How do I start trading forex?, What is online forex trade? Do we have successful forex traders in Kenya? How much do I need to start forex trading in Kenya?
These are some questions Kenyans are asking regarding online forex trading in Kenya. Well, we are going to answer your questions.
Online forex trading in Kenya is known as a lucrative business, but only a few people know of it. Given that, Online Forex Trading is the world’s most profitable and most persistent trading market, and it is as well growing in popularity.
Kenyans have been in Forex trading for a long time now and introducing the idea in Kenya would be a great way to empower investors in search of financial independence. Forex trading in Kenya gives youth access to an investment opportunity in Kenya.
How do I start trading forex?
I know there are several successful Forex traders in Kenya, but this does not stop you from becoming one. It is a matter of knowledge and brains in Online Forex Trading. So take the following in mind when engaging in Forex trading in Kenya.
1. Trading Platform & Software
Your primary tool as a Kenyan Forex trader will surely be your computer. It means you will also need a good trading platform. For this review, let us use MetaTrader 4, which is available with most brokers across the world.
The platform has a lot of useful features inside of it, such as chart station where you can upload as many symbols as you want and change their timeframes from 1 minute to 1 month.
You can also do backtesting of your strategy there. All most popular technical indicators are there, and you can create one of your own if you know how to do some programming on the station.
Somebody else can do that for you too. You can use a robot that will do the trading for you, so you will not have to sit glued to your pc screen all day.
A broker may have a trial version platform, which you should check out. Test out the trading platforms before you deposit.
Forex trading in Kenya is not well regulated, and choosing a broker can sometimes be a problem. Some companies offer online trading.
2. Take note of Frauds
But you need to be very careful as the company could be a complete fraud or government officials can charge you with doing something illegal. A recent scandal is that of VIP portal that scammed some investors in Limuru.
If you do decide to start trading, you will need to look for a broker that is recognised by an authorised governmental institution as a legal entity.
You would also want to check what trading platform the company has if any at all. The lower the commissions the company offers, the better.
You should also to open the type of account that fits your capital size best. A broker should care about you as a trader and offer excellent customer service. Additional services would act as a bonus for you too.
3. Account Types
There are different account types that traders can choose from based on the size of their capital.
- Micro account – You can start trading currencies with as little as a few hundred. If you do not have much money or are not willing to invest heavily in forex trading, a micro account is an excellent place to start. Some will require as low as $100 or Ksh 10,000
- Mini account – If you are looking at investing more than Ksh100,000 on Forex trading, a mini account is a best-suited account for that amount. Your risks and rewards increase exponentially if you trade this type of account.
- Official account – If you intend to trade much larger volumes and have over 10 thousand dollars, you can try to apply for a standard account and trade volumes that exceed 100k. Remember, the more considerable the amount you trade with, the higher the risks are.
Brokers make money charging fees on your transactions. As such, it is reasonable to expect excellent customer service on their behalf. It does not matter whether a broker is native or foreign; you should be served well as long as they operate in Kenya.
They should also resolve trading-related problems and issues in a fast and effective way. If a broker ignores you, you should not open an account with him or close it if you have opened it.
4. Additional Services
Brokers compete with each other trying to gain as many customers as possible, and they often do it by offering extra services. Those may include free educational materials in video, audio and text formats, various market analysis on weekly and daily time frames, financial news feed.
You may expect some annual, quarterly or even monthly contests for traders. So, the more extra services they offer, the better for you. After all, it shows whether the broker cares about their traders or not.
Read also the list of the richest people in Kenya
Becoming successful forex traders in Kenya
The first step is to learn, so visit Baby Pips and make sure you complete the course.
You can follow the following tips to be safe and be among the successful Forex Traders in Kenya;
Do extensive research online and offline – Start on Google and look at different online brokerages. To help with your research, look for the following before engaging an online forex broker:
- Get someone who has been doing Forex trading and is a real successful forex trader in Kenya. You can start with a friend or someone you know online. Look for someone who has been in the industry for ten years or more.
- Read reviews online; there are plenty. You can also watch some Youtube videos.
- Check if a significant oversight body regulates that brokerage. As of writing this post, there is one Kenyan Licenced Broker. So you can be assured of their transparency and honesty.
- Make sure you check the broker’s website. If it is professional and active, then it may be a right firm but check out for signs that things are not what they seem to be.
EGM Securities Kenyan Forex broker
While the regulations in Kenya may not be as strong, the Kenyan Government through Kenya’s Central Markets Authority is working around the clock to ensure that laws regulating both local and offshore forex brokers are put into place.
The most recent achievement is the licensing of EGM Securities which quickly becomes the first Kenyan forex broker to be authorised by Kenya’s Central Markets Authority.
Mr Ng’ang’a says that the forex market is worth over $5.3 trillion and Kenya has been a significant contributor in the forex markets.
As such, EGM Securities Kenya chose Kenya since it is a renowned innovator in the financial sector. On that note, EGM securities have made it easy for Kenyan traders to deposit money by providing M-Pesa deposit and withdrawal processes, among others.
Being regulated by the Kenyan government, Kenyan Traders should not have reason to worry now. Most offshore forex brokers were unregulated which saw many Kenyans lose their investments and even lost hope in Forex.
Like other forex brokers, EGM provides macro opportunities for its traders by allowing them to trade with precious metals such as gold, oil and foreign exchange, among other commodities.
For the security sake, Kenyan traders should move to EGM securities Kenya, which is regulated by our government; hence, any problems can be followed closely.
Online forex trading in Kenya conclusion
Despite the fact, that legal framework for Forex regulation in Kenya are weak, brokers there are quite active, and you can always open an account with the most reliable brokers. If you do not know any, it would be better if you consulted with friends who are familiar with the Online Forex Trading industry to avoid losing your investment.