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Hitching to trade in Forex? You need these golden tips

SEE ALSO: Kenyans caught up in Beirut blast speak out SEE ALSO: Camera traps helping in monitoring endangered bongos SEE ALSO: Push for reforms at law school


You wouldn’t go into forex trading without the necessary skills. Would you?

Forex trading is popular among traders and investors around the globe. The currency markets are open 24 hours a day with a large volume of trades leading to higher liquidity. In recent years, the demand for forex trading has been growing Kenya.

According to the most recent estimates, there are more than 70,000 traders who participate in forex trading.  One of the reasons for the growth in popularity of forex trading in Kenya is that the CMA has started regulating the sector since 2018.
Even though the sector is regulated, it carries a high amount of risk. Therefore, first-time traders should be wary of the pitfalls associated with forex trading.
According to local website Trade Forex Kenya, “Traders need to educate themselves on the basics of the Forex market and learn safe trading practices like risk management before actually investing in forex.”

SEE ALSO: Kenyans caught up in Beirut blast speak out

“Every trader needs to deploy proper risk management techniques so that losses could be mitigated.”
Let’s take a look at a few tips that need to be kept in mind before diving into the currency markets.
Educate yourself before trading

It is critical to know your way around forex trading before you start investing real money. You should start by finding out the basics such as how to make forex trades, how to manage your risk, what are the active trading times, what do the common forex trading terms mean, how to conduct market research, what makes the currency market fluctuate, and so on.
Once you know the basics, you should start by opening a demo account with an established forex broker. This demo account will allow you to practise trading without using actual money and help you find your way around a trading platform or app.

SEE ALSO: Camera traps helping in monitoring endangered bongos

Experience is the best teacher when it comes to forex trading, and don’t worry if you make a lot of bad trades when you first start out. The most important thing is to keep learning.
Only start trading with real money once you know have understood and practised the basics.
Only trade with CMA-regulated brokers

A forex broker carries out your trades in the forex market and holds your money in its account to allow you trade. Not all forex brokers are regulated, and it is important to only trade with regulated brokers.
In Kenya, there are only three forex brokers that are regulated by the CMA (Capital Markets Authority of Kenya) licensed as Non – Dealing Online FX Brokers. They are Pepperstone Kenya, EGM Securities (FXPesa), and Scope Markets (SCFM Limited).

SEE ALSO: Push for reforms at law school

Regulation means that CMA has oversight over these brokers and does not allow any unfair practices, fraud, or excessive risk.
There are several benefits to trading only with regulated brokers in the forex market. A regulated Forex broker offers a transparent trading environment. They cannot manipulate the market and they need to submit periodical financial reports to the regulator viz. CMA.
A regulated forex broker needs to keep your funds separate from its own funds. Hence, it cannot use your money to conduct its own operations or transactions. This means that your money stays safe and protected for you to use.

The Kenyan regulator CMA protects you from any fraudulent practices of brokers and in case you experience any fraud, you can approach the justice system to seek damages but only if you traded with a regulated forex broker.
Compare trading costs
Different forex brokers charge different fees. The overall cost that you would incur when trading with any broker will be different.
Before you choose a broker to trade with, you need to check the overall cost associated with trading with it.
There are four major components to the overall cost of trading. The spread, commissions, overnight charges, and other hidden fees such as deposit and withdrawal fees or inactivity fees.
For example, if you want to buy EUR/USD at a live price of 1.1000, your broker will show you the bid price and ask price. You will need to pay a higher price to buy EUR/USD (say around 1.1002) and the difference in price will go to the broker as revenue – called the spread.

Similarly, the broker may charge an additional commission on each trade that you make. Additionally, if you make a trade and hold it overnight, you will need to pay overnight charges that are associated with each currency pair.
You need to check how much your overall costs will be for trading with any forex broker.   
Use leverage with caution
Forex trading allows you to use leverage. Every broker offers different leverage. Your broker may be offering 1:100 leverage. This means that you can enter into trades worth $100 by investing only $1 of your money.
Even though leverage can increase your profit margins, it also amplifies your losses.
For example, suppose you have $100 in your trading account and you use the entire money to buy EUR/USD using 1:100 leverage at the price of 1.1000. With $100 by using 1:100 leverage, this would mean that you can place buy order worth $10,000 on EUR/USD.
Suppose the price of EUR/USD drops to 1.0050 (50 pips down), this would mean a loss of $50 for you and 50 per cent of your entire capital will be wiped out in a single trade.
Use risk management tools
There are several risk management tools such as stop-loss, negative balance protection, risk-reward ratio, etc., which can help you manage your risk associated with every trade.
You should use all or any of these techniques every time you trade so that you do not experience excessive or unforeseen losses.
For example, a guaranteed stop loss ensures that you exit from a trade before your losses exceed a certain amount.

If you want to make sustained profits while trading in the forex markets, then you need to understand all these risk management techniques and how to use them effectively.
Always make sure that you have at-least 1-2 risk-to-reward ratio for any trade that you place.
Research and gain experience
There are two ways to start trading more effectively and profitably.
You need to read as much literature on forex trading as you can. You also need to practice your hand at trading on demo before investing any money. You should do your own research on every currency pair that you intend to trade rather than following any ‘expert’ trade advice or calls.
You must also keep abreast of international news and know how it affects the price of different currencies.
For example, the current trade war between the US & China, and risk aversion due to the coronavirus situation is having a large effect on the price of many emerging market currencies.
Review your past performance
To grow as a trader, you need to learn from your past mistakes.
After every trade, you should take some time to review that trade and figure out what you could have done better. You should study your own emotions while trading and try to trade analytically – relying on fundamentals & technical analysis as much as possible without letting your emotion get in the way.
While trading, rely on your past experiences and the past history of the currency market to make informed decisions. Making sustained profits in forex trading takes time and effort, and there are no shortcuts to becoming a good trader.

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Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

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

Forex Trading Knowledge Questions and Answers

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AvaTrade introducing 3 new crypto pairs

crypto trading with Avatrade

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.

AssetTypical SpreadLeverageMarginMin Nominal Trade Size
NEOUSD1.5% Over-market2:0150%10
EOSUSD2% Over-market2:0150%10
MIOTAUSD1.5% Over-market2:0150%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:

AssetOld SymbolNew Symbol

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.

Visit Avatrade NOW

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Neteller Launches Cryptocurrency Exchange Service

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.,



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 and Skrill)  announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

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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