Last Updated on: 18th July 2021, 01:18 pm
FXPesa is a fully licensed and regulated forex broker in Kenya. In fact, the broker ranks #1 in our list of CMA licensed forex brokers, and for good reasons too, as this FxPesa review will show.
To start with, FXPesa is based on a very popular forex trading platform called MetaTrader 4 (MT4) that you can download on the broker’s website once you sign up for a live or demo account.
FXPesa provides beginners in forex trading a revolutionary trading technology. Most importantly you can start trading with just a minimum deposit of $10, which is roughly 1,100/= in local currency. That is a great opportunity for forex newbies to experience real forex trading and practice their trading skills with minimal investment.
However, we do not recommend trading forex with such a low amount, and neither does FXPesa. The low deposit amount is for traders who only want to test drive the trading platform without any serious trading going on,
If you want to get the best out of the markets, we recommend you start trading with a minimum deposit of $100 (11,000/=). With proper risk management and leverage, this amount can give you enough returns to cater to your day-to-day needs. Also, FxPesa gives new traders a welcome bonus of 30% for any deposit amount above $100.
FxPesa also offers competitive trading conditions for Forex professionals in Kenya and provides a dedicated Forex trading server and experienced customer support as well as analysis of the Forex market and a professional affiliate program.
Before opening a live FxPesa account you can practice your forex trading skills via the FxPesa demo account. It will help you test yourself in a real forex environment, experience all the trading platform features, and evaluate FxPesa without any financial risk.
The demo account doesn’t differ from a live account. A demo account does not differ from a live one except for the fact that you take no risks while trading since you do not need a deposit on this account.
With FxPesa you get two choices of live trading accounts. the Executive Account and the Premier Account.
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Difference Between FxPesa Premier and Executive Account
The FxPesa Premier account is an ECN account. It has spread as low as zero pips and is best tailored for high volume and experienced traders. Instead of charging pips, the Premier Account charges a $7 commission per one lot round turn on forex pairs and precious metals and $10 CFDs.
It might sound as if $10 is a huge amount of money to pay for trading, but in the real sense, you’re actually paying peanuts to get connected directly to liquidity providers.
One standard lot in the forex industry is equal to approximately $100,000 if trading the US dollar as the base currency. So, in the real sense, you’re actually only paying 10 dollars to control millions of shillings. And, these commissions can be paid infractions. So, if you’re trading in 0.01 lots, you only get to pay $0.001 for every position that you open!
The other main difference between the FXPesa Premier Account and the Executive Account has to do with the minimum deposit allowed for the account types.
A minimum deposit of $100 is required when opening the Premier account as opposed to the minimum deposit of $10 dollars required for the FxPesa Executive account.
However, the minimum deposit allowed by FxPesa, in all honesty, should not form your basis of why you choose one account over the other. It is highly recommended that you have an initial capital of $100 regardless of the account type you want to trade.
The other main difference between the FxPesa Premier and Executive Account has to do with spreads. FxPesa spreads on the Premier Account start at 0.4 pips while spreads on the Executive Account start at 1.5 spreads.
In order to keep the spread low, it is recommended that you trade at times of high market activity, and we have already covered the best time to trade forex in Kenya.
FXPesa allows maximum leverage of 1:400. This is the maximum leverage as set by Capital Markets Authority for all online forex brokers in Kenya.
Leverage in forex is a double-edged sword, and we always recommend you use it conservatively. The maximum offered by FxPesa is more than enough for most traders.
If you require leverage higher than that, you might want to take a look at HotForex and XM Trading who offer a maximum leverage of 1000 and 888 respectively.
FXPesa Review: Should You Trade Forex With FxPesa?
At Kenya Forex Firm, we love FxPesa and the pace it has set for other forex brokers to get regulated in the country. Having a broker who is locally regulated means that any trading disputes will be easier to resolve.
In addition to this, FxPesa is one of the brokers that takes time and effort to educate beginner forex brokers on the intricacies of online forex trading. The broker has a free online course for
Trading with a local broker is definitely attractive. It almost feels like the service is personalized to you. I can see why any number of you might prefer to trade with FXPesa:
- They accept local payment methods including Mpesa, Airtel Money, and Equitel (Best Forex Brokers That Accept Mpesa)
- Account opening and verification is easier than with most international forex brokers.
- FxPesa offers free forex trading education to traders in Kenya. Open a live trading account to benefit from this offer.
- The 30% Fxpesa Karibu Bonus is a great incentive for traders who might not have sufficient capital to start trading
- FxPesa is fully licensed and regulated by the Capital Markets Authority of Kenya (CMA)
FXPesa Review: Is FxPesa Legit?
From the face of it, FXpesa is a legit forex broker that is owned by EGM Securities, a company that is registered and regulated by the Capital Markets Authority here in Kenya. Click here to register and start trading forex with FxPesa.
But there’s more to the legitimacy of a broker more than just being registered and regulated.
Some regulatory authorities carry more weight than others. You for instance can’t compare a broker that is regulated by the FCA with one that is regulated by CMA, as is the case with FX Pesa.
Both FXPesa and CMA are new to the world of online forex trading. CMA, therefore, lacks precedent on matters pertaining to online forex trading.
While the steps that CMA has taken to regulate local forex brokers are commendable, I feel that there is still much work to be done.
With Forex trading becoming more and more popular in Kenya, brokers are having a field day setting up offices in the country. One such broker is FXPesa. And like I always do with my forex broker reviews category on this website, I set out to find out whether FX Pesa is legit and how well it can serve you as a retail trader.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.