How to Start Trading on the Foreign Exchange Market in Kenya

Forex trading is becoming increasingly popular throughout Africa and Kenya. Currently, more than $6 trillion USD is traded on the global forex market every day, with 5.5% of that volume being speculative investors. However, there are many risks associated with forex trading, so it is important to learn more before you decide to enter the market. This article will cover the types of accounts you can open to begin forex trading in Kenya, as well as how to avoid unregulated forex brokers.

Benefits of trading on the foreign exchange market in Kenya

Trading on the foreign exchange market in Kenya offers traders a number of benefits. The country’s capital markets are regulated by the Capital Markets Authority (CMA). CMA-regulated brokers offer Kenyan investors a range of trading services, such as foreign currency exchange. They are also subject to strict regulatory requirements, including customer support and fast execution.

Kenya has recently introduced enhanced regulation of local forex businesses, making the market safer for retail traders. The key to trading on the foreign exchange market in Kenya is to develop a sound and viable trading strategy. The first step is to choose a reputable online forex broker. Next, make sure you have a modern device for accessing the internet.

Kenya’s foreign investment protection act guarantees the rights of foreign investors to repatriate their capital and dividends. Furthermore, Kenya’s stock exchange adheres to the International Financial Reporting Standards (IFRS), which are developed by an independent, nonprofit organization. Also, the country is a member of the UNCTAD international network of transparent investment procedures.

Risks of trading on the foreign exchange market in Kenya

Trading on the foreign exchange market in Kenya involves many risks, especially if you are new to the industry. Traders should be aware of the risks involved before investing in the currency. Moreover, it is important to use a licensed broker in order to protect their interests. Kenyan regulators are strict about this, and foreign brokers who do not hold a license in the country should be avoided at all costs.

Kenya has a Capital Markets Authority, which regulates the industry. This statutory body was established in 1989 and is charged with regulating and developing the country’s capital markets. Its mission is to foster market integrity and investor confidence. The CMA has also enacted laws and regulations to protect the interests of investors.

Forex brokers are highly regulated, and they must choose prudent investments for their clients. They must also use leverage, but only sparingly. Leverage, as well as borrowing money to trade, exposes traders to additional risks. Furthermore, traders must constantly monitor the news and global events to make informed decisions.

Types of accounts to open for forex trading in Kenya

There are several types of accounts that you can open if you are a new Forex trader in Kenya. The first is a Standard account, which offers variable spreads and leverage up to 1:30. It also allows hedging. It also has a wide range of tradable assets, but it lacks local customer support.

Another option is FXPesa Kenya. Launched by EGM Securities, this online platform accepts mpesa as a deposit method. While there are not many brokers in Kenya that accept mpesa, the FXPesa platform is one of the few to offer this option. The platform also supports MetaTrader 4 trading.

EasyMarkets: This online forex broker was founded in 2001. The platform is easy to use, and it has a low minimum deposit. It allows you to deposit multiple currencies and offers free SMS notifications. There are also no fees for non-trading services. The broker’s mobile app supports trading on mobile devices.