For Kshs. Contact us today on for five free trade signals before you pay Tips to help you avoid a bad forex broker The Case of Goldenscape Group Limited and its relationship to forex Was VIPortal a pyramid scheme? Price action and VSA A forex trader's take on the Goldenscape case.

Email This BlogThis! Share to Twitter Share to Facebook. Labels: Forex. Newer Post Older Post Home. Subscribe to: Post Comments Atom. Managed Accounts Managed accounts now available. Popular Posts. Recent Comments Recent Comments Widget. Foreign exchange Forex trading occurs around the clock, five days a week, among banks, institutions, and individual dealers throughout the globe. For many Kenyans, foreign exchange trading is not only a very lucrative and stable source of income, but also a significant means of supporting their families.

Subsequently, in , the Capital Market Authority CMA presented laws to regulate the industry and lay out registration criteria. There are several factors to consider when choosing a broker, including picking one with low spreads , a range of markets to trade, a demo account, and educational materials for traders.

The primary distinction is that STP brokers may directly fulfil orders and hedge them with liquidity providers. DMA, on the other hand, involves sending orders directly to the market and filling them depending on the price obtained from the liquidity provider. The Capital Markets Authority CMA is tasked with licensing and regulating forex brokers in Kenya.

It advises that trading with unlicensed brokers is dangerous. Online education could take many forms, from individual blog articles and courses to full-fledged online academies and collaborations with subject-matter experts. To reduce trading risk, a stop-loss order and take-profit target should be in place. But it is crucial for traders that engage in high-volume trading to use scalping tactics or Expert Advisors.

Brokers cannot completely eradicate slippage, but it is more noticeable during high-risk market events when liquidity is low. Traders may open an account with a variety of brokers, each of which offers a unique set of features and services for a price.

It is set up that way so that each trader may choose the account type that is most suited to their trading style and budget. When there are no regulations concerning leverage, the level of leverage may be adjusted to meet the needs of the customer.

In most cases, credit card deposits are the most convenient, fast, and secure method; however, certain brokers may provide regionally specific alternatives. The options may be narrowed down with some preliminary investigation.

We have further identified the brokers that offer additional services and solutions to Kenyan traders. On the MetaTrader 4 platform offered by AvaTrade, traders have access to more than 1, distinct financial items that may be traded. This provides traders with access to a broad range of markets. CySec , FSC, FSA, BaFin, NFA. On BDSWISS website. Kenyans have the option of opening one of four retail accounts with BDSwiss, which will allow them to trade in a few different markets.

Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform. XM gives Kenyans access to an interactive sample account as well as a variety of instructional resources. CySEC, FSC, FSCA. Kenyans have access to more than a thousand distinct products spanning a wide variety of asset classes on HF Markets, which they may use to trade. Once Kenyans have verified their information, they can deposit the funds and start trading. With ECN technology, OctaFX guarantees that There are different nations that SuperForex services.

Kenyan Muslims may open accounts with SuperForex that are both free of swaps and denominated in Kenyan Shillings KES.

Kenyans can open an account with Exness that is denominated in KES. MetaTrader 4, MetaTrader 5, FBS Trader — all in one mobile trading platform. Welcome Bonus.

FBS is unusual among brokers in that in addition to micro and cent accounts , it also offers a range of four more account types for traders with greater expertise. This makes FBS one of the most versatile brokers available. Scope Markets, which is licensed by the CMA, offers MetaTrader 4 and 5.

Additionally, Kenyans can trade commission-free in other indices in addition to the Nasdaq IG provides Kenyans with a variety of strong trading platforms to choose from. MetaTrader4, MetaTrader5, CopyTrade and cTrader. In , after the law had been enacted in , the Capital Markets Authority CMA was established. The Nairobi Securities Exchange NSE is a self-regulatory institution under the CMA.

CMA has licensed 29 fund managers as of May. when recommending the kind of investment portfolio that you should keep. CMA has issued licenses to two Securities Dealers in Kenya, namely Standard Chartered and SBM Bank Kenya. When a company wishes to go public, it coordinates the issue of shares, commonly known as initial public offerings IPO.

In addition, they contribute to mergers and acquisitions. In addition to being bookkeepers, they reconcile accounts and clear financial instruments. It is responsible for the preservation of transaction instruments and documentation from the Nairobi Securities exchange, as well as their reconciliation, clearing, and delivery.

The better the credit score, the more confidently one may invest in safety. The lower the credit score, the lesser the likelihood that the organization or borrower will pay its bills on time or has paid its creditors. Investors might opt to invest in REITs and profit from the rental income and other potential advantages. Kenyans have a choice between hundreds of international brokers and six CMA-regulated brokers. You can trade forex using local CMA-regulated brokers or international brokers regulated by other reputable entities that welcome Kenyan traders.

Overtrading, defined as trading too often or too frequently, is the leading cause of Forex trader failure. Probable causes of overtrading include overly high-profit objectives, market addiction, and inadequate capitalization.

Forex trading is sometimes misunderstood as an effortless way to earn a living, even though it is a challenging and enthralling profession. Yes, you can, but it takes time, commitment, and patience. Everyone has their own approach to learning Forex trading, making it difficult to discover a common guide. Traders often seek success tales from all around the globe and attempt to incorporate some of the ideas into their own approaches. Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital.

Weltrade Review. How much Money do You Need to Trade Forex in Kenya. What is the Spread in Forex Trading in Kenya. What is Scalping in Kenya. What is Forex Leverage in Kenya. What Day Trading is in Kenya. What is a Pip in Kenya.

Take advantage of low trading costs with no transaction fees or currency exchange rates. Best Trading Platforms. Forex Trading Platforms. JP Markets is regulated by the top-tier Financial Services Board, Based.

Overall IW Bank offers numerous investment prospects for their clients, and allows them to invest in equities and bonds. IW Bank clients may experience different fee structures according. com does not offer a sign-up bonus for first-time sign-ups or beginner traders. No sign-up bonus, deposit bonus, or welcome bonus is offered to traders.

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Forex Trading via CMA Regulated Online FX brokers is legal in Kenya. There are six non-dealing regulated forex brokers. In this guide, we will mostly discuss from the point of view of retail traders in the forex market. We will try to cover some of the topics that can help you decide if you should trade, and learn about the risks involved. Forex Trading is regulated in Kenya by the Capital Markets Authority CMA. The CMA is the statutory regulatory body that oversees Capital markets including the forex market in Kenya.

They also issue licenses to market participants like the forex brokers that accept retail traders. There are six regulated non-dealing forex brokers that are authorized by CMA in Kenya. You can trade legally via any of these forex brokers.

Below are the some of the points that you need to know for learning everything about forex trading:. Hence, if you are thinking about trading forex, then you must learn about the risks as well. The foreign exchange market alias forex or FX market is a global, online over-the-counter OTC market where currencies of about countries are bought and sold.

It is open 24 hours a day. It is the biggest financial market in the world and has very high liquidity. The forex market participants include businesses, banks, speculators, institutions, etc. Some of the trades in the forex market are speculative in nature and a part of it is from retail traders. Retail traders come to the forex market to speculate, hedge against currency and interest rate risk, etc.

The activities that take place in the forex market are what determine the exchange rate of any currency pair. The higher the demand for a currency, the higher its exchange rate. The forex broker is a regulated participant who acts as a bridge between the forex trader and the market. The broker is a middle man who places buy and sell orders for retail traders and some brokers also offer research services as well if required by the trader.

The forex broker charges a fee for their services. That being said, retail traders need to pass through a forex broker that accepts retail traders if they are to access the market.

There are several forex brokers in Kenya to choose from. There are two types of brokers. They are classified based on their execution model. Here is the breakdown. Dealing Desk Broker: Dealing desk brokers take the opposite side of your trades. When you buy a currency pair, they sell. When you sell, they buy. Because of this, when you lose a trade, they make money off it, leading to a conflict of interest. This is why traders tend to prefer non-dealing desk brokers. Non-dealing Desk NDD Broker: NDD brokers do not take the opposite sides of your trades and they are divided into two.

This type is referred to as an ECN broker. The second type is the STP brokers. Retail forex traders are individual investors who wish to trade in the forex market for personal gain.

They account for an estimated 5. Retail traders are in the market mostly for speculative reasons. They hope to profit from differences in exchange rates between currencies. Their presence in the forex market is to create policies that can affect the currency, intervene and stabilize the currency through increasing or decreasing interest rates, performing Open market operations in some situations, etc.

Central banks can also devalue their currency to make exports of their country more competitive to international buyers. In short, the Central bank plays a major role in deciding the value of a currency.

Commercial Banks make up the interbank market where they trade forex with other banks in very large volumes. These volumes are large enough to dictate the bid and ask prices for any currency. They trade on behalf of themselves and their customers. Big companies that operate in different parts of the world have to trade in the forex market to hedge risk and also for business purposes.

A company hoping to buy raw materials from another part of the world may need to convert its currency to be able to pay the supplier at the other end.

Big companies who have business operations in other parts of the world may also want to convert and repatriate their profits in a stronger currency to hedge against the risk of currency depreciation. Depending on the currency that you want to trade, some sessions can be better than others. The best time to trade the majors is when some of the major sessions overlap. At this time, market participation and liquidity are high, and spreads are at their lowest.

All the countries participate in the forex market and their currencies are represented as three-letter codes. However, we will focus on the popular currencies here. The popular currencies and their codes are listed below. They usually have the USD on one side of the quote either as a base or quote currency.

Examples in order of popularity are:. These are currency pairs involving a major currency and a currency of a smaller economy. These smaller economies are often referred to as emerging economies. Examples are. The base currency is usually on the left while the quote currency will be on the right. Here is an illustration below. When you go long buy on a currency pair, the base currency is being bought while the quote currency is being used to pay for the base currency.

It is the other way round when you go short sell on a currency pair. Currencies are always traded in pairs at an exchange rate. The exchange rate is how much of the quote currency is required to buy the base currency. The Bid price is the highest price a forex trader is willing to pay to buy the base currency from the broker.

Forex brokers quote these two prices on their trading platforms. They are always obvious that you cannot miss them. Certain terms are widely used in forex trading and understanding is very important. We shall discuss some common terms below. A spread of 0. Variable spreads: As the name implies, variable spreads are spreads that fluctuate. This fluctuation is due to changes in the condition of the market like high or low volatility.

This type of spread is usually offered by NDD brokers as they try to get the best market price for your trades. Fixed Spreads: These are spreads that remain the same regardless of market conditions. They are usually offered by market makers. Market makers determine the price of the currency pairs they offer. So they can keep the bid and ask price stable no matter the market condition.

As seen in the example above, if the spread is 0. This is for a currency up to the fourth decimal. So, the margin that you need to trade depends on the total lots or units that you are trading. If you are trading 2. Leverage in forex trading is essentially taking a loan from your forex broker to trade most lots. The loan is repaid after you sell and make a profit or a loss. But this is very risky and can result in huge losses. For example, if you lose big on a trade, and if the forex broker does not have Negative balance protection in place, the trader may have to repay more than the initial capital if the losses exceed capital.

This is a good faith deposit a trader must keep in his trading account. It is expressed as a percentage and is inversely proportional to leverage. Once you lose the deposits in your CFD trading account, the brokerage system automatically closes all your positions. It limits your loss to just your capital and ensures that the forex broker does not take the risk of your position.

Negative balance protection is offered to only retail traders and not institutional traders. Some regulated forex brokers in Kenya like Hot forex, Avatrade, and FXPro offer negative balance protection. CFDs are derivatives. Derivatives are complex financial instruments that derive their value from other underlying assets such as Stock, Currency, Commodities like Gold, precious metals, etc. When trading CFDs, a trader does not own the underlying asset and is only speculating on the price of the instrument.

Traders sometimes trade derivative instruments such as currency futures and currency options to hedge against currency and interest rate fluctuation risk. Day traders are usually speculators and use derivative products like CFDs to try to profit from the rise or fall of the price of an asset. To open a forex trading account, you need to first choose a reputed broker that is regulated by the CMA. After you have done your research and decided on the forex broker that you want to trade with, then you should proceed with opening your trading account.

Retail forex traders are individual investors who wish to trade in the forex market for personal gain. Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Luckily, ForexBrokers have this really handy list of the best ranked brokers in Kenya, so definitely check it out! Let us discuss some risks. Overall Reputation of the Broker 👉 Trying out a broker is sometimes the only way to see whether they are the best fit.

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