Alpari Broker 9. OctaFX Broker 8. Olymp Trade Broker 8. FXTM Broker 8. ExpertOption Broker 8. Best forex brokers in Kenya video. XM Broker. Trading Experience 9. Customer Support 9. Mobile Trading 9. Asset Coverage 9. Fees 9. Security 9. HotForex Broker. Cons Only 56 Shares Are Available. IC Markets Broker. Fees 8. IQ Option Broker.
FX Scouts only works with the best Forex brokers in Kenya. This is the software that you are going to use for trading and will be provided by your Forex broker. Some brokers have their own platforms, but most support third party apps like MetaTrader 4 , MetaTrader 5 and cTrader. The best Forex trading platform is the one that you find the most comfortable to use. So, do not be afraid to shop around and check out different platforms at different brokers. Some brokers will offer more than one type of platform. The best Forex trading platform is the one that you like to use.
Never start trading with your own money straight away. All Forex brokers will have demo accounts , which let you learn how the market works and how your trading platform works without losing any of your own money. They are also great when you want to try out different strategies or trade different currencies without taking any risk. This will be the final piece of the puzzle. Creating a profitable trading strategy will require a good level of Forex education and experience with the markets. Forex trading is risky, but a good Forex strategy will help eliminate some that risk.
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Forex trading is the exchange of currencies to make a profit from fluctuations in the exchange rate. To open a trade, a trader must choose a currency pair, and the direction they expect the exchange rate to move. As the exchange rate between the two currencies changes, the trader can close the trade for a profit or a loss. More detailed information on how Forex trading works is here. This is a contract between you and your broker to pay any difference in the price of the currency pair between opening and closing your trade.
This means that neither you nor your broker need to hold any currency. When people think of trading, they often think of stock trading and believe Forex trading is almost the same thing. But this is incorrect. Stock trading is the buying and selling of shares from individual companies. Forex trading is the simultaneous buying and selling of currencies to profit from the change in the exchange rate.
A couple of other major differences:. Forex trading is not investing. Forex traders never take ownership of the asset being transacted. With Forex trading, the trader is speculating on the future value of a currency pair and to call it an investment would be incorrect. Beginners should learn to trade using a demo account before depositing money into a real trading account. We have a guide full of practical advice to get you started , and more on how to place your first trade.
It will take some time to learn how to trade Forex successfully, as traders need to understand the many components and strategies to be profitable. There are a huge number of Forex trading strategies, in fact, traders keep coming up with new ones all the time.
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The best traders will use many strategies and they will know exactly when to use each one. Forex trading strategies will rely on either fundamental analysis analysing economic trends and news events or technical analysis analysing historical price action on charts. Price Action Trading: This is the study of historical changes in currency prices to predict which way the price is going to move next.
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If you love studying charts and looking for patterns, then price action trading is for you. It relies almost entirely on technical analysis and there are many methods of trading using price action. Range Trading: Range trading relies on figuring out at what point other traders are going to buy or sell a currency.
Like price action trading, range trading relies on technical analysis but also needs a good understanding of the currency pair you are trading. Scalping: Scalping is when a trader opens and closes many trades over the course of a day. The goal is to make lots of small profits. Technical analysis is an important factor with scalping, but the main problem is the time investment required. Scalpers can spend the whole day glued to their trading monitor.
FXTM Pros & Cons
Positional Trading: Positional trading is when a trader holds a position, or several positions, over a long period of time — sometimes for week or months or even years. Positional trading is heavily reliant on fundamental analysis, though technical analysis can be important too. For more detail on analysis and how to use it, we cover strategies and building a trading plan in our learn to trade section. But how much should you start trading with? The answer depends on how much you can afford and how much risk you are willing to take.
Many beginner traders cannot afford to start with a balance of USD, but if you start with an account of USD be aware that it is going to take patience and solid risk management to create a steady income stream. Beginner traders should start with a minimum account balance between — USD. This allows traders to make small profits, while still maintaining a sensible approach to risk.
The more traders are active in the market, the more volatile the market is — and the more volatile the market is, the easier it is to make profits. The two cities with the largest financial markets in the world are New York and London, so the best time for Kenyans to trade Forex is the crossover period when both the London and New York financial markets are open. The two other major markets are the Sydney market and the Tokyo market and trading when these markets are open is also a good approach, though you will have to stay up very late, or get up very early.
For more detail on the best times for trading and how daylight savings time affects the major markets, read our piece the best times for trading Forex in Kenya. Yes, they do. Forex gains are not tax-free income, and all profits are taxable even if your brokerage and capital are overseas. Kenyans are expected to declare taxes just as with any other income either as an individual or a company.
For more on this read our taxation article. Trading Forex and CFDs carry a significant risk that includes losing all the money in your trading account over a short period. You should consider whether you understand how CFDs work and whether you can afford to the high risk of losing your money. The principal risks of trading are:. Risk 1 — Volatility : The Forex market is extremely volatile at times. It is, after all, because of this volatility that we can profit from trades.
But the market can move very swiftly, and this can mean a trade can go against you in a short period. If you are trading, you must actively watch your trades all the time. If you have an open trade, never take your eyes off it. Risk 2 — Unpredictability : The Forex market is not something you can predict. There are just too many factors and actors on the market for it to be fully predictable. Traders need to set a win-loss target ratio where you account for some losses and use a strategy to minimise them.
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