Best Binary Brokers
Over the past few years, binary options trading in Kenya has become immensely popular. With the high returns and easy to trade format, trading the financial markets is now accessible to anyone with access to the internet. So how easy is trading binaries in Kenya? For those of you in Kenya who are new to online trading, the answer is easier than you may think. All that is required is for the investor who is interested in trading to first register a trading account with a broker and then fund that trading account. Within minutes, you will be on your way to hopefully pulling in gains and certainly learning the intricacies of this interesting trading type. A word of caution though, not all brokers are created equal. While it is easy to sign up with any firm, it is a different story when it comes to finding a reliable firm to trade with. Although binary trading in Kenya is not illegal, there is a lack of Kenyan based brokerage houses due to the lack of regulation governing trading in Kenya. To help our readers find a firm which they can trust and depend on for trading binaries, we have shortlisted a few companies that are ideal. These brokerage firms are shortlisted based on certain criteria such as:
- Established reputation and regulated
- Transparent with a dedicated customer support ready to assist traders in Kenya 24/7
- High returns with a wide range of financial instruments to trade with
Best Brokers in Kenya
While binary trading in Kenya can be a very lucrative endeavor, it is important to remember that a large part of a trader’s trading success will depend on the broker the trader signs up with. There is a big risk that you might not be able to get your money back if you deal with the wrong company. To help our readers avoid the mistake of dealing with scam binary options brokers, we have compiled a list of recommended brokers that are best suited for traders based in Kenya.
Regulation
In Kenya, general over the counter trading regulation is practically nonexistent as with many other emerging parts of the world, where this alternative form of investment has became popular. This is largely due to the fact that binaries are a recent market innovation for the online retail trading industry. Structured in such a way that they have only 2 possible outcomes, binaries have managed to simplify the process of trading the financial markets to the extent that most people should be able to grasp the investment principle behind this trading type.
In Kenya, the main regulatory body for the financial industry is the Capital Markets Authority (CMA). Established in 1989, the CMA is an independent body that has been tasked with monitoring, licensing and supervising the market intermediaries in Kenya. The regulatory oversight of the CMA also extends to the Kenyan central depository and settlement system and Stock Exchange.
Its main responsibilities extend to:
- The development of the capital markets with particular focus on creating incentives and removing hurdles that impede long term investments in the capital markets.
- The facilitation of nationwide access to brokerage services and the stock market to encourage wider participation by the general population in the stock market.
- The creation and regulation of stable and transparent market where securities can be traded efficiently and in an orderly manner.
- Protecting the interests of investors
- Management of a Compensation fund scheme to protect investors from suffering losses due to the failure of an authorized and regulated broker
- Development and facilitating the use of fintech to develop the Kenyan financial markets.
As mentioned earlier, binary trading in Kenya is considered a legal and legitimate investment activity by the CMA. However as the online financial trading industry in Kenya is still in its infancy, the regulatory framework for regulating online trading activities does not yet exist. Essentially this means that the online binary options industry in Kenya while legal is unregulated.
Nevertheless, the CMA recently announced plans to develop a legal framework that will address online trading. The proposed amendments to Capital Market Act include requiring all individuals or entity involved in providing financial trading services be licensed by the CMA. The main purpose of this amendment is to help create a more secure online trading environment for Kenyans in general.
As for now, the best alternative for Kenyan binary traders is to deal with offshore brokers who are regulated by reputable financial regulatory bodies such as the Cyprus Securities Exchange Commission (CySEC).
Deposit Methods Available In Kenya
In Kenya, bank wire transfer and credit cards transactions are widely accepted. Hence, Kenyans traders will have no difficulties in funding their trading accounts using their credit cards or through bank wire transfers. With a population that is highly mobile connected, eWallets are also becoming more popular among Kenyans. However the choices of eWallets available as a payment transfer method will depend largely on whether the broker serving them is geared towards traders in Africa or Europe.
FAQ
- Is it legal to trade binaries in Kenya?
Yes. There are currently no regulations governing binary trading in Kenya.
- Are binaries regulated in Kenya?
No. Regulations for regulating this trade type in Kenya do not yet exist.
- How to trade binaries in Kenya?
To trade binaries in Kenya, the best option is for Kenyan traders to sign up for a trading account with a regulated brokerage house that is based offshore.
