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Forex Trading for Beginners in Kenya

Forex Trading for Beginners for Kenyans revealed. We tested the best giude to forex trading for beginner Kenyan Traders.

This is a complete guide to forex trading in Kenya.

In this in-depth guide you’ll learn:

  • What is forex trading?
  • What is the legality of trading in Kenya?
  • Which brokers do the most successful traders use?
  • Who is the governing body for all regulations?
  • What are some jargon that all beginner forex traders must understand?
  • Which brokers offer a sign-up bonus for first-time traders in Kenya? 
  • Which brokers offer a low minimum deposit of $5 (583 KES) to start trading? 
  • Which trading platforms offer a mobile app on IOS and Android for Kenyan Traders? 


And lots more…

So if you’re ready to go “all in” with the best-tested forex trading guide…

Let’s dive right in…

Updated : September 23, 2022

Forex Trading for Beginners in Kenya (Updated 2022)

  1. HF Markets – Overall, Best Trading Platform for Kenyan Traders 
  2. AvaTrade – Best VIX75 Platform in Kenya
  3. Exness – Best MetaTrader4/MT4 Trading Platform
  4. Oanda – Best ECN Forex Platform
  5. FP Markets – Best Sign-Up Bonus for Kenyan Traders
  6. Pepperstone – Best STP Forex Platform
  7. XM – Best NDD Forex Broker in Kenya
  8. FBS – Best Minimum Deposit Forex Platform
  9. Tickmill – Best Forex Platform for Beginner Traders
  10. OctaFX – Best Trading App Platform in Kenya

What is Forex Trading in simple terms?

👉 Trading foreign exchange is, at its core, not unlike exchanging currencies when traveling: In currency trading, a trader buys one currency and sells another, and the buying and selling prices of the two currencies are continually changing because of supply and demand.

 

👉 The foreign exchange market is a worldwide marketplace where currencies are exchanged around the clock, Monday through Friday.

 

👉 Since there is no central trading facility for foreign currency like there is for stocks. In addition, the market is regulated by a loose confederation of banks and other financial organizations worldwide instead of a central exchange like the New York Stock Exchange.

History of Forex Trading in Kenya

Forex Trading

👉 In its most basic form, the foreign exchange market has existed for millennia. People have traditionally traded or bartered items and money to acquire services and goods. However, as it exists today, the foreign exchange market is very recent.

 

👉 There are speculative possibilities for professional and individual investors to trade one currency against another in the foreign exchange market. However, commercial and investment banks perform most trading on behalf of their customers.

 

👉 Foreign exchange bureaus were launched in Kenya by the Kenya Gazette Notice No. 150 on January 9, 1995, to increase competition in the foreign currency market by servicing the retail sector.

 

👉 Initially, Foreign Exchange bureaus were registered under the Exchange Control Act, but since its repeal, the institutions are now regulated under the Central Bank of Kenya (Amendment) Act, 1995.

 

👉 Foreign exchange bureaus have been the conduit for foreign currency transactions since 1995. In 2017, Kenya became the second and last African nation to have a regulatory framework for online forex trading.

 

👉 On August 27, 2017, the Kenyan regulatory body CMA enacted a regulatory framework. In February of 2018, the first broker, EGM Securities, received its license, marking the beginning of a new era for the online forex market and retail forex trading in the area.

 

👉 This extended Forex and CFDs to the country’s regulated and mainstream capital market activities alongside stocks, derivatives, and commodities, allowing more investors who were previously hesitant or uninformed of the forex market to participate.

 

👉 Regulated brokers can openly market and supply their online trading services in Kenya. In addition, individual traders can now trade currencies in a safer environment governed by strict regulations.

 

👉 As a result of being able to visit brokerage offices in Kenya and having access to a local regulator in the event of broker misconduct, more traders are developing confidence in the forex trading industry.

 

👉 South Africa has the highest daily retail forex trading volume in Africa, followed by Nigeria and Kenya. In addition, South Africa has the biggest number of authorized forex brokers, making it the most renowned forex trading centre on the continent.

 

👉 Apart from institutional investments, it is believed that Nigeria (290,000) has more retail traders than South Africa (250,000). Kenya, a young regulated market, is expected to have 90,000 retail traders.

An Overview of Forex Regulations in Kenya

Regulations in Kenya

👉 Before 2017, Kenya lacked a comprehensive regulatory framework. However, this is no longer the case since the CMA has imposed a few requirements for brokers wishing to conduct trading activities in the country.

 

👉 A firm must first demonstrate that it can successfully compete in the Forex market, where losses might be catastrophic for its customers, before being granted a license.

 

👉 To demonstrate this, most regulatory organizations require brokers to maintain a certain level of capital, and the CMA is no exception.

 

👉 Depending on the kind of license, a corporation must demonstrate it has between 30 and 50 million Kenyan Shillings to get a license. Companies requiring a trading license will be required to purchase the more costly license, valued at around $500,000 at the time of writing.

 

👉 The less expensive license, earmarked for non-dealing licensees, nonetheless requires a $300,000 cash deposit. This is an extremely high demand, closely mirroring what EU brokers are expected to have to get a license, namely €730 000.

 

👉 The organizations must submit the CMA with a comprehensive business plan to demonstrate that they are managed by competent personnel best suited to manage client funds.

 

👉 These guarantees include a comprehensive collection of papers describing the company’s board of directors, an external audit, a three-year business plan, and much more.

 

👉 Interestingly, organizations with licenses must also maintain a certain quantity of liquid cash to cover operating expenses. This is at least 30 million Kenyan Shillings or around $300,000 at the time of writing. Both dealers and non-dealers will be obliged to maintain this amount of cash.

 

👉 Overall, the restrictions in force at the time of writing are extremely stringent and demonstrate that the CMA is adopting a rigorous approach to monitoring the markets and demonstrating not just the liquidity but also the transparency of the brokers in question.

 

👉 This means you will not only know with whom you are dealing but also what they have to offer. Kenya is much ahead of other major FX markets in Africa, such as Nigeria and South Africa, in terms of regulation.

Understanding How Forex Trading Works

Understanding How Forex Trading Works

How are currencies traded?

👉 Each currency has a three-letter code, like a stock’s ticker symbol. While more than 170 currencies worldwide, the US dollar is engaged in the bulk of forex trading.

 

👉 Thus, knowing its code, USD, is particularly useful. The second most popular currency on the foreign exchange market is the Euro, which is accepted in 19 European Union member states (code: EUR).

 

👉 Other prominent major currencies are the Japanese yen (JPY), British pound (GBP), Australian dollar (AUD), Canadian dollar (CAD), Swiss franc (CHF), and New Zealand dollar (NZD).

 

👉 All foreign exchange transactions are a mixture of the two currencies involved. The following seven currency pairings, known as the majors, account for about 75% of forex market trade.

➡️ EUR/USD

➡️ USD/JPY

➡️ GBP/USD

➡️ AUD/USD

➡️ USD/CAD

➡️ USD/CHF

➡️ NZD/USD

 

How are forex pairs quoted?

👉 Each currency pair indicates the two currencies’ current exchange rate. Here is how to analyze such information, using EUR/USD as an example.

➡️ The leftmost currency (the Euro) is the base currency.

➡️ The currency on the right (the United States dollar) is the currency being quoted.

➡️ The exchange rate is the sum of the quoted currency and the base currency necessary to acquire one unit of the base currency. Consequently, the base currency is always stated as 1 unit, but the quotation currency fluctuates depending on the current market conditions and the amount required to purchase 1 unit.

➡️ If the EUR/USD exchange rate is 1.2, then €1 will purchase $1.20 (or it will cost $1.20 to purchase €1).

 

👉 When the exchange rate increases, it indicates that the base currency has increased in value compared to the quote currency (because €1 will purchase more US dollars). When it falls, it indicates that the base currency has decreased in value.

 

👉 The base currency comes first, and the quote currency comes second when presenting currency pairings. However, historical conventions dictate how certain currency pairs are stated. For instance, conversions from USD to EUR are reported as EUR/USD, not USD/EUR.

How is the Forex Market used?

Forex Market

Speculative Trades

👉 Daily fluctuations in the forex markets are caused by several factors influencing the supply and demand for currencies. One may make money from fluctuations in the value of one currency relative to another.

 

👉 Because currencies are usually purchased and sold in pairs, expecting one currency to fall is like expecting the other currency in the pair to rise.

 

Using Forex as a Hedge

👉 Hedging in the foreign currency market involves creating new positions to protect yourself against potential losses in the market.

 

👉 Buying or selling financial instruments to offset or balance existing holdings and so minimize exposure risk is known as hedging. Hedging is simply one approach traders and investors may use to mitigate the risk associated with exposure.

 

👉 For this reason, hedging forex may be a viable option for certain investors. Although there is no fool proof method of eliminating all risk, a hedging strategy may assist reduce the impact of a loss or keep it within a certain range.

 

👉 Due to the foreign exchange market’s inherent volatility, hedging currencies is slightly different from hedging other markets.

 

👉 It all comes down to how much currency risk you are ready to bear, while some forex traders could opt against hedging their forex holdings since they see volatility as inherent to trading FX.

 

👉 Hedging may assist mitigate short-term losses while safeguarding long-term gains in the forex market if you anticipate that a certain currency pair will see a decrease in value but that the trend will reverse.

 

Simple Hedging

👉 A simple forex hedging method opens the opposite position to a current transaction. This is known as a direct hedge.

 

👉 Direct hedging yields no net gain, but your initial position in the market is preserved for the inevitable reversal in trend. Completing the transaction would entail taking a loss if you did not hedge the position.

 

👉 However, hedging would allow you to earn money on a second trade if the market moved against the first. Unfortunately, some suppliers do not provide direct hedging options and will merely net off the two holdings.

 

Hedging multiple currencies

👉 Another frequent FX hedging method includes picking two positively correlated currency pairings, GBP/USD, and EUR/USD, and then taking opposing bets on those pairs.

 

👉 For instance, suppose you have taken a short position on EUR/USD, but you decide to offset your USD exposure by initiating a long position on GBP/USD. Then, a loss on your long GBP/USD position would be offset by profits on your EUR/USD position if the Euro were to decline against the dollar.

 

👉 If the US dollar declined, your hedge would compensate for short-position losses. However, it is essential to remember that hedging several currency pairs has its own risks.

 

👉 Although you would have protected yourself from losses due to fluctuations in the dollar value, you would have exposed yourself to potential losses by shorting the British pound and going long on the Euro in the above-case scenario.

 

👉 If your hedging plan is effective, your risk will be mitigated, and you could even generate a profit. With a straight hedge, you would have a net balance of zero. However, with a multiple currency approach, one position may create a greater profit than the other, resulting in a loss.

 

👉 However, if it fails, you might potentially incur losses from numerous holdings.

 

Hedging Forex Options

👉 The holder of a currency option has the right, but not the responsibility, to swap a currency pair at a specified price before a certain expiration date. Options are particularly popular hedging instruments since they allow you to lower your risk for the cost of the option alone.

The Forex Markets that Kenyans must know

👉 On the foreign exchange market, currencies are exchanged. It is the only market worldwide where trading is continuous and ongoing. In the past, institutional corporations and huge banks acting on behalf of customers controlled the currency market.

 

👉 The forex market has become more retail-oriented recently, and traders and investors with varying holding quantities have begun to engage.

 

👉 A fascinating characteristic of the global forex markets is that no physical facilities serve as trading venues.

 

👉 Instead, it consists of a succession of trading terminals and computer network links. Market participants include banks, hedge funds, institutions, retail traders, and others.

 

👉 The foreign currency market is seen as opaquer compared to other financial markets. Currencies are traded on OTC marketplaces, which do not need disclosures.

 

👉 In addition, large liquidity pools from institutional corporations are a common market characteristic.

 

👉 The economic factors of a nation would seem to be the essential factor in determining its pricing. However, this is not the case. Instead, the most influential factor in setting currency values, according to a 2019 study, was the objectives of huge financial organizations.

 

👉 Spot, forward, and futures markets are the primary venues for trading forex. The spot market is the largest of the three markets that can be traded.

 

👉 The spot market’s size is attributable to its role as the “underlying” asset market for the forwards and futures markets.

 

👉 Therefore, when individuals allude to the forex market, they often mean the spot market. On the other hand, forwards and futures markets are used by enterprises and financial institutions that need to hedge their foreign currency risks to a certain date.

 

Spot Market

👉 Because it deals in the greatest underlying real asset for forwards and futures markets, the spot market for foreign exchange has traditionally been the most active. As a result, forwards and futures markets formerly had higher volumes than spot markets.

 

👉 However, the introduction of computerized trading and the proliferation of forex brokers has boosted trade volumes in the forex spot markets.

 

👉 Currencies are purchased and sold on the spot market at the current market price. That price is based on:

➡️ Supply and demand, in turn, are decided by a few variables such as:

➡️ Interest rates.

➡️ The state of the economy.

➡️ Public opinion on political events occurring both at home and abroad.

➡️ Expectations for the future value of one currency relative to another.

 

👉 Finalized deals are agreements that are made on the spot. It is a two-sided trade when one party hands over some quantity of one currency and the other party hands over some amount of another at the agreed-upon exchange rate.

 

👉 When a trade is completed, the closing settlement is paid in cash. Despite its name, trades on the spot market are not settled until two days after they occur.

 

Futures and Forwards

👉 In over the counter (OTC) markets, two parties may enter into a secret agreement called a forward contract to purchase a currency at a future date at a preset price.

 

👉 It is an agreement to accept the delivery of a currency at a future date and a fixed date. In contrast to OTC markets, futures trade only on regulated exchanges.

 

👉 Contracts in the forwards market are traded over the counter between two parties who negotiate the terms of the deal directly.

 

👉 Commodity futures contracts are traded on public commodity exchanges like the Chicago Mercantile Exchange (CME), with standardized size and settlement date.

 

👉 There is no wiggle room in futures contracts regarding the number of units being exchanged, the delivery and settlement dates, or the minimum price increments—trading partners with the exchange, which functions as a counterparty and offers settlement and clearing services.

 

👉 Both contracts are legally binding and are paid for cash at the relevant exchange upon expiration. However, contracts may also be acquired and sold before expiration.

 

👉 When dealing in foreign exchange, the forwards and futures markets may serve as a hedge against loss.

 

👉 Large multinational organizations may participate in these markets to protect themselves from potential currency rate swings; nevertheless, speculators also play a role in these markets.

 

Options

👉 Currency pairings can also be traded via options contracts and forwards and futures. For the time specified by the option’s expiration, the option’s holder has the right but not the responsibility to make a foreign currency transaction at the specified exchange rate and on the specified future date.

Pros and Cons of Forex Trading in Kenya

Pros and Cons of Forex Trading in Kenya

Pros

Potential for fast returns

👉 The foreign exchange market is very liquid and known for its rapid pace. Because of these features and the greater leverage often available to forex traders, they can earn more quickly than in other markets, where they may have to wait for a longer-term “organic” rise in asset value and returns.

 

👉 The fast-paced nature of the foreign exchange market is a big advantage since it helps minimize the opportunity cost of trading in Forex.

 

The use of leverage

👉 Having access to leverage may double even a modest increase in trading profits. This is because the Foreign Exchange Market (Forex) has a higher availability of leveraged resources than other markets.

 

👉 For initial trading capital, Kenyans can easily secure a margin of 1:100 or more, depending on their location of operation.

 

There is less potential for prices to be manipulated

👉 Insiders and other major players in the stock, bond, and commodities markets typically have significant sway due to their access to valuable, confidential information.

 

👉 However, there is far less of a concentrated power structure and less reliance on secret information in the foreign exchange market.

 

👉 The people who could have access to “inside knowledge” about fluctuations in currency prices are often subject to extensive public scrutiny and stringent government oversight: government officials and central bank authorities.

 

👉 Because of this, FX is often regarded as one of the most open markets in the world.

 

The tax rules are simple

👉 When filing taxes, Kenyan traders need not keep an eye on their short-term and long-term trading activity as those involved in other markets, which might simplify their tax computations.

 

Reduced Commissions and Trading Fees

👉 Commissions and other costs for trading stocks, bonds, mutual funds, and other products may add up to a much larger sum than was originally anticipated. Trading currencies on the foreign exchange market eliminates this expense.

 

👉 The bid-ask spread is the difference between the broker’s advertised buying and selling prices and is the primary factor in determining the cost of foreign exchange trading. This is another example of how the foreign exchange market is made more open and clearer.

 

The forex market is easily accessible

👉 To trade in the forex market is to engage in one of the most accessible marketplaces available to individual traders. Traders may open a forex account within a few days and put as little as fifty pounds into it to begin trading.

 

👉 Most brokerages now provide web-based trading platforms where traders can transact and access real-time market data, commentary, and analytical tools and methods.

 

👉 In addition, traders can fit forex trading into their schedules more readily than other forms of trading since the forex market is open 24 hours a day, 5 days a week.

 

Kenyans can use automated strategies

👉 For this reason, automated trading tactics work well in the Forex market. For example, forex traders may set up automated trades by pre-programming entry, stop-loss, and limit prices.

 

👉 In addition, Kenyan traders could direct the platform to trade based on certain price changes or market circumstances.

 

👉 With a well-designed automated approach, a forex trader could take advantage of the daily fluctuations in the forex market without depleting their physical and mental resources.

 

Technical Strategies

👉 Technical analysis works quite well in the foreign exchange market.

 

👉 While equities and bond traders may need to dive deeply into share and bond issuers’ fundamentals and financial health to ensure their securities will generate profits, FX traders may often achieve gains by analysing price charts.

 

👉 Price histories and patterns in technical analysis provide hints about how the market perceives supply and demand and sentiment about assets, as opposed to the more in-depth information needed for fundamental research.

 

The Market is Liquid

👉 The foreign exchange market (Forex) is the biggest in terms of the trading volume. Since this is the case, traders may expect an elevated level of liquidity, particularly when dealing with large currencies.

 

👉 Since the brokerage will often assume the opposite side of a transaction when liquidity may be low in other parts of the market, Kenyan traders who operate with the trading desk model at forex brokerages are typically provided adequate liquidity for trading.

 

👉 Many people are enticed to participate in the forex market because of its elevated level of liquidity.

 

Kenyans can Short-Sell easily

👉 Although short selling in the foreign exchange market is less complicated than short selling in other markets, it still involves borrowing assets and the risk that the lender may call away a short position.

 

👉 Typically, when a trader purchases one currency, they simultaneously sell another. If traders believe the value of a currency will fall, they need to sell it and purchase another currency linked with it without resorting to borrowing.

 

Cons

There are fewer residual returns

👉 The long-term value of an investment may be boosted by receiving interest and dividend payments regularly, as is the case with many stocks and bonds.

 

👉 However, the main goal of foreign exchange trading is to profit from the rise in the value of one currency relative to another in a specific currency pair.

 

👉 However, overnight FX holdings may generate interest if they are kept. That is determined by the interest rate differential between the buying and selling nations. The term “rollover” or “carry” interest is often used to describe this kind of interest.

 

There is extreme volatility

👉 The forex market, like any other market, is susceptible to volatility. As a result, currency traders betting on quick returns on the foreign exchange market may find their techniques ineffective by excessive volatility.

 

The regulatory protection is light

👉 Since there is no centralized exchange for forex trading, regulatory regulation may be lax in certain cases.

 

👉 Considering this, prospective Kenyan traders might want to do some “due diligence” research on the reliability and safety of their broker before opening an account with them.

 

👉 They could also have fewer legal options if they believe they have been treated unfairly by their broker, depending on the district where the broker is doing business. One of the major drawbacks of Forex is the lower regulation.

 

Retail traders might be at a disadvantage

👉 Every day, significant participants like banks, hedge funds, and other huge financial organizations trade more than US$5 trillion on the global currency market.

 

👉 These market participants may have an inherent advantage in establishing prices and influencing price fluctuations because of their trade volume and better access to information and technology.

 

👉 This is true for most markets, but the foreign exchange market is more blatant. If they want to make money exchanging currencies, traders must keep up with the constantly shifting market circumstances.

Popular Forex Terms that Kenyans must know

Popular Forex Terms that Kenyans must know

👉 Understanding the trends and frequently used words on the Forex market is essential for intelligent and profitable trading. Kenyans can consult the list below if they want to be current on the most important Forex terms that will assist them in trading.

➡️ Pip – Typically, the smallest and most insignificant price increase for a currency pair. The movement of a forex pair is measured in pips. Prices for pips are subject to change and may shift based on the moment of the deal and the volume being traded. Click here to see some instances of Pip.

➡️ Bid – The market maker’s or broker’s bid is the price at which they are prepared to purchase the currency pair. The Bid price is affected by the underlying currency pair’s value.

➡️ Ask – The price at which the market maker or broker is prepared to sell a currency pair. Of course, it also depends on the underlying currency pair’s value.

➡️ Spread – The difference between the Buy/Sell (Bid/Ask) prices shown to traders on the trading platform. The spread could be used as a liquidity metric for the market. Click here for additional information about spread and varieties of spread.

➡️ Base – The initial currency in a pair of currencies, also known as the nominator (or top number). For instance, the USD is the Base when trading the USD/CAD pair.

➡️ Quote – The second currency in a currency pair, often known as the denominator (or bottom number); when trading USD/CAD, the CAD is the Quote.

➡️ Leverage – The mechanism through which you may obtain exposure to higher amounts of money without paying the entire worth of your deal in advance. It enables you to trade greater sums with less cash successfully. For instance, with leverage of 1:50, you may initiate a transaction for $10,000 with an opening margin of $200. Leverage may magnify your gains, but it can also magnify your losses.

➡️ Bear Market – A declining market in which traders anticipate that prices will decrease, indicating that there will be an increase in short selling (or traders “going short”).

➡️ Bull Market – An appreciating market where traders are anxious to enhance their long trading activity (sometimes referred to as “going long”). In 2022, for instance, NVIDIA entered a bullish market, and its worth increased, prompting many traders to purchase its shares.

➡️ Broker – An agent through which traders and financial institutions execute deals.

➡️ Stop Loss Order – A market order cancels a losing trade when it reaches a predetermined price.

➡️ Take Profit Order – A market order is used to close a lucrative trade when it hits a specified price.

➡️ Fundamental analysis uses broader economic and political facts to forecast the movement of a currency pair. Traders that use this form of analysis often consider the impact of bigger economic developments on the value of currency pairings.

➡️ Technical Analysis uses chart patterns (from previous performance) to forecast the future direction of a currency pair.

➡️ Major Pairings (or Majors) – A list of the world’s most actively traded currency pairs. The EUR/USD, GBP/USD, USD/CHF, and USD/JPY comprise the greatest portion of the foreign exchange market and are all priced and traded against the USD.

➡️ Minor Pairings – Currency pairs that are not as widely traded or liquid as the Majors. Occasionally referred to as Exotics, such as the AUD/JPY pair.

➡️ Cross Currency Pairings (or Crosses) – Currency pairs that exclude the US Dollar. Popular currency pairs include Euro to British Pound, Euro to Swiss Franc, and Australian Dollar to Japanese Yen.

How can Kenyans start trading Forex?

How can Kenyans start trading Forex?

Learn about Forex Trading

👉 Although it is not difficult, forex trading is its own enterprise and needs specialized expertise. As a result, Forex inherently has higher leverage ratios than other markets.

 

👉 In addition, the drivers of currency price movement differ from those of several other financial markets. There are several online courses for novices that teach forex trading fundamentals.

 

Choose a Currency Pair

👉 Foreign exchange trading involves the exchange of one currency’s value for another. Subsequently, you will continually buy one currency while selling another, which is why you trade currencies in pairs.

 

👉 If you have sufficient funds in your account, you may trade any currency pair that your broker provides. However, most beginning traders will begin by trading the most widely available pairs of major currencies.

 

Evaluate Brokers and Sign Up for an Account

👉 To allow you to participate in forex trading, you require a forex trading account with a brokerage firm. Several forex brokers do not charge a flat commission fee.

 

👉 Instead, they profit on the difference in price between buying and selling or spreads (or pips).

 

👉 Beginner traders should open a micro forex trading account with minimal minimum deposit requirements. These accounts feature flexible trading limitations and let brokers trade as little as 1,000 units of a currency. A typical account lot corresponds to 100,000 cash units.

 

👉 A micro forex account will assist you in becoming used to forex trading and identifying your trading style.

 

Analyse the Market

👉 Your trading activities should be founded on research and analysis. Without them, you rely only on feeling. Unfortunately, this normally does not end well.

 

👉 When you begin your study, you will discover an abundance of forex-related materials, which might initially seem overwhelming.

 

👉 But when you explore a certain currency pair, you will uncover materials that stick out as particularly beneficial.

 

👉 You should routinely review current and historical charts, follow the news for economic announcements, examine indicators, and do further technical and fundamental research.

 

Create a Trading Strategy

👉 Even if it is not always feasible to foresee and time market movement, a trading strategy will help you establish broad principles and a trading road map. A solid trading plan is based on your status and financial resources.

 

👉 It considers the amount of money you are ready to invest in trading and, consequently, the amount of risk you can withstand without losing your position.

 

👉 Remember that the FX market is mostly a high-leverage environment. However, it provides greater benefits to those ready to take more risks.

 

Choose your Forex Trading Platform

👉 Forex platforms can be described as software interfaces provided by currency brokers to their customers to access the forex markets. This could be a web-based online portal, a mobile application, a separate downloaded software, or a mix of the three.

 

👉 Currency trading platforms provide traders with the means to execute buy and sell orders in the foreign exchange markets. The platforms are made accessible to customers by forex brokers.

 

👉 While many FX brokers provide their proprietary trading platforms for processing orders and researching, many also give order access through integrated trading and research software.

 

👉 Kenyan traders must determine whether the broker’s trading platform offers the functions and features they need, whether the platform is licensed, and consider several other options before settling on a specific platform.

 

Choose your Position

👉 After selecting your platform, you may begin trading. First, open the transaction ticket for your chosen market to see the purchase and sell price.

 

👉 In addition, you can choose the size of your position and put any stops or limits that will terminate your trade if it reaches a specific level. For example, to establish a long position, press buys, and to create a short one, press sell.

 

👉 In the ‘open positions’ area of the trading site, you can track the profit/loss of your position. Once you have determined that it is time to close your position, just execute the opposite transaction you used to start.

 

Monitor Your Positions

👉 Once you begin trading, you should always review your positions after each trading day. Most of the trading software already delivers daily transaction reports.

 

👉 Ensure that you do not have any open positions and that you have adequate funds in your account to conduct future transactions.

 

Keep Your Emotions in Check

👉 Forex trading for beginners is riddled with emotional difficulties and unresolved issues. Such preoccupation with unsolved concerns might lead to a road of uncertainty. Subsequently, Kenyans must maintain emotional stability regardless of whether they make or lose money in trading.

 

👉 In addition, Kenyans must practice discipline when they close their positions when they start losing instead of trying to save a losing trade.

 

Stick to Your Trading Plan and Keep Improving Your Strategies

👉 A trading strategy can assist you in removing emotion from your transactions and determining your entry and exit tactics beforehand. In addition, this organized approach to trading markets may help traders maintain consistency and control their emotions.

 

👉 Each trade must be evaluated to determine what worked and what did not. Beginner traders will need time to establish a proper trading mindset and recognize that their trading psychology is a work in progress. Then, using a forex sample account, you can evaluate your trading techniques.

How to choose the right Forex Broker in Kenya

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 important 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

👉 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

👉 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.

 

Trading Platform

👉 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:

➡️ eBooks

➡️ Trading guides

➡️ Trading knowledge on leveraged products

➡️ A risk warning on complex instruments

➡️ Educational videos

 

👉 Research can include some of the following:

➡️ Trading tools

➡️ Commentary

➡️ 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 Platforms in Kenya that offer trading platforms in Kenya. We have further identified some forex brokers that offer additional services and solutions to Kenyan traders.

 

Best MetaTrader 4 / MT4 trading platform broker in Kenya

Best MetaTrader 4 / MT4 trading platform

👉 Overall, Exness is the best MetaTrader 4 / MT4 trading platform in Kenya. Exness has offices in Cyprus, the United Kingdom, Seychelles, South Africa, the British Virgin Islands, and Curaçao.

 

👉 Exness provides a number of benefits such as low commissions, instantaneous order execution, and the opportunity to withdraw money immediately via various instant withdrawal alternatives.

 

Best MetaTrader 5 / MT5 Forex Platform broker in Kenya

Best MetaTrader 5 / MT5 Forex Platform

👉 Overall, HF Markets is the best MetaTrader 5 / MT5 trading platform in Kenya. HF Markets was previously known as HotForex. It offers a variety of pricing alternatives and account types. HF Markets has competitive fees and spreads that average 0.1 for the EUR/USD currency pair.

 

Best Forex platform for beginners in Kenya

Best Forex platform for beginners

👉 Overall, Tickmill is the best trading platform for beginners in Kenya. Tickmill is reputable and trustworthy forex and CFD broker. Tickmill is regulated by top-tier regulators like FSCA (South Africa), FCA (UK), and CySEC.

 

👉 Tickmill offers instant internet banking deposit methods and quick bank transfer withdrawals.

 

Best Minimum Deposit Forex platform in Kenya

👉 Overall, FBS is the best trading platform for the lowest minimum deposit in Kenya. FBS is in operation since 2009 and has evolved to become a large, reputable international forex and CFD broker. FBS offers competitive trading conditions, a range of accounts, advanced trading tools, and several other advantages to Kenyan traders.

 

Best ECN Forex platform in Kenya

Best ECN Forex platform

👉 Overall, Oanda is the best ECN platform in Kenya. Oanda gives customers access to a variety of financial products for seasoned investors.

 

👉 Oanda offers quick and reliable transaction execution. Oanda’s research resources are superior to industry standards. Its user interfaces are easy to understand and it has a good track record of regulatory oversight.

 

Best Islamic / Swap-Free Forex platform in Kenya

Best Islamic / Swap-Free Forex platform

👉 Overall, BD Swiss is the best Islamic Forex Broker in Kenya. BD Swiss is a well-regulated and reputable broker with a large international clientele. BD Swiss offers a wide range of products for trading. BD Swiss also offers trading in many cryptocurrencies.

 

Best trading platform Forex Trading App in Kenya

Best trading platform Forex Trading App

👉 Overall, OctaFX has the best forex trading app for traders in Kenya. OctaFX operates from Saint Vincent and the Grenadines. OctaFX serves traders from all over the world, including those in African countries like Kenya.

 

👉 Kenyan traders can trade forex currency pairs, Index CFDs, commodities, and cryptocurrencies with OctaFX’s award-winning services from investors around the world.

 

Best Lowest Spread Forex platform in Kenya

Best Lowest Spread Forex platform

👉 Overall, Alpari is the best Low spread Forex platform in Kenya. Alpari is trustworthy and reliable as a market maker broker. Alpari is regarded as a broker with a low level of risk. Trading speeds are guaranteed to be swift. More than 2 million customers are enrolled with Alpari.

 

Best Nasdaq 100 Forex platform in Kenya

Best Nasdaq 100 Forex platform

👉 Overall, FXTM is the best Nasdaq 100 forex platform in Kenya. FXTM aims to provide the best trading conditions for traders of all levels. For the safety and security of their clients’ cash, they keep such funds in segregated accounts.

 

👉 The broker is ideal for active trading and investment opportunities for traders of all skill levels.

 

Best Volatility 75 / VIX 75 Forex platform in Kenya

Best Volatility 75 / VIX 75 Forex platform

👉 Overall, AvaTrade is the best Volatility 75 / VIX 75 Forex Platform in Kenya. AvaTrade is trustworthy and well regulated. AvaTrade offers a single live trading account but traders have the choice to trade with either a Retail trading account or a Professional trading account.

 

Best NDD Forex platform in Kenya

Best NDD Forex platform

👉 Overall, XM is the best NDD forex platform in Kenya. XM is regulated by strict financial regulators in all relevant jurisdictions. XM offers a balanced mix of all the features that users value: security, support, ease of account funding, and withdrawal. XM charges low fees.

 

Best STP Forex platform in Kenya

Best STP Forex platform

👉 Overall, Pepperstone is the best STP Forex platform in Kenya. Pepperstone gives traders across the world access to all markets backed up by very good customer care. Pepperstone also offers modern technology, low spreads, and high-speed execution.

 

Best sign up bonus trading platform in Kenya

Best sign up bonus trading platform

👉 Overall, FP Markets is the best Sign Up bonus trading platform in Kenya. FP Markets offers stocks, indices, foreign exchange (forex), commodities, and cryptocurrencies to trade. FP Markets has a user-friendly mobile app and a variety of account types to choose from.

Conclusion

👉 At first, forex trading might seem like an extremely intimidating endeavour for beginner traders in Kenya. However, with our guide and the plethora of resources available on the internet, Kenyans can kickstart their forex trading journey safely.

 

👉 Kenyans can easily explore the world of forex trading when they register a free demo account with a broker. This allows them to practice trading, explore strategies, and get a feel for the live trading environment before they commit capital.

FAQ

How much will you need to start trading Forex in Kenya?

You can start trading Forex with a deposit of 100 USD / 12,000 KES depending on your broker’s minimum deposit and the margin requirements of the forex pair you wish to trade.

 

What are the best forex brokers in Kenya?

AvaTrade, Exness, HFM, and several other brokers are prominent in Kenya.

 

Can I learn Forex by myself?

Individual study is the first and most accessible method for learning forex trading. However, this instruction requires you to go independently from the very beginning to the very finish.

 

What is the best time to trade Forex in Kenya?

The best time to trade Forex in Kenya is from noon until 6 pm. During this time, the London and New York sessions overlap, creating ample trading opportunities and boosting liquidity in the market.

 

How long can it take Kenyans to learn Forex?

While this will depend on each trader, it can take up to 1 year for someone to learn Forex before they might be ready to start trading their own capital instead of using a demo account with virtual funds.

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