The best Forex brokers in Kenya and how to choose the right one

Kenya is one of the African countries where the Forex industry has developed a lot in recent years and continues to develop. The economy of the country is one of the fastest growing amongst the other African countries, as a result, the community is developing as well. Many of the Kenyans are searching for the alternatives of the office job and find Forex trading to be a great opportunity to have an additional or primary income. While the traders’ community is growing in Kenya, the country is getting more and more interesting for international Forex brokers. Many of the best Forex brokers in Kenya are international brokerages that offer their services to Kenyan traders.

Choosing the right broker is not an easy task, but it can be more difficult in the countries where the Forex regulations have been placed just recently. The situation is exactly like this in Kenya. In this article, we will show you the insights of the Forex trading in Kenya, broker regulations, how to ensure you are choosing the best Forex broker in Kenya and what are the most famous scams to make sure you are on a safe side.

Who are the best Forex trading brokers in Kenya

First of all, let’s take a look at the best Forex brokers Kenya you can trade with. The list of Forex brokers in Kenya compiled based on the reviews, opinions about the brokers and reviews made by their customers worldwide and exclusively in Kenya.

Open Demo
MetaTrader 4
Web Trader
MetaTrader 5
everfx logoOpen Live
Open Demo
MetaTrader 4
multibankfxrOpen Live
Open Demo
MetaTrader 4
forex comOpen Live
Open Demo
MetaTrader 4

As you can see the list showcases the international FX brokers rather than Kenyan-based ones. These are one of the most trustworthy brokerages that offer their services to the residents of Kenya. These brokerages suggest the best and at the same time accessible services. They are famous for their features and customer support that makes the trading experience better.

Top Forex brokers in KenyaHow Forex brokers are regulated in Kenya

Safety is one of the most important things you need to consider when starting your Forex trading journey. To ensure the safety of your funds you need to aware of the Forex regulations and how the best Forex brokers in Kenya are regulated. The financial authority that oversees the financial industry in the country, including the FX industry is the Capital Markets Authority (CMA). The CMA was established back in 1989 as an agency. From the beginning, the main task and responsibility of the agency were to supervise and monitor the activities of financial market intermediaries and license them accordingly. However, for a long time, the CMA did not have a proper regulatory framework and was not licensing any of the Forex brokers.

Due to the lack of the regulatory framework, there were no authorized financial and investment service providers and you would not be able to find the best Forex brokers in Kenya that were regulated. As a result, the number of scam and fraud brokers in the country was overwhelmingly huge.  This is why it has been regularly recommended that Forex trading in Kenya using Mpesa be done carefully and with a lot of forethought. Officially, in 2015 there were approximately 87 brokerages in the country, however, the number of companies offering investment and other financial services to Kenyan residents was far greater. These companies targeted people vulnerable to the scam and due to these, many Kenyans that were eager to learn more about investments and trading have lost much money. Not surprisingly, the majority of Kenyan traders chose to trade with the international brokerages from the top Forex brokers list in Kenya. According to the report in 2016, approximately 50 000 Kenyan traders were trading with the brokers that were regulated in other countries.

At that time, the financial regulator of Kenya understood the need for implementing the clear standards for authorization and regulatory framework to create a safe environment for trading. In order to protect investors and their funds, the CMA started working on the new laws and rules in 2016.
Currently becoming one of the licensed Forex brokers in Kenya is relatively easy. A brokerage that requests the license from the regulator should meet below criteria in order to be granted with the license.

  • The minimum capital of the company should be Kshs. 50 million ($500,o00)
  • The brokerage should maintain the minimum capital at all times. In addition, it should have 5 per cent of liabilities that are owed to Forex customers
  • The brokerage should ensure that 80 per cent of the capital or Kshs. 40 million (whichever is greater) is in the form of cash.
  • have a chief executive who has 5 or more years of experience in the business of Forex trading, Forex futures, buying, selling or future contracts.
  • Have the necessary infrastructure for Forex trading Kenya including the office space and equipment.

As you can see satisfying all of the criteria does not mean that the regulated broker can be considered as the best Forex broker in Kenya. So what are the features of the best Forex broker and how to choose the right one?

Top Forex brokers list in KenyaWhat to consider when choosing the best Forex broker in Kenya

Choosing the right broker can determine if your Forex trading career will be successful or not. It is important to learn about the broker features and regulations before you make the choice. Since the regulations were brought relatively recently in Kenya it is hard to determine which of local Forex brokerages are trustworthy. Therefore as a Kenyan, it would be the best judgment to choose the best Forex brokerage in Kenya that has a worldwide customer base and is regulated by one of the most reputable regulators in the world. Compared to the local brokerages’ international brokers offer better service, a bigger variety of the trading instruments and high-quality customer support.

Choose what you want to trade with first

The choice of the trading instruments is huge, even if you want to trade currency pairs only and do not care about the CFDs on various trading assets you still have a huge list to choose from. Even the best Forex broker in Kenya cannot offer all of the currency pairs that can be traded. Therefore, before making a choice which brokerage to trade with determining what currency pair you want to trade. You need to consider that not all of the brokers will offer you to trade with Kenyan Shilling. Perhaps, very few of them will have this option available. If you are willing to trade with the currency pair including your national currency make a research which of the brokers are offering it. If you want to learn how to trade Forex in Kenya with more common currency pairs such as EUR/USD you have a more broader choice.

See how the broker is making money

All of the beginner traders want to make money and at the same time are afraid to lose money. It is absolutely natural and rational. However inexperienced traders are more focused not to lose the money on their traders and sometimes do not pay enough attention to how the broker is taking the money from their trading account. Before you open an account with the broker make sure to look at how the broker is making money. More precisely check if the broker is making money though spreads or commissions per lot traded. If it imposes commissions on deposits and withdrawals and if it has hidden fees. The top Kenya Forex brokers should not have any of them and should be making the money though spreads.

How to protect yourself from scam brokers

Even tho the financial authority of Kenya, CMA has started to clean the country from scammer and fraud brokers there are still a lot of brokerages that get away with wrongdoing. To protect yourself from being the victim of such brokerages you need to make sure the broker is not luring you with the empty promises. Many of scams that have happened in Kenya were by the brokerages that people considered to be one of the best investment companies or best brokers in Kenya since they were promising high returns on investments. To avoid the scam brokerages make sure to read the terms and conditions of the broker, take a look at the withdrawal policy and check how legit it looks like. Carefully check the broker reviews, see what are the features of the broker and how trustworthy is it. Last but not least check the opinions about the broker that is posted by their customers in Kenya. This will help you make the right choice and start your Forex trading career with a reputable broker.

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