Forex trading is becoming a viable alternative method of making money in Kenya. For some, forex trading is a lucky path to millions. To others, it is a risky adventure into darkness.
We have good news for you – it is possible to earn a lot of money through forex trading in Kenya as long as you exercise patience and discipline. However, as we always say, good is not good enough; you need excellent analysis to make profits in forex.
How to start forex trading in Kenya
To trade forex in Kenya, you require a trading account with a forex broker. The only regulated forex broker in Kenya is FxPesa, but there are so many other brokers regulated abroad. You can choose from Forex.com, FXTM, Xness, Olymp Trade, FxPro, Instaforex, etc. It is extremely important to choose a credible forex broker to avoid risks and losses.
Read: How to choose a forex broker in Kenya
The next step is to open a demo account with the broker you chose. A demo account allows you to practice forex trading until you master a strategy that works for you. While demo-trading, you should use various strategies. There are various blogs and YouTube videos which offer lessons on forex trading analysis. You should study as many trading analysis as possible and apply them in your demotrading.
Forex Education: Learn How to Trade Forex Using Proven Strategies
After 3 months of doing demo, you can open and fund a live account. Do not be deceived by the profits you made in the demonstration account. When it comes to using real money the stakes are high, and you can easily be charged up emotionally. As you will learn in your forex lessons, risk management requires emotional stability and soberness.
To trade forex with relative success, you require a working strategy. You will draw charts, identify points of interest, and take a position based on your analysis. Poor analysis can lead to wrong decisions.
Forex trading involves leverage, which means that you use a small amount of capital to execute large volumes of trades. This multiplies your profits or losses in manifold figures. You can earn or lose as much as KES 10,000 in minutes. Therefore, you must ensure that you have a trading plan that maximizes your profits and minimizes losses.
One of the key aspects of a successful forex trading is timing. You should know the best time to trade forex in Kenya. Usually, the best time is when the liquidity is high, especially London session from 11 AM Kenyan time and New York Session (5 PM Kenyan time).
What is required to start forex trading in Kenya?
To get started with online forex in Kenya, you should have the following:
- Modern device with internet connectivity
- Capital (as low as KES 1,000 depending on your broker)
- Knowledge of forex trading. You can read online about forex trading.
- An online forex trading account
Steps to follow when opening a forex trading account:
Once you have acquired equipment, capital, and skills, you now need to follow these steps to open a trading account in Kenya:
- Choose your broker – consider credibility, cost, trading platform, and payment methods.
- Open an online demo account to train yourself first before using real money
- Open a live forex account after mastering your trading strategy
- Make deposit using the method of payment accepted by your broker. FxPesa is convenient in terms of deposits and withdrawals in Kenya because it accepts M-Pesa, and payments are instant. Some accounts take days for payments to be processed.
- Download the trading platform used by your broker e.g. Meta trader 4 or Meta trader 5.
- Start trading at the comfort of your home.
Remember: when trading forex you should be disciplined and stick to your trading strategy. Greed can kill you in forex trading. Take profits or stop losses at the right time to minimize risks. If you end up taking losses consistently, then it is time to reconsider your strategy. A working strategy should earn you income consistently, but losses are unavoidable once in a while.
They say 70% of Forex Traders make losses. Trade responsibly. Do not spend money you cannot afford to lose.
Trading without a strategy is like supporting arsenal without antidepressants.