The Importance of Business Planning

If you are serious about trading forex in Kenya then you want to make sure that you are working with a company that is reputable, provides good service and is trustworthy. You can easily find a reliable forex broker in Kenya but there are also a lot of bad ones. However, if you are looking for something more in-depth then check out this blog post on how to spot a bad forex broker and what to do if you meet one. If you follow this advice then you will be able to avoid the Forex Scam – and protect your money.

Check the Broker’s License

First things first, before you sign up with a forex broker you should do your research and check out their license. There are various international authorities that regulate forex brokers, including the Financial Conduct Authority (FCA), which is the UK’s financial regulatory authority. What you should do is go online and check out the forex broker license in your country. If the forex broker is not registered with any of these authorities it could put your money at risk. The following are some of the license requirements that forex brokers are required to meet: 

FCA – The Financial Conduct Authority is the UK’s financial regulator. It is responsible for ensuring that the financial services you choose are safe, legal and easy to use. 

AML/KYC – AML/KYC, also known as Know Your Customer (KYC), is a regulation that requires all financial institutions to know and verify the identity of all their customers. 

GDPR – The General Data Protection Regulations come into effect on May 25th 2018. What this means is that from that day onwards all the information you provide to any financial institution will be stored and processed in the EU. You can find out more about GDPR on the ICO website.

Avoid Forex Brokers That Require a Minimum Deposit

One of the first things you should do when you are researching a forex broker is to check out their minimum deposit requirements. Some brokerages will only allow you to start trading with a small amount as a deposit before charging a fee. Some brokerages will only allow you to deposit money when you are at least 18 years old. This can make it difficult for people who are in their 20’s and 30’s to invest in forex. There are some brokerages that will allow you to start trading with a smaller amount, such as $100 or $500, before imposing the larger trading requirement.

Be Wary of Brokers That Do Not Provide Account Access

When you are first starting out in forex trading you will probably only want to trade with an experienced forex broker in Kenya. This is fine as a beginner but as you become more experienced you may want to share your profits with other experienced traders so that they can grow their own trading portfolio. This is where account access comes into play. Forex brokers that do not offer you access to their brokerage account will likely Scam warning – Be very careful when choosing a forex broker that does not provide you with access to their accounts. Make sure that the broker is legitimate and doesn’t require you to put down a deposit or share your profits before giving you access to their accounts.

Look At the Broker’s History

You should also read the broker’s history to check if they have had any regulatory actions against them. This will help you to determine if they are a good investment and will not be a source of complaints for the future. It is better to be safe than sorry when it comes to investing so check out the reviews on this site to make sure that you are not dealing with a broker that has had any past regulatory actions against them