Whether or not a price increases or decreases depends on the market, but the main aspect to be considered before entering into a CFD is if you can handle the risk. As the only objective of most brokers is to pocket their own commission, investors really need to understand the risks involved more than the rate of return.

Only if you can afford to take the risk, then only should you involve yourself in the market. Often times juicy rate of return might blind you from seeing the true picture, you can completely lose sight of the risks. There are a lot of ways you can protect your money by having a risk management in place, reducing the leverage, having a stop loss target etc.

But remember, at the end of the day you have to learn to live with the consequences. All these regulations and derivatives exist to protect you as much as possible, but there are some factors beyond these derivatives. There are only indicative but not definitive. A starting point for any new investor is to understand what exactly he seeks to achieve with the forex market.

Finally have a look at the regulations and once you are certain that you are ready, make the informed call and hope that the market reacts positively to you. The Exchange. News analysis and comment from the The Exchange, a leading publication providing economic news and analysis on the capital markets of Africa, with a specific interest in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Congo.

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Home Africa. Online Forex trading in Kenya — Insight on local regulation and risks for retail investors by The Exchange. January 27, in Africa , Capital Markets , Finance , Forex , Kenya , Legislation. Reading Time: 6 mins read. Share via QR Whatsapp Share on Facebook Share on Twitter LinkedIn Pinterest eMail. Tags: capital markets Finance forex Forex trading Kenya Legislation Online Forex Trading Online Forex trading in Kenya — Insight on local regulation and risks for retail investors regulation кения كينيا ケニア 肯尼亚.

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Their role is mostly advisory and unlike their commercial counterparts, they do not accept deposits. There are about 15 investment banks licensed to operate in Kenya according to information on the CMA website. It is responsible for safekeeping of transaction instruments and documents from the Nairobi Securities exchange as well as reconciliation and clearing and delivery of all financial transactions. As at December , the CDSC website listed 43 authorized depository agents called central depository agents CDAs.

These agents open and manage securities accounts on behalf of the CDSC. Simply put, the depository receives financial instruments via central depository agents, confirms their authenticity, and then credits the clients account with the amount on the instrument.

Forex market is very liquid. It is also easier to predict as a lot of analysis is not needed. The Kenyan regulator, the CMA, has regulated online forex trading and limited the leverage offered by brokers to clients to for any FX currency pair meaning a client cannot do business of more than times his capital. is the financial market where you trade on equities, derivatives such as contracts for differences CFD , options and other complex financial instruments.

When trading stock you look at the future as the profit may not always come immediately. Stock trading is done through licensed NSE brokers. The CMA issues licenses to intending capital market participants. Let us look at forex and stock brokers regulations. They are two license given to forex brokers namely:.

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We have checked and listed some locally CMA regulated forex brokers in Kenya. Online Forex Brokers in Kenya are regulated by The Capital Markets Authority CMA. It is advised for forex traders to only trade with CMA authorized forex brokers for the safety of their funds. Trading with an unregulated broker is highly risky as you can lose your funds since you are not protected by law. In fact, trading with an unlicensed broker in Kenya is considered illegal. Now check the brief description of all the above-listed CMA regulated Forex brokers one by one.

FXPesa Broker was founded in and it is the brand of EGM Securities which is licensed by the CMA under the company name EGM Securities Limited. Their license number with the CMA is The parent company of EGM Securities i.

Equiti Limited Group is also licensed in the UK with FCA. FXPesa has two trading account types; the Executive and Premiere accounts. The typical spread on FX majors for both accounts are:.

They accept payments via MPesa for deposits. For withdrawals, the methods are the same as that of deposits. You can withdraw via Bank Transfer or MPesa, which are the most common methods. Withdrawals via Bank Transfer to a local bank account in Kenya are free but can take up to 3 days. For withdrawal with E-wallets and mobile payments including MPesa, the processing time is 3 hours. The client support on FXPesa has Live Chat, Email, and Phone Number in Kenya.

We found their support to be helpful in answering our queries. HotForex Kenya was authorized in They are a part of HotForex Markets Group which is well regulated with multiple regulators. HotForex operates under the company HFM Investments Kenya.

HotForex offers trading on 53 currency pairs and over CFDs on Commodities, Metals, Indices, Energies, and Bonds to clients in Kenya. The max. The leverage for forex is HotForex provides trading to clients through the MT4 and MT5 trading platforms. These platforms are available on the web, app, iOS, Android, and PC.

They are also available on Google Play and Apple Store. The minimum deposit on HotForex depends on the payment method you are using. HotForex does not charge fees for deposits or withdrawals. Or you can deposit via Dusupay which has Kes. HotForex client support is available via email, live chat, and phone.

They have a Kenyan phone number available for Kenyan clients. The live chat is also instant- just a few seconds wait time. They were registered by the Kenyan CMA in and have an authorized license number SCFM has two account types, the gold and silver accounts. The FX spread on EURUSD is 1. There is no trading commission on the Silver account. Deposits can be made via Banks, MPesa, Credit and Debit cards, etc.

Deposits and withdrawals are without charge. Scope Markets offer around 63 CFD Instruments to clients in Kenya. The trading platform offered by Scope Market is the MT4 and MT5 trader. They are available on MAC, Windows, iOS, Android, and the web. Scope Market Kenya has email, live chat, and a local Kenyan number to call. The live chat is responsive when tried. Customer support is available for 24hrs every day and five days a week.

Pepperstone Group was established in in Australia. In Kenya, the company is operating under the name Pepperstone Markets Kenya limited. They are authorized by the Capital Markets Authority with license number Pepperstone offers two trading accounts; the Razor and Standard accounts. The spreads for both accounts are given below. Deposits and withdrawals can be made on Pepperstone through these methods; Bank transfer, Visa, Mastercard, MPesa, and PayPal. Withdrawals made by banks usually take 3 to 5 working days as processing time.

The account can be opened in USD or GBP as the base currency. The trading platform on Pepperstone are; MT4, MT5, cTrader, and Social trading platforms. These platforms are available for PC, web, and mobile devices. Pepperstone offers 62 currency pairs, CFDs on plus U. S shares, U. In total, the broker offers over CFD instruments to clients.

Pepperstone has three customer support options. The chatbox, email, and phone number. You can also visit them at their Kenya office. The replies on the chatbox are instant. However, it takes between 2 to 3 minutes to get a response from your transferred agent. The phone lines are available 24hrs daily and only 5 days per week.

For the email, it takes around 30 minutes for their email support to respond. However, it only acknowledged receipt of the complaint and not the issue. Exinity Capital East Africa is a company under which FXTM and Alpari International operate. This broker is registered with the Kenyan CMA with license number In Kenya, Exinity group operates as ForexTime FXTM.

FXTM offers three account types to clients. They are the Micro, Advantage, and Advantage plus accounts. The typical spread on FX majors on ForexTime begins from 1. The Advantage account has a commission of 0. FXTM also charges an inactivity fee for a dormant account over a six months period.

FXTM uses the MT4 and MT5 trading platforms coupled with other trading tools. Deposits on FXTM are without charge, however, there are charges applied to withdrawals via some payment methods. Deposits are processed instantly except in cases where there is a need for internal verification. The customer support options on FXTM are quite much. However, we tested the live chat and email.

Replies on the chatbox were instant. However, it only answered questions it was programmed to answer. It works more like a bot. The email we sent was answered in a few hours. Retail forex trading is offered as CFDs and are traded over the counter OTC. It is typically regulated by to statutory bodies in different countries. After South Africa, Kenya became one of the African countries that regulated retail forex trading.

This happened in almost a decade after South Africa. It was in that the CMA released a public draft about regualting CFD trading in the country. According to the draft, the reason for regulation was to protect traders registered with offshore brokers and to monitor all brokers operating in the market. On 25th August , the CMA passed its regulation on forex and CFD trading in Kenya after public discussions. This regulatiion protects the growing number of traders in Kenya.

The CMA acts in the best interest of forex traders. As an authority over forex brokers, they make sure financial services providers are set up to reduce the risk traders are exposed to.

In this section, we will be looking at the structures the FCA has put in place to protect you and your funds. The maximum leverage for retail traders is currency pairs. There are leverage restrictions for commodities, indices, and stocks too. The restriction ensures that you do not abuse leverage. Leverage amplifies losses.

The cookie is used to store the user consent for the cookies in the category "Analytics". With the social trading platform, forex traders can easily make good returns on their investments by copying the trades of more experienced traders. The cookie is used to store the user consent for the cookies in the category "Other. Forex Traders on Social Media. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions. Finally have a look at the regulations and once you are certain that you are ready, make the informed call and hope that the market reacts positively to you. HotForex offers trading on 53 currency pairs and over CFDs on Commodities, Metals, Indices, Energies, and Bonds to clients in Kenya.

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