1/10/ · Here is our list of the best forex brokers in Kenya. IG - Best overall broker, most trusted Saxo Bank - Best web-based trading platform Interactive Brokers - Great overall, best for professionals blogger.com - Excellent all-round offering XTB - Great research and education eToro - Best for copy and crypto tradingEstimated Reading Time: 5 mins Here are 9 Basic steps to trade forex in Kenya Learn the Basics of Forex Trading including all the Risks Search, Compare and Select a Forex Broker Compare Forex Account Plans and Fees Choose a Plan that suits your needs Signup with Forex Broker Complete Verification Deposit Funds using convenient Payment Method Start Trading Forex 1/29/ · Steps to Start Forex Trading in Kenya Learn the basics of online forex trading Raise adequate capital to start trading Choose a reliable forex broker Open a demo account with your chosen broker Open a real money trading account Refine your forex trading strategy Keep a trading journal Keep learning and implementing what you learn
Forex Trading in Kenya for Beginners (Complete Guide) - TradeForexKenya
The Regulatory body responsible for Regulating Online Forex Brokers in Kenya is the Capital Markets Authority CMA. As of Januarythere are 6 Registered Online Forex Brokers authorized by the Capital Markets Authority CMA. The Forex trading in kenya has advised Kenyan citizens who wish to trade in the foreign exchange market to do so with brokers who are authorized by the CMA. FXPesa is regulated by local regulatory authoprity CMA of Kenya with license number HotForex is regulated by local regulatory authoprity CMA of Kenya with license number Exinity is regulated by local regulatory authoprity CMA of Kenya with license number Pepperstone is regulated by local regulatory authoprity CMA of Kenya with license number The Foreign Exchange Market or Forex Market is a Capital Market where the currencies of different countries are traded or exchanged.
We need foreign currencies for different reasons. From making profits to buying goods and services, for tourism, etc. The importance of the foreign exchange market to the global market cannot be overemphasized. A report from the Bank of International Settlement BIS put the daily amount of forex traded to be around USD 6. This makes it the largest and most liquid market in the world.
The Foreign exchange market in recent times has been digitalized through technology. This has made trading go round the clock every day and five and half days per week, forex trading in kenya. Currencies are traded in major financial centers across different time zones of the world from New York to London, Paris, Hong Kong, Frankfurt, Tokyo, and Zurich. The digitalization of the forex market has also enabled individuals and retail investors to participate in the market.
This is unlike as it was in the past when only large investment organizations and banks could participate in the market. Forex Trading is simply the exchange of one currency for another for any reason. While this definition seems easy, it leaves a lot of questions. One such question is how does Forex Trading work? If a Kenyan business wants to buy goods from the US, they will have to exchange their Kenyan shilling for USD to pay the business in the United States, forex trading in kenya.
This exchange is usually done through forex trading in kenya or other approved institutions. However, some engage in Forex trading to hedge their risk and even make a profit. These traders try to forecast the rise and fall of currency pairs. Forex trading is carried on through currency pairs that are, currencies are paired against each other Ex.
EURUSD, CADGBP, AUDUSD, EURJPY, etc, forex trading in kenya. If a trader believes the USD will rise against forex trading in kenya EUR, forex trading in kenya, he buys USD against the EUR and sells after sometime after the price of the USD must have increased. But what are CFDs? Contract for Difference refers to an agreement between two parties where the difference between opening and closing of trade is settled in cash.
One unique feature of Forex Trading in recent times is the use of margin in trades. What is margin trading? This is a way of trading using funds provided by a third party, forex trading in kenya. What this means is that the trader provides a small amount or deposit which enables him to access greater trading capital. Margin trading allows traders to use leverage for greater potential returns on instruments traded with little amount.
However, it can also lead to greater losses if the trade goes south against your direction. For example, a typical leverage offered by CMA Regulated Forex broker is around Such margin magnifies the trading result by 50 irrespective of the trajectory of the trade.
We will now try to explain major terms associated with forex trading. By this, we mean to compare the value of one currency to another.
It gives us an idea of how much of a currency is needed to get one unit of the other. Currencies are known by their ISO currency code which is usually three letters. The term spread is usually used by traders to determine the bid and ask prices between two currency pairs. What it means is that a lot is a unit of measurement that standardizes trade size. The idea behind lots is that since it is impossible to trade single units of currencies, lots provide the opportunity to trade the small changes or movement in currency prices in large tranches.
There are four types of lots in forex. They are; the StandardUnitsMicro 10, UnitsMini Units and Nano lots. But most forex brokers only offer Micro Lots as the lowest lot size. Forex trading is not illegal in Kenya.
It is highly legal however there are rules to forex trading in Kenya. The Capital Markets Authority is the government regulator responsible for regulating forex trading in Kenya. Traders from Kenya must only trade with forex brokers who are regulated by the CMA. There are only six forex brokers regulated by the Capital Markets Authority in Kenya. Most forex brokers do post their regulators on their websites.
However, you need to verify the authenticity of the post on their website. We will demonstrate in simple steps how to verify a broker that is registered with the CMA. Step 1 Visit the official website of the CMA on www.
Step 2 Search the name of the broker you wish to verify on the search icon of the CMA website. In this case, we will search for FXPesa. Step 3 The search result will determine the registration status of the broker. In this case, we found results on FXPesa, forex trading in kenya. Step 4 To confirm the registration status of the broker, click on any press forex trading in kenya carrying the name of the broker.
Step 5 If the broker is not registered with the CMA, the result of the search will be zero results. Exness was used to demonstrate this here. Some fake brokers can use the cloned names of the CMA-regulated brokers in Kenya. Clients must look out for spelling errors and other signs of deceitful activities. Checking the authenticity of the CMA license is very important before choosing a broker in Kenya.
The steps in opening a forex account with a broker are similar across different brokerage firms in Kenya. It involves having a functional email, phone number, and perhaps a bank account. In this guide, forex trading in kenya, we will use FXPesa to describe the steps in opening forex trading in kenya account with a forex broker in Kenya, forex trading in kenya.
There are three steps to opening an account on FXPesa. This process is instant and moves from one to another. Step 3: Confirmation of documents submitted by you: This process is not instant as the rest are. Before rushing in to open a forex trading account, clients must comprehend the components of fees that can be incurred from them while trading forex and CFDs online.
Each broker can charge differently for trading forex. The following components of fees must be checked and compared before choosing a forex broker in Forex trading in kenya. Spread forex trading in kenya Spread is the most important fee that a trader has to pay while trading forex or any other CFD instrument. It is the difference between the bid and ask price of an instrument.
Wider spreads mean higher revenues for the broker and lesser gains for the traders. Trading Commission : Some brokers may incur a fixed or variable commission depending on the trading volume. Spreads may or may not be incurred while trading with commissions. Most brokers offer a separate account type for commission based trading at low spreads. This commission is incurred while opening as well as closing the position depending on trading volume.
Overnight Charges : Overnight charges are also called as swap fee or rollover charges. This is the fee that is incurred when a leveraged position is kept open overnight. Each instrument has different overnight charges for long as well as short position. Traders who prefer to keep their positions open for more than a week must check swap fees before doing so. Inactivity Fees : Most brokers charge inactivity fees if no trades are executed for a prolonged period after opening the account.
The inactivity period and the monthly charges for inactivity can be different for each broker. Some brokers charge inactivity fees after 3 months of inactivity some for 12 months while many do not charge any inactivity fees. each Deposit and withdrawal method can have different fee associated at a broker.
Clients must check and compare the transaction fees for their preferred mode of deposit and withdrawal. Currency Conversion Fees : This is the fees that is only incurred if the deposit currency is different from the base currency of the account.
Most brokers use nominal currency exchange rate but each broker can have different currency conversion charges. However, some other forex and CFD brokers do charge account opening forex trading in kenya regular maintenance charges. The details of all the trading and non-trading fees can be checked on the official websites of the broker.
Clients can also inquire about the fees through the customer support services. It is no mean feat to trade and make a profit in the forex market as a retail trader. The market is highly volatile forex trading in kenya only those with vast knowledge of market trends are able to trade unscathed.
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, time: 26:28Forex Trading in Kenya: A Beginners Guide for - Forex Kenya
All forex transactions are overseen and well-regulated by the Capital Markets Authority (CMA) of Kenya and according to statistics, there are over , active retail traders in Kenya, with this number steadily increasing as more individuals discover the benefits of trading forex. Top 10 Brokers in Kenya Broker Rating Regulators Min Deposit 1/10/ · Here is our list of the best forex brokers in Kenya. IG - Best overall broker, most trusted Saxo Bank - Best web-based trading platform Interactive Brokers - Great overall, best for professionals blogger.com - Excellent all-round offering XTB - Great research and education eToro - Best for copy and crypto tradingEstimated Reading Time: 5 mins 1/10/ · Here is our list of the best forex brokers in Kenya. IG - Best overall broker, most trusted Saxo Bank - Best web-based trading platform Interactive Brokers - Great overall, best for professionals blogger.com - Excellent all-round offering XTB - Great research and education eToro - Best for copy and crypto trading
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