Online trading gives users access to the largest markets in the world. In particular, in Kenya, there are more than 100,000 registered traders. Next, we will look at the best binary options trading platforms in Kenya and show you how to start trading online.
How the Kenyan stock market is regulated?
Online binary options and Forex trading in Kenya are safe and not prohibited, and each trading company is regulated by an authority. There are several regulators of the capital and securities markets in Kenya, including the online stock market. Thus, the main state authorities developing and supervising the stock market in Kenya are the Capital Markets Authority of Kenya (CMA) and the Nairobi Securities Exchange (NSE). Investment Banks, Credit Rating Agencies, and licensed intermediaries (dealers, brokers, investment and fund managers, advisers) also operate on a Kenyan stock market.
Note! Who is the main regulator of online Forex trading in Kenya? The CMA is the government financial agency that licenses and supervises the activities of market intermediaries, including the stock exchange.
Nairobi Securities Exchange (NSE)
The Nairobi Securities Exchange (NSE) offers trading facilities for thousands of local and foreign investors, where they can trade various financial instruments. There are shares from almost all sectors of the economy traded on NSE, including the banking and investment sector, agricultural, telecommunications, manufacturing, and others. In the 2000s, NSE’s trading mechanism was automated, and today investors can trade on this stock exchange online for example, through the iTrader trading platform from SBG Securities.
Note! Nairobi Securities Exchange is the leading stock exchange in East Africa.
How to invest and trade online in Kenya?
As you can see, the Kenyan stock market does not differ from other markets worldwide. To start online trading in Kenya, you need to take the following steps.
- Step 1. Choose the trading instruments and investment options
If you want to start online trading, you need to choose how exactly to invest money. You can trade online with commodities, stocks, currency pairs, or even cryptocurrencies. Many new and experienced traders prefer to trade on a Forex market. This market has a low entry barrier compared with other markets, but, at the same time, it is highly volatile.
- Step 2. Choose an online broker
In Kenya, you cannot directly trade in the financial market like in other countries. All deals should be made through authorized brokers. Therefore, to start online share trading, you must choose a broker and open a trading account. Depending on the financial market, you need to choose the broker with the license that will give access to the particular market, for example, the Forex market.
There are many brokers available in the market, and you need to compare their fees, deposit and withdrawal terms, the broker’s reputation, and history. Below we have prepared an overview of some of the best trading sites in Kenya.
- Step 3. Open a trading account
After choosing a broker, you need to open an online account to be able to invest money and trade in the financial market. Brokers offer different trading accounts depending on the trader’s needs and preferences. For example, Forex brokers usually offer ECN accounts that allow direct market execution at low fees.
- Step 4. Know-your-customer procedure
When choosing the broker and opening a trading account, the next step is to complete the so-called “Know-Your-Customer” (KYC) procedure. It is a mandatory verification process you need to pass to access online investing and stock trading. Usually, this process takes one to two days, and your trading account becomes active after its successful completion.
- Step 5. Start making your first trades
After you have completed all the previous steps, your broker can start making trades on your behalf. For example, you can open a EUR/USD trade in the Forex market. At the same time, do not forget to keep track of the last news and analyze the latest market trends. Even insignificant information can start the price movements.
Forex market and Binary options
As we have already mentioned, the Forex market is one of the most popular financial markets today. For the last years, many traders have preferred to use binary options while trading in this market. In simple words, binary options allow users to trade through only two results – YES or NO, that is why they are called “binary”.
Using this financial instrument, you can predict if the asset’s market price will go UP or Down. If you think the price will go up, you can say “Yes”. And vice versa, if you think the price will fall, you say “No”. If your forecasts are correct, you can earn some additional income.
The secret to binary options’ popularity is their simplicity and effectiveness. That is why it is a helpful tool for both beginners and experienced traders. Many brokers offer their clients the best binary options for trading. Below we have prepared an overview of the famous online brokers in Kenya that offer their clients various tools for binary options, currency trading, etc.
Best trading sites in Kenya
What defines a good online broker? First of all, good firms provide excellent services to their clients. They have fair fees, easy depositing and withdrawing, fast account opening, and a wide range of products. We made an overview of the best online Forex trading companies in Kenya and summarized our conclusions below.
Binomo is a well-known and trusted online investment platform that works in more than 130 countries, including Kenya. It has a certificate under category “A” from the Financial Commission and awards for excellence. Users can choose from 12 languages, and more than 70 assets are available for trading (depending on account type).
Today Binomo is one of the reliable trading platforms in Kenya, and here are some of its benefits:
- The trade can be opened from $1.
- The modern Fixed-time trades mechanic.
- Binomo’s software allows making several trades simultaneously.
- You can trade 24/7 and 7 days a week.
- Some bonuses for depositing your account may be received. For example, Binomo gives every new user a welcome bonus of 25% and plenty more.
- Searching for trading education? The Binomo blog is here to get you covered.
In addition to free training, here’s Help Center (it’s like traders Wiki) and online support.
IQ Option is another safe and legal broker popular among traders in Kenya. Its application works in 20 countries, and it has an excellent reputation. Also, this platform has the following benefits:
- The minimum deposit starts from $10.
- It has a demo account.
- Over 11 million users from all around the world have registered their accounts on the IQ Option platform.
Olymp Trade is another globally known online broker working in the Kenyan market. This broker is regulated by International Financial Commission (IFC) and has an excellent reputation. It has the following benefits:
- Minimum deposit from$10.
- Free demo account.
- Additional training and educational materials for beginners.
- Handy mobile app.
Hot Forex is one of the best companies in Kenya, and here are a few reasons for this:
- This online platform has more than 350,000 accounts.
- Hot Forex is a winner of 18 different awards in its industry.
- Users of Hot Forex can enjoy free contests with various prizes.
- It has a loyalty program for traders.
XM is also a top-rated broker for online trading in Kenya. Traders point out the following benefits of XM:
- The platform works according to the regulations of the FCA.
- It offers ultra-thin spreads.
- It has good leverage options and a bonus program for traders.
Choose the right online broker and trade safe in Kenya
As you can see, you can trade safe and get some additional money online when you choose a reliable broker. Kenyan financial markets are growing, and many world-class brokers entered this market. They also create healthy competition, accelerating the Kenyan market’s development.
At the same time, you should remember that trading on financial markets, such as Forex, implies both benefits and financial risks. There are no trading methods or techniques that can eliminate these risks. Therefore, you should be careful with their online investments in Kenya and other countries.