How to Make Money Through Forex Trading in Kenya

Forex trading in Kenya has in the last ten years taken off as a result of penetration pf internet. Unlike the years gone by, almost every Kenyan has access to the internet.

Additionally, the options and trading applications and platforms, now on offer from the abundance of web sites promoting their services – quite literally spoils one for choice.

But What is Forex Trading?

Forex trading in its simplest form is trading one currency against another currency. Traders profit from the fluctuations in the value of the different currencies.

The internet forex trading of today can be traced back to the time when man first started trading one or several items in exchange for others. This was and is known as bartering and that’s how things continued until the introduction of money.

The origins of the word money stem from the Latin word, “moneta,” which in turn comes from the Greek temple of “Hera the Moneta.” And this is where money first came from, in the early days of Rome.

Money, in itself, must be a scarce good and many items have been used as money, from naturally scarce metals and minerals, to conch shells and cigarettes, to artificial banknotes; i.e. paper money.

Money is, in its crudest form, a token – an abstraction and perhaps the most popular of that is the form of paper money, in the design of banknotes, which is the most common sign of physical money. Gold and silver retain, however, many of the essential properties of money. An example of cigarettes, being used as “money,” may be found in many prisons, where the usual forms of coins and notes are prohibited, from being held by their inmates.

Bartering, however, has several problems, most notably timing constraints. If you wish to trade fruit for wheat, you can only do this when the fruit and wheat are both available at the same time and place. That may be a very brief time, or it may be never. With an intermediate commodity (whether it be shells, rum, gold, etc.) you can sell your fruit when it is ripe and take the intermediate commodity. You can then use the intermediate commodity to buy wheat when the wheat harvest comes in. Thus the use of money makes all commodities become more liquid.

Forex trading is where (as already mentioned), one currency is bought and sold against the fluctuation rate of that of another, on the international currency exchange market, with the idea of selling one currency against the other for profit. Money has always been traded, through the centuries. However, this was, until the advent of the Internet; usually the exclusive domain of the rich and that of their brokers. Before the Internet, anyone wishing to make a currency exchange, went through an agent, known as a broker, who bought and sold, at what he thought were the best rates of exchange. For this, they extracted a fee, unusually via of a percentage of the total sum of the deal.

The forex trading market I always in a continuous state of flux due to the continuous rates of variability on the foreign markets and this as a direct result of supply and demand and, amongst other things, domestic stocks, and international trade patterns, tendencies, and movements.

Today, with the richness and abundance of the Internet, anyone can become their own forex trader, from the comfort of their own home, start trading and stand a good possibility of making money, after a little trail and experience.

Forex trading, on the Internet really started to take off, in the mid-nineties and at that time there were only a handful of web sites, with (in comparison to today’s usage) a handful of people. These people started trading from home, during the day, and rapidly became known as Day Traders and all of this really got started in the US. For many forex trading even became a way of life, with many giving up their regular jobs, and making money for themselves, in real time and at home.

With the advent of broadband, with good and secure high speed connections becoming a forex trader is not difficult and simply requires a degree of understanding of how the markets work, spotting what the tendencies are and making a trade on what you think is going on in the forex market. Forex trading is no longer the exclusive domain of the rich and their brokers – rather it there to be used by one and all, with a degree of intellect, and an aptitude for spotting market trends, and making a trade on what he or she thinks will happen to that currency next.

Choosing a Good Forex Broker in Kenya

It is important to select an ideal Forex broker to make the most out of your trading. Forex pairs are simply one of the many asset options to utilize to gain from binary options trading. Even so, Forex is most often associated with high levels of risk. The reason behind this is lots of people closely associate conventional Forex trading with Forex binary options trading even though the two are entirely different. Many folks often wonder, “Which kind of trading exposes an increased level of risk?”

Traditional trading or binary Forex

There is no simple reply to this query because there are a lot of distinct aspects to take into account. Certain traders stay away from any kind of Forex trading just because Forex pairs are generally associated with an inclination to operate in a volatile way. With regard to finances, conventional Forex usually costs a lot more to enter compared to binary options trading. There could also be fees connected with conventional currency trading which are not in place while trading digital options through a binary broker. Although the higher cost to start isn’t precisely a greater level of risk, it is an issue to take into account.

Monetary risk could also be associated with the fact while trading Forex based binary options losses are decided by the trader and hence certain. In conventional Forex trading, losses may keep on compounding because they are not predetermined. On the flip side, gain amounts are also predetermined while trading binary options and will never ever surpass the upfront offered payout percentage in case the trade finishes in the money. Conventional Forex will enable flexible profits that can be significant, if the currencies work in the preferred manner.

Tips to Maximize Money From Forex Trading in Kenya

The usage of research tools should help both the conventional FX trader and the binary options trader to detect trends which could result in amazing gains. One of the secrets to success is understanding how to detect asset price fluctuations right before they take place. These quick variations take place frequently within the currency markets, and substantial profits could be earned by people who were in a position to predict the timing precisely. Analysis is often a strong indicator for figuring out when these changes will occur. Both standard Forex traders and Binary options traders will need to keep pace with latest news to detect profitable trading opportunities.

Final words About Making Money Through Forex Trading in Kenya

You cannot find any form of trading, binary options, Forex, or else that come without any risk.

Risk is certainly an element that is totally unavoidable in the investment world. It is the job of the trader to detect and restrict risks as far as possible. It is not possible to state which form of Forex trading, digital or traditional, is riskier. Yet, you can be certain that the potential losses and profits will differ tremendously with each.

However, you must select a reliable broker to maximize your trading gains just like choosing a dependable business partner such as Take into account all these aspects while assessing risks and making investment judgments.

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[Revised and Updated for 2021]
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Written by Patrick Mahinge, CEO, Kenya Forex Firm.
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