Kenya is one of Africa’s most developed countries, with a thriving economy. As a result, an increasing number of people are becoming interested in forex trading to make money. The rising popularity of conducting commercial transactions online in Kenya can be linked to several factors. The chance of making significant gains is one of the benefits of currency trading in Kenya. If you know what you’re doing, you can make a lot of money in a short period.
In this blog post, we will examine why forex trading is becoming popular in Kenya and provide recommendations on getting started and choosing the right forex brokers in Kenya, so without further ado, let’s get started.
Advantages of Forex Trading
The following are the top advantages of FX trading:
- High liquidity level: The foreign exchange market is the most liquid in the world, so there are always many buyers and sellers eager to make a trade. Because of the enormous liquidity in forex, transactions can be executed swiftly and efficiently; therefore, transaction fees – or spreads – are frequently relatively cheap. This allows traders to speculate on price swings as little as a few pips.
- Excellent for beginners: The forex market is easily accessible to first-time traders wishing to make small bets. The availability of demo accounts by brokers is one of the many advantages of foreign exchange. Rookie traders can use them to evaluate their skills in a market simulation before committing to any trades.
- Market open 24 hours a day: Due to the forex market’s global reach, trading can practically go on nonstop as long as a market is open somewhere in the world. It is available twenty-four hours a day, seven days a week.
- Leverage: Foreign exchange brokers allow retail traders to borrow against a modest amount of capital, allowing them to build up a sizable position. The amount of money raised through leverage is usually expressed as a ratio. For example, 1:30 means that your leverage is 30 times the amount of money you put into the market.
- Minimal transaction fees: A small initial sum is sufficient to begin online forex trading with no significant transaction charges. Most of the transaction cost is made up of the broker’s commission, which he receives through spreads. The difference between the ask and bid prices, known as the spread, is expressed in pip units or percentage points.
Attractive Deposit Bonuses in Kenya
There are numerous perks that brokers employ to entice forex traders. Here are a few examples:
Forex Welcome Bonus
The bonus’s name sums everything up. Only after making his initial deposit may a trader acquire extra funds from the broker for his account. The incentive is not available on future deposits. As a result, to receive this incentive, you must fund your account with at least the minimum deposit amount. The incentive allows you to determine how comfortable you are working with the broker in real-time with real money at a low risk to your budget. Forex Kenya, which is frequently a welcome bonus, can be utilized for “drawdown,” which decreases the chances for the trader’s budget.
Forex No Deposit Bonus
There is no need to make a deposit. Brokers provide free funds to traders when they register and verify their accounts. The Forex no-deposit bonus in Kenya is the best since it allows you to begin trading without investing your money. These bonuses are invaluable for new traders because they can obtain real-world experience without risk.
Bonus on Forex Deposits
After the welcome bonus, this is the most common sort of bonus. A trader makes a deposit and receives more funds from the broker. The difference between the welcome and deposit bonuses is that you can get them more than once. These are typically promotional bonuses. However, some brokers award them for each deposit.
Choosing the Right Forex Broker in Kenya
This section discusses factors to consider while selecting the best broker and trading platform.
- Account Supervision: The majority of the best trading platform in Kenya are regulated by various foreign regulators. As a Kenyan resident, you should know which regulatory entity will oversee your trading account. It is typical for internationally-regulated brokers to open trading accounts for Kenyan nationals under their offshore licenses to offer more considerable leverage or to circumvent the CMA’s stringent customer protections. Traders with offshore licenses are not covered by the CMA and face additional risks such as broker bankruptcy, fraudulent behavior, or unfavorable trading conditions such as a lack of negative balance protection.
- Broker Education and Analysis: Brokers should provide novice traders with well-structured trading training and a demo account. Brokers should provide detailed market assessments to highlight trading opportunities and offer a comprehensive learning experience. While all material is available in English, only a few Kenyan brokers offer it in Swahili.
- Customer Support: Because forex trading takes place 24 hours a day, a broker’s customer service should always be available. Consider how easy it is to reach a real person on the phone. A brief call to a broker can provide you with information on the type of customer service they offer and average wait times.
- Platform for Trade: The investor enters the markets using the trading platform. Therefore, trading platforms and software should have the technical and fundamental analytical tools that traders need, and transactions should be simple to place and withdraw from. This final aspect is quite important. Marked buy and sell buttons, and a “panic” button that closes all open positions would be present on a properly-designed trading platform. On the other hand, a poorly designed interface could lead to expensive order input mistakes. One more thing to consider is that the platform should also support forex signals that help traders in making the right decision.
- Broker Trading Conditions and Costs: Superior Forex brokers typically have reduced trading expenses, which means tight spreads and cheap minimum deposits. Trade execution should be as quick as possible, with little or no involvement. Forex brokers should also make their spreads, execution policies, and a list of all CFDs offered to Kenyan traders available. We frequently observe that trading conditions and the availability of negative balance protection vary based on a trader’s country of residence.
Currency trading in Kenya can be as profitable as other sorts of investing. Investing your money carefully in this manner would allow you to reap the benefits in the long run. Now that we’ve covered some reasons why forex trading is getting more popular in Kenya, we hope you understand the market better. We also hope you follow our advice and start learning about Forex trading before making any deposits.