Best Forex Brokers in Kenya Listed & Rated
The Kenyan market has more than 90,000 Forex traders with active accounts, however, this number is increasing day by day. It is important to note that Forex trading in Kenya is legal and is regulated by the CMA (Capital Markets Authority of Kenya).
People who want to start trading in Kenya are recommended to take into account several things before they open their trading positions. First of all, the most important thing is choosing the right broker, this means that the company investors choose should have authorization and should be licensed by the CMA.
In this guide, we will further discuss the process of trading Forex in Kenya. We will also talk about the most important aspects in a perfect forex broker. At the end of the article we expect our readers to know exactly what kind of Kenyan FX broker they should sign up with. Below you can also find a large list of Forex brokers we have hand-picked for our Kenyan readers.
Best and most trusted forex brokers in Kenya October 2021
How to start trading Forex in Kenya
There are a lot of Forex trading companies in Kenya that are based in Lagos and other Kenyan cities. According to the latest statistics, the country has over 90,000 active traders and the number is growing rapidly. So it is not surprising that there are more and more brokers in this country offering a lot of important services to its users.
If you are a novice investor from Kenya and do not know how to start trading in the Forex market, here are the steps you need to follow.
- Step 1: Find a reliable FX Broker
- Step 2: Make sure they have a license from the CMA
- Step 3: Choose your desired account type (Standard recommended)
- Step 4: Choose your desired currency pair
- Step 5: Do research and place your trade.
How to Avoid Risks While Trading Forex in Kenya
The best way to avoid any unnecessary risks is to follow the first step we mentioned above. As long as you are trading with a reputable company, your risks are significantly lowered. The thing with FX trading be it in Kenya or anywhere else, is that it’s never risk-free. All we can do is reduce the risk as much as possible, and a reliable forex broker is one of the best ways to do so.
Continue reading to find out other methods of avoiding risks when online trading Kenya or anywhere else.
Check for NBP (Negative Balance Protection)
One of the biggest advantages of trading with a regulated broker in Kenya is that they are forced to provide NBP, aka Negative Balance Protection. What this does is ensure that no matter how much you lose on your trade, your account will never go into the negative. The broker will automatically close the trade once your balance reaches zero. This helps prevent going into debt due to a miscalculated move in the market.
Avoid High Leverage
The reason why your account balance may at some point reach zero is if you overshot on your leverage choice. Most brokers in Kenya don’t have any restrictions on how much they can offer, therefore don’t immediately jump at 1:1000, start smaller with maybe 1:50 or 1:100. The higher numbers are only recommended for experienced traders who have enough knowledge to further minimize their risks.
Avoid High Volatility
If you’re signing up with Kenyan forex brokers, it’s likely you will want to trade with Shilling pairs. Although this is a good idea as you will have more information about this particular currency because you’re local, it’s also quite risky. Why? Because the Shilling is extremely volatile, meaning its exchange rate fluctuates very often. Volatility has doomed many a veteran trader’s strategy in the past, and it’s probably going to do the same to you. So, it’s recommended you avoid volatile periods of a particular currency pair, or avoid the currency pair entirely.
Check for Reimbursement Policies
Even the best FX brokers in Kenya could sometimes make mistakes on their platforms leading you to lose some of your investment. This happens all the time all over the world so it’s not something to be overly worried about. The only time this is a topic of concern is when the broker does not have a reimbursement policy. This means that no matter how much you lose due to the broker’s mistake, you will not get your losses back. But the good news is that every regulated and licensed broker in Kenya has to have a reimbursement policy. Otherwise they are not given the license.
Forex Trading Platforms in Kenya
There are several important trading platforms available for Kenyan traders such as MetaTrader 4 and MetaTrader 5. It is almost impossible to know which is the best for everyone because choosing the right platform depends on the individual investor’s trading goals and preferences as well as their trading style. Therefore, sometimes it might be a little confusing to select the best platforms to trade Forex in Kenya. On the other hand, there are several features that every good platform should have including trustworthiness, responsiveness, the protection of the users’ personal information, as well as good analysis tools.
The Forex trading platforms in Kenya that offer their customers all these important features include MT4 and MT5. Let’s discuss each of them briefly down below.
MetaTrader 4 has been operating in the foreign exchange market for more than 16 years so it has a great experience in providing a high-quality service to its customers. This software has a lot of benefits such as analysis tools, trading orders, protection of the data, reliability, and so on. All these give the traders an opportunity to explore the new strategies that might help them to gain substantial profits in the future.
On the other hand, Metatrader 4 ensures its users’ safety and security at every step of their trading process which is a very essential part of every good trading platform. This means that every trader is protected from the unpleasant circumstances related to trading in the Forex market. It should also be noted that MT4 is created in the language called MQL4 which is dedicated to only MT4 traders. This already means that this software has a high quality in every feature and every trading offerings so people who are trading Forex from Kenya are recommended to choose this platform.
MetaTrader 5 is a very famous trading platform worldwide with millions of active users. This trading platform offers its users a lot of advanced trading tools and instruments. Moreover, the MT5 has an essential feature- a technical analysis tool that is a very crucial thing while trading in the Forex market.
On the other hand, it should be stated that MetaTrader 5 uses trading robots and signals. This indicates that this platform has a very developed offering that has an extremely high level. This is why it is considered to be the perfect platform for experienced and professional traders who already know what trading in the foreign exchange market is like.
On top of that, MetaTrader 5 offers its customers not only a desktop but a mobile version of the software. This is what makes this trading platform extremely comfortable and accessible to everyone.
Besides, the MetaTrader 5 trading platform has a perfect technical analysis tool that helps a lot of investors to evaluate the future changes in the foreign exchange market. This fact is especially important because it might help traders generate a substantial amount of income from their future trading.
Final thoughts on Forex Trading in Kenya
As already mentioned, Kenya has more than 90,000 Forex traders with their active accounts and this number is increasing day by day. It is important to note that Forex trading in Kenya is legal and is regulated by the CMA (Capital Markets Authority of Kenya).
Your first step to starting FX trading in Kenya is to find a reliable and licensed FX broker that meets your requirements. Through our experience, as long as the broker holds a license, it means they are more than qualified to provide you with their service.
Always try to reduce risks as much as possible before placing your trades. The best way to do so is:
- Register with a licensed broker
- Utilize Negative Balance Protection
- Use low leverage
- Avoid high volatility trades
Another noticeable thing is Forex trading platforms in Kenya. There are several platforms that offer their customers all these important features including MT4 and MT5.
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