With Forex trading becoming more and more popular in Kenya, brokers are having a field day setting up office in the country.
One such broker is FXPesa. And like I always do with my forex broker reviews category on this website, I set out to find out whether FX Pesa is legit and how well it can serve you as a retail trader.
Here are my findings:
|Regulation||Capital Markets Authority (CMA)|
|Minimum Deposit||Not Specified|
|Trading Platforms||MT4, FXPesa WebTrader, Android App, iOS App|
|Average Spread||2.1 pips|
FXPesa allows a maximum leverage of 1:400. This is the maximum leverage as set by Capital Markets Authority for all online forex brokers in Kenya.
Leverage in forex is a double-edged sword, and we always recommend you use it conservatively. The maximum offered by FxPesa is more than enough for most traders.
If you require a leverage higher than that, you might want to take a look at HotForex and XM Trading who offer a maximum leverage of 1000 and 888 respectively.
Does this Mean You Should Not Trade with FXPesa?
Ultimately, the choice is yours and yours alone.
Trading with a local broker is definitely attractive. It almost feels like the service is personalized to you. I can see why any number of you might prefer to trade with FXPesa:
- They accept local payment methods including Mpesa, Airtel Money, and Equitel (Best Forex Brokers That Accept Mpesa)
- Verification is easier than in most international forex brokers.
But what you should also keep in mind is that you’re in business and Fxpesa is in business too. With such a relationship, everyone guards their business interests. Are you guarding yours?
I am personally giving FXPesa a wide berth until they can prove with no considerable doubt that they can be trusted to not only act fairly but to also continue offering innovative online forex trading features.
Is FxPesa Legit?
From the face of it, FXpesa is a legit forex broker that is owned by EGM Securities, a company that is registered and regulated by the Capital Markets Authority here in Kenya.
But there’s a more to the legitimacy of a broker more than just being registered and regulated.
Some regulatory authority carry more weight than others. You for instance can’t compare a broker that is regulated by the FCA with one that is regulated by CMA, as is the case with FX Pesa.
Both FXPesa and CMA are new to the world of online forex trading. CMA therefore lacks precedent on matters pertaining online forex trading.
While the steps that CMA has taken to regulate local forex brokers is commendable, I feel that there is still much work to be done.