Forex brokers in Kenya: developing trading market

Just like the majority of other African countries, Kenya turned its attention towards Forex trading only recently. Thus, the market is still quite undeveloped and immature. That means that the regulation, as well as the operation, of brokers on Kenyan Forex market is a not so stable matter. However, the market keeps evolving attracting foreign traders and brokers. That can mainly be explained by the fact that it is relatively easy to establish Forex brokerage there, as well as to trade with the beneficial and attractive conditions.

Therefore, more and more Kenyan FX brokers are starting to appear on the global trading market taking their hard-earned spot under the sun. At the moment of 2015, there were already around 86 licensed brokers registered in Kenya. That might also be justified by the fact that people in Kenya searching for the source of profit are turning towards Forex trading as it is known to be one of the most prominent sources of earning money fast if that is done wisely and smart.

Kenyan Forex market might also become a great platform for foreign traders, as it might provide those with a number of benefits. That will be also discussed in more details in that article. But for now, without any more rambling, let’s jump right into the topic.

AxiTrader

AxiTrader Review

Minimum deposit

$0

Regulation

FCA, ASIC, DFSA

Bonus

20%

Maximum leverage

1:500

Year founded

2007

Trading platform

MT4

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

30:1

Year founded

2009

Trading platform

MT4, MT5, WebTrader

IQ Option

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

Minimum deposit

$10

Regulation

CySEC

Bonus

N/A

Maximum leverage

1:30

Year founded

2013

Trading platform

WebTrader

MultibankFX

MultiBank FX Review

Minimum deposit

$200

Regulation

ASIC, BaFin, FMA, CNMV, FSC, CIMA, RAK

Bonus

$50,000

Maximum leverage

500:1

Year founded

2005

Trading platform

MT4

HotForex

HotForex Review – Are they one of the best options out there?

Minimum deposit

$5

Regulation

FCA, SV, FSCA, DFSA, FSA

Bonus

100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

Trading 212

Trading 212 Review

Minimum deposit

100 GBP/EUR,150 USD

Regulation

FCA, FSC

Bonus

N/A

Maximum leverage

1:300

Year founded

2006

Trading platform

Trading 212

AMarkets

Why you should rely on AMarkets reviews

Minimum deposit

No limit

Regulation

FSA

Bonus

25%

Maximum leverage

1:1000

Year founded

2007

Trading platform

MT4, MT5, WebTrader

Z.Com Trade

Z.com Trade Review

Minimum deposit

5$

Regulation

FCA

Bonus

N/A

Maximum leverage

200:1

Year founded

2005

Trading platform

MT4

Trading.com

Trading.com review

Minimum deposit

N/A

Regulation

FCA

Bonus

N/A

Maximum leverage

N/A

Year founded

2019

Trading platform

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.

Kenyan local currency and Forex trading with it

Kenya best currency trading brokersThe domestic currency in Kenya is called Kenyan shilling. Just to give you an understanding of how popular and well-accepted Forex trading is in Kenya, we will give you simple numbers to digest. Kenya’s GDP in 2016 was Ksh. 7.1 trillion ($69 billion). Meanwhile, Bitcoin holdings from trading that were about Ksh. 163.3 billion ($1.58 billion) at the beginning of that year, were about 2.3% of the entire country’s GDP. That, in turn, equals half of the biggest infrastructure investment ever – Standard Gauge Railway’s that cost the country $3.2 billion.

Still, the Central Bank of Kenya (CBK) refused to agree that Bitcoin is a form of currency. But at the same time, the Ministry of Information, Communication, and Technology has acknowledged that cryptocurrency and the block chain technology in general have benefited the country’s economy a lot.

Forex trading market general overview

Even though Forex trading is at its developing stage right now, it is still keeping up with the rest of the global trading market. Thus, the conditions offered for trading there are as superior as anywhere else.

Trading platforms

Even though trading platforms vary from one broker to another, the best Forex brokers in Kenya mainly suggest their users trade with MetaTrader 4 platform. As that one 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.

Commissions charged and spreads

The essence of profit gaining for brokers is the charging of commissions for trading with those. Therefore, the fee for trading on the Forex market is called a spread. Spreads might be rather fixed or variable. Fixed spreads are usually higher and vary from  1-5 pips for major pairs and 5-20 for minor ones. Variable spreads, in turn, are much lower (0.2-0.8 pips for major pairs and 2-6 for minor ones) but are affected drastically by changes on the market.

Account types available

FX trading brokers Kenya are usually offering several types of accounts for traders to choose from: micro, mini and standard. The accounts were divided into several types depending on the amount of the initial deposit, as well as the funds available for trading.

Forex brokers that accept M-PesaPayment methods

There are usually various payment methods offered for traders on Kenyan Forex trading market. However, one of the most popular one there and in other African countries is M-Pesa, which is a mobile phone-based money transfer launched in 2007. Thus, if you are familiar with that payment system and don’t want to switch to anything else, you may definitely find lots of Forex brokers that accept M-Pesa.

Regulation of Forex trading brokers in Kenya

licensed Forex brokers in KenyaThe only regulatory body that can control and manage the operations of licensed Forex brokers 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.

However, there are not many other brokers in Kenya that were regulated and can operate on Forex market legally. Meaning that basically, CMA left Kenyan traders, as well as foreign ones, to trade with unregulated or offshore brokers. However, we do not see any possible logical reason for that. As mentioned before, the FX trading market keeps evolving and attracting more and more traders. Thus, in 2016, there were approximately 50,000 Kenyans participating in trading. And that number is truly impressive for the country with a poor economy and overly undeveloped financial market.

If you would compare the requirements to apply for the license put forward by regulatory bodies of other countries, even Uganda or Ghana,  you would notice that those are much more complicated and strict in comparison to the ones in Kenya. Nevertheless, you may clearly see that it does not attract foreign investors and brokerages enough. AS you won’t find any of foreign FX brokers that would have their office in Kenya.

However, regardless of those facts. CMA still requires all financial trading operations to be done through one of the brokers from the list of best Forex brokerage companies in Kenya. The reason for that is quite simple. In the opposite case, those transactions will be done with third-party providers like Skrill, Neteller and, most often, M-Pesa. Which means that it will be much harder for the government to trace those and detect money going out of the country.

Therefore, the Forex brokers with M-Pesa were launched on Kenyan trading market. In order to make traders that are used to trade with M-Pesa use the services of official brokerages.

Factors to consider when choosing the best Forex bureau in Kenya

As the Forex market in Kenya is quite volatile and unstable and things are not clear with brokers’ regulation as well, you need to pay detailed attention to the broker and its operations. The fact that there were already lots of scam cases taking place in Kenya alone can justify the awareness and careful analysis of the future brokerage to go with. Therefore, we have decided to provide you with the factors you need to pay precise attention to when choosing the Forex brokers.

  • Reliable FX brokers in Kenya would accept customers from both Kenya and other countries without any limitation
  • There shall be customer support available in English
  • The website shall be available in English as well
  • The trading platform shall be available for any type of electronic devices: tablets, laptops, PCs, smartphones
  • The broker shall have a strong reputation on online Forex forums
  • The leverage rate shall be not less than 1:200
  • There shall be several trading tools that would simplify the trading process for both beginners and experienced traders
  • There shall be many currency pairs available for trading

Summing up top Kenya best currency trading brokers

Drawing a conclusion of everything that was mentioned earlier, we may state that the Kenyan Forex trading market is definitely not one of the most reliable ones out there. However, it keeps developing and improving every day. And maybe, one day, we will even hear of successful Kenyan traders that made millions on trading currencies in Kenya. But for now, we would recommend you to keep an eye on the Forex market of that country.