countries in which they operate.
👉 These institutions are also routinely assessed, inspected, and audited. Financial papers and other proof showing they can meet their financial commitments are also necessary.
👉 Clients and service providers both benefit from regulations that require businesses to maintain an atmosphere of trustworthiness, security, and openness for all transactions.
How can you identify a scam/fake forex broker?
👉 The sheer volume of information available on the topic of forex broker fraud is overwhelming. However, there are still many untrustworthy brokers in the forex industry. Learn how to discern reality from fiction while researching a forex broker.
👉 When traders see a lot of negative feedback about a broker in online forums, articles, and customer reviews, they may start to believe that no trader ever makes money. If a trader’s techniques do not yield profits, they may publish information online that places the blame on the broker or some external factor.
👉 Avoiding having to take precautions against dishonest brokers in the first place is preferable. If you want to assist, try these steps:
➡️ Look into the broker’s reputation on the internet. The results of a broad web search might help you determine if the source of any bad feedback is a single unhappy trader or something more systemic. BrokerCheck, available via the Financial Industry Regulatory Authority (FINRA), is a helpful addition to this kind of investigation since it shows whether any pending disciplinary measures have been taken against the broker in question. You may verify a broker’s legitimacy by looking them up in regulatory databases using the broker’s name or the license number the broker offers on their website.
➡️ Verify that no one has reported problems withdrawing money. If so, it would be helpful to contact the user to learn more about their experience.
➡️ When establishing an account, be sure to read all paperwork carefully. When a trader tries to withdraw cash, opening-account bonuses are often utilized as leverage against them. If a trader deposits $10,000 and receives a $2,000 bonus, and subsequently incurs losses and requests a withdrawal, the broker may refuse to process the withdrawal since the bonus money is considered “unearned.” When dealing with situations like these, it is important to read the tiny print to ensure you are aware of and prepared for any eventualities.
➡️ Once you have done your homework and decided on a broker, it is time to create micro or low-funding account. It is best to trade with the selected forex broker for at least a month before attempting a withdrawal. If everything has gone smoothly up to this point, it may be safe to deposit further monies. Try to talk to the broker if you are having issues. If it does not work, document your ordeal in detail online so that others may benefit from what you have learned.
Major types of Forex Scams that Kenyans must beware of
👉 Scammers in the foreign exchange (Forex) market, the money transfer industry, and other areas of trading are always on the lookout for novel methods to defraud unsuspecting investors.
👉 However, three forms of forex fraud stand out as particularly problematic. Because knowledge is the first step towards preventing harm, some of the most common scams and how they work are discussed below.
👉 Technical signals are used by a Forex robot, which is computer software, to initiate and terminate transactions based on predetermined algorithms. Some Forex trading robots are legit. In the widely used MetaTrader trading platform, Expert Advisors (EAs) may be used to create Forex trading robots.
👉 If you want to avoid some of the notorious fraudsters, searching online for a Forex robot scam list could assist. Aside from these red flags, keep in mind the following while you search for legitimate Forex robots:
➡️ Unrealistic marketing
➡️ High percentage returns
➡️ Scalping strategies that are not diversified
➡️ Robots offered by unregulated brokers or brokers with regulations that cannot be verified
Signal Seller Scams
👉 Individuals that provide Forex signals to others often provide trade ideas that include a currency pair, direction, entry price, stop loss, and target levels. There are a few red flags that might raise suspicions about a forex trading scam:
➡️ When there are subscription fees involved. Sometimes people may claim to have incredible outcomes, but there will be no evidence to back them up. Subscription fees to access the trades are typically exorbitant, or they may begin quite modest but then exploit your financial information for fraudulent purposes.
➡️ Signals associated with brokers. You can get trading signals from certain providers, but only if you open an account with their recommended broker. This suggests that they have an incentive to give you transactions, whether or whether they are profitable, to earn a commission from the broker.
➡️ Results that cannot be verified. When a broker or program cannot provide verified track records, it could mean that they are not the ones trading the signals themselves.
Suspicious Trading Investment Scams
👉 False forex trading investment scams and forex investment funds are widely advertised in the media nowadays. A persuasive advertisement or salesperson would try to convince you of the hypothetical or unproven performance of their FX fund.
👉 The only thing you need to do is send over your money and then sit back and collect the dividends. Of course, many senders never get their money back.
👉 The firm claims you do not exist and that they have never received any payment from you. One of those money frauds has evolved from what seemed like a legitimate opportunity to participate in FX trading.
👉 A second conclusion is that they set you up with a broker who is not subject to any oversight. However, after just a few deals, your whole balance will be wiped away.
👉 They have lost all their money to their brokerage firm while blaming the market. In addition, getting your money back is a major hassle since it is unregulated.
👉 Even though traders often blame online trading brokers for their losses, brokers are sometimes to blame.
👉 Before creating an account, a trader must undertake extensive research on a broker, and if the research is favourable, a modest deposit should be made, followed by a few trades and then a withdrawal. If this is successful, a greater deposit can be made into a trading account.
How do you know if a broker is legit?
While fake brokers may or may not have websites, reputable brokers will always have a website that includes all their vital information, such as contact and regulatory information.
The user-friendly, dynamic, and comprehensive websites of the licensed broker must have all the necessary information and license numbers must belong to the registered name of the broker.
Are all forex brokers in Kenya scam?
No, not all forex brokers in Kenya are scam brokers. There are six CMA-regulated brokers in Kenya and several reputable Tier-1, 2, and 3 regulated international brokers who offer trading in the country.
Why do so many traders fail?
Because they do not take the market seriously enough, most traders end up losing money.
Most novice traders look for effortless ways to make money and do not put much thought into their strategy. Some novice traders are gambling without knowing it.
Can forex make you rich?
Forex trading can make lucrative profits but there is a significant amount of risk involved and most traders lose their money.
Do forex traders lose money in the forex market?
The vast majority of those who try to trade the Forex market fail. Most Forex traders lose money, with estimates ranging from 70% to 90% based on the most cautious assumptions. These numbers are provided by forex brokers in the risk warning for using their services and platforms.