Forex trading is the selling of currencies in the international market. It happens at the current exchange rate of a currency against the other. The aim is usually to buy currency at lower price and sell it at a higher exchange rate to make a profit. There before, only only banks, governments and financial institutions could take part in forex trading. Currently, retail traders and speculators can take part in forex trading. In this article, we will show you how how to start forex trading in Kenya.

We will also provide you with a list of forex trading platforms in Kenya. However, the amount is not enough to give you good returns. Using small amounts to trade will force you to take riskier trades where you may end up making losses. Once you have capital, the next thing is to identify a reliable online forex broker. There are many Kenyan and international online forex brokers that you can use.

Make sure that the broker is licensed by Capital Markets Authority or any other regulator, is reliable and trustworthy. Open a Demo trading account. You need a demo trading account so that you can gain experience in forex before investing your money. You can open a demo trading account with most of the online forex traders.

Once you have mastered the art, you can go ahead to use a live account. Open and fund your trading account. You need to use a reputable online forex broker. Some brokers like LiteForex, XM and HotForex allow one to fund or withdraw from the account using Mpesa. Read also: Best stockbrokers in Kenya. The Kenyan shilling usually has the code KES and is divided into units known as cents.

The currency is issued by the Central Bank of Kenya. With that, you can buy U. S dollars against the Kenyan shilling. Assuming that the exchange rate rose to On the other hand, if the currency exchange rate dropped to This is how you can calculate the loss. If you are planning to start forex trading, you can consider the following online forex brokers in Kenya.

Read also: How to buy bitcoin in Kenya using Mpesa. Most online forex brokers Kenya have a minimum balance that you need to start forex trading in Kenya. This will give you a chance to learn how to trade in forex. Make sure to trade online with the best forex brokers in Kenya. Online forex trading is one of the ways that you can make money online in Kenya.

You even don't need a bank account since you can use forex brokers with mpesa to trade. Before you can get started with forex trading in Kenya, you need to learn the skill. For Address proof, you can submit your phone or any other Utility Bill. ECN Electronic Communications Network brokers is where the investors directly get connected to the other investors in the Forex Markets and the fee is calculated by the volumes traded by the clients that pass through the ECN environment.

STP or Straight Through Processing is where the broker passes the trades to liquidity providers for execution and gives access to interbank market structure.

Even though having DMA gives you wider access to markets with higher rewards and risks, but finding true brokers providing DMA is difficult and tricky. You should avoid brokers that are market makers as these brokers take position against you.

So any loss that you make with a market maker forex broker is the profit of that broker. All the CMA licensed online forex brokers are 'Non-Dealing' which means they don't operate a dealing desk.

So, they are not market maker brokers. If you are a beginner, you should choose brokers with standard spread accounts only where the broker preferably offers STP accounts like in case of Hotforex.

The expert traders can go for ECN type account. These have low fees but commission is charged as per the trading lots. With Zero Account it is 0. So, if you are a trader trading high volume, it would be right decision to open your trading account with Zero Account for saving on the broker's trading fees.

Many brokers offer a lot of options when it comes to opening accounts with them. All these accounts require a minimum account balance. This would ensure that a sizeable position could be taken in trading and a good profit could be earned on positive market movements. However, it should be kept in mind that a position would depend on the balance maintained and the leverage offered by the broker.

Trading positions also depend on the lot size that one opts for. One can trade in Standard lots , units , Mini lots 10, units or Micro lots units. Knowing this information is very helpful as this would help in determining the level of risk one can take and what position to take in the trades. The broker offers a leverage of and 0. Generally, the very liquid forex pairs have changes in the range of of pips. So, one can generate a good return if you invest wisely with low leverage.

However, the risk appetite should also be kept in mind. Regulated forex brokers like FXPesa, Scope Markets Kenya , PepperStone Kenya allow traders the option to fund trading account in KSh. using local bank trasfer via bank account in Kenya. With this method it can generally take upto 24 hours for the broker to credit your trading account. Generally both these methods are instant for funding, and it takes few hours in case of withdrawals.

But it takes few days for withdrawals in your bank account. It is really important to understand the risks, so you can take preventive action to minimize them. Forex deals with exchange rates and currency pairs. Forex market is quite volatile. As per the global financial markets, the fluctuations in exchange rates could be various economic, geopolitical, social, etc. The currency pair which can give a profit today may incur a loss tomorrow. Therefore, to cover the volatility risk, one has to study the exchange rates and currency movements very carefully.

In forex trading, the risks of incurring huge losses should be covered using hedging instruments like derivatives. High leverage means trading on the capital which is not owned or is borrowed. So, if the leverage is high then the losses on that becomes a double burden on the investor to pay off. To safeguard the money invested and to cover oneself from any fraudulent practices, one must always trade with regulated brokers.

The risk-reward ratio should be calculated before investing as the markets are volatile and an investor should be sure how much money is expected to be gained and what is the maximum loss that can be incurred. The predictable loss should always be less than the predictable profit. There must be a limit stop loss order in place that protects against loss to the minimum.

Remember, Trading CFDs are risky instruments as they involve a leverage. The loss incurred may be more than the money invested. Hence, these products should be tracked and tested on demo before trading live. The traders in the financial markets lose money, as losing is one of the aspects of trading. Most traders use Technical analysis in their trading, but it is still important to learn both. Fundamentals affect the outlook of an economny.

A bad economy would mean a bad currency, and vice versa. So it is important to undertand the basics of Fundamental trading. Technical analysis involves trading based on the charts, reading the patterns, using charting tools, indicators etc. to figure out the currency's movements.

Traders that use technical analysis read the chart using methods like candlestick patterns, Supply Demand, trendlines, support resistance etc. Below is an example of how a trading chat looks like. A technical trader would analyse different time frames as well during analysis.

If you are just starting out, it is really important to spend as much time as you can to learn about the concepts of Forex, CFD trading; it's risks, strategies etc. Once you have learned the basics, start by opening a demo account with a broker of your choice.

Trade using that demo account until you have a good strategy that works, and has been tested over a period of months minimum. Ony once you are fully comfortable, then you can start by investing real money. Start with low capital, and trade mini lots only. Follow all the money management lessons. Enter your email to get the link to download the PDF version of this Forex Trading in Kenya PDF guide.

Forex Trading in Kenya Complete Guide for Beginners. Download PDF Guide. Emmanuel — Last Updated February 11, Summary of Best Online Forex Brokers for Beginners in Kenya in Forex Broker Highlights Average Fees EURUSD Account Minimum Current Offers Learn More.

Chapter 1 What is Forex Trading? How does Forex market work? By trading in the forex market, you can exchange one currency for the other. Example of Real Life Foreign Exchange Trading Let's say you have 20 US Dollars, but you want Kenyan Shillings instead. Chapter 2 Currency Trading Terminology. In this chapter, we will cover important terms like Currency Pairs, Pips, Leverage, Spread etc. Let's go. Currency Pairs In the forex market all currencies are traded in pairs, against each other.

This essentially refers as what is the value of Euro against 1 US Dollar. Below is a breakdown of the Currency Pair types. Pips Pip is the smallest decimal value in a currency's price.

Bid and Ask Prices The bid price is the maximum price at which a trader or a broker is willing to buy a forex pair. Broker's Spread For trading in the forex market you need to trade via a broker.

Forex Lot Sizes The value of your order will depend on the units of a currency traded. There are 3 Lot Sizes: Standard Lot - , units Mini Lot - 10, units Micro Lot - 1, units You will see the option to choose the number of lots that you want to trade on the brokers platform. Chapter 3 How to Open Forex Trading Account in Kenya. Start with Demo Forex Trading Account Almost all the brokers provide demo accounts. Opening Live Trading Account Most Forex brokers have a Live Account Opening page on their website.

Chapter 4 Risks of Forex Trading. In this chapter we will highlight some of the main risks that most traders ignore. Risks of Forex Trading The 4 main risks involved in forex trading are: Forex Market can be highly Volatility Forex deals with exchange rates and currency pairs. Poor Risk Management and High Leverage In forex trading, the risks of incurring huge losses should be covered using hedging instruments like derivatives.

Unpredictable markets The risk-reward ratio should be calculated before investing as the markets are volatile and an investor should be sure how much money is expected to be gained and what is the maximum loss that can be incurred. Here are some tips that Beginner traders should stick to: Always keep track of any Economic news that could affect the currency values.

Forex and CFDs are risky products and should be studied well before starting to trade. Chapter 5 Forex Trading Strategies. The following Economic indicators could impact a currency: Country's Central Bank's Interest rates decision Inflation rates GDP Unemployment data.

Last Updated: April 9, Trading platform is the interface offered by brokers to facilitate trading. It is arguably one of the most important features to consider before signing up with the broker. It should have a downloadable desktop app, mobile app or a web-based trading platform with live uninterrupted data feed, an ability to customise the chart views with a clean and aesthetic User Interface UI.

Ease of setup and grievance handling abilities are nice add-ons to a broker with a good trading platform and should have a significant weight in your decision to go with one.

Now we will explore the detailed features of each broker in our list, one by one, starting from Hotforex. HotForex is a global award-winning broker regulated under FSCA since They offer very low spreads on their trading platforms. HotForex does not charge any on deposits or withdrawals. And withdrawals placed before 10 AM are processed on the same day. Designed for trading numerous types of instruments, Metatrader versions are the most used trading platforms among the trading community for their convenience and rich functionality.

Their MT5 offers fundamental analysis in addition to technical charts that MT4 comes equipped with and offers additional financial instruments like CFDs on stocks and commodities.

With more charting on multiple timeframes in MT5, the traders can easily implement their strategies, chalk out entry and exit points and finally help themselves to profit. Plus is a CFD broker that offers CFDs on a variety of instruments like stocks, Forex, Indices, commodities, Cryptocurrencies, ETFs as well as Options.

It is regulated by multiple Top tier regulators i. FCA, ASIC etc. and Kenyan traders will be registered under the jurisdiction of CySEC of Cyprus. Plus has a proprietary trading platform that is easy to use, and beginners can benefit from its look and feel. One can trade multiple markets from the same screen, with real-time quotes available.

Its mobile platform is well-developed with multi-asset trading capabilities. The platform is available for desktop Windows only , Mobile available for iOS, Android and a web trader also. You can check the platform by the demo trade capability offered by the broker.

With an attractive leverage and multilingual 24×7 support, it features among the best brokers. It is one of the top CFD brokers by number of Active traders in with more than , active traders. FXTM offers the industry-leading trading platforms MT4 and MT5 for PC, Mac, mobile or tablet to suit beginners as well as advanced traders.

A webtrader is also available for those who want to directly trade from the browser. FXTM even offers a multi-account manager MAM on MT4 which lets you trade with multiple accounts.

FXTM also has ECN accounts, and they are regulated by FCA in the UK, FSCA of South Africa and has been in the industry since Standard account has tight floating benchmark spreads starting from 1. FXTM has easy deposit and withdrawals, charges no commission on deposits and processes withdrawals usually under 24 hours with commission depending on the mode of transaction. XM Forex offers MT4 and MT5 for PC and Mac, android and iOS as well as for Ipad.

It also offers MT4 Webtrader where one can trade from the web browser itself without downloading anything. XM offers over trading instruments through its MT4 and MT5 in Forex, CFDs and Futures. They are regulated and licenced by reputed authorities, but Kenyan traders are registered under the jurisdiction of XM Global IFSC.

It is a low-cost broker and claims no slippages in the trades executed. Through MT4 offering, a single login access is provided by XM for all 8 MT4-enabled devices and through MT5 offering, a single login access is provided for all 7 MT5-enabled devices.

With a freedom to use Expert Advisors and a One click trading functionality where one can open or close trades with just one click allowing a quick lock-in to profits, professional traders can really benefit. XM also allows hedging to the trading portfolio. XM Forex app can be used to track trades or even place trades,, if one registered for MT4 or MT5 platforms.

Etoro is a social trading platform setup back in A unique experience where users can interact with fellow traders and copy their trades, enabling beginners and advanced traders to profit from their combined strategies. One can check out Etoro by opening a virtual portfolio before putting real money. There is a research tab offering market depth. Other notable functionalities include One-click trading, stop loss, trailing stop loss and offline trading capabilities.

Depending on the instruments, there are CFDs as well as delivery-based assets. Withdrawals can be done via wire transfer, Paypal and even to Credit cards to the same account where the funds were deposited. Estimated withdrawal process time is days for many payment providers. Multi-device support: Make sure the trading platform is available on multiple devices, which gives you access to the trades on the move. Being able to access it on mobile as well as tablets, you will not miss major profit-making opportunities.

Multiple order types: It is important to place the order based on the situation hence different types of order placing capabilities can really make a difference. Stop loss orders, limit orders, market orders, buy stop or a sell stop order are different types which a trader can place depending on the circumstance, hence look for a trading platform that lets you access these.

No downtime: Some platforms tend to freeze during critical moments of a trade. Some platforms tend to remove stop loss orders and do not close the trade as per the given instructions which is unethical.

Hence it is important to go through reviews and choose the one that performs well. Available trading instruments should not limit your trading hence it is better to ensure all assets you would like to trade are available. Also, the content helps to navigate the platform and familiarize with it. Economic calendar also strategically impacts your trades, so a well-built calendar is quite useful.

Check for reviews on the historical spread, commissions for various accounts on offer as well as minimum deposit and withdrawal fees. TradeForexKenya Editor Last Updated: April 9, Trading Platforms Proprietary for web, mobile. And FXTM trader app. Visit Hotforex. Read Hotforex Review. Visit Plus Visit FXTM. Visit XM. Read XM Forex Review. Visit Etoro. Hotforex is 1 rated FX platform Visit. Back To Top. Regulation s : FCA, FSCA, CySEC. Visit Broker.

Regulation s : FCA, ASIC. Regulation s : FCA, FSCA. XM Forex. Regulation s : ASIC, CySEC. Regulation s : FCA, CySEC.

FAQ What are platforms in forex? that offer MetaTrader have this option. How to Make Money Buying Debt November 17, Trading speeds are guaranteed to be swift. Opening Live Trading Account Most Forex brokers have a Live Account Opening page on their website.

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