This pandemic has, as it has, occupied most of the first half, which actually leaves us six months to save what is left of 2020.
Almost every sphere of economic activity is closed, except for the world of online commerce that continues to thrive. During this period, all financial markets have been filled with opportunities.
Bi-directional markets such as the online forex trading market have many options at the moment and will have even greater opportunities after COVID-19 is included. For Kenyans, there are a lot of opportunities to get started with forex trading right now. Don’t buy into the mindset that says the foreign exchange market is too risky to invest in at this time. Many financial fortunes changed for the better during the period immediately following the global financial crisis of 2008. These were those who understood market cycles and knew how to play the market both ways by buying when needed and short-circuiting, when the time was right.
Is Kenya’s religion in the way of forex trading?
is forex trading halal or haram, Kenya has only approx. 10% Muslims, so only a small percentage of Kenya’s citizens have to decide whether or not forex trading is banned by Islam. Almost the rest of the population (85%) are Christians. This means a simple thing. Religion will not stand in the booming popularity forex trading in Kenya.“data-reactid =” 23 “> Unlike some other African countries such as Morocco, where Egypt lives over 98% of Muslims, who often struggle with the issue of is forex trading halal or haram, Kenya has only approx. 10% Muslims, so only a small percentage of Kenya’s citizens have to decide whether or not forex trading is banned by Islam. Almost the rest of the population (85%) are Christians. This means a simple thing. Religion will not stand in the booming popularity forex trading in Kenya.
Why was the popularity of currency trading so sharply increased in Kenya?
The popularity of currency trading was boosted by the introduction of regulation by the capital market authority. The entry of the first local forex provider to the market generated a lot of media buzz. This first broker was not an original brokerage of 100%, but a subsidiary of a Cyprus-based broker with a CIF license. Another player has since entered the local market, but they do so at a time when offshore brokers have gained more foothold in Kenya than locals.
This article highlights what the rest of 2020 has in store for Kenyans in online forex trading. So what lies ahead?
At the heart of the Currency Permit and Licensing Institution of the Capital Markets Authority in Kenya lies regulation. Kenya comes from an era when many local dealers lost their money to fly-by-night operators. Many of these were shady companies with unclear regulation or licensing and worked with local partners, some of whom also did things on their own without the consent or knowledge of their principals.
Capital Markets Authority existed but regulated only the Kenyan Stock Exchange and brokers offering local stock trading. “data-reactid =” 30 “> For example, it was not unusual to see someone claiming to be an offshore broker representative and offer to manage funds for clients without a track record or without any regulation. of such individuals ending up with their clients’ money was rampant.At this time Capital Markets Authority existed but regulated only the Kenyan Stock Exchange and brokers offering local stock trading.
With traders suffering from such mishaps in the past and CMA stepping up with regulation, Kenyans can rest assured that unregulated currency brokers do not have a field day in the country. Even offshore brokers entering the market know they have to get their licenses sorted before they come or they get nowhere.
- Quest for Greater Forex Education
With greater awareness of forex trading, there has been a crunch on forex education. Forex brokers now know that forex education is no longer an optional bonus, but a necessity for gaining and engaging new clients. Competition to offer comprehensive forex education means that Kenyans who want to start online trading will now be able to access top quality forex education content that can make a difference to them.
- More robust FX market due to COVID-19
The world is at a critical juncture and, like it or not, the COVID-19 pandemic has created enormous trading opportunities in the financial markets. Many currency pairs trade in price ranges that have not been witnessed before. To put it another way, if EURUSD gives you a daily trading interval of 100 to 200 pips a day. All the forex market asks is this: do Kenyan forex traders have the capabilities and strategies to take their own share of the COVID-19 options in the forex market?
The COVID-19 looks like it will be with the world for months to come. This means there will be plenty of opportunities. Many brokers are already reporting increases in new registrations as offline jobs and opportunities dry up. Online opportunities such as forex trading will continue to be alive. That is why Kenyans need to use this window of opportunity that the increased currency market volatility has brought their way to making money in the market.
- Local brokers run with foreign brokers
It is true that CMA has regulated forex trading, but it cannot prevent Kenyans from trading with offshore brokers. So Kenyans will see a situation in 2020 where regulated offshore brokers will operate alongside the two locally-based forex brokerage brands. So you still have a choice of which brokers to use. Whatever you choose, make sure the broker is regulated and has a good track record. Given that the oldest of the local realtors in Kenya is only 2 years old, there are those Kenyans who will still choose experience and track records over the location.
These are some of the things that 2020 has in store for Kenyans in online forex trading. Are you ready for them? Hope you are.
object was originally posted on FX Empire “data-reactid =” 47 “> This object was originally posted on FX Empire