The bid price is the maximum price at which a trader or a broker is willing to buy a forex pair. The ask price is the minimum price at which a trader or broker is willing to sell a forex pair.

One thing to note here is, the bid and ask prices operate differently for brokers or market-makers and price takers or regular investors. Market-makers buy at the bid price and sell at the ask price. Price takers buy at the ask price and sell at the bid price.

The concept of the bid and ask prices is similar to the buying and selling prices of groceries from the perspective of a shopkeeper. As a shopkeeper, the wholesaler's selling price is equal to your buying price. Similarly, when you are selling the same groceries to your customers, your selling price will be equal to your customers' buying prices.

Generally, the bid prices are lower than the respective ask prices. This is because the sellers try their best to make a profit off a trade. It is good for you if your broker has a lower spread, which would mean lower fees for a trade.

For trading in the forex market you need to trade via a broker. The broker's Bid price would be quoted as something like 1. The difference between this is the broker's fees called the spread.

The lower the spread, the better it is for trader. This is because it will allow you to retain more profit or a lower loss. as these can make the overall fees higher even if the spread is low. For ex. And there is Broker B, that has 1. The overall fees would likely be lower with broker B, depending on your trading volume.

The value of your order will depend on the units of a currency traded. Generally these units are referred to as lots. You will see the option to choose the number of lots that you want to trade on the brokers platform. Most brokers allow to trade custom number of lots, for example you can trade 5 Mini Lots, or even 5. Brokers like FxPesa, Exness etc. that offer MetaTrader have this option. Capital Markets Authority CMA of Kenya has made online forex trading in Kenya more regulated now.

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. 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.

But it is still a good place to learn trading. Most Forex brokers have a Live Account Opening page on their website. Live this example from FxPesa's website. 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. 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. 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.

STP or Straight Through Processing is where the broker passes the trades to liquidity providers for execution and gives access to interbank market structure.

Even though having DMA gives you wider access to markets with higher rewards and risks, but finding true brokers providing DMA is difficult and tricky. You should avoid brokers that are market makers as these brokers take position against you.

So any loss that you make with a market maker forex broker is the profit of that broker. All the CMA licensed online forex brokers are 'Non-Dealing' which means they don't operate a dealing desk.

So, they are not market maker brokers. If you are a beginner, you should choose brokers with standard spread accounts only where the broker preferably offers STP accounts like in case of Hotforex. The expert traders can go for ECN type account. These have low fees but commission is charged as per the trading lots. With Zero Account it is 0. So, if you are a trader trading high volume, it would be right decision to open your trading account with Zero Account for saving on the broker's trading fees.

Many brokers offer a lot of options when it comes to opening accounts with them. All these accounts require a minimum account balance. This would ensure that a sizeable position could be taken in trading and a good profit could be earned on positive market movements. However, it should be kept in mind that a position would depend on the balance maintained and the leverage offered by the broker.

Trading positions also depend on the lot size that one opts for. One can trade in Standard lots , units , Mini lots 10, units or Micro lots units. Knowing this information is very helpful as this would help in determining the level of risk one can take and what position to take in the trades.

When you want to know to how to start forex trading in Kenya, there is no shortage of information or resources available including our own. The internet these days is full of articles, blog posts, and even e-books dedicated to forex trading for beginners; but not all are clear about the implications for Kenyan forex traders. With all of this information available, it can be tough to know where to start or what steps to take next.

Before you begin trading forex in Kenya as a beginner, you will need to go through the basics of market fundamentals, technical analysis, and generally gaining a foundation of knowledge on how the forex markets work.

If you fail to learn the basics, you can expect your trading account to fall into negative territory quite rapidly, so do not make that mistake.

We have put together a whole section of the site on how to trade forex for beginners that would be a great place for you to start out before continuing through this guide. Once you are done, feel free to continue through this Kenya forex trading guide.

The first thing you need to do is choose a forex broker in Kenya that can be trusted. We have put together a list of 3 respected tier 1 regulated brokers that you may wish to consider. This process can be as simple as providing a name, an email account, and creating a password with many allowing you to get a practice account set up in as little as 1 minute.

Then you need to select the best platform you will be using for online forex trading. Last Updated: November 21, An Example of How Forex Trading Works in Kenya The Kenyan shilling usually has the code KES and is divided into units known as cents.

The platform is regulated by CMA, CCA, CySEC, and SFSCA. Its offers two types of trading accounts. You can use Mpesa to deposit and withdraw from the account. FX Pesa. You can use the platform on a desktop or you can use its app. You can use Mpesa to deposit and withdraw funds from the platform. Scope Markets. It is regulated by CMA and FSCA. It offers two types of trading accounts, Gold and Silver accounts.

You can use Mpesa to trade on the platform. It is regulated by FCA, FSCA and FSA. It is not regulated by CMA but it is also a good forex trading platform. It accepts Mpesa transactions. With a premium account, you get 1.

PepperStone Kenya. It is regulated by CMA, FCA, ASIC and CySEC. It has an excellent customer support and a local office in Nairobi.

Some of its trading platforms include MT4, MT5 and cTrader. EGM Securities. You can use the platform to trade on other commodities apart from forex.

When you want to know to how to start forex trading in Kenya, there is no shortage of information or resources available including our own. The internet these days is full of articles, blog posts, and even e-books dedicated to forex trading for beginners; but not all are clear about the implications for Kenyan forex traders. With all of this information available, it can be tough to know where to start or what steps to take next. Before you begin trading forex in Kenya as a beginner, you will need to go through the basics of market fundamentals, technical analysis, and generally gaining a foundation of knowledge on how the forex markets work.

If you fail to learn the basics, you can expect your trading account to fall into negative territory quite rapidly, so do not make that mistake. We have put together a whole section of the site on how to trade forex for beginners that would be a great place for you to start out before continuing through this guide. Once you are done, feel free to continue through this Kenya forex trading guide.

The first thing you need to do is choose a forex broker in Kenya that can be trusted. We have put together a list of 3 respected tier 1 regulated brokers that you may wish to consider. This process can be as simple as providing a name, an email account, and creating a password with many allowing you to get a practice account set up in as little as 1 minute. Almost all brokers these days offer demo accounts , which allow you to trade with virtual money before putting any real money down.

This is a great way to get a feel for how the market works and to test out your strategies without any risk. This will also give you a chance to figure out how the charting, indicators, and additional tools and features work before you need them for real! When you are ready to start trading for real, you will want to ensure that your account is properly approved from a broker KYC perspective.

That usually means that you have provided them some proof of identification, and a registered address as standard. Once you have your account confirmed which can be done whilst you are in the demo stage if you wish , you can move on to funding your account using the method you prefer.

It is worth noting that you will likely want to use the same method that you would like to withdraw to, as most brokers will insist that you withdraw to the same account that you deposit from. Even though your account is ready to start trading forex, there are a few things you should keep in mind. Second, always use stop-loss orders to protect your capital, and limit buy orders to get the best possible pricing.

But if you start small, learn the ropes, and use good risk management techniques, you can potentially make a lot of money trading forex in Kenya. The Kenyan shilling is a strong and stable currency, and forex trading in Kenya is growing in popularity.

There are a number of reasons why forex trading is becoming more popular in Kenya. There are also now a growing number of competitive forex trading platforms in Kenya and products that provide a more localised service. The Capital Markets Authority CMA is the body that is responsible for the oversight and regulation of forex trading in Kenya. Whilst there are not a large number of brokers or trading platforms with CMA regulation, those that do should be your preferred choice as a Kenyan forex trader.

This leads us to our clear choice of best forex broker in Kenya. The best forex broker in Kenya is a list that is shortened somewhat by the desire to only show CMA regulated brokers, but that does not take anything at all away from Pepperstone, who in fact top quite a few of our best forex broker lists from around the globe.

Here are a few things that Pepperstone do particularly well:. Feel free to read through the full Pepperstone review to get a better understanding of the complete product range; but you can rest assured that this is a trusted broker for forex trading in Kenya, and one of the best in the World at what they do.

How To Trade — Leverage Forex Learning Zone How To Start Forex trading in Kenya For Beginners. Loading Comments Email Required Name Required Website.

How to trade Forex via MPesa? The currency pair which can give a profit today may incur a loss tomorrow. While it can help you make more profits, it can also magnify your losses. To buy or sell a currency pair, you first have to open a margin account with a broker that offers forex trading services. Many brokers offer a lot of options when it comes to opening accounts with them. This is a good faith deposit a trader must keep in his trading account.

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