Kenya Forex brokers list: developing trading market

Kenya has a single regulatory authority that monitors the Forex trading market in the country – the Capital Markets Authority, or CMA. The organization has been on market for quite some time now, however, it licensed the first-ever broker locally in 2017 and since then not many brokers are found with CMA licenses. Instead, the local traders look for international brokerage companies with multiple authorizations from multinational regulatory bodies.

The country has one of the most liberal regulatory frameworks in the region with minimal restrictions and limitations both for brokerage companies and Forex traders. There is no cap on maximum leverage or minimum capital requirements. Most of the regulations serve as the guidance for brokers to satisfy the market standards and offer high-quality brokerage services to Kenyan traders.

When it comes to taxation of the income generated through trading Forex, Kenya has a very specific policy. According to the Capital Markets Authority, the traders are free from taxes only if they trade with a CMA-licensed securities exchange. Otherwise, all Forex earnings are subject to the Capital Gains Tax – 5% of the net income.

Just like the majority of African countries, Kenyan local currency – Kenyan shilling is not in demand as a Forex currency asset. Therefore, one should not expect to find it within the Forex portfolio of the brokers. However, some of the regional currencies, like the South African ZAR are widely available to trade as an exotic Forex asset. Moreover, the majority of leading brokerage companies adopted popular regional payment options, like M-Pesa that allow users to process transactions in domestic currencies.

List of the best Forex brokers in Kenya

Some brokerages have also started taking steps to be more accessible on the African market. Especially, after the appearance of the Capital Markets Authority made the local trading scene much more attractive and safe. The role of CMA cannot be diminished in building a reliable trading environment in Kenya. However, local traders still prefer brokerage companies that hold multiple regulations within different jurisdictions. The best option is to look for the brokers with a reputable license, such as ones authorized by the Financial Sector Conduct Authority of South Africa (FSCA). We prepared the list of the multi-regulated and FSCA-approved Kenyan Forex brokers below.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

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

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Who Regulates Forex brokers in Kenya?

The only regulatory body that can control and manage the operations of licensed Forex companies in Kenya is the Capital Markets Authority (CMA). Notably, the first-ever brokerage in Kenya that was licensed by CMA was Execution Point Ltd in 2017. Meaning that it was guaranteed the right to act as a link between the foreign exchange market and clients in return for a commission.

Capital Markets Authority forex market brokers kenya

You will hardly find the best Kenyan broker that is regulated locally and can operate on the Forex market legally. This basically means CMA left Kenyan traders, to trade with unregulated or offshore brokers. If you would compare the requirements to apply for the license offered by regulatory bodies of other countries, even Uganda or Ghana,  you would notice that those are much more complicated and strict when compared to the Kenyan ones. Nevertheless, it is becoming obvious that the Kenyan regulatory framework does not attract foreign investors and brokerages enough. This is evident by the fact, that you won’t find any foreign Forex brokers that have their offices in Kenya.

Alternatively, Forex traders in Kenya choose the brokers that are regulated by the regional market regulators, such as the Financial Sector Conduct Authority in South Africa (FSCA). The institution has a strong reputation in the Forex industry and is respected in almost every corner of the world. Moreover, the regulations of the FSCA are not strict and limiting, compared to its closely-resembling organizations such as the Australian Securities and Investments Commission (ASIC).

Register with FSCA-regulated broker IQ Option

How is Forex trading taxed in Kenya?

Capital Gains Tax in Kenya is 5% on Forex incomes. In contrast to many African countries, Kenya has a relatively developed taxation system. Forex incomes are taxed as Capital Gains Tax (CGT) in all developed economies. Some of the states have made an exception for Forex traders and included trading Forex as an exemption from the Capital Gains Tax. Kenyan government chose the same approach and freed the traders from paying the tax, however, only on one condition. The traders have to be trading on the platforms of CMA-licensed Forex brokers to be exempt from CGT fees.

As we already discussed, none of the leading brokerage companies hold the Capital Markets Authority license, since the regulator does not provide an attractive trading environment and has rather loose regulations. Moreover, most Kenyan traders still prefer to trade with international regulated brokers, therefore, they are eligible for paying the Capital Gains Tax. On the other hand, the good news is that Kenyan CGT is much less compared to the rest of the countries on the African continent. Forex traders have to pay 5% of their net earnings at the end of the tax year.

Are local currency pairs available?

Kenyan shilling forex kenya

The domestic currency in Kenya is called the Kenyan shilling. It is considered to be one of the most stable currencies in African regions. However, not much of the currency is in circulation currently making it a less attractive choice for Forex trading. Unfortunately, at the moment we could not find any top Kenyan brokers offering the Kenyan shilling currency pairs as trading assets.

If you are still looking for exotic Forex currency pairs, most of the leading brokerage companies in Kenya will offer regional currency pairs within their Forex portfolios. For example, the South African Rand is the most popular tradable currency in the African region. Its price is also fluctuating enough to make the currency attractive for foreign investors and speculators, as well. The most common Forex pairs available with the Rand are EUR/ZAR and USD/ZAR. The spreads on these two currency pairs are almost always similar ranging between 200-240 pips depending on the broker.

Trade ZAR pairs with IQ Option

Is there a cap on leverage for Kenyan Forex brokers?

As we have already mentioned, the main market regulator of Kenya the Capital Markets Authority does not enforce strict laws and regulations. Instead, the CMA issues recommendations annually that aim to facilitate the growth of Forex trading in the country. At the moment, there are up to 5 brokerage companies registered locally and licensed by CMA, but they do not appear on the globally recognized list of licensed Forex brokers in Kenya, yet. The regulator recommends a cap on leverage for up to 400:1 to its licensed brokers. However, for multinational brokers, this cap is not relevant.

When comparing to the neighboring market regulator in South Africa, we can see that the FSCA-regulated Forex brokers are also able to offer leverages up to 1:400. This leverage level is quite flexible for almost every level of Forex trading experience. We would not recommend using too high leverages as they impose great financial risks on your funds.

What Payment systems are available in Kenya?

M-pesa forex kenyaThere are numerous payment methods offered for traders on the Kenya Forex trading market. Almost every common and popular payment solution is supported on the platforms of the best Forex brokers Kenya. The traders can access Visa/Mastercard payments, bank wire transfers, Skrill and Neteller, and in limited cases PayPal, as well. However, one of the most frequently used payment options in Kenya, as well as in other African countries, is the M-Pesa payment system. M-Pesa is a mobile phone-based money transfer launched in 2007. If you are familiar with that payment system and don’t want to switch to anything else, you may definitely find lots of Kenya forex brokers that accept M-Pesa.

Deposit using M-Pesa with IQ Option

What should you look out for when trading Forex in Kenya?

As the Forex market in Kenya is quite volatile and unstable and things are not crystal clear with brokers’ regulations as well, you need to pay detailed attention to the broker and its operations. The fact that there were already several scam cases taking place in Kenya alone can justify caution and careful analysis of the future brokerages to go with. A few years ago, the African region took a massive hit of Forex frauds with illegitimate companies misleading the traders through the telemarketing channels. As the concern grew among the governments of different African countries, the Kenyan government introduced harsher regulations under the Capital Markets Authority monitoring program. The CMA also issues multiple guidelines on how to avoid scams and file for any fraudulent behavior identified by the traders.

The regulatory authority alone cannot handle all cases of money-related crimes. It is also important that traders take the responsibility for themselves and research all the brokerage companies that they plan to trade with. The Capital Markets Authority, as well as any other regulatory body constantly updates its lists of licensed Forex brokers. Therefore, look for the brokers that are found within the databases of the market regulators to avoid potential scams.

FAQs about Kenya Forex brokers

Is Forex trading profitable in Kenya?

Forex trading can be profitable in any corner of the world. The success of the trader depends on several factors: the broker, knowledge, experience, and overall trading environment. The first important step is to choose the right broker, one that suits your trading goals, budget, and requirements and which is recognized as one of the best regulated Forex brokers in Kenya. Secondly, a trader should always be looking forward to learning more about Forex, its market specifics, various strategies and etc. The experience comes with time obviously, but there are several tools provided by the brokers that would facilitate the process. In the end, it would be extremely difficult to profit during the global economic turmoil, therefore, the trading environment should be more or less stable for the given moment.

How safe is Forex Trading in Kenya?

Forex trading is safe in Kenya. However, the safety of trading Forex depends on the choices made by the trader. Usually, the danger comes from the unlawful behavior of the brokerage companies or third parties involved in the communication between a broker and the trader. Therefore, in order to guarantee your safety as a trader, you should necessarily trade with regulated Forex brokers only. The regulations in the Forex industry monitor the performance of the brokers and make sure that they follow the rules and guidelines establishes by the authorities. Furthermore, every company on the list of licensed forex brokers in Kenya will have to keep segregated accounts for their clients, meaning that the traders’ funds will remain safe no matter what happens to the market or to the broker.

How much do you need to start Forex in Kenya?

You can start trading Forex with the minimum deposit requirement of 5 US dollars. You could also find some brokers that lower the requirement down to 1 USD. Moreover, some of the best brokers Kenya offers might even provide programs that allow you to start trading Forex without any investment at all. For instance, no deposit bonuses serve as a perfect kickstart in Forex for the new registering users on the brokers’ platforms. With the no deposit bonus you can trade with the funds credited to your account by the broker without any need from your side to invest money.

What trading platforms are available in Kenya?

The best Kenyan broker mainly supports MetaTrader 4 platform even though trading platforms vary from one broker to another. MetaTrader 4 is one of the most reliable and well-known ones. It offers a list of benefits other platforms fail to provide. That might be the tools that enable traders to change timeframes from 1 minute to 1 month, for instance. Or to make the robot trade instead of sitting glued to the computer screen for the whole day. The trading platform is one of the first things you need to check before choosing to trade with the broker.

Which account types are available to Kenya?

FX trading brokers are usually offering several types of accounts for traders to choose from micro, standard, and premium for online Forex trading Kenya. The accounts are divided into several types depending on the amount of the initial deposit and the funds available for trading. Furthermore, the account types offer various benefits. For example, the premium account will offer much tighter spreads and more flexible leverage compared to Standard and Micro account types. But, the premium account will also be more expensive to open.