When you want to know to how to start forex trading in Kenya, there is no shortage of information or resources available (including our own). The internet these days is full of articles, blog posts, and even e-books dedicated to forex trading for beginners; but not all are clear about the implications for Kenyan forex traders.
With all of this information available, it can be tough to know where to start or what steps to take next. If you’re a beginner looking to get started in forex trading from Kenya, here’s a quick and easy guide to help you get started.
How To Start Forex Trading In Kenya
Before you begin trading forex in Kenya as a beginner, you will need to go through the basics of market fundamentals, technical analysis, and generally gaining a foundation of knowledge on how the forex markets work.
If you fail to learn the basics, you can expect your trading account to fall into negative territory quite rapidly, so do not make that mistake. We have put together a whole section of the site on how to trade forex for beginners that would be a great place for you to start out before continuing through this guide. Once you are done, feel free to continue through this Kenya forex trading guide.
Step 1 to forex trading in Kenya – choose a broker or trading platform you like
The first thing you need to do is choose a forex broker in Kenya that can be trusted. There are many different brokers out there, so it’s important to do your research and choose one that best suits your needs, and has a good level of regulation to operate in the markets. We have put together a list of 3 respected tier 1 regulated brokers that you may wish to consider., one of which also holds local CMA regulation. Once you’ve chosen the best forex broker for you, you’ll need to set up an account and deposit some money.
This process can be as simple as providing a name, an email account, and creating a password with many allowing you to get a practice account set up in as little as 1 minute.
Step 2 – practice trading on a demo account to get accustomed to the trading environment
Once your account is set up, you can start trading, but don’t rush straight into trading for real until you know your way around the platform, and have a plan in place. Almost all brokers these days offer demo accounts, which allow you to trade with virtual money before putting any real money down. This is a great way to get a feel for how the market works and to test out your strategies without any risk. This will also give you a chance to figure out how the charting, indicators, and additional tools and features work (before you need them for real!).
Step 3 – deposit funds into your account, and ensure you have your account approved for KYC
When you are ready to start trading for real, you will want to ensure that your account is properly approved from a broker KYC perspective. That usually means that you have provided them some proof of identification, and a registered address as standard. Once you have your account confirmed (which can be done whilst you are in the demo stage if you wish), you can move on to funding your account using the method you prefer. It is worth noting that you will likely want to use the same method that you would like to withdraw to, as most brokers will insist that you withdraw to the same account that you deposit from.
Step 4 – you are ready to start forex trading in Kenya
Even though your account is ready to start trading forex, there are a few things you should keep in mind. First, don’t trade with more money than you can afford to lose. Second, always use stop-loss orders to protect your capital, and limit buy orders to get the best possible pricing. And finally, don’t be afraid to take profits when the market is going your way – if you let your profits run too far, you could end up giving them all back.
Forex trading can be a great way to access financial markets, but it’s important to remember that it’s also a risky business. If you’re not careful, you could lose everything you’ve put into your account. But if you start small, learn the ropes, and use good risk management techniques, you can potentially make a lot of money trading forex in Kenya.
A growing trend for forex trading in Kenya
Kenya’s foreign exchange market is one of the most vibrant in Africa. The Kenyan shilling is a strong and stable currency, and forex trading in Kenya is growing in popularity.
There are a number of reasons why forex trading is becoming more popular in Kenya. First, the country’s economic growth has been strong in recent years, making it an attractive destination for foreign investors. Apart from the Covid year of flat growth, and the global crisis of 2008, the economy has been growing around 5% per year on average over the past twenty years as you can see from WorldBank data here.
In addition to the growth that has been seen economically putting more dollars and Shillings in peoples pockets to trade with, the Kenyan government has introduced a number of reforms that have made the country’s financial markets more transparent and accessible to international investors. There are also now a growing number of competitive forex trading platforms in Kenya and products that provide a more localised service.
Kenya Forex Regulation Is Provided By CMA
The Capital Markets Authority (CMA) is the body that is responsible for the oversight and regulation of forex trading in Kenya. The regulator proceeds to warn traders that “In line with its investor protection mandate, the Capital Markets Authority (CMA) has warned Kenyans against engaging in online foreign exchange trading through platforms of unlicensed entities as they risk losing their investments and may not be protected by the law”.
Whilst there are not a large number of brokers or trading platforms with CMA regulation, those that do should be your preferred choice as a Kenyan forex trader. This leads us to our clear choice of best forex broker in Kenya.
Best Forex Broker In Kenya – Pepperstone
The best forex broker in Kenya is a list that is shortened somewhat by the desire to only show CMA regulated brokers, but that does not take anything at all away from Pepperstone, who in fact top quite a few of our best forex broker lists from around the globe. Here are a few things that Pepperstone do particularly well:
- A great range of trading platforms
- Excellent trust level, with Tier-1 regulation, and multiple local registrations
- Low spreads
- Commitment to forex trading education
Feel free to read through the full Pepperstone review to get a better understanding of the complete product range; but you can rest assured that this is a trusted broker for forex trading in Kenya, and one of the best in the World at what they do.