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What is the Spread in Forex Trading in Kenya

What is the Spread in Forex Trading in Kenya

What is a Spread in Kenya revealed. We tested and verified spreads in forex trading for Kenyan traders.

This is a complete guide to spreads in Kenya.

In this in-depth guide you’ll learn:

  • What is a spread? 
  • What is considered a good spread in Kenya?
  • Our recommended forex brokers with the lowest spreads?
  • How to compare forex trading brokers against each other?
  • How do spreads affect profits in forex trading?
  • What are low-spread currency pairs?
  • What is the difference between low and high currency pairs?
  • What are narrow spreads and why do they matter?
  • Why you should trade with a low-spread broker?
  • How to calculate a spread as a Kenyan trader?
  • Which low-spread forex brokers offer a low minimum deposit of $5 (604 KES)?
  • Which brokers offer a signup bonus for first-time traders?


And lots more…

So if you’re ready to go “all in” with spreads for Kenyans

Let’s dive right in…

Updated : October 26, 2022

What is the Spread in Forex Trading?

👉 The spread in currency trading is the discrepancy between a currency pair’s sell and buy prices.

 

👉 There are always two prices for a currency pair: the ask and the bid. This is because the rate at which the base currency can be sold is the bid price, and the rate at which it can be bought is the ask price.

 

👉 The left side of a currency pair represents the “base” currency. In contrast, the right side represents the “variable,” “quote,” or “counter” currency.

 

👉 By looking at the pairing, you can determine how much of the variable currency is equivalent to one unit of the base currency. Whenever two prices are listed, one will always be greater than the other; the actual market price will be somewhere between.

How to Understand the Forex Spread

How to Understand the Forex Spread

👉 It would be best if you had a firm grasp on the fundamentals of a forex deal to appreciate the forex spread and how it impacts you fully. On the one hand, all transactions in international commerce go via intermediaries who earn a commission.

 

👉 The term “spread” describes the additional cost incurred by a buyer or seller in a deal due to the gap between the two prices.

 

Bid-Ask Spread

👉 The bid and ask values for a specific currency pair make up the forex spread. Traders purchase the currency at one price and must then sell it back to other traders at a lower price.

 

👉 Kenyans can compare it to buying a brand-new car, where the purchaser will pay what the market will bear. In addition, the Kenyan’s automobile loses value the moment they drive it off the lot, so they must accept a lower price from the dealer if they want to sell it back to them immediately.

 

👉 Unlike in the vehicle example, where the dealer’s profit makes up the difference, depreciation is responsible for the shortfall in the foreign exchange market.

How the Forex Market Makers Determine the Spread

How the Forex Market Makers Determine the Spread

👉 Trading on the New York Stock Exchange has traditionally occurred in a physical location. However, the foreign exchange market operates entirely online. Like the OTC market for smaller equities, where experts known as “market makers” assist trading, the Forex market has long existed virtually.

 

👉 An intermediary is required to facilitate communication between the two parties in a transaction when the buyer is in London, and the seller is in Tokyo.

 

👉 The expert, who could be in a third location, is only one of numerous who help facilitate a certain kind of currency deal. Finding a buyer for every seller and a seller for every buyer is all part of his job as he maintains a smooth flow of buy and sell orders for those currencies.

 

👉 The specialist’s job in the real world is not without danger. Sometimes they will accept a bid or purchase order at one price, but by the time they locate a seller, the currency’s value has gone up.

 

👉 The expert is still obligated to fulfil the purchased order and may be required to accept a sell order larger than the purchased order. The market maker keeps a cut of every transaction as compensation for taking on risk and facilitating trades. Their take is known as the “spread” or “take.”

 

Calculation Example for Kenyans

👉 All foreign exchange deals include a pair of currencies. As a pair, the US Dollar, and Kenyan Shilling (abbreviated USD/KES) can be used in this example.

➡️ The exchange rate between the Kenyan Shilling and the US dollar is 120.65.

➡️ You can purchase the USD/KES pair at the asking price if you think the shilling would appreciate versus the dollar.

➡️ There will be some variation from the 120.65 asking price for the currency pair. The deal’s cost might be little more than that, perhaps 120.67.

➡️ The seller on the deal side will not get 120.65, and they could expect to get about 120.62 instead of 120.65.

➡️ The spread is the difference between the ask and bid prices, or 0.0003 in this case or 0.3 pips.

 

The Spread Cost

👉 Using the preceding example, a spread of 0.0003 Kenyan Shilling (KES) might not seem like much. However, even a little spread soon adds up as the size of a deal increases. This is because forex transactions often involve higher sums of money.

 

👉 Even if you trade one 10,000-unit USD/KES lot as a retail trader, the typical deal size is around one million units of USD/KES. The 0.0003 spread on this bigger deal results in a fee of 300 KES, which is a greater sum.

 

How to Manage and Minimize Spreads in Forex

👉 Kenyans are advised to trade during the most advantageous trading hours, which are the times of day when many buyers and sellers are present in the market.

 

👉 When there are more buyers and sellers for a particular currency pair, there is an increase in competition and demand for the business. As a result, market makers often reduce their spreads to take advantage of this rise in business.

 

👉 In addition, Kenyans should avoid purchasing or selling currencies with a low trading volume. When you trade major currency pairs, you encounter several market makers that compete for your business.

 

👉 If you trade a currency pair that does not see a lot of trading volume, such as USD/KES, very few market makers could be willing to accept your deal. Considering the reduced level of competition, they want to keep their market share at the same level.

Drivers behind the spreads in Forex

Drivers behind the spreads in Forex

Why does the spread change in Forex?

👉 The spread fluctuates when there is a shift in the difference between the purchase and sell price of a currency pair. The opposite of a fixed spread is known as a variable spread. In forex trading, you will constantly encounter a changeable spread.

 

👉 If a big news release or an event increases market volatility, the forex spread may expand. One of the disadvantages of a variable spread is that your holdings might be closed, or a margin call issued if the spread expands significantly.

 

What can influence the spreads in Forex?

Liquidity of the Financial Instrument

👉 Simply said, liquidity is a trading instrument’s popularity. The greater the number of transactions with an asset, the more liquid it is.

 

👉 This is a crucial factor in calculating the spread size. High liquidity is usually associated with a narrow spread. Conversely, low liquidity equates to a broad spread and vice versa.

 

Volatility in the Market

👉 Volatility also has a significant impact on the magnitude of the spread. When volatility rises, price movements also increase, resulting in a wider spread. Conversely, the spread will shrink when price changes occur less often and volatility decreases.

 

👉 Consequently, the foreign currency market spread is a measure of market volatility. Everyone is familiar with instances in which volatility spiked at the time of the release of significant fundamental news, and the spread also widened.

 

👉 For instance, the geopolitical tensions and economic conflict between the United States and Russia increased the volatility of the financial markets.

 

👉 The USD/RUB currency pair saw the most volatility. This currency pair’s spread typically does not surpass 4,000-5,000 pips. However, when volatility spikes, the spread reaches 10,000-11,000 pips.

 

👉 In other institutions, the gap between offer and demand prices reached between 110,000,000 and 125,000,000.

 

Brokers Skewing the Spreads

👉 Professional market makers may increase or decrease their dealing spreads based on projections for the market’s near-term direction.

 

👉 In addition, market makers may sometimes “read” a client by purposefully skewing the quoted price depending on the client’s past actions, known position, or current market conditions.

 

👉 Suppose the market maker anticipates the client will be a seller. In that case, they will provide a bid-ask spread that is as narrow as the client would normally expect but with the overall price skewed below the current market price.

 

👉 If the client completes the transaction, the market maker may purchase the position at a far higher exchange rate than the Interbank market. If the market maker feels the client is a buyer, they may provide a bid-ask spread that is narrower than the current market and skewed upward.

 

👉 Unless the client chooses not to trade, the market maker can sell the position to the customer at an even more favourable exchange rate for themselves.

 

The interest of the Broker

👉 The interest of an intermediary, such as a broker or dealer, also contributes to the spread. The intermediate determines the spread but does not exceed it.

 

👉 Each broker provides its own spread, but they will be comparable in the end since the broker’s contribution to the spread is little. Unpopular brokers establish a wider spread, but popular brokers strive to minimize it as much as possible to attract new clients.

Types of Forex Dealing Spread Policies for Kenyans

Types of Forex Dealing Spread Policies for Kenyans

👉 The spread is the difference between the bid and ask prices of a certain security, asset, or currency pair. The spread is the difference between the asking and current selling prices.

 

👉 Typically, the spread is the broker’s take for conducting the trader’s orders, and there are two types of spread: fixed or variable/floating spreads.

 

👉 The spread you experience will be determined by the broker’s model and the method through which it receives fees for providing you with trading services. Two primary types of brokerages are Dealing Desk and Non-Dealing Desk brokers.

 

👉 Market spreads are typically raw/floating at non-dealing desk brokerages but set at dealing desk brokers, also known as market makers. For Kenyans to understand the differences between fixed and floating spreads, the following table can be examined to view the distinctions.

💻 Component📊 Fixed Spreads📈 Variable Spreads
Bid-Ask RangeThese spreads do not fluctuate according to market conditionsVariable spreads change according to market conditions
Overall CostsCheaper in terms of trade executionMore expensive in terms of trade execution
Broker ModelMarket MakerNon-Dealing Desk Brokers (ECN, DMA, STP)
Capital RequirementsThe best option for Kenyans with low capital, usually less than $10,000Kenyans must have deeper pockets, and capital requirements could exceed $10,000
Slippage and requotesBoth are common with fixed spreads because they originate from a sole source that must remain profitableExtremely rare as the quotes are aggregated from different liquidity providers, which ensures diverse execution venues that can absorb any given price
Trading StylesSuitable for all trading stylesThere are restrictions on some trading strategies, especially scalpers and day traders, because the spread is unstable and can widen at any given time

 

Fixed and Variable Spreads – Bid-Ask Range

👉 When spreads on an asset are fixed, the gap between the bid and ask prices remains constant across time and regardless of market conditions.

 

👉 Consequently, if the EURUSD spread is 2 pips, it will continue to stay at 2 pips regardless of market circumstances.

 

👉 In contrast, variable or floating spreads indicate that the gap between the bid and ask prices for a specific asset or security varies over time according to market conditions.

 

👉 Therefore, if the EUR/USD spread is 2 pips at 7 am on Tuesday, it could narrow to 1.2 pips at midday or even expand to 10 pips at 7:02 am on the same day. Variable spreads tend to expand when important economic news is released and shrink or contract during periods of low liquidity.

 

Fixed and Variable Spreads – Overall Costs

👉 Variable spreads result in increased execution costs for the trader compared to fixed spreads if you are vulnerable to fluctuating spreads that might expand amid extreme volatility.

 

👉 Again, fixed spreads enable traders to estimate their costs before placing deals. You know the precise amount you will pay your broker before executing the deal.

 

👉 This is often challenging with changing spreads, but since traders with variable spreads typically have bigger pockets, they are better equipped to withstand rapid spread fluctuations.

 

Fixed and Variable Spreads – Broker Model

👉 There is a reason why market makers charge spreads with a specific value. Their dealing desk sections effectively match client orders to positions they have previously taken “in-house.”

 

👉 Therefore, they can give customers regulated pricing, allowing them to maintain constant spreads. Non-dealing desk brokers do not influence their customers’ transactions other than the transmission of orders.

 

👉 At the level of the interbank market or prime brokers, there are often many liquidity providers offering varying spreads for a particular asset.

 

👉 Therefore, the bid-ask spread is susceptible to change according to market dynamics, volatility, etc. Therefore, changeable spreads are a characteristic of non-dealing desk brokerages.

 

Fixed and Variable Spreads – Capital Requirements

👉 Traders that use fixed spreads are often part-time traders with $9,999 or less trading capital. You will often discover that many traders do not even have $1,000 to trade Forex. As a result, such traders would never be able to manage circumstances with fluctuating spreads.

 

👉 In contrast, variable spread traders often have vast finances since their brokers need huge minimum deposits that exceed $10,000 on average. This capital means that the traders engaged may engage in many spread modifications without incurring losses.

 

Fixed and Variable Spreads – Slippage and Requotes

👉 Regardless of the order type and restrictions of the exchange or broker, negative slippage occurs when the venue cannot execute the order at the desired price and instead provides a worse price.

 

👉 Positive slippage is characterized by an increase in price or a better-than-expected rate than requested. Slippage is the discrepancy between the requested rate and the executed rate.

 

👉 It is often caused by the fact that prices across multiple financial instruments frequently vary in milliseconds or less owing to trade volumes, market volatility, and the vast scale of markets (and the accompanying substantial number of participants).

 

👉 Therefore, slippage could occur even at the most technically advanced brokerages and is not a system constraint.

 

Fixed and Variable Spreads – Trading Styles

👉 Scalpers, day traders, swing traders, and position traders are the many trading styles seen in the Forex market. The primary distinction between these trading strategies is the length of deals. For example, scalpers seldom hold positions for more than a few minutes.

 

👉 Day traders engage in deals that last no more than 24 hours. Swing traders hold holdings for days to weeks, while position traders maintain their positions for months.

 

👉 Fixed or variable spreads might not mean much to swing or position traders, but they may make or break a scalper’s or day trader’s profits. Scalpers attempt to profit by gaining a few pips in many transactions. The spread makes a significant difference for deals held for such a short duration.

Pros and Cons of Fixed and Variable Spreads

Pros and Cons of Fixed and Variable Spreads

Fixed Spreads

👉 The primary characteristic of fixed spreads is that their value is constant and independent of market conditions. Typically, it is decided by a broker or, more precisely, a dealer. This spread was prevalent during the start of Forex growth, but it is seldom offered currently.

 

👉 The broker establishes a set spread. A set spread is normally advantageous for a trader, although its value is often more than a raw market spread.

 

👉 You would not like using such spreads. However, proponents of trading robots and scalping tactics continue to favour this spread since the algorithms of trading robots do not need to be modified to accommodate them.

 

👉 There are a limited number of forex brokers that provide a fixed spread. However, the floating spread has grown so widespread that it has replaced the fixed spread entirely.

 

Fixed Spread Pros

No Slippage

👉 Most new traders worry about experiencing a slippage because of all the discussion about them. In fact, on fixed spread accounts, you will not have to worry about this market quirk. The broker will always conduct the terms of your deal, preventing any price fluctuations.

 

👉 When market volatility and liquidity are both strong, the spread does not increase. But, of course, everyone has seen the spread of a trading instrument suddenly balloon in response to a major event in the economic calendar.

 

Spreads are constant even in times of high volatility and low liquidity

👉 Of course, everyone has seen the spread of a trading instrument suddenly balloon in response to a major event in the economic calendar. However, when a broker sets a fixed spread range, that spread will not change regardless of market conditions.

 

Kenyans always know the Spread Size

👉 Forex market traders often used automated technologies (such as robots and scripts). Algorithms form the backbone of these systems, and it is simple to create one if you know the spread in advance.

 

👉 It may be considered in the result and when setting up order triggers. Unfortunately, a floating spread is notoriously difficult to account for. It often goes unnoticed until it appears at the end of the deal when the trader closes their trade.

 

Fixed Spreads Cons

It can be challenging to find a broker

👉 Few brokers are still offering accounts with fixed spreads in today’s forex market, as ECN accounts with NDD order execution technology have taken over the primary roles (i.e., without the involvement of a broker).

 

👉 Cent accounts, which are becoming more uncommon, can often benefit from fixed spreads.

 

Fixed spreads are typically very wide

👉 Brokers that provide fixed spreads must factor in market volatility and their own and the exchange’s potential for profit. A broker like this does make money on commissions, but on the spread, which is why they charge such enormous spreads.

 

There are requotes for Instant Execution accounts

👉 Multiple order execution models exist in the trading industry. The Instant Execution option is a favourite among users. With a fixed spread and Instant Execution enabled, requotes are inevitable. Furthermore, if the volatility of the asset is significant, entering a trade will be quite difficult.

 

👉 Even more so than slippage, this poses a threat to scalpers, increasing the likelihood that their whole operation would collapse because of a single unsuccessful order.

 

Variable Spreads

👉 In today’s market, the floating spread is the most popular sort of spread. It is common since it benefits everyone involved in the exchange.

 

👉 By controlling and adjusting it quickly in response to fluctuating market circumstances, brokers and dealers can simultaneously address two issues: improving the quality of service they give customers and how to profit from periods of large spreads.

 

👉 Depending on the state of the market, this spread may go up or down within a certain margin of error. However, under typical market circumstances, variable spreads in the most liquid trading tools seldom exceed 4-5 points.

 

👉 Nevertheless, during periods of extreme volatility, the gap might expand to as much as 50-60 points. For this reason, traders who rely on robots and advisors tend to avoid spreads that fluctuate in value since their automated techniques cannot react quickly enough to these shifts.

 

👉 Traders who prefer manual trading will benefit the most from variable spreads

 

Variable Spreads Pros

There are narrow spreads during most of a trading session

👉 Forex trading hours are given by four major exchanges, as is common knowledge. Most of the time falls on the work of the European and American trading sessions.

 

👉 Therefore, variable spreads during this period will be limited and will only expand in rare instances of severe shocks.

 

There are no requotes

👉 Requotes is an inherent disadvantage of fixed spreads. However, trading with variable spreads, the situation is reversed, and your transaction will be completed regardless.

 

The broker has no part in the trading process

👉 Transactions are performed utilizing No Dealing Desk technology, which prevents the broker from setting spreads, quotes, and other factors. Thus, traders could be certain that they are interacting with genuine market participants and have access to real exchanges.

 

Kenyans can get a zero-pip spread

👉 Occasionally, when the market is quiet and motionless, and nothing spectacular or unusual occurs, you might capture a moment in which there is no spread.

 

Variable Spreads Cons

Slippage can occur

👉 Your transaction will be performed during heightened volatility, but the opening price may vary from what you anticipated. This occurs when the market price fluctuates so rapidly that it occasionally surpasses the orders in the order book.

 

The spreads can widen when there is low liquidity

👉 Spreads increase during times when there is no trading activity on the market, such as during the Asian trading session. Additionally, this occurs before the market shuts for the weekend. As a result, sometimes the spreads get so vast that they exceed the set ones.

 

Kenyans do not know the exact spread size

👉 This condition is significant for traders that use robots and scripts. For example, suppose your trading robot is designed to enter many transactions in a short amount of time. In that case, a floating spread might result in a succession of losses.

How to Choose the Right Low Spread Low Spread 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 Crypto CFD 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

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

107

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, FSA

Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

Total Pairs

55+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

CySEC, FCA, FSA, FSCA, Labuan FSA

Trading Desk

Meta Trader 4

Crypto

Yes

Total Pairs

62

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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 Rating

Min Deposit

USD 1 / 116 KES

Regulators

IFSC, FSCA (South africa), ASIC, CySEC

Trading Desk

MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading platform.

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

$140 (16 373 KESFind out More)

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 0 / 0 KES

Regulators

ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA

Trading Desk

Metatrader 4 and Metatrader 5

Crypto

Yes

Total Pairs

45

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 100 / 11660 KES

Regulators

CySec, FSC, FSA, BaFin, NFA

Trading Desk

MetaTrader 4 , MetaTrader 5

Crypto

Yes

Total Pairs

50 Forex Pairs and 20 Crypto Pairs

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 5 / 578 KES

Regulators

FCA UK

Trading Desk

None

Crypto

Yes

Total Pairs

28

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

570 KES or an equivalent to $5

Regulators

FSC

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

48

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

CySec, FSCA 

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, FSA

Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

Total Pairs

55+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 5 / 584 KES

Regulators

IFSC, CySec, ASIC

Trading Desk

Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform

Crypto

No

Total Pairs

57

Islamic Account

Yes

Trading Fees

No (Just spread) 

Account Activation Time

24 Hours

👉 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

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

Trading Desk

MetaTrader 4, MetaTrader 5, cTrader and TradingView

Crypto

No

Total Pairs

60+

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128

👉 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

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, CySEC

Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

Total Pairs

63

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 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

👉 A currency pair’s bid price and the ask price are the two sides of a forex spread, quantified in basis points (pips). Therefore, in forex trading, it is vital to understand what causes the spread to grow.

 

👉 Since more money changes hands when trading major currency pairings, the gap between them and less opular ones is narrower. See what a decent spread looks like by keeping an eye on the most active currency pairs.

 

👉 Checking the spreads of several brokerages might help you determine which one offers the greatest bargain.

FAQ

What do narrow and wide spreads signify in Kenya?

There is often little liquidity and significant volatility when there is a wider spread since it indicates a bigger disparity between the two prices. However, a narrow spread is indicative of low volatility and enough liquidity.

 

Why do spreads increase at night?

Spreads typically increase during the night as market volatility has increased because of recent economic news, and liquidity has decreased because of the extended trading hours.

 

What is the best time to trade Forex in Kenya?

The optimal period for Kenyan traders to transact business is between 11 am and 5 pm, when both the London and New York trading sessions are busy and overlap. During these times, fluctuations are likely to be the biggest.

 

How can Kenyans forecast future forex markets?

Traders need to seek patterns and indications in the market data if they want to predict future moves in exchange rates. Therefore, technical analysts attempt to predict the direction of the currency market by analysing patterns in its historical price data.

 

Which forex pair see the most price movements daily?

The EUR/USD currency pair is the most actively traded on the market. The EUR/USD pair is popular because it represents the world’s two largest economies: the European single market and the United States.

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