This article, curated for both beginner and advanced forex traders answers the most commonly asked questions regarding forex in Kenya. At the end of this read you will be able to answer the questions:
The question regarding how to start forex trading is the most common question in forex communities. Usually, many forex beginners find it challenging to find the right path to start learning and practising forex trading.
Usually, the first step to starting the forex journey is by garnering the necessary knowledge. Therefore, you can start forex trading by first educating yourself on the fundamentals of trading and how the markets operate. This knowledge is all over the internet and YouTube can be a good place to start learning forex. Also, if you like reading, Fineducke has a complete beginner's guide to forex trading. additionally, there is a very good website for forex beginners, it's called Babypips; School of Pipsology. It’s an excellent platform that breaks down forex trading into easy-to-understand lessons. Trust me, it’s worth your time.
After getting the necessary knowledge regarding forex trading, the next step, an important facet to consider before starting forex trading is choosing a reliable broker. A forex broker is a financial services company that links you the retail trader to the global currency markets.
When you find a reliable broker, you will have to register for a trading account. This process involves filling out a form about your personal information and then providing identification documents for verification. After you are verified, you will be given a demo account to practice your skills before you can invest your money and start trading in the actual markets.
N/B Don't start trading using your own money before you have practiced enough using demo accounts.
The amount you need to start forex trading varies from broker to broker. However, the minimum amount to start forex trading is as low as $1. As a beginner, I will not advice to start forex trading with $1 (129.00 Kenyan Shillings), you need a substantial amount that will be able to accommodate the spreads and market volatility.
Therefore, my advice is to start with around $50 (6,450.00 Kenyan Shillings) but if you have enough funds starting with $500 (64,500.00 Kenyan Shillings) is the best.
N/B: Forex is risky due to market volatility, make sure that you trade with money that you can afford to lose.
In the recent past, most of the forex brokers in Kenya have integrated Mpesa as a payment method. This means that you can deposit and withdraw your funds using your phone to your Mpesa account.
Some of the brokers that allow for Mpesa deposits and withdrawals are:
The best trading platform in Kenya depends on your trading style and preferences. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the most widely used platforms, offering a user-friendly interface, advanced charting tools, and automated trading features. These platforms are ideal for both beginners and experienced traders.
Other platforms like cTrader and TradingView are also gaining popularity for their innovative features and ease of use. When choosing a trading platform, consider aspects such as mobile compatibility, analytical tools, and the ability to execute trades quickly and efficiently.
Earning money through forex trading requires a mix of knowledge, discipline, and strategic thinking. Forex traders make money by speculating on the price movements of currency pairs. You buy a currency when you believe its value will rise and sell when you anticipate a decline.
To consistently earn profits, it’s crucial to develop a solid trading plan and stick to it. This involves setting clear goals, managing your risk with stop-loss orders, and avoiding emotional decisions. Market analysis inclusive of both technical and fundamental can help you to make informed trades. Its imperative to keep in mind that forex trading is not a get-rich-quick scheme, you need to be patient and hardworking to be a successful forex trader.
The earnings of a forex trader in Kenya can vary significantly based on their experience, trading strategy, and the amount of capital they are trading with. New traders might start with small profits as they learn the ropes, while more experienced traders with larger accounts can make considerable sums.
On average, part-time traders may earn anywhere from a few thousand to tens of thousands of Kenyan shillings per month, depending on market conditions. Full-time traders who have mastered the art of trading could earn much more. However, it's important to note that losses are also part of the game, and no trader wins 100% of the time.
The forex market operates 24 hours a day, but not all hours are equally profitable. The best time to trade forex in Kenya is during periods of high liquidity and volatility. This typically occurs when the London and New York sessions overlap, which is from around 3:00 PM to 7:00 PM Kenyan time.
During these hours, the market is most active, and currency pairs involving the US Dollar, Euro, and British Pound see significant price movements. If you prefer less volatile markets, the Tokyo and Sydney sessions, which happen late at night, might be more suitable.
Self-education is crucial when it comes to mastering forex trading. Start by reading books, watching educational videos, and following reliable forex trading blogs. There are many free and paid online courses that offer step-by-step guidance on forex trading strategies. Fineducke has compiled a list of top 10 trading books that you can use to kickstart your trading career.
A great way to learn is by opening a demo account with a broker. Using a demo trading account allows you to practice trading with virtual money in real market conditions. Over time, you’ll learn how to analyze charts, interpret news events, and execute trades effectively. Many successful traders attribute their progress to consistent learning and adapting to market changes.
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