Kenya is the third-largest economy in sub-Saharan Africa, behind Nigeria & South Africa, and one of the most-productive economies across Africa.
Kenya is considered the East African business, finance, & technology hub. Online Forex trading in Kenya is regulated by the Capital Markets Authority (CMA).
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Exness, Tight spreads + leverage up to 1:2000.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
Comparison of the Best Forex Brokers in Kenya
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Regulators | CMA, FCA, FSC Mauritius, FSCA | CMA, CySEC, FCA, FSA, FSC Belize, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | FMA, FSA |
Year Established | 2011 | 2008 | 2005 | 2009 | 2014 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | ECN/STP | ECN/STP, Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 0.6 pips | 1.2 pips | 1.0 pips | 1.3 pips |
Average Trading Cost GBP/USD | 0.2 pips | 0.7 pips | 1.4 pips | 1.2 pips | 2.0 pips |
Average Trading Cost Gold | $0.18 | 11.3 pips | $0.16 | $0.12 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM is among the market-leading brokers for frontier and emerging markets, bringing its experience to more challenging trading environments and serving traders with excellent trading conditions in a safe trading environment. The acceptance of M-Pesa is a bonus for Kenya traders. One of the most significant advantages for online Forex trading in Kenya is the ability to transact in Kenyan Shillings, fully supported by FXTM through local bank wires and M-Pesa. New traders have access to a well-developed educational section, FXTM offers free MT4 add-ons, and maintains a loyalty cash-back program. The asset selection is outstanding for most retail traders, and FXTM uses a hybrid market maker/ECN model, depending on the account type.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- Limited choice of commodities
Exness
In Summary Tight spreads + leverage up to 1:2000Exness offers 24/7 in-app support via the mobile app Exness Trade App. It provides trading signals by Trading Central and market news by FX Street. Traders can use the MT4/MT5 platforms, the web-based Exness Terminal, and an in-house copy trading service. The commission-based account features ultra-low trading fees, and Exness maintains a cutting-edge trading infrastructure that features $4+ trillion in monthly trading volumes. Therefore, I rank Exness among the best Forex brokers in Kenya.
Traders also benefit from a well-regulated trading environment, including a compensation fund covering up to €20,000 per claim available from the Hong Kong-based Financial Commission.
Pros & Cons
- Instant withdrawals, based on the payment system, from a trusted broker with numerous payment methods
- Multi-regulated broker
- 24/7 multi-lingual customer service
- No education for beginners
FP Markets
In Summary ECN trading with leverage up to 1:500I rank FP Markets among the best Kenya Forex brokers as it upgrades the MT4/MT5 platforms with plugins, Trading Central, and Autochartist. The minimum deposit is a reasonable $100, and traders get excellent payment processor choices, including cryptocurrencies. The well-balanced asset selection includes cryptocurrencies, ETFs, and bonds. FP Markets maintains competitive, commission-based trading fees featuring raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot.
FP Markets offers copy traders the in-house FP Markets Copy Trading service, embedded MT4/MT5/cTrader solutions, fee-based Signal Start, and well-known Myfxbook Autotrade. Micro lot trading is also available.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap ensures traders have a distinct competitive edge few brokers can match with Capitalise AI for MT4, enabling algorithmic trading in a code-free environment. It lowers the bar for algorithmic trading, a vital tool for profitable Forex traders. Eightcap also upgrades MT5 with the FlashTrader plugin and offers its AI-powered economic calendar. Therefore, I rate Eightcap among the best Kenya Forex brokers.
The well-balanced asset selection of liquid assets includes 100+ cryptocurrency CFDs. Eightcap connects social trades with 50M+ peers to TradingView. Commission-based trading fees start with spreads from 0.0 pips for a $7.00 commission per 1.0 round lot.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets upgrades the MT4/MT5 with the Autochartist plugin and has no minimum deposit requirement. Traders can deposit and withdraw using cryptocurrencies, making BlackBull Markets one of the most accessible and best Kenya Forex brokers on my listing. Besides MT4/MT5, traders can also use cTrader. The industry-leading asset selection includes 200+ currency pairs with deep liquidity.
Copy traders get the proprietary BlackBull Markets CopyTrader, the embedded MT4/MT5/cTrader services, ZuluTrade, and Myfxbook Autotrade. BlackBull Markets also connects social traders to TradingView, where 50M+ peers share and discuss trading ideas. VPS hosting supports algorithmic traders with 24/5 low-latency Forex trading.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Understanding the Forex Market in Kenya
The young and tech-savvy population is eager to drive its economy forward, many international companies locate regional headquarters to Kenya, and Forex trading in Kenya is swiftly increasing in popularity, amid low capital requirements. The payment processor M-Pesa, launched in 2007 by UK-based Vodafone and Kenyan Safaricom, is a mobile phone-based money transfer, payments, and micro-financing service, targeting the unbanked, further enables access to the financial system. It became the most successful mobile-phone-based financial service in the developing world by 2010.
Forex trading is growing in popularity across Kenya, especially trading on mobile phones. The trend accelerated since the successful launch of M-Pesa, which connected millions of unbanked in Kenya to the formal financial system. There are not many licensed Forex brokers in Kenya, with EGM Securities, the first non-dealing online Forex broker operating out of Nairobi, and SCFM Limited, the second one. While financial pyramid schemes and other scams exist, as with most frontier markets, the Central Bank of Kenya, and the Capital Markets Authority (CMA) are equipped to ensure a trustworthy environment. It positions Kenya as an excellent growth market.
Is Forex Legal in Kenya?
Yes, Forex is legal in Kenya. There are no restrictions on Kenyan traders to open accounts with international brokers, which do not require a CMA license to operate in the country.
Forex Trading Regulations in Kenya
The Forex market in Kenya is primarily regulated by the Capital Markets Authority (CMA), while the Central Bank of Kenya may introduce regulation for the CMA to enforce. The CMA drafted new rules to tighten regulation, including requiring all international brokers to apply for a license, confirm minimum capital requirements, and file quarterly and annual reports with the regulator. It is a further sign of the growth of Forex trading across Kenya.
The CMA (Capital Market Authority)
The CMA has regulated Forex brokers in Kenya since 1989. It grants three licenses, Dealing Foreign Exchange Broker, Non-Dealing Foreign Exchange Broker, and Money Manager. In 2019, the CMA received the Most Innovative Capital Markets Regulator in Africa award. To date, only two Kenyan brokers hold a CMA license.
How to Verify Your Broker is Regulated?
Traders can check the broker's Company Registered Number against the CMA database to confirm of a CMA license was granted.
How to choose a Forex broker as a Kenyan trader
You need to determine what type of Forex trader you are or want to be, and then find the broker offering the right services to you. New retail traders should seek the best educational courses, low-frequency traders commission-free accounts, and high-frequency traders require tight spreads. There are initiatives focused on Forex exchange Kenya to meet the expanding interest in Kenya. Brokers with M-Pesa accounts are preferable, but Skrill and WebMoney are alternative options that connect with M-Pesa. An upgraded MT4 trading platform, superior proprietary alternative, and mobile-focused app are beneficial.
Trading Fees & Commissions
A broker’s cost structure will have a significant impact on your profitability and requires careful consideration.
- Spreads are the difference between the bid and ask prices. They are the most basic cost in Forex trading. Commission-free spreads can be as low as 0.4 pips, while commission-based commence from 0.0 pips. Anything above 1.0 pips, on liquid currency pairs, represents an excessive mark-up.
- Swaps are costs related to leveraged overnight positions, and transparent brokers list their swap rates on their website and the order ticket. MT4/MT5 traders can obtain them directly from the trading platform. They differ across assets and can change frequently.
- Commissions apply to Forex accounts with access to raw spreads, charged per lot, and to equity traders in the percentage of the order value.
- Other fees can consist of deposit/withdrawal fees, currency conversion costs, and inactivity charges.
Trading Platforms
The MT4 trading platform, once upgraded with add-ons, remains the best trading platform for most traders. It fully supports automated trading and has over 20,000 upgrades to improve the trading environment. Some brokers offer excellent proprietary alternatives, while online Forex trading in Kenya is also heavily conducted on mobile phones, for which traders should consider customized mobile apps.
Account Types
Trading from the right account type is essential and will have a significant impact on your trading results.
- The Micro Account is best suited for deposits below $500, where 1.0 lot equals 1,000 currency units. It is excellent to learn trading and test strategies in a live account.
- The Mini Account is ideal for portfolios below $10,000, and 1.0 lot is equal to 10,000 currency units. Most retail traders should manage portfolios from this account.
- The Standard Account is for professional traders and retail traders with deposits above $10,000, with 1.0 lots totaling 100,000 currency units. It usually offers the best trading conditions, a fact to consider.
- The Islamic account does not charge swap rates but can demand higher minimum deposits and wider spreads to cover the shortfall. Make sure to read the terms and conditions.
The Best Time to Trade Forex in Kenya
Interesting Forex trading opportunities can appear at any time while the Forex market is open. However, the best time to trade Forex is usually during the most liquid market hours, and the time of highest liquidity in the Forex market for most currency pairs typically occurs during the London / New York overlap. In Kenya, which is usually two hours ahead of London, these hours occur between 3 p.m. and 7 p.m. local time Monday to Friday. The most liquid days of the week are usually Wednesday and Thursday. The time zone location of the Philippines means that trading Forex in the late afternoon after work can be a great way to get started. If these specific hours are inconvenient, the Forex market is also relatively liquid during the remainder of the New York session, which stretches from 7 p.m. until 11 p.m. local time.
Do Forex Traders Pay Tax in Kenya?
Kenyan tax residents are obliged to pay income tax on all their worldwide income and gains to Revenue Kenya, even if derived from trading with an offshore Forex broker. Income tax in Kenya is charged at marginal rates ranging from 10% to 30%, which is relatively low tax in global terms. During the 2021 tax year, 10% marginal rate was charged on annual income up to 288,000 shillings, and the 30% bank was charged on annual income in excess of 388,000 shillings.
How Can I Start Forex Trading in Kenya?
The first step is making a real attempt at trading Forex successfully. This will require plenty of hard work - if you aren’t prepared to study, you will not be successful at it. Most new traders find this to be a tough process, both practically and psychologically. If you are patient and can spend time alone on a computer figuring out puzzles, then you probably have the right personality and skills to be a successful Forex trader if you are numerate also.
It is very important to accept that you can lose money trading, especially at the start of your learning process. Most traders lose money, you must be better than the average trader to make money. If you are a compulsive gambler, or if you are unable to cope with streaks of losing trades or to limit your risk, you will not succeed at trading Forex.
When you decide to start your journey as a Forex trader, you will need enough money to get started. Although there are some Forex brokers that have zero minimum deposit, to trade safely and limit your risk appropriately you need to deposit at least $12 if you are trading nano-lots, or $120 if you are trading micro-lots. Typically, the more money you deposit with a broker, the better trading conditions you will receive in return.
The final step in starting Forex trading is opening a demo account with the best broker for you, and then after practicing, opening a real money account. You can then choose the best Forex broker for you by reading the rest of this article and assessing each of the Forex brokers listed here.
Which Forex Market is Open in Kenya?
Kenya is two hours ahead of London time, and London is the global centre of the Forex market. This means that Kenya is truly very well-positioned to enjoy the most active and liquid Forex trading sessions.
The London session runs from 10am to 7pm Kenya time.
The New York session runs from 3pm to Midnight Kenya time.
The London / New York session overlap, which is usually the most liquid time in the Forex market and the best time to be day trading Forex, runs from 3pm to 7pm Kenya time.
The Tokyo session runs from 1am to 10am Kenya time.
Forex Brokers Accepting M-Pesa
M-Pesa launched in Kenya in 2007 as a joint venture between UK-based Vodafone Group PLC and Kenyan-based Safaricom, the country’s largest mobile network operator. It grew into the most successful mobile money service in Africa and the biggest FinTech platform regionally. It serves over 20 million users in Kenya, allowing swift transactions from mobile devices, access to the financial system for the unbanked, and ensuring vast availability of the Forex market with easy access.
While the availability of M-Pesa is not widespread with many international Forex brokers, a growing number offer it. Skrill, WebMoney, DusuPay, iPay, MTN Mobile Money, Tigo Pesa, and Airtel Money allow money transfers to M-Pesa in Kenya, offering an alternative to consider. Therefore, traders should check if Forex brokers support any of them if they do not list M-Pesa. The very best Forex brokers in Kenya will ensure that M-Pesa is available, as it represents the most convenient option for Kenyans. With more than 918,500 agents across its network and a total of almost 50 million users in seven countries, M-Pesa booked over 15 billion transactions in 2020.
Kenya heavily depends on agriculture, an underdeveloped sector in the country, with many unbanked citizens. M-Pesa grants access to individuals via a non-bank system by using mobile phones. The young and tech-savvy population relies heavily on mobile phones, making Forex brokers with proprietary mobile apps and support for M-Pesa ideal candidates for Kenyan traders. Forex brokers that accept M-Pesa ensure a broader client reach and penetration while adding another service to the expanding Kenyan financial service sector.
Since M-Pesa relies on a stable mobile network, traders in urban areas will have no issues. Rural areas have coverage, where Safaricom remains the network provider with the broadest access. The success of M-Pesa is likely to result in more Forex brokers that accept M-Pesa.
Customer Service
Most Forex brokers explain all products and services on their website, while an FAQ section attempts to answer the most common questions. For other matters, live customer support resolves issues. Most support is in English, but many brokers deploy multi-lingual staff, per their client-base. Most traders will never require additional assistance at well-managed brokers but having swift access to customer service is essential.
Methodology
We reviewed over 100 brokers based on eleven criteria for more than 200,000 words of dedicated research compiled over 1,000 hours to find the best Forex brokers in Kenya.
