There are a number of factors to consider when deciding on currency pairs in Kenya. The types of exchange rates include Major, Minor, Exotic, and Fixed. Understanding these factors is essential to making informed decisions. The first consideration is whether to choose Major or Minor currency pairs. A fixed spread is always fixed, while a floating spread varies with the exchange rate and price.

Fixed or floating

Forex trading in Kenya has experienced a boom in the past seven years, spurred by the country’s robust economy. There are now more than 100,000 residents involved in retail forex trading. However, the industry is still relatively new and, unfortunately, fraud is a common problem. To avoid this, traders should choose their forex broker wisely. They should also learn how to trade currency pairs and practice their strategies on a demo account before investing real money.

Kenya is home to one of the more stable currencies in the East African region. The Kenyan shilling is freely floating in the currency market, and does not follow a fixed rate regime. The central bank of Kenya (CBK) is responsible for maintaining price stability and promoting economic growth. Currently, the KES is worth 116 KES per US dollar.

Major

There are two ways to trade in the major currency pairs in Kenya: by trading on an exchange or by using a brokerage. Trading on an exchange is similar to trading on a stock market. You should know when to buy and sell based on the market trends. For example, you might want to buy a pair of Euros when it is at its highest, or sell a pair of US dollars when it is at its lowest.

Forex trading is a growing industry in Kenya, with over 100,000 active traders predicted by 2020. The government has provided the legal framework for this market, which will help protect Kenyan consumers from unscrupulous brokers. Currently, there are more than 100 licensed forex brokers in Kenya, and that number is expected to continue growing in the future. However, some brokers are not authorized by the CMA, so it is important to find a regulated broker that will meet the country’s regulatory standards.

Minor

When it comes to trading in Minor currency pairs in Kenya, you should choose a broker who offers a safe and secure platform. One of the top-rated brokers for this type of currency is IC Markets. This broker has been around for twelve years and is regulated by financial regulators in Australia, New Zealand, and Cyprus. The company’s main office is in Australia and it offers live trading accounts for as little as 200 US dollars as a deposit.

When trading in Kenya, you should look for a broker who accepts mpesa as a means of payment. Most brokers will accept the service, so you won’t have to worry about paying taxes.

Exotic

Exotic currency pairs offer a higher level of volatility, which can make them a good choice for some investors. These currencies have less liquidity than major or minor currencies and are susceptible to big shifts in government policies. In addition, these currencies may carry higher spreads, making them more expensive to trade. However, they can also provide a higher level of return on investment.

Before beginning to trade, it is essential to choose a regulated broker that has a license from the Kenyan financial regulator. After selecting a broker, you should register on their website and verify your account. You should then fund your account and choose the asset that you are going to trade. It is also important to observe capital management rules when trading.

Trading hours

Trading hours for currency pairs in Kenya vary depending on the time of day. Typically, the market is most active between 11:00am and 6:00pm East Africa time. During this time, the market is most liquid and many economic events are announced. These events usually cause volatility in the market, which traders can take advantage of. The second busiest market session is the New York session, which runs from 2:00am to 11:00am East Africa time. During this time, Asian currency pairs are the most volatile. This is a good time to trade these currency pairs.

Trading hours for currency pairs in Kenya are similar to those in other countries. European sessions open at 10:00am and are followed by New York or American sessions. The most trading activity occurs in EURUSD, GBPUSD, and USDCHF. These currencies have low spreads.

Spreads

If you are a Kenyan resident, you may be wondering if you can trade forex with your local currency. The answer is yes. If you are a professional, you can leverage up to 1:500, while retail traders are limited to 1:400. However, it is important to be careful about how much leverage you use.

The forex market has the largest daily trading volume in the world. In 2019, it reached $6.6 trillion. With high liquidity, you can trade a variety of currency pairs. For example, you can exchange US Dollars for Kenyan Shillings through the Forex market. If you use regulated exchangers, you will get the latest rates on both currencies.

Regulation

The regulation of currency pairs in Kenya is an ongoing process that involves a number of requirements. These include: applicants must be a company limited by shares, have a minimum capital of Sh50 million at all times, have a capital of at least 5 percent of their forex customers’ liabilities, and have at least 80 percent of their capital in cash. These requirements were recently published under the draft Capital Markets (Licensing Requirements for Online Forex Business) Regulations 2016.

The government has also adopted laws to regulate the foreign exchange market. In Kenya, residents are free to purchase foreign exchange from authorized dealers, but must declare any amounts greater than US$10,000 to the Central Bank. The government has also passed an Anti-Money Laundering Bill in December 2009, which came into force in June 2010.

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