How to Start Forex Trading in Kenya

Forex trading in Kenya is among the fastest-growing industries in the country. Growth in access to both the internet and computers is pushing more people to try their luck in this industry. Hence, this article will focus on explaining how to start Forex trading in Kenya.

Just like in most developing countries, Forex trading is a relatively new concept to the majority of Kenyans. However, the increase of information on the trade is making some investors dive into this industry without a clear understanding of the success requirements.

However, I would admit that the requirements to start Forex trading in the country are simple. What is not simple Is the requirements to succeed in it. Hence, I will try to break them down and hopefully make your journey easier as a Forex trading starter.

There are a few things needed for you to become a Forex trader. These include

1. Forex Trading Knowledge

This is without any doubt the most important requirement you need on how to start Forex trading in Kenya. It is also the main determinant of whether you will succeed or not.

Knowledge entails understanding how the market works end to end to identify a gap and strategy that you can use to become a profitable trader.

It will take you an average of 1 year before you can realize consistent profits. And this is you put in the work optimally. A timeline that most traders never get to. By the way, only about 20% of all Forex traders make money. You can guess what happens to the rest!

Hence, you need to invest your time and resources in getting the relevant knowledge of the markets. This you can achieve through various ways such as;

• Taking formal lessons
• Learning online
• Getting a mentor

There is plenty of Forex trading learning material available. However, as a beginner, you should only focus to identify the basics that are necessary to start you off. These include factors such as

• The Currency pairs to trade
• Basic market analysis tools
• Risk management strategy

You should focus on the basics because what you don’t need is confusion in the early days of your trading. The strategy is to keep learning more as you scale up your trading skills.

2. Capital

As it is with every venture, capital is a requirement if you want to start Forex trading. The advantage though is that you don’t require to break a bank to raise it because you can start with as little as 1,000 shillings.

Capital is also a direct determinant of the amount of profits you make because it determines some key trading elements such as lot size and stops loss. Don’t worry about these terms, they represent some of the areas you should cover when acquiring Forex trading knowledge.

Although you don’t need a lot of capital to start trading, you should note that the money you put in as capital is directly proportional to the amount of returns.

Hence, if you want to make more, you have to invest more. Failure to do so will result in taking unnecessary risks in the market with small capital.

As a beginner, it is advisable to commit little money until you are sure of the trading strategy and have enough experience. The strategy is to ensure you grow the capital as you get better.

The reason why you need to be modest with the capital is that if you get it wrong, you risk losing all your investment within a short period.  

3. Broker

You cannot trade Forex without a brokerage account. A broker is an intermediary who connects both the buyers and sellers in the market. They also offer a platform and the tools needed to trade.

This makes a broker a key element to consider if you want to become a successful trader. There are a few key factors to consider before settling on a broker. However, you need to understand that it requires adequate research to identify them

· Should be legal

As a starter, you should ensure to settle on a broker that operates within the law. A legal broker in Kenya is one with a license from the Capital Market Authority. The government body is in charge of licensing and regulating brokers.

Trading with a legal broker is key to minimizing the chances of losing your funds because there are checks and balances and you can also get legal remedies in case of illegal dealings.

· Affordability

Most brokers offer their services and platforms at a fee. Fees increase the cost of trading. Hence, you should settle on a broker that is affordable and competitive in the market.

Reduction of trading costs ensures more profits. A goal that I believe all traders seek to achieve. Some of the fees and costs from brokers include monthly fees, spread fees, and Deposit and withdrawal charges.

These are e just some of the costs brokers charge. However, they differ between brokers. For a starter, you should strive to keep costs at the very possible minimum.

· Support services

It is a requirement for brokers to offer support services to their customers such as training and regular market updates.

These services are key to a beginner trader as they make the trading journey easier making it critical to settle on a supportive broker.

The Forex market is very dynamic and requires an understanding of complex market information. As an individual, it is difficult to gather all the market information as compared to a well-staffed entity such as a broker.

Hence, a good broker should not only offer a trading platform but also market information relevant to making you a successful trader.

Conclusion on How to Start Forex Trading in Kenya

With the increase in access to the internet and globalization, Forex trading is expanding by the day. Everybody stands a chance to succeed in the market as long you put in the work needed to ensure success.

The above factors represent some of the key elements that you require to get into this game. It is key to remember that Forex trading is a global industry.

The Kenyan market is growing hence the numerous opportunities to grow with it. Remember it all begins with baby steps. If you have the will and are willing to put in the work, go for it.

Stay around for more exciting and informative articles on Forex trading.