Is Forex Trading Legal in Kenya? A must-read Review. View the pros and cons, Key Features, Step by Step Guides, and, much more Yes, forex trading is legal in Kenya and has been growing in popularity over the past decade. There is an active forex trading community of roughly , individuals. The regulatory Despite being legal in Kenya as well as regulated by the Capital Markets Authority (CMA), online Forex trading is not restricted by any authority. Approximately , forex traders have Is Forex Legal In Kenya? The CMA (Capital Markets Authority of Kenya) is Kenya’s regulatory authority for online forex trading. With the forex market growing in Kenya, there may be It is % legal and safe for any Kenya to trade Forex. Each Kenya Forex trading company listed in our top 5 is regulated by an authority such as the Capital Markets Authority and is respectful ... read more
But we all know that the money banks use in trading of forex come from depositors like you and me. Probably VIPortal could point out this double standard if their case ever goes to trial. 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. Traders in Kenya have access to brokers around the world and leverage up to Whereas some countries are only allowed to trade currency pairs containing their base currency, traders in Kenya are allowed to trade any currency pair or commodities.
This is massively beneficial for traders, having access to a wide range of markets and pairs to choose from. When it comes to paying tax, we never really give out advise as we are not tax specialists or accountants and would not want to risk giving out false information. Our only advise is to seek the help of an accountant when you are consistently earning profits within the forex markets, to decide the best and most efficient way to structure your business and declare your earnings.
When it comes to choosing a forex broker you need to be very careful. Many traders in Kenya are choosing to go with unregulated brokers, offshore, that accept bitcoin transactions for deposits. Now although this is a viable option, most unregulated brokers charge higher spreads, are much less secure and can literally disappear with your money overnight — so a regulated broker is always the safest option.
In Kenya you are not required to trade with a broker that is actually based in, or licensed in Kenya meaning you open up the whole world in terms of which broker you can use!
I would personally recommend IC Markets. I have used them for nearly 6 years now and have never had even the slightest issue with spreads or withdrawing my funds.
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. We will take FXPesa as an example. The steps involved are generally the same for all forex brokers.
Step 2 Open your Trading Account: Go to the website of the broker that you want to signup with. Step 3 Submit your documents for KYC: All regulated brokers are required to complete the KYC of trading clients. The brokers generally verify it within 48 hours, that is 2 working days. Step 4 Download the Platform: All brokers offer platforms like MetaTrader or their own proprietary platforms.
Most forex brokers offer multiple platforms. You will generally get an email from the broker regarding the details on how to download and log in to your platform. Step 5 Deposit Funds: You can choose methods like a card or bank transfer for depositing. Watch out for brokers that charge extra fees during deposits. Also, avoid any brokers that charge excessive withdrawal fees. The forex market is very liquid and this liquidity has caused a lot of traders to throw caution to the wind and even become greedy.
Most retail traders trade forex because of leverage, and this can cause losses to escalate very quickly. Let us discuss some risks. There are lots of unlicensed brokers who lure unsuspecting traders with promises of huge returns with low investments. Some of them claim to hold licenses from regulators in countries that are not known for strong regulatory supervision.
Forex traders in Kenya must only trade via CMA-licensed forex brokers. Traders should go to the CMA website and check if their broker is on the list of licensed forex brokers. See the screenshot below:. They go as far as hosting websites with logos and registration numbers to deceive unsuspecting targets.
Forex traders must be watchful and look out for red flags such as little differences in the broker name. Forex traders should also report any cloned page they come across to the CMA. Scam brokers do exist so you should be wary of them and report anyone you come across to the CMA. The first two risks that we discussed are associated with the risk due to a third party I.
your broker. We will now talk about the risks that you face with actual trading. The CMA has set leverage restrictions on the max leverage that brokers in Kenya can offer to traders. This is set to a maximum of for forex. Other instruments have lower leverage limits. This being said, forex traders should resist the urge to open an account with brokers outside Kenya who offer higher leverage. The actual percentage depends on broker to broker.
This is mainly because of over-leveraging a position. Traders must avoid using more than leverage on any forex trade. The use of leverage should be done responsibly as it amplifies both gains and losses. You should find out if your broker offers negative balance protection so as to stop your account from going negative. You can also use Stop Loss orders to automatically exit a position if the loss exceeds a certain level.
Stop-loss orders are automated instructions a trader gives the broker to exit his trading position once the price goes below a predetermined amount. Stop-loss orders could be used to manage risk. The forex market is very volatile and should be approached with caution. If you are risking too much on a single trade, then you can lose very quickly. In fact, most of the retail traders trading in the forex market lose their money. It is really hard to be profitable with forex trading, mostly because traders trade like gamblers, taking excessive risks.
It is really important to practice risk management on a demo account for some months before going live. Yes, you can legally trade forex via any of the 7 non-dealing CMA regulated forex brokers if you are a retail trader in Kenya. How to trade Forex via MPesa? There are multiple forex brokers that accept MPesa. How Do I Get Started With Forex Trading?
To start forex trading in Kenya, first compare the many forex brokers that are regulated in Kenya, then open a live trading account with your preferred broker. Next step is to download their trading platform, make deposits and start trading.
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Account management Managed accounts now available. Profit shared at 60 40 per month. Account deposit should be above USD. Contact us today on Is online forex trading illegal in Kenya? Forex is however illegal if you are operating another persons account on their behalf. This is because, unless you are a bank or a Sacco you do not have a right to handle other peoples money.
The reason behind this is to protect the public from fraudsters or swindlers who could ask for your money by way of pyramid schemes. It is this part of illegality that was used by the Central Bank of Kenya to trap VIPortal forex brokers.
I do not know how to defend local banks that are also engaged in the trading of forex online. These are the institutions that trade in large scale and if the trading of forex was illegal in Kenya then the Central Bank of Kenya should have started out by closing them.
One could argue that a bank is a legal person as a result of incorporation and is therefore engaged in trading just like you and me. But we all know that the money banks use in trading of forex come from depositors like you and me.
Probably VIPortal could point out this double standard if their case ever goes to trial. 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.
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Despite being legal in Kenya as well as regulated by the Capital Markets Authority (CMA), online Forex trading is not restricted by any authority. Approximately , forex traders have Is Forex Trading Legal in Kenya? A must-read Review. View the pros and cons, Key Features, Step by Step Guides, and, much more 11/2/ · Online Forex trading is legal in Kenya & regulated by the CMA (Capital Markets Authority of Kenya). There are estimated to be around ,+ forex traders in Kenya Online forex trading in Kenya is both legal and illegal. It just depends on how you are trading. if you are running your own personal trading account then forex is not illegal. Reason being Tourism in Kenya is the second-largest source of foreign exchange revenue following agriculture and currency exchange is not only legal, but essential for business to be conducted. The Most It is % legal and safe for any Kenya to trade Forex. Each Kenya Forex trading company listed in our top 5 is regulated by an authority such as the Capital Markets Authority and is respectful ... read more
JP Markets is regulated by the top-tier Financial Services Board, Based. One thing to note here is, the bid and ask prices operate differently for brokers or market-makers and price takers or regular investors. As Seen On:. The following components of fees must be checked and compared before choosing a forex broker in Kenya. Account Minimum. Czech Republic. However, the risk appetite should also be kept in mind.It is really important to understand the risks, so you can take preventive action to minimize them. Forex Traders on Social Media. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities is forex trading illegal in kenya the website. Performance Performance. For trading in the forex market you need to trade via a broker.