Forex, or foreign exchange, involves buying and selling various international currencies and is earning extensive popularity among worldwide traders. Most people using this market as a speculative investment vehicle can deliver a broad array of benefits to traders who invest in this market to earn improved RoI.
It should be no surprise that the forex market is thriving in the world’s developing countries, for example, Kenya. It is common for traders to maximize various deposit bonuses offered in the forex market in Kenya across various brokerages. Brokers also use deposit bonuses as a marketing tool to attract new traders and/or maintain their existing trader base. However, while this trading type is a very helpful way to generate more trading volume, things are not so simple at all times.
In this post, we will discuss forex trading in Kenya, the key advantages of forex trading, generous deposit bonuses, and how to choose the right forex broker in Kenya to trade.
The Advantages of Forex Trading
Forex trading is rapidly coming to the front as one of the most cost-effective ways for investors to broaden their portfolios. The burgeoning popularity is most apparent because of its great financial benefits. Also, Forex trading helps investors tell trends of what will happen in financial markets in advance. This way, investors can make more level-headed investment decisions and bypass losses. Unlike other assets that generally fluctuate over shorter periods of approx. three months, Forex trading fluctuates over six months to 1 year. This implies that investors have improved odds of gaining profits.
So if you still are pondering whether Forex trading is worth doing, then the answer is a clear-cut yes. One of the principal reasons why Forex trading has attained special prominence worldwide is that it has a huge potential for RoI. By simply investing $200, it is feasible to convert the sum into $4,000 within a year.
The popularity and demand of forex trading today are even more than ever –more and more people are entering the market by signing up for numerous forex trading platforms. These platforms offer several benefits to traders. Two of the key benefits include accessibility and flexibility. By signing up for such platforms, traders have the convenience of trading even while on the go via their mobile devices. These platforms also enable you to trade 24/7 – you can come in and out of the market depending on your convenience or watch it in real time during your leisure time. What’s more, online Forex trading lets traders get the latest market information from all over the world.
Another very important reason behind the tremendous popularity and demand of Forex trading is the availability of numerous online trading platforms online. These platforms are helpful to traders in terms of the great cost-effective benefits they offer. One of the key benefits is that they let traders access information on all the facets of the market. This implies that traders can get their hands on real-time information in terms of various investment opportunities, prices, and trends in the market. Besides this, the platforms, serving as a tutorial source, transmit knowledge to traders who are basically new to this field and want to gain insight into the market. Through these platforms, they can look forward to trading well and enhancing their chances of success in the market. Furthermore, most trading platforms have real-time charts that play a stellar role in apprising traders of various trends in currency rates.
Forex Trading in Kenya
The forex market in Kenya is thriving, and they’re using a variety of handy ways you can easily enter the Forex market in Kenya. These ways include buying and selling currencies on various local platforms such as Fund Managers, small-scale retail brokerage services offered by forex brokers, leading international investment banks, etc. The latter two types of participants have recently enhanced dramatically due to the growth of trading volumes within Kenya and other international countries.
The Forex market in Kenya has become a magnet for many investors. The Capital Markets Authority (CMA) is responsible for maintaining the regulatory framework for the Forex market in Kenya.
The authority monitors companies interested in trading and regulating firms that do not adhere to the rules set by the CMA. Restrictions are also laid on those who can be involved in trading, for example, those below 18 years old or those without an account registered with a regulated firm. Also, restrictions are laid on how much traders can risk avoiding laying themselves bare to the great levels of risk.
The Kenyan currency (Kenyan shilling) is pegged to the US dollar. The shilling is not strong, which makes it quite easy-going for exports but rather challenging when shopping internationally. There is an extreme level of corruption, a weak infrastructure, and transport and communications systems. This impinges on the market’s constancy and huge odds of loss due to country-specific factors, which can have an additional knock-on effect on international markets.
Because traders in Kenya require additional time to conduct research, it is more likely they will incur losses throughout this period. These issues will likely make trading forex in Kenya hard but not impossible.
Considering Kenya’s equity index, which has appreciated by approx. 34% since 2015, several Kenyans have tapped the opportunity by having started trading on various local Kenyan markets. Also, since Kenya has stabilized over the last few years, the interest of traders in foreign exchange has skyrocketed. Kenyan residents interested in making money through forex trading can start trading directly with other financial institutions.
If these institutions offer attractive rates, then traders can close the margin between buyers and sellers and turn a profit. Financial banks typically offer better rates than individuals, but their least deposit requirements may prevent them from trading with a small volume.
Generous Deposit Bonuses
Deposit bonuses are a lesser-known yet key perk in trading in international forex markets. While their prominence or demand is not huge, new traders need to learn about them because they can help you get going in forex trading well, as it will provide you with more gratis money for trading!
Deposit bonuses are few and far between in the market. Many of these bonuses, but not all, share a portion of their profits with new traders. To put it simply, you continue to receive the bonus money to resume trading more unless you resolve to leave and subsequently cash out your bonus. However, in general, it is not more often than not.
At times, you are most likely to get something below 100% of your trading profit upfront — maybe a smaller percentage or even a flat rate every month from which you can generate interest on any profit earned above that figure. At other times, you will receive a percentage of whatever is on the account after all commissions are defrayed, provided that funds remain in the opening balance.
Deposit bonuses act as a catalyst to make your forex trading appear smooth and convenient because they contribute to scaling up your money. You will have packets of dollars to trade with by availing of these bonuses. Thankfully, you don’t need to cash back out at a low rate of profit invariably. With these perks, you can easily start trading with more funds than lesser ones.
The initial deposit bonus will come in good stead if you are making efforts to do larger or multiple trades that would otherwise be costly for you but still cost-effective for your forex broker.
While a deposit bonus does not seem to be of crucial importance to some brokers in Kenya, it is still the ticket for traders who have recently entered the market. This is because it lets them open an account with a company relatively more easily than when they do not have any type of perk in hand.
It is a great idea to utilize deposit bonuses in the forex market in Kenya to grow vigorously. This is because your initial investment has the scope to grow in general.
Choosing the Right Forex Broker in Kenya to Trade
If you are fascinated about entering forex trading and desire to make it a success, selecting the right forex broker is very important. It is worth noting that forex brokers vary mutually and offer different types of trades; it is crucial to choose the right broker that fits your needs to a nicety. This is because each trading type has its certain pros and cons. It all comes down to the expectations and needs of a trader from a forex broker.
Choosing a dependable and experienced broker is crucial for every trader, whether Forex or any other financial market. When handpicking a broker, there are diverse key factors, for example, their reputation, the fees they take, the ambit of products, and the standard of customer service they offer.
- Reputation: Check unavoidably to ensure the reputation it carries and whether a verified authority regulates them.
- Fees: A dependable forex broker is generally upfront about the fees they take on the trade done by traders.
- Payment Methods: Since payment methods are very likely to vary from broker to broker, ensure you check each of them carefully.
- Customer support: Check importantly that the broker offers 24/7 customer support.
It is always a good idea to check out the ratings of a forex broker, and you can easily carry it out by checking their security history. It is quite understandable that the safety and security of money are essential for all traders, as even slight negligence in this concern is most likely to cause you to lose your hard-earned money. In short, if a broker is reputable, you can easily expect your money’s safety and security.
The regulated forex brokers in Kenya typically offer the best or surefire security measures. Suffice it to say they treasure the money they receive from their clientele, similar to how you do. An ideal forex broker has various attractive features that make it safe for traders to trade currencies. Some key features include strong encryption, a variety of currency pairs, diverse, authentic verification methods, live customer support, etc.
Conclusion
Over the past few years, the Kenyan Forex market has been thriving rapidly and has gripped the attention of foreign investors to invest there. This has enhanced the trade between East Africa and Europe.
Kenya Forex trading is very helpful for traders in learning the nitty-gritty of financial markets and gaining financial profits. By entering forex trading, you are investing your hard-earned money and putting your knowledge to work. Forex trading is a great way to enhance your income. In order to get trading forex off the ground in Kenya, you need an internet connection and a computer with access to risk capital. So get started today!
