If you are a Forex trader in Kenya, you will probably have come across plenty of Forex brokers vying for your business. Forex brokers in Kenya are increasing in number by the day, but knowing which one to sign up with can be a daunting prospect for new traders.
In this article, we provide the definitive guide to selecting a Forex broker in Kenya, which will provide you with a secure and competitive trading environment complemented by a wealth of trading resources and support.
1. Check the broker’s regulatory status
Forex brokers in Kenya fall under the regulatory oversight of the CMA. A broker’s membership in the CMA or adherence to financial regulations is not assured simply because the broker has a snazzy website.
In the “About Us” section of a broker’s website, the CMA member number is usually listed. Outside of Kenya, every country has its own set of rules and regulations.
If a prospective broker is not regulated by the CMA, accounts should only be opened with offshore brokers which are regulated by recognized financial bodies, including the FCA in the UK, CySEC in the EU, ASIC in Australia, and the FSCA in South Africa.
2. Compare the account features
Account options vary amongst different Forex brokers in Kenya. Leverage and margin, commissions and spreads, initial deposit requirements, and simplicity of deposits and withdrawals are all things to keep in mind when comparing brokers.
3. Check the trading fees
A forex broker that charges commissions may charge a percentage of the spread, which is the difference between the bid and ask price of a currency pair. To make up for the lack of fees, several brokers demand larger spreads. Find out how your broker makes money and browse around.
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4. Consider the minimum deposit
Account withdrawal and funding policies vary from broker to broker. Account-holders may be able to fund their accounts via credit card, PayPal, wire transfer, bank check, or personal or corporate check.
In most cases, you’ll be able to withdraw your money via check or wire transfer. It’s possible that the broker will charge a fee for both services.
All of these different conditions will affect the amount of money available in your trading account, the amount of starting capital you require, and the speed with which you can make deposits and withdrawals, so it is worth comparing these conditions between various different brokers.
5. Check the trading platforms provided
The investor’s gateway to the markets is the trading platform. If you’re looking for a broker, you need to be sure the platform and software they use include the capabilities you need for both technical and fundamental analysis.
Options for customization, order entry kinds, automated trading options, strategy builders, backtesting features, and trade notifications are some more factors to take into account.
The majority of brokers provide a free demo account to traders so that they may test out the trading platform before actually opening an account and depositing money into it.
Read more: Forex Trading Platforms in Kenya