Due to the risks involved with traders using unregulated brokers, Kenya’s financial regulator, the Capital Markets Authority (CMA), has formulated a plan to provide a legal framework for online forex trading.
This is is being done through amendments to the Capital Markets Act. The Act dictates that any person or business which wishes to conduct business as an online broker must be have an online forex broker’s licence granted by the authority. The Capital Markets Authority has strict requirements that applicants must fulfil before they are granted with such a certificate.
The forex market is the largest financial market in the world. In recent years, it has experienced traders emerging from developing countries. The forex market in Africa has surged with more brokers welcoming traders from African countries, even Exness, which is one of the biggest forex marketers in the world opened an office in Seychelles.
For Kenyan traders who are looking for brokers regulated by the CMA, the list will provide valuable insights. Traders can evaluate and see whether any of these brokers meet their trading needs or objectives.
EGM Securities
EGM Securities is an online trading broker based in Kenya, offering traders with a variety of financial instruments which can be traded along with MetaTrader 4, a variety of trading account options, a range of trading instruments, and a variety of reliable payment methods through which deposits and withdrawals can be made.
| PROS | CONS |
| Strictly regulated by CMA | US clients not accepted |
| Selection of educational resources provided | MetaTrader 5 not offered |
| Range of useful trading tools | Spreads and commissions are not the lowest |
| MetaTrader 4 offered | |
| Multiple financial instruments |
Also See >> The Basic Principles of Technical Analysis in Forex Trading
FxPesa
FxPesa is a Kenyan-based broker which is also the retail arm of EGM Securities, operating as an online broker under the same CMA regulation. FxPesa offers traders with a standard account and maximum leverage of up to 1:400. The spreads that traders can expect start from 1.6 pips and traders have access to trade more than 60 forex pairs.
Pros and Cons
| PROS | CONS |
| Strictly regulated by CMA | US clients not accepted |
| Low minimum deposit requirement | Higher spreads |
| Adequate leverage offered | MetaTrader 4 not offered |
| Variety of forex pairs to trade | Skrill not offered as payment method |
| Various non-forex instruments offered | Cryptocurrency trading not offered |
SCFM Limited (Scope Markets Kenya)
SCFM Limited, also known as Scope Markets, is a CMA-licensed online forex broker which operates in Kenya. When trading with Scope Markets, traders can expect spreads from 1.1 pips EUR/USD on the Silver Account, fairly low minimum deposit requirements, adequate leverage, and a variety of financial instruments which can be traded.
Pros and Cons
| PROS | CONS |
| Regulated by CMA | US Clients not accepted |
| Low minimum deposit requirement | Only two account options offered |
| Account-opening simple and hassle-free | High commission fees |
| Demo account offered | Spreads are not the tightest |
| Reasonable selection of financial instruments | |
| MetaTrader 5 offered |
Pepperstone Kenya
Pepperstone is one of the largest online trading brokers which offers traders worldwide access to global markets. Traders have access to a variety of financial instruments, competitive trading conditions, and choice between dynamic accounts.
Pros and Cons
| PROS | CONS |
| Multi-regulated | US Clients not accepted |
| Negative balance protection | Fixed spread accounts not offered |
| Powerful trading platforms offered | |
| Tight spreads and low commissions | |
| Social trading offered |
