Capital Markets Authority (CMA) of Kenya has made online forex trading in Kenya more regulated now.
Trading with a licensed broker with ensure that your funds are protected & you can get compensation of upto Kes. 50,000 in case the broker goes out of business.
To trade forex in Kenya via a locally regulated broker, you need to open an account with any of the forex brokers regulated and licensed by CMA.
There are six such brokers who are regulated by CMA: EGM Securities, PepperStone Kenya, ForexTime (Exinity Group), HotForex, Windsor Markets and Scope Markets.
There are also global foreign regulated forex brokers accepting traders from Kenya - that are regulated with foreign regulators like Financial Conduct Authority (FCA), Financial Sector Conduct Authority (FSCA), Australian Securities and Investments Commission (ASIC) and the likes.
It is recommended that you choose the only brokers that are licensed by CMA. Only this will ensure that you are trading forex legally.
Most brokers now have low deposit requirements of as low as $5 to open Live trading account & start trading. As an example, HotForex has $5 deposit with their Micro Account.
Start with Demo Forex Trading Account.
Almost all the brokers provide demo accounts. Demo accounts are like real trading accounts, and your can trade and understand the nuances of trade just like real trading account without risking your real money.
Your demo account will have dummy funds, and you can use them to test out your strategies & learn under real market like conditions.
Note: The market & trading conditions with a broker's demo account platform would likely not be the same as Live account. But it is still a good place to learn trading.
Once you have gained enough experience & are profitable on demo for a consistent period of few months, only then you should move to Opening Live Account with real money.
LIVE ACCOUNT.
Generally, the steps involved are the same. You need to fill your 'Account Information' details, your Financial Adequacy information. Then you need to submit your 2 KYC documents i.e. ID Proof & Address proof to complete the verification.
For the KYC, it is essential that you submit valid documents as this will prevent any issues during withdrawals. For ID proof you can submit copy of your Passport or any other National ID. For Address proof, you can submit your phone or any other Utility Bill.
For Live accounts, brokers can either be market makers or provide DMA (Direct Market Access) & DMA brokers are either ECN or STP. ECN (Electronic Communications Network brokers) is where the investors directly get connected to the other investors in the Forex Markets and the fee is calculated by the volumes traded by the clients that pass through the ECN environment.
