The Kenyan economy was thriving before the global pandemic struck, with significant growth seen between 2015 and 2019. When 2020 came around, growth was stalled momentarily, but soon made a thriving come back, and is now looking towards stability and prosperity. Kenya’s positive financial outlook has drawn many investors into the world of forex trading – an estimated 90,000 citizens are currently participating, with many more jumping on board every day. If you’re looking to get started with forex trading in Kenya, continue reading below.
Kenya and Forex Trading
Forex trading is legal in Kenya, and The Capital Markets Authority of Kenya (CMA) has a responsibility to regulate brokers and protect customers. Having this in place means that your trading actions will be safe from fraudulent traders in the space.
Find a Broker
The first step in your online forex trading in Kenya journey is to find an online broker. The broker you choose needs to offer the security of assets, and guarantee your safety, which means avoiding shortcuts at all costs. You need to decide what your needs in forex are and find a broker that can match your requirement.
Forex trading can be confusing for newcomers, which is why having a free trial is essential. Therefore, you should seek a broker that offers a trial fund account, which will help you get to grips with the user interface. To open a fund account with a broker, you will need to provide identity documents, which are required by international laws. Once you’ve been accepted, you will need to add funds into your account – we suggest you start with a small investment.
Make the First Trade
Forex trading comes with a high risk, meaning there’s a large reward potential alongside room for losses. Whenever you make a trade, you need to assess their favourability to your portfolio, and the best way to do this is through technical indicators. A simple tactic requires you to follow two averages for different times, and when they cross over, the odds should be in your favour. Your demo fund account will give you the chance to test your theories.
A high reward doesn’t come without risk, which means practising risk management is essential and will help you to continue with forex trading. You will find many books and websites dedicated to forex rules, and you must learn them because it will help to ensure profits are made.
During your forex journey, you will face losses that you need to accept – the aim of enjoyable forex is to have a net gain. If you follow a solid forex strategy, you will end up benefiting from your patience. If forex trading doesn’t work for you at first, go back to the start and rethink your trading strategy.
Forex trading has seen considerable growth in Kenya, and it’s only expected to continue growing. Starting with forex will take preparation, careful market monitoring, and persistence in the face of losses.