The number of Currency Pairs– A currency pair is a comparison of the value of two different national currencies compared against each other. All FXPesa help lines in Kenya are toll-free so you can reach the on phone at no cost. Their live chat is also responsive and on social media they respond to enquiries on time. MT4 & MT5 are popular and widely used not only in Kenya but around the globe as well.

Retail forex traders are individual investors who wish to trade in the forex market for personal gain. They don’t trade on behalf of an organization or company. They account for an estimated 5.5% of the global forex market as per BIS data. The foreign exchange market alias forex or FX market is a global, online over-the-counter (OTC) market where currencies of about 170 countries are bought and sold.

To open a forex trading account, you need to first choose a reputed broker that is regulated by the CMA. A forex broker provides access totrading platforms where individuals can buy and sell currencies. They offertools, market analysis, trading instruments, and customer support to facilitateyour trading activity.

Comparison of Best Forex Brokers in Kenya 2023

Some of the trades in the forex market are speculative in nature and a part of them is from retail traders. Retail traders come to the forex market to speculate, hedge against currency and interest rate risk, etc. There are six regulated non-dealing forex brokers that are authorized by CMA in Kenya.

For example, Exness offers a secure cmc markets review and trustworthy commodity trading platform that might just be the key to helping you get started. Maize, tea, coffee, horticultural produce, and livestock are just a few of the commodities now entering more formalized markets. It is not uncommon for forex brokers to charge $5-10 of inactivity fees per month. You should carefully read the terms of the broker, or ask the broker’s support before signing up, if there is any inactivity fees involved.

For withdrawals, HF Markets accepts bank/wire transfers, credit/debit cards, and other alternative payment methods such as Fasapay, Neteller, Perfect Money, VLoad, etc. The minimum amount withdrawal for bank/wire transfer is $10, and credit/debit cards are $5. HotForex Group is also registered and regulated with the highly revered Financial Conduct Authority (FCA) in the U.K with registration number , and with the FSCA in South Africa. Being a well-regulated Forex broker makes them safe for Kenyan traders.

HFM vs IG vs IBKR vs Forex.com vs AvaTrade – A Comparison

Most retail traders trade forex because of leverage, and this can cause losses to escalate very quickly.Let us discuss some risks. Once you lose the deposits in your CFD trading account, the brokerage system automatically closes all your positions. This is a good faith deposit a trader must keep in his trading account. It is expressed as a percentage and is inversely proportional to leverage. The Bid price is the highest price a forex trader is willing to pay to buy the base currency from the broker. By the time you close your trade at a profit, the negative balance will clear.

Pepperstone at a glance

We have created comprehensive guides to help you get started with online forex trading. Note that it fxprimus review is important to choose the right account currency based on which instruments you trade the most. This is because most brokers charge account currency conversion charges. These apply when they convert your profit & loss in your account’s native currency.

You could also use your mobile device, web and PC to monitor trades. A broker with many currency pairs on offer also gives you the benefit of hedging against risk. Since some currencies are more volatile than others, you can trade the volatile pairs with high risk and hedge them with the more stable pairs.

How to Choose a Forex Broker in Kenya for Beginners

  • Each trader has differentrequirements depending on his or her level of experience, investment capital, andtrading approach.
  • Other brokers may require you to make a higher deposit to start.
  • Overall, eToro has claimed the first spot in my star scoring system for having a large social investment network, small account opening, and financial markets available for trading.
  • The best forex broker in Kenya is the one that is regulated by the Kenyan Capital Markets Authority, has very low fees and provides easy deposit and withdrawal methods.

Let’s say you have 20 US Dollars, but you want Kenyan Shillings instead. They will convert your Dollar into Kenyan Shilling at the latest exchange rates. Forex Market is the most Liquid market in the world & has the highest daily traded volume globally, higher than any other market or exchange. The daily volume of Foreign Exchange Market was around $6.6 Trillion in 2019, according to research by BIS. For example, let’s take the currency pair of Kenyan Shilling (KES) and US Dollars (USD).

What is not mentioned in the screenshot is that there is a $7 round-turn commission per standard lot with an Executive Account. In Kenya, forex brokers are regulated by the Capital Markets Authority (CMA). There are currently 6 online forex brokers licensed by the CMA. XTB is a highly trusted brand that holds licenses multiple global regulatory jurisdictions, earning it a Trust Score rating of 96. XTB’s proprietary xStation 5 platform delivers a rich selection of trading tools and great usability. XTB provides access to CFDs for a wide range of asset classes, including multiple cryptocurrencies.

  • IG also offers seamless integration of trading signals into its web platform.
  • The broker also offered low spreads for Apple (0.09 pips) and Tesla (0.11 pips).
  • This list is updated whenever any licensed broker changes, whether addition of new license or suspension of license.
  • The right broker for you will give you all the pairs you need to build a diverse strategy.
  • If the broker is not regulated with CMA or any other Top-tier regulation, don’t open account with such broker.

While Kenyan traders can access FOREX.com’s services through its international platforms, such as its Cayman Islands-based subsidiary, these operations are not under CMA oversight. Although IG lacks a CMA license, it is regulated by several top-tier financial authorities globally, thereby ensuring that the broker upholds stringent international standards. Consequently, IG offers clients a secure and transparent trading environment. Consequently, this CMA regulation places HFM under Kenyan financial laws, ensuring it maintains transparency, protects clients, and provides dispute resolution mechanisms. As a result, traders enjoy a locally supervised trading environment that adheres to national standards.

Slippage is can be caused by poor internet connection on your end, rapid price movement in the market, or your broker’s system. To know how your broker handles slippage, make sure you read their rider execution policy and other related official documents. Traders sometimes trade derivative instruments such as currency futures and currency options to hedge against currency and interest rate fluctuation risk.

The first step for every forex trader should be choosing a reliable, well-regulated forex broker. Read more to learn which forex broker is best for your needs. Overall, Fusion Markets offers some of the lowest spreads and commissions in the forex trading industry, with many different trading platforms to choose from. FxPro has multiple account types & the exact fees is based on the account type. Before starting forex trading in Kenya, it is important to understand the working of the forex market and the terminologies used while trading online. Traders must acknowledge each component of the risk involved in the forex market.

First of all you need quote (Bid & Ask prices), which you can check on the broker’s platform. When you place a ‘market order’, the broker finds the fill for you by xm forex review send it to their liquidity providers or directly acting as the counterparty. The brokers have access to liquidity providers, or a market maker may act as the counterparty themselves to your trades.

Here is how to find trading platforms on your broker’s website. Since we have a number of them in this review, we will pick Scope Markets as our example. Hence, trading with a regulated broker grants you protection from theft and inappropriate business practices.So how do you know a forex broker is regulated in Kenya? Every CMA-regulated forex broker in Kenya has a unique license number.

Similarly, Kenya’s mining sector, though still developing, holds significant promise. Minerals such as titanium, gold, and fluorspar are already contributing to export revenues. With better regulatory oversight and sustainable practices, this segment could further boost Kenya’s commodity trading influence.

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