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6 Steps to Start Online Trading in Kenya for Beginners – HapaKenya
Online Trading has been growing rapidly since the start of 2000. This has been made possible by the improvements in technologies behind the trading & investing ecosystem. Most exchanges, capital markets and commodities markets have gone online through the use of centralized electronic systems.


Online Trading has been growing rapidly since the start of 2000. This has been made possible by the improvements in technologies behind the trading & investing ecosystem. Most exchanges, capital markets and commodities markets have gone online through the use of centralized electronic systems.
Many low-cost new brokerages have opened in the past decade to offer low cost services with fast execution with the help of online trading tools & technologies like Bloomberg Terminal, Refinitiv Electronic Trading, MetaTrader, cTrader, web trader & mobile apps; large liquidity providers like Citi, UBS, Barclays etc. have made it easier to get liquidity for any instrument from Stocks, indices, Forex to Cryptocurrencies by these brokerages.
Online Trading has got a lot of attention from younger population namely millennials who are savvy about investing and trading. Millennials today believe taking things in their own hand by educating themselves of the trading basics and investing online.
Trading in Bitcoin & Forex has seen a lot of demand and they have become very popular in Kenya, Rest of Africa & also around the world – such that FX is highly regulated & Cryptos trading is being considered by governments around the world for legalization.
While stock trading is also seen picking up among millennials globally with the availability of global stocks, IPOs through online trading apps like: FXPesa, Etoro, Plus500, Hotforex, XM, IG as these new investors are keen on investing in new age tech stocks like Amazon, Apple, Google, Facebook.
We look at the basic steps you would need to get started with online trading in Kenya.
1) Research the Available Instruments & Investment/Trading Options
The first step of online trading involves research and analysis of the financial trading instruments and investment options that are available for online traders in Kenya.
While most of the investment instruments including mutual funds, indices, commodities like oil, precious metals like gold, stocks, forex/currency trading, cryptocurrencies are now available online; you need to check which one suits your long-term goals including returns and experience level before investing in them. You must also assess your risk level involved in trading of that instrument before investing in it.
Like Mutual Funds is most suited for beginner investors and requires lower experience & involves least risk when compared to other investments.
On the other hand, Stocks, Indices, Commodities, Forex, Cryptos require extensive market research & understanding of market terminology and knowledge of tools required in trading & analysis.
Emmanuel of Trade Forex Kenya explains: “The financial instruments depend on various complex factors including economic, political, supply, demand etc. which result in their price movements. You should be able to research, and make an informed, educated decision on the instrument that you want to trade.”
“There are a variety of instruments that are available in the market which can follow different trends at any time. Like for example: Stocks of a particular sector generally show similar price movements, while currencies of emerging economies follow US Dollar trends like: weakening or strengthening against USD based on the strength or weakness of the Dollar.”
Education & experience is extremely vital to your success & making an informed decision in the online trading environment. Trading in the financial markets are subject to risks. You should also be able to understand the risks and mitigate them before investing.
2) Choose an Online Broker Suited to Your Requirements
You cannot directly trade in the financial markets including capital markets, forex market, commodities market or derivatives market. The buying and selling of instruments in the financial markets are executed through a middleman called a broker.
Individuals in Kenya need to open an account on a registered and well-regulated broker to take part in online trading activity. There are different regulations for different financial markets, your broker must have the required license to provide the access to the particular markets.
Like for example – for stock trading, the broker needs to be licensed by NSE. While for forex & CFD trading, brokers need to be licensed by CMA to offer forex trading & CFDs on Commodities, Foreign Shares. Few such CMA licensed brokers that offer Forex Trading and CFDs on Foreign Shares, Commodities are FXPesa, Scope Markets, PepperStone Kenya.
There are multiple brokers in the market that can be regulated to offer same instruments. You need to compare multiple factors like their fees, number of instruments on offer, deposit/withdrawal options, history & reputation in the industry, number of regulators the broker has license from etc.
You have to choose a broker that suits your trading needs at lowest cost and also ensure that the broker is highly regulated.
3) Open an Online Trading Account
After choosing a broker, the next step is to open a suitable account. There are different types of accounts that are offered by brokers depending on the needs, requirements and types of the traders.
For example – ECN accounts are offered by forex brokers to offer direct market execution of your currency and commodity trades at lowest fees & commissions.
There are also some forex brokers that offer trading accounts in local currencies like Ksh Accounts for traders to be able transact & trade in their own currency.
Moreover, many brokers also offer demo accounts for you to test the trading environment. You get virtual funds to trade and test your strategy in the markets. Its best to start with a demo account.
So, you need to be able to differentiate in different accounts offered by the brokers and the fees they charge on each account for the instruments you want to trade.
After you have selected the account type you need, you need to click signup for the account type you need and fill your details in the form on the broker’s app or website.
4) Complete the KYC
After you sign up with the broker, next thing is to complete the verification of your account. Verification is mandatory and is required by law to trade through any broker. Most brokers call this as KYC (Know your Customer).
Before you can start executing any trade order or start investing in the market, it is required to complete the KYC verification which requires submitting identification documents, age and address proofs to the broker.
Then broker will activate your account after they complete the KYC which can take 24-48 hours, depending on the brokerage. After which you can download their platform to start trading.
5) Start Trading
Once your trading account is active and then you need to decide on the order that you want to place like buy order on EUR/USD or buy order for 100 Apple Stocks, after which you place trade on that financial instrument through your broker’s platform.
Before executing the trades, it is important to understand the basic terminologies & tools like limit orders, stop- loss, indicators, and many other terms, so that you can trade actively based on informed decisions.
6) Keep track of Market News, Updates & Data
The financial markets are volatile and the prices of various instruments i.e. stocks, currencies, commodities fluctuate almost every second during the active market hours.
Any economic, political, national, or international news can trigger price movements in the market. Hence, it is important to keep a track of the market updates and news concerning the stock, commodity, currencies etc. that you are looking to trade.
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Forex Trading Knowledge Questions and Answers


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Forex Trading Knowledge Questions and Answers
What Is A Demo Account?
Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.
Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.
How Does A Demo Account Work?
Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.
A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.
How to Open A Demo Account?
In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.
Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.
Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.
You will obtain login details after registering with a trading program. You will be able to open an account.
How Long Do Demo Accounts Last?
Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.
Why Is It Necessary to Open A Demo Account?
Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.
What Are Advantages of A Demo Accounts?
Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.
A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.
Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.
The Differences Between Demo & Live Accounts
A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.
However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.
Can I have Multiple Forex Demo Accounts?
You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.
If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.
There are brokers who will only allow you to open one account of each type per email address.
As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.
In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.
In any case, you should practise on a demo account until you are really proficient.
Is A Demo Trading Account Free?
Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.
How to Choose Forex Accounts?
Different accounts have different settings. Before you open a trading account, you should answer the following questions:
How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.
What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.
Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.
Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.
Can I Take Money Out of a Demo Account?
Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.
As a result, any profits you would have made would be ineligible for withdrawal.


Forex Trading Knowledge Questions and Answers
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AvaTrade introducing 3 new crypto pairs


AvaTrade introducing 3 new crypto pairs – updating 3 others
AvaTrade has yet again improved their cryptocurrency trading offering.
AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.
These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.
Asset | Typical Spread | Leverage | Margin | Min Nominal Trade Size |
NEOUSD | 1.5% Over-market | 2:01 | 50% | 10 |
EOSUSD | 2% Over-market | 2:01 | 50% | 10 |
MIOTAUSD | 1.5% Over-market | 2:01 | 50% | 10 |
To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:
Asset | Old Symbol | New Symbol |
RIPPLE | XRP | XRPUSD |
ETHEREUM | ETH | ETHUSD |
LITECOIN | LTC_Mini | LTCUSD |
These new pairs have also been available since July 1st,
The trading conditions for each one is identical to those of the older respective assets they replace.
Effective immediately, new positions are only available on the new pairs.
Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.
Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.
as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.
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Neteller Launches Cryptocurrency Exchange Service


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Neteller Launches Cryptocurrency Exchange Service
Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.
They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.
Neteller and Cryptocurrencies
Neteller is a service which is operated by Paysafe Financial Services Ltd.,


paysafe
founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.
Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.
But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.
So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.
As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.
It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.
Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)
We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.
Conditions for buying and selling cryptocurrencies through Neteller
The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller
The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.
When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available
The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.
The fee rises to 3 percent for wallets with other default currencies.
Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?
At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.
The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.
Last July 25, Paysafe ( which as you remember is the company that owns Neteller
We could now see that this was like their test run on this concept.
We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.
We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think
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