Best Forex brokers in Kenya and how to choose the right one

Like anywhere else in the world Forex trading is getting more and more popular in Kenya. The country has one of the fastest growing economies on the African continent and is slowly becoming a desired destination for many international brokerages. The country definitely has good potential to be one of the most important Forex trading destinations. More people are turning to Forex trading, especially the younger community. The reasons are very simple – Forex trading can be profitable for anyone. At the same time, people in Kenya still lack job opportunities. For them, trading from their homes only with their laptop and the internet is a great option to make money for living.

XM

All you need to know about XM in this XM review

Starting Capital

$5

Financial License

CySEC, FCA, ASIC

Promotion

$30, 50%+20%

Financial Leverage

1:888

Established

2009

Trading Software

MT4, MT5, WebTrader

IQ Options

IQ Option review – should you trade with the broker or not?

Starting Capital

$10

Financial License

CySEC

Promotion

Not Available

Financial Leverage

1:30

Established

2013

Trading Software

WebTrader

Forex.com

Forex.com review – is the broker scam or can it be trusted

Starting Capital

$50

Financial License

FCA

Promotion

Not Available

Financial Leverage

1:200

Established

1999

Trading Software

MT4, WebTrader, custom

CM Trading

CM trading review – Regulation, features and flaws

Starting Capital

250$

Financial License

FSCA

Promotion

Not Available

Financial Leverage

1:200

Established

2012

Trading Software

MT4, Sirix WebTrader, Copykat

FxPro

Read FxPro Review before you will make your choice

Starting Capital

$100

Financial License

FCA, CySEC, FSCA, DFSA, SCB

Promotion

Not Available

Financial Leverage

1:500

Established

2006

Trading Software

MT4, MT5, Ctrader, Custom

IG

Is IG  a good choice for South Africans? This IG review will show

Starting Capital

£250

Financial License

ASIC

Promotion

Not Available

Financial Leverage

1:250

Established

1974

Trading Software

MT4, custom

FXTM

This FXTM review will reveal pros and cons of the broker

Starting Capital

$5

Financial License

FCA, CySEC, FSCA, IFSC

Promotion

Not Available

Financial Leverage

1:1000

Established

2011

Trading Software

MT4, MT5

24Options

Is 24options a reliable broker? Find out in this review

Starting Capital

$250

Financial License

IFSC Belize

Promotion

up to 50%

Financial Leverage

1:500

Established

2010

Trading Software

MT4

FBS

FBS Forex broker review, is it a legit broker or fraud?

Starting Capital

$1

Financial License

IFSC Belize

Promotion

100% deposit bonus

Financial Leverage

1:3000

Established

2009

Trading Software

MT4,MT5

Novox FX

Everything about Novox FX Forex broker in detailed Novox FX review

Starting Capital

$200

Financial License

N/A

Promotion

N/A

Financial Leverage

1:500

Established

N/A

Trading Software

MT4

However, as anywhere else, it is not easy for local traders to find the best Forex brokers in Kenya. Since Forex trading is a very lucrative business for brokers, many take advantage of it. Everywhere, where there is FX trading, there are scam brokers. Kenya is not an exception. To avoid it, you must ensure you are trading with a broker from the list of Top Forex brokers in Kenya. At the same time, you should be aware of the regulations that are in the country. Before that, let’s take a look who are the most reliable brokers you can trade with as a Kenyan resident.

FX brokers in KenyaForex brokers in Kenya and their licenses

When the Forex trading industry started to raise in Kenya, the regulatory body of the country imposed new laws and regulations on the brokers. For a long time, Kenya did not have authorized brokerages and money managers since they simply did not have a legal framework and licenses for the companies that were providing investments and other financial services to the Kenyan community. This made the country a haven for scammers and finding a reliable Kenyan Forex broker became impossible. In 2015 the number of brokerages in the country was approximately 87, that was just a fraction of the companies that were offering various investments to the residents of the country. Despite the fact that now the Forex market is regulated by the local financial watchdog, Capital Markets Authority (CMA) is trying hard to clean the country from the unregulated brokers, cases of Forex frauds and scams are still very common. This is why it is very important to trade with a broker that is on the best Forex brokers in Kenya list.

Best Forex brokers in KenyaBest Forex brokers in Kenya

Usually, I never advise anyone to trade with offshore brokers that are not licensed by the local authority. In this case, there is no guarantee or legal mechanism to get back your investments if the company goes bankrupt or turns out to be a scam. The situation is a bit different for Kenya, as the local authority introduced broker license in 2016.  Here are some of the most reliable international brokerages that offer their service to the Kenyan community. These are the best FX brokers in Kenya based on their reliability, records, reviews and customers’ opinions.

 

XM

All you need to know about XM in this XM review

Starting Capital

$5

Financial License

CySEC, FCA, ASIC

Promotion

$30, 50%+20%

Financial Leverage

1:888

Established

2009

Trading Software

MT4, MT5, WebTrader

IQ Options

IQ Option review – should you trade with the broker or not?

Starting Capital

$10

Financial License

CySEC

Promotion

Not Available

Financial Leverage

1:30

Established

2013

Trading Software

WebTrader

Forex.com

Forex.com review – is the broker scam or can it be trusted

Starting Capital

$50

Financial License

FCA

Promotion

Not Available

Financial Leverage

1:200

Established

1999

Trading Software

MT4, WebTrader, custom

When trading with these brokers you can be sure that your funds are safe and secured. At the same time, you can enjoy the wide selection of trading assets, reliable platforms, and high-quality service.

The list of Forex brokers in KenyaForex regulations in Kenya

I have already mentioned a couple of things about the regulations in Kenya. Let’s get more in depth with it. The regulatory body that oversees the Forex trading market in Kenya is the Capital Market Authority (CMA). It was established in 1989 as an agency responsible for licensing, supervising and monitoring the activities of market intermediaries. This also included the Forex trading market.

One of the main objectives of the CMA is to protect the interest of the investors. It automatically includes creating a safe enviroment for the investors in Kenya by licensing the brokerages and monitoring their activities. However, as mentioned above, the CMA began licensing brokers only recently in 2016, therefore all the claims of the supposedly best Forex brokers in Kenya were null, but the population didn’t know about it.  Only in 2016, the regulator understood that losing money was a devastating experience for Kenyan traders and decided to develop a regulatory framework for the Forex brokers operating in the country.

According to their report, at that time over50,000 Kenyan investors were trading with foreign regulated Forex brokers. The regulator started working on protecting Kenyan traders by introducing clear laws and rules within the domestic jurisdiction.
Forex brokers that want to get the license to provide their services to the residents of Kenya, need to comply with the following:

  • Have office space in Kenya, equipment and other necessary infrastructure
  • Have a minimum capital of Kshs. 50 million (about $500.000)
  • Maintain the minimum capital at all times plus 5 percent of liabilities owed to Forex customers.
  • Ensure that Kshs.40 million or 80% percent of the capital (whichever is higher) is in the form of cash at all times.
  • Have a chief executive who has no less than five years of experience in the business of buying, selling, Forex trading, Forex futures or futures contracts;

The list of Forex brokers in KenyaForex scams in Kenya

The examples of Forex scams in Kenya emphasize the need for investigating the broker before you decide to open an account with it. The list of Forex brokers in Kenya is not very long, but there are still a lot of brokerages you need to choose from. It does not matter what your intentions with Forex trading are, whether you want to have it as a source of additional income, as a hobby or if you want to trade Forex for a living. In any case, you need to ensure that the brokerage you are dealing with is not a fraud or a scam and will not disappear with your investments.

This is exactly what happened in 2014 in Kenya. The company VIP Portal, which first appeared in 2013 in Limuru lured over 13.000 investors into investing in Forex trading. He promised high returns on investments and was even promoting his investment firm through television. He was offering his services to the people in Nairobi, Nakuru, Nyeri, Kisumu, and Kisii. The owner of the fraudster company was telling customers that VIP Portal was a Kenyan office of the global investment firm that was based in island St Vincent and the Grenadines. What the investors thought to be one of the best Forex brokerages in Kenya, appeared to be leading a scheme similar to a pyramid. He was asking the investors to bring other people and promised five percent commission per new investor. At the same time, he was promising up to 60 and 80 percent profits in four months.

When the four months passed and there were no profits given the investors started to question the legitimacy of the VIP Portal and approached the authorities. After the investigation, the police revealed that the VIP portal received approximately Sh1.08 billion in 11 months until the scam was revealed. Unfortunately, it was already late as all the money was transferred on the offshore bank accounts.

The list of Forex brokers in KenyaHow to choose the best Forex broker in Kenya

While searching for the best Forex broker in Kenya it is very important to get full information about the brokerage and make a decision based on that. It is an unwritten law of the Forex trading that if something seems too good to be true, it is not true. Do not get excited when someone is offering high profits on your investments, usually, it is just an empty promise to make you invest all your money.

Read the reviews of the brokers and choose the one that is reliable worldwide, like the Forex brokers mentioned above. check the features of the brokers and choose the one that complies with your Forex trading goals the most. This way you will be able to choose the right broker for you from the list of top Forex brokers in Kenya and keep your funds safe.