Can Kenya flip Nigeria in Forex Trading?
Richard Montana | April 27, 2022
Forex trading has become increasingly popular amongst Kenyans, as it presents numerous opportunities for financial growth in this booming, tech-savvy economy.
Currency, Nigeria leads the way in terms of Forex trading popularity in Africa, but there are several reasons to think that Kenya might soon overtake Nigeria as a Forex trading hub.
1. Increasing regulatory framework
The CMA of Kenya, which is the primary financial regulating body in that country, has been steadily including more Forex brokers into its fold, allowing Kenyans to enjoy more access to secure trading conditions within a dependable regulatory framework says Louis Schoeman from Forexbrokers.ke
2. Better broker screening
Many Kenyan traders have lost money to fly-by-night operations in the past. They worked with local brokers, some of whom did things on their own without the agreement or knowledge of their parent companies, and many of them were shadowy entities with ambiguous regulation or licensure.
Unregulated forex brokers won’t have an easy time in Kenya now that the CMA is enforcing regulation after traders suffered huge losses in the past. Even if an offshore broker decides to enter the market, these companies are aware that they must first secure a license.
3. Greater access to Forex education
As Kenyans become more aware of forex trading, there has been an increase in the demand for forex training. In order to attract and retain new customers, forex brokers have realized that offering forex education is more vital than ever.
For Kenyans who want to get into online trading, competition in forex education means they can now obtain high-quality content that can make a difference to their trading success.
4. Post-covid entrepreneurship
To some Kenyans, the COVID-19 epidemic presents enormous trading opportunities in the financial markets, but to others, it presents an existential threat. A number of currency pairings are trading at levels not seen before.
COVID-19 appears to be here to stay for some time. As a result, there will be a large number of possibilities for further expansion into the retail trading sector amongst Kenyans.
With fewer offline employment and opportunities available, many brokers are already seeing an increase in the number of new clients they are registering.
Kenyans appear to be taking advantage of the heightened volatility in the foreign exchange market in order to profit from these ongoing currency fluctuations.
5. Kenya is becoming Africa’s next tech hub
Possibly the most important factor contributing to the future growth of Kenyan Forex trading is the fact that the country is being recognised as the next tech hub of Africa.
There are several cutting-edge companies in Kenya’s IT sector dubbed as the “Silicon Savannah,” which is located in the country’s southern region. Intriguingly, Africa’s lack of institutional infrastructure has fuelled the continent’s technological revolution.
Due to its underwater fiber optic connection, Kenya is today known as a completely connected environment, providing some of the fastest mobile internet speeds in the world.
In addition to major corporations like Facebook, Microsoft, IBM, and Intel, the $1 billion tech ecosystem provides a wealth of opportunities for entrepreneurs and investors alike.
Only Nigeria and South Africa have a larger economy in Sub-Saharan Africa than Kenya, which is also one of the continent’s most efficient. Trade, finance, and technology are all thriving in Kenya.
Some global corporations have set up regional offices in Kenya because of the country’s young and tech-savvy population’s desire to grow the economy. Because of the low starting capital requirements, forex trading is becoming increasingly popular in Kenya.
As such, Nigeria still holds the lead in terms of Forex trading popularity in Africa – but Kenya appears to be close on its heels, and with an environment conducive to ever more Forex trading activity, it could likely flip Nigeria in Forex trading soon.