Forex trading in Kenya is legal and a lucrative business, yet only a few people may know of it. Not only is Forex trading one of the most profitable and persistent activities, but it is also a great source of income for numerous Kenyans.
There are however some challenges in the Kenyan Forex Market due it being unregulated for the greater part. The Capital Market Authority, or CMA, introduced legislation in 2017 with the purpose of regulating the sector and outline registration requirements.
There are numerous Forex trading companies in Kenya that rely greatly on international registered brokers who offer connection and links to various clearing centres based in the United States, Asia, and Europe.
There are, thankfully, numerous international Forex Brokers who have obtained the required regulations to offer Forex trading solutions and services to numerous Kenyan traders.
How can Forex be Traded in Kenya
The first step for Kenyan traders to join the Forex market is to identify and select a broker. This involves identifying the trading needs and objectives that the Kenyan trader may have.
Beginner traders need to look at brokers who offer adequate education to start them on their journey to become more seasoned traders. Brokers should offer adequate research sources and trading tools to help traders refine their trading.
Once Kenyan traders understand their needs, they can investigate their trading objectives. This involves determining whether they want to trade as a hobby, or to secure additional income, or whether they want to trade permanently and make trading their sole income.
Once Kenyan traders understand their trading needs and objectives it is necessary to select a broker that adequately caters for these needs. Kenyan traders need to be meticulous given the regulatory requirements and to avoid falling prey to scam brokers.
Kenyan traders need to confirm whether the broker has the necessary regulations especially CMA as it is the watchdog in the sector. Seeing that most brokerage firms in Kenya rely heavily on the support of international platforms, brokers must have regulation from:
- Financial Services Authority, or FSA, in the UK
- Commodity Futures Trading Commission, or CFTC, and
- National Futures Association, or NFA.
Once the Kenyan trader has narrowed down their search according to the regulation and authorization of the broker, they can further narrow down their search by comparing brokers and what they offer.
There are numerous brokers that offer Kenyan traders competitive trading conditions and it will depend on the trader’s individual trading needs and objectives in selecting a broker that caters for just that.
Kenyan traders need to ensure that the broker they choose is adequately regulated and authorized by a relevant regulatory entity to ensure that client fund security can be assured.
In addition, Kenyan traders need to ensure that the broker that they choose can cater for their individual trading needs and objectives. Thankfully, there are numerous brokers who make provision for Kenyan traders and who welcome traders from other African countries.