If you’re a jobless or looking for a side hustle, you might want to venture in Forex Trading in Kenya.
And probably you have even heard about Forex Trading in Kenya…
Problem is, many of the available details are sketchy-at least online- meaning that you have shied away from risking your capital.
And that’s where this article comes in.
We shall demystify Forex Trading in Kenya and hopefully, you will learn how to earn some income buying and selling foreign currencies- Forex trading is all about this- from it.
To help us, we interviewed some of the successful Forex traders in Kenya.
These guys have been earning lucrative Forex trading profits so they know a thing or two about Forex Trading in Kenya.
Read and take note of their eye-opening tips.
Interview 1: Mercy Rotich, Forex Trader
About Jackson: Mercy has been trading since 2012 and trades Forex full time.
Here is what she had to say..
Tell us, what does Forex Trading involve?
Thank you. Forex is all about buying and selling different currencies on speculative basis.
You buy two sets of currencies, hoping to make a profit after selling later (for example, after 2 hours). For instance, you can make a profit if you buy low and sell a certain currency pair high.
Note that the prices of various currencies are determined by forces of demand and supply in the international forex market.
And it’s a big business –Over 500 Trillion shillings are traded daily!
What skills/qualities do you need to succeed in Forex Trading in Kenya?
Well, risk management. Many newbies burn their cash trying to make hyper-profits without adequately studying the markets.
Ideally, you should first undergo training from a successful trader.
You can also attend a formal Forex training such as Kenya Forex school.
Next, join the various Forex forums in Kenya.
Here you’ll meet and learn beneficial ideas from well-established gurus.
No one starts at the top so you should be immensely patient.
For example, you should avoid the temptation to trade daily as this might harm your account.
Also, don’t trade every available pair unless you’ve identified an ideal opportunity.
Finally, take risks -lose that one dollar if it can bring in three as long as you have crafted a smart strategy to shield you against losses.
How Much Will I Need To commence Forex Trading In Kenya?
That’s a tricky one but I advise that you risk what you can afford to lose.
But the best bit about Forex is that you can even start off with as little as $10.
You should only increase your capital after fully mastering the ropes.
Remember that as much as Forex is lucrative, it’s very volatile and your investment can be wiped off within minutes so you need to be cautious.
To start, create a demo account on the portal of any of the licensed Forex brokers in Kenya including EGM securities (formerly Execution Point limited).
Like most Forex brokers in Kenya, EGM allow you to make deposits into your Forex trading account using MPESA.
CMA has also recently approved SCFM Ltd.
With time, you’ll notice that you’re consistently realizing profits.
This is a good sign that you’re ready to transition from demo trading to live trade.
Which is the Best Forex broker for Kenyans
I won’t want to say that one broker is the best for Forex trading in Kenya..
As a matter of fact, there are hundreds of brokers online some from far away countries such as Russia and Cayman Islands.
The most important step is vetting the broker- you don’t want to commit your hard-earned cash to a brokerage that collapses abruptly.
Explain some of the misconceptions about Forex trading in Kenya
Many Kenyans consider Forex to be a con-game, gambling, or a get-rich scheme. Nothing can be farther from the truth…
If you understand it, it’s a business like any other and there will be some good and bad days.
I feel so sad that some Kenyan youths can’t put food on the table yet you can easily make a living from Forex with as little as shs.20000.
How can one minimize risk of losses in Forex and How do I succeed in forex trading?
The key is to monitor market movements and know when to stop a trade.
Besides, you should keep an eye on news as political declarations by World presidents and leaders can upset trade.
For instance, rumours on Brexit can send the Pound suddenly tumbling.
Finally, try to use high leverage (ratio of your funds to the size of the brokers’ credit), set reasonable targets, design and stick to a working strategy, and avoid emotions.
Further, arm yourself with the right knowledge to enable you accurately predict different scenarios.
Interview 2: James Kariuki, Forex Trader
About James: James has been at it professionally since 2016 and has made other investments from his Forex trading profits.
He has used various platforms including EGM securities Kenya, XM trading Kenya, and EazzyFx (owned by Equity bank)
Listen to him..
What does one need to get started as a Forex Trader in Kenya?
First, you open an online account with a legitimate Forex broker. You can even choose Forex brokers with MPESA in Kenya such as EGM.
Your account has to be verified and for this you need to upload an identification document such as your ID, utility bill, or a bank statement.
Use the demo account to test waters and when confident, gradually venture into live trade.
Which is the best time to trade forex in Kenya?
Since we follow western time zones, we trade at some odd hours- You can find me staring at my laptop screen at 2.00am.
As a result, I will sleep during daytime like other night owls.
How much does it require to start forex trading in Kenya?
I started off with $30 and have since accumulated a capital base of over shs.500000 by ploughing back my profits.
But to be successful, you must be sober. This way, you’re sure of making logical decisions on the currency pairs to risk on.
Additionally, don’t trade when stressed or tired as this hampers your reasoning.
How do I start a forex exchange business?
Training, before everything else!
Sure, there’s a lot on the topic of Forex trading in Kenya online – and many traders are self taught- but nothing beats getting mentorship from a professional.
You see, it’s easier to discover the trading options that suits you best under the guidance of an expert than when fumbling alone in the dark.
Having said that, scrutinize your potential trainer’s background and track record and be sure that he/she is a real, honest trader before engaging him/her.
Shun theoretical trainers as they may not be helpful when it comes to the nitty-gritties of practical trading.
Tell us about Forex trading in Kenya using MPESA
Like I said, most Forex brokers have realized that MPESA is everything in Kenya and have integrated it as a payment option when depositing or withdrawing funds from your account.
This is super convenient considering that we were used to cumbersome payment methods such as direct bank deposits and western union previously.
Brokers accepting MPESA in Kenya include Grand capital (Create a free account here), FXTM , Hotforex and TemplerFX
Is Forex trading in Kenya equivalent to gambling?
Well, the only similarity between the two is that neither guarantees that you’ll get your cash back.
Otherwise, in Forex, we have a concept called strategy (Where certain scenarios recur severally) that you can use to gain more by studying currency behavior and making matching predictions.
But can you predict the outcome of a football match with certainty? I don’t think so.
In fact, there are zero strategies in gambling!
Comment on the continued government crackdown on Forex trading in Kenya
Well, some traders collect money from Kenyans and trade on their behalf in return for a share of the profits.
And it works for some.
But there have been cases in the past where some dishonest traders will pay the investor their share of profits religiously for the first few months to entice them to increase their investment.
They then disappear into thin air with the money as soon as they hit their ‘targets’.
This is very sad and I urge Kenyans to seriously investigate any trader purporting to offer Forex trading services on their behalf.
Above all, only invest with Forex brokers licensed by the CMA (Capital markets authority) just in case things go wrong.
Among the red flags to look out for is the crazy profit margins offered by these fraudsters.
Then, if you’re to invest, it’s good to have an idea of what goes on so attend training first.
ALSO READ: How To Make Money On Facebook
Interview 3: Robert Kimani, Forex Trader and Trainer
About Robert: His journey into Forex Trading in Kenya started accidentally in 2011 when, as a broke college student, a trader come to speak about Forex in his campus.
8 years later and Robert is not only an accomplished trainer but a proficient Forex trader.
We asked him a few questions..
What does a Forex Trading course cover?
A Forex trading course tackles all the fundamentals of Forex trading in Kenya as well the technical aspects.
We mainly train on market analysis, risk management, planning of trade, and strategy creation.
Students are also taken through an overview of the international forex market, major stock market indices, as well as trading of precious metals.
In most cases, we charge shs.30000 for those a little experienced and shs.50000 for 100% beginners.
What should one take a Forex Trading course?
Forex trading carries a higher risk and training will help you avoid the pitfalls.
Many untrained traders have watched in horror as their entire investment goes up in smoke and you don’t want to suffer a similar fate.
How long does a Forex Trading course Take?
The course lasts about 2 months and is open to all upcoming traders.
How has the entry of CMA changed trading?
I think it’s a long-overdue development as some rogue online forex traders have been fleecing innocent Kenyans for long.
We hope that the entry of CMA will bring sanity to the online forex trading sector and will eventually see cons exit the Forex trading space in Kenya.
What are the Future prospects of Forex Trading in Kenya?
Well, it’s brighter.
With CMA, numerous financial innovations will emerge and Kenya may slowly become an international forex hub.
This will bring stability and boost employment as more Kenyans take to Forex trading.
EDITORS NOTE: For online forex trading training, you can check out Nairobi school of Forex.
Grand capital forex trader also allows you to access free video lessons about Forex Trading though you have to create a free trading account (click your account here).