CMA Regulated Forex Brokers in Kenya
In recent years, forex trading in Kenya has witnessed a significant surge in popularity. While there are inherent risks involved, Kenyan citizens, especially the youth, see this as a way to earn an extra income. Moreover, some traders take forex trading as their full-time job allowing them some financial independence despite the risks involved. For both kinds of traders, choosing a regulated and reliable broker is paramount. Luckily, forex trading in Kenya is fully regulated by the Capital Markets Authority. It plays a crucial role in overseeing and regulating the forex market to ensure fairness and transparency.
In this review, we will take a look at some of the best CMA-regulated forex brokers in Kenya. We will shed light on key factors such as regulation, trading platforms, spreads, and the availability of trading instruments. Let’s jump in.
Understanding Forex Trading in Kenya
Before delving into the specifics of CMA-regulated forex brokers, it's essential to have a clear understanding of forex trading and its landscape in Kenya. In Kenya, forex trading has gained traction due to its potential for profit, accessibility, and the convenience of online trading platforms. However, it involves a lot of risks involved and proper risk-management techniques are necessary. Either way, forex trading in Kenya is fully legal and is under the regulation of the Capital Markets Authority (CMA).
The CMA is an independent public agency that was established under the Capital Markets Act in 1990. It is responsible for regulating and supervising capital markets in Kenya. Its prime responsibility is regulating and developing an orderly, fair, and efficient capital markets environment in Kenya. Forex brokers operating in the country must adhere to CMA regulations to ensure investor protection and market integrity. Choosing a CMA-regulated forex broker provides traders with an added layer of security and confidence in their trading activities. Moreover, traders can always check the license status of a company on the CMA’s register of all licensed institutions.
Now with that said, let’s take a look at some of the best CMA-regulated forex brokers in Kenya.
Exness is a global forex and CFDs broker with a strong presence in Kenya. This broker is fully regulated by the CMA under the name Tradenex Limited with license number 162. As such, this broker is a prime choice for Kenyan traders. Moreover, the company has regulations in other jurisdictions by reputable organizations. These include the FSCA in South Africa, the FCA in the UK, and the CySEC in Cyprus, among others.
Moreover, traders in Kenya have access to diverse market products from four main global markets. They can trade CFDs forex, commodities, indices, and stocks. These different markets allow traders to diversify their portfolios without leaving the broker site. The trading platforms available to access these markets include MetaTrader 4, MetaTrader 5, Exness Terminal, and Exness Trade App. These platforms cater for all kinds of traders, both mobile and computer users.
Better yet, Exness offers some of the lowest spreads in the market today. On this broker site, traders have a choice between five different trading accounts. The standard account and the standard cent account both feature spread as low as 0.3 pips for major currencies with no commissions paid. The zero account has spreads from 0.0 pips with a commission starting from $0.2 upwards. The raw spread account has spreads from 0.0 pips with a commission of $3.50 per side per lot. Lastly, the pro account simply features spreads from as low as 0.1 pips with no commissions.
Remember that forex and CFDs available at Exness are leveraged products and can result in the loss of your entire capital.
Please ensure you fully understand the risks involved.
Pepperstone distinguishes itself from competitors by offering some of the fastest order execution times in the market. For traders in Kenya, they enjoy an average order execution time of less than 60 milliseconds. This fast execution time is ideal for traders in the fast-moving financial markets. Better yet, traders can invest in a variety of markets including forex, indices, commodities, shares, ETFs, and cryptocurrencies.
The spreads on this broker site are competitively low and manageable. The standard account on the broker site has spreads from as low as 1.0 pips on major currency pairs with no commission charged. In contrast, the razor account has spreads as low as 0.0 pips with a commission depending on the platform a trader uses. When using MetaTrader 4, MetaTrader 5, and TradingView, the commission sits at $3.5 per side per lot. When using cTrader, the commission is $3 per side per lot. With such charges, it is easy to see why Pepperstone is one of the best ECN brokers in the world, not just in Kenya.
Furthermore, this broker is under the regulation and supervision of several organisations in the world. In Kenya, the company is under the regulation of the CMA with license number 128. The broker is also regulated by the ASIC in Australia, the FCA in the UK, the BaFin in Germany, and the DFSA in Dubai.
75.5% of retail CFD accounts lose money
FX Pesa is another notable CMA-regulated forex broker in Kenya. The broker operates under the regulatory oversight of the CMA with license number 107. Additionally, the broker is under the regulation of top-tier organisations such as the FCA and the CySEC.
There is a range of products available to trade on this broker site. These include CFDs forex, indices, commodities, shares, and ETFs. This allows investors to spread their risk across various markets. The broker offers two main account types to cater to different trading preferences. The Executive account is commission-free and charges spreads from as low as 1.4 pips for major currencies. In contrast, the Premiere account has spreads from as low as 0.0 pips with a commission of $3.5 per side per lot. The trading platforms available include MetaTrader 4, MetaTrader 5, and Equitri Trader App. The availability of these platforms ensures a seamless trading experience, whether on desktop or mobile devices.
Admiral Markets is a prominent CMA-regulated forex broker that has established a strong presence in Kenya. The broker ensures compliance with regulations and is fully regulated by the CMA under license number 183. Additionally, the broker is under the regulation of the FCA in the UK, the ASIC in Australia, the FSCA in South Africa, and the CySEC in Cyprus.
Traders on the Admiral Markets platform benefit from a diverse range of trading instruments. Specifically, traders have access to CFDs on forex, commodities, indices, stocks, ETFs, and bonds. As such, traders don't need to leave the broker site to invest in multiple markets at the same time. Moreover, they can use a plethora of trading strategies. As an example, Admiral Markets is one of the brokers that allow hedging.
Further, the broker offers different accounts that charge different fees when trading. The Trade.MT4 and the Trade.MT5 accounts both feature spreads as low as 0.5 pips for major currency pairs. In contrast, the other three accounts have spreads from 0.0 pips and commissions of between $1.8 to $3 per lot depending on the account. This diversity is also seen in the trading platforms available. The trading platforms offered include MetaTrader 4, MetaTrader 5, and the Admirals Platform.
Next up is Windsor Brokers. This broker site operates in Kenya under CMA’s regulation with license number 156. It has a long history in the market and is regulated by other organizations around the world. These include the CySEC and the FSA in Seychelles. The regulations from the CySEC are especially noteworthy due to the rules that brokers have to follow to receive a license from this organization.
With this broker, Kenyan traders gain access to a plethora of instruments. They can trade CFDs on forex, cryptocurrencies, indices, commodities, treasuries, energies, shares, metals, and ETFs. With such a collection of market instruments, it is easy to see why Windsor Brokers attracts many investors.
Moreover, this broker offers traders two main trading accounts to choose from. The Prime account allows traders to invest with spreads from as low as 1.0 pips for major currencies with no commission charged. On the other hand, the Zero account features spreads as low as 0.0 pips for majors with a commission of $8 per round turn. The trading platform available to use is the MetaTrader 4 and the Windsor MetaTrader 4.
HFM is a well-known broker with regulations from various organizations around the world. This broker has a presence in Kenya and is fully regulated by the CMA with license number 155. It is also subject to regulation and supervision by the FCA in the UK, the FSCA in South Africa, the CySEC in Cyprus, and the DFSA in the Dubai International Financial Centre. Regulations alone are never enough. Nonetheless, this is impressive, to say the least.
In terms of trading instruments available, clients of this broker are spoilt for choice. In particular, HFM gives clients access to over 1,000 market products. These include CFDs on forex, metal, stock, indices, commodities, energies, ETFs, and bonds. The platforms available to use include MetaTrader 4, MetaTrader 5, and the HFM Platform.
Further, the broker offers competitively low spreads on its various accounts. There are four different accounts. These include the cent, zero, pro, and premium accounts. The cent account and the premium account have spreads from 1.2 pips with no commissions. On the other hand, the pro account has spreads from 0.5 pips with no commissions. Finally, the zero account has spreads from 0.0 pips plus a commission from $0.03 per 1k lot upwards.
Ingot Brokers is another broker with a strong presence in Kenya. Luckily for Kenyan traders, this broker is under the regulation of the CMA with license number 173. On top of that, the broker is regulated by one of the most reputable organizations in the world, the ASIC in Australia. This helps in winning the trust of investors.
Moreover, the broker site allows investors to trade a variety of market products. These include forex currency pairs, commodities, stocks, indices, and ETFs. However, the only platform available to use is the Ingot Brokers in-house-built trading platform. It is available on all kinds of devices including PCs and mobile, and is also available as a web app.
Notably, there are only two trading accounts available for traders to use. These include the ECN account and the Pro account. The ECN account features floating spreads plus a commission of $7 per round trip. The Pro account only features floating spreads when trading with no commission required. Interestingly, the broker does not reveal the minimum spreads traders can expect on its site.
Scope Markets will close out our list of some of the best CMA-regulated forex brokers in Kenya. This broker operates under CMA’s regulation with license number 123. While not regulated elsewhere, Kenyan traders will be satisfied that the broker is under the watchful eye of the CMA in their country.
The market products available on this broker site are noteworthy. The broker allows its clients to trade CFDs on forex, stocks, indices, shares, and commodities alongside physical shares. There are plenty of options for traders who want to diversify their investment portfolios. The sole trading platform available to use is MetaTrader 5.
Like the other brokers on this list, Scope Markets also offers traders different accounts that fit different types of traders. Specifically, the broker site offers clients two accounts which include the Silver account and the Gold account. The EURUSD pair has a minimum spread of 1.1 pips on the Silver account. This account does not charge traders any commission when trading. In contrast, the EURUSD pair has a minimum spread of 0.2 pips on the Gold account. However, this account charges a commission of $3.5 per side per lot.
Choosing the best CMA-regulated forex broker in Kenya requires careful consideration of various factors. These include regulation, trading platforms, fees, and assets available, among others. The brokers on this list are among the top brokers that meet these criteria. We believe that they provide Kenyan traders with a reliable trading environment. Nonetheless, we understand that every trader has their own needs and welcome every reader to do their own research before committing to investing. As the forex market continues to evolve, it's essential for traders to stay informed about regulatory updates, market trends, and risk management strategies.