What links you and a forex market?
For one to participate in forex trading, there must be a link that connects you to a forex market. The link is known as a forex broker whose major role is to connect every individual with the largest financial market- forex market.
Which is your best forex broker?Most beginners have a problem while making a decision on a good broker. I have seen traders complain on social media because of certain forex brokers who do not go along with their expectations.
Choosing a good broker is always be an advantage to you.Some tips every trader should consider before choosing a broker are with no exemption of;
a) The deposit and withdrawal process and the transaction fees charged.
b) Whether the broker is from your country and registered or not.
c) The number of currency pairs the broker provides.
d) The level of leverage provided.
e) The effectiveness of the customer service provided by the broker.
f) The terms and conditions of the broker.
g) The user reviews can also help you to choose an appropriate broker. Almost all brokers have an app on Google Play Store, you can check the user reviews from there.
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Which are available Brokers in Kenya?
There are so many forex brokers operating in Kenya. I will first introduce a few. Then, I will mention more as we analyze their features.
The forex broker not only deals with currency pairs but also with currency derivatives for both institutional and retail level traders. Hotforex also provide different account types, tools, and trading software to facilitate trading for their clients.
As a trader, one can access various spreads and the major advantage is that it provides fast execution of trades. Hotforex provides everyone a chance worldwide to trade.
Also known as EGM Securities. The great advantage of FxPesa is that it helps newbies become expert traders through free training contents such as webinars. The broker provides over 60 currency pairs for traders.
Deposits and Withdrawals are done through Mpesa, Airtel Money, Equitel, and MasterCard. The broker has a global reach though still locally regulated in Kenya.
The major advantage of this broker has a welcome bonus of 30 USD upon verifying your identity and depositing at least 10 USD to your account.
Exness has a fast and simple registration. This 7broker provides more than 130 instruments. Traders have the advantage of instant and simplified deposits and withdrawals. Further, investors can control execution of trades which has increased confidence to investors on the broker.
Their mobile applications are available on both Google Play Store and app Store. Initially Exness accepted Mpesa transactions but nowadays they don’t.
5. Forex.com – Great platforms and pricing
6. IG – This is the overall Best broker currently.
7. XTB – Best customer service, great platform
8. Pepperstone – Numerous copy trading platforms
10. Interactive Brokers
Which criteria do I use to choose a good broker?
First, I will first expound on what makes one broker different from the rest. Later we will do some detailed analysis among different brokers. This will help you know which broker suits you.
1. Minimum Initial Deposit
All brokers have a minimum deposit required for one to trade with a real account. Some may have a deposit as low as $1. Its important to note that minimum Initial deposit is different from minimum trading amount.
2. Banking Services
Different brokers provide different banking services. Its important to choose a broker who has your choice of banking for easier deposits and withdrawals.
3. Authorization and Regulation
All these brokers in my list are regulated and licensed. By simply downloading the list of licenses, provided by CMA website, you can determine whether a broker is authorized or not.
4. Number of currency Pairs, instruments and derivatives
There a wide variety of currency pairs every broker provides. Some of them further provides assets such as metals and Cryptocurrencies for traders.
5. Effectiveness of customer care
Different brokers have a different level of customer care services. Research shows that XTB has the best customer care services.
6. Average Spread
Spread is just the difference between the ask price and the selling price. Spreads are based on buy and sell price of various currency pairs. Different broker have different trading platforms. Thus will have varying average spreads. Brokers who provide emerging market currency pairs are seen to have a greater spread than those who still hold on to major currency pairs.
7. Ratings and Reviews
Since most brokers have enabled trading to take place at the comfort mobile apps available on play store. Most ratings and reviews have been done by their users.