If there’s one industry that is turning young Kenyans into millionaires, it has to be the online forex trading market. But how exactly can you start investing on the global forex market?
Let’s start with the very basics.
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What’s Online Forex Trading in Kenya?
You probably already have an idea of what online forex trading is, and what it is not. So, I’ll cut to the chase.
Forex trading is a high risk/reward investment where you speculate whether currencies of the world will appreciate or depreciate in the short term. If your speculation is correct, the reward/return is something to smile about. The opposite is also true.
However, risk in forex trading can be mitigated by having a prudent trading strategy and sticking to it while it is working.
If you’re a beginner in online forex trading, it might take you a few weeks or even months to muster and become profitable at it. But no worries. Rome wasn’t built in a day. And online forex trading remains one of the best ways to make quick money in Kenya.
In this beginner’s guide, I am going to cover the step by step process on how you can start forex trading in Kenya.
Steps to Start Forex Trading in Kenya
Many aspiring forex traders fail because they do not have a step by step guide to follow. That’s why I decided to come up with this guide that will show you step by step what you need to do in order to be a successful forex trader in Kenya.
- Learn the basics of online forex trading
- Choose a trading platform and learn it
- Open a forex trading account with a reliable forex broker
- Practice trading on a forex demo account
- Organize the necessary capital to start trading
- Open your first trade
- Keep track of your trades and progress
Step 1: Learn the Basics of Online Forex Trading
The first step is the most important and it will take you the most effort.
Luckily for you, the cost of internet in Kenya has become ever so low, and accessibility to information is something you no longer have to worry about. This is unlike when we were personally trying to learn how to trade in 2012. Information was scarce. Internet was a special reserve for the wealthy. But those days are long gone.
Assuming that you have an internet enabled device, here are some of the places where you can learn forex trading in Kenya for free:
1. Forex Broker Websites
Believe it or not, most forex brokers want you to become a successful trader. They will go out of their way to create very informative online courses that they offer absolutely free of charge.
HotForex is a good example of a forex broker who places great emphasis on forex education. They have a very up-to-date online trading course that you can use to learn everything about online forex trading.
To access the complete forex trading course, all you need to do is create a demo or live account on HotForex.
With HotForex, you do not even have to fund your account to start learning. All you need is either a demo or live trading account. Click here to open a live account at HotForex. Or read this HotForex Kenya review on our sister website, Kenya Forex Firm.
Apart from the online courses offered by forex brokers, most of them will also organize live trading webinars where you get to learn how to trade forex from some of the most successful forex traders in the world.
Locally, FxPesa by EGM Securities is doing very informative forex webinars. Make sure to sign up for their newsletter or follow them on social media to get informed when they are holding their next webinars.
We also have to applaud XM Forex for their live trading webinars. And please, don’t feel uneasy about signing up with all these forex brokers to enjoy the freebies they have on offer. The online courses and webinars are there for you, their client.
2. Free Online Courses
BabyPips has made a name for itself as one of the best free forex trading course that’s available online. Visit many forex forums in Kenya and you’ll hear it. If you want to learn how to trade, start at BabyPips.com
While it is not as information rich as the course offered by HotForex, the babypips online course is best suited for forex beginners in Kenya. So, make sure you check it out.
3. YouTube Videos
Can you learn forex on YouTube?
Yes. YouTube is one of the best and free ways to learn forex trading. In fact, YouTube is solely responsible for creating some of the most successful forex traders in the world. There are a number of very informative YouTube channels including Adam Khoo, Meir Barak, and Rayner Teo.
YouTube has some very informative traders. The only downside is that unless you know exactly what you’re looking for, it can get pretty confusing trying to learn from YouTube. One trader will tell you this while another one tells you a completely different thing.
To make learning on YouTube more cohesive, we recommend that you choose two or three successful traders to follow. Some of our recommended
Step 2: Choose a trading platform and learn it
As you’re learning how to trade forex, you’ll come across a few trading platforms. The most popular ones out there are MT4, MT5, and cTrader.
It’d be foolhardy to try and muster how to use all the different trading platforms. As a beginner, just choose one of them and roll with it.
MT4 and MT5 are the most popular forex trading platforms with forex traders all over the world. But cTrader is making a name for itself as being one of the most versatile trading platform.
The only downside with cTrader is that not many forex brokers support the platform. The only logical choices left for you is either the MT4 or MT5 platforms.
So, what are the differences between MT4 and MT5, and why would you choose one over the other?
- MT4 is primarily designed for tradeable forex instruments (currencies and some commodities) whereas MT5 is a state of the art forex trading platform that supports both forex instruments and non-centralized financial markets including stocks, bonds, and futures.
- The MT4 platform only supports hedging. In contrast MT5 supports hedging and netting. Netting is a concept in forex trading that combines multiple open orders into one. For instance, if you were to buy 1 lot of EUR/USD and later open another position in the same market, the two positions become one.
- MT5 is faster than MT4. MT4 uses an obsolete 32-bit mono-threaded technology while MT5 uses a 64-bit multi-threaded technology that makes it faster.
Bottomline: MT5 is the best forex trading platform for beginner forex traders.
Step 3: Open a Forex Trading Account With a Reliable Forex Broker
There’s a multitude of forex brokers online, and you’ll need to open an account with one in order to start trading.
Who’s a Forex Broker & Why Do You Need One?
A forex broker is a financial services company that connects traders with the interbank market. The broker provides a platform for retail traders to trade currencies and other commodities.
How to Start Forex Trading in Kenya – Recap
Many aspiring forex traders fail because they do not have a step by step guide to follow. That’s why I decided to come up with this guide that will show you step by step what you need to do in order to be a successful forex trader in Kenya.
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Learn the Basics of Forex Trading
Like with any other career, knowledge and skills are the most important. You can’t be successful with online forex trading unless you take the time to learn and muster the basics of trading.
There are several ways you can use to learn how to trade forex in Kenya. They include
– Free YouTube Videos
– Paid Online Courses like the ones offered on Udemy
– One-on-one classes like offered by Kenya Forex Firm
– Online Courses by forex brokers. -
Choose a Trading Platform and Learn It
As you’re learning the basics of online forex trading, you’ll come across such terms as MT4, MT5, Trading View, and Ctrader. All these are forex charting and trading software. You’ll have to choose one and learn its ins and outs as you’ll need it when trading.
Most forex traders in Kenya traders prefer to use either MT4 or MT5.
These are the platforms that will help you place your orders on the online forex market. -
Open a Forex Trading Account
In order to start forex trading, you’ll need to open an account with a reliable forex broker. Make sure that the forex broker you choose has been in the market long enough.
Additionally, ensure that the forex broker you choose has tight spreads.
However, I do not wish to hype forex trading as a way to get rich quick. There’s no such thing as overnight success if you’re to build true wealth in Kenya.