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FXPesa Review

FXPesa Review

FXPesa is a retail trading broker based in Kenya. Clients can trade a broad range of currency pairs, plus CFDs on indices, commodities, and shares. This FXPesa review will cover everything you need to know about the broker, including typical spreads, leverage, deposit methods, and withdrawal options.

FXPesa Headlines

FXPesa is relatively new forex and CFD broker that was established in 2019. Its headquarters are in Nairobi, Kenya and the company has offices scattered around the country.

FXPesa is the trading name of EGM Securities Limited and is regulated by the Capital Markets Authority (CMA) of Kenya. The company is considered trustworthy by Kenyans, as the parent company is also regulated by the CMA and is well-known in the industry.

The broker provides services to most global traders, however, some countries, such as the USA and Israel, are excluded.

Trading Platforms

FXPesa offers both a web platform, an android app, and a desktop trading app for PC, known as FXPesa Trader. Both platforms are available through the broker’s website. With the web-based platform, no download or installation is required. Once you sign in with your account login details, you’ll receive full access to all forex and CFD markets. The platform is simple, easy to navigate, and provides all the tools required.

In addition to the proprietary platform, MetaTrader 4 (MT4) is also available. MT4 is one of the most popular trading platforms in the industry. While the layout can seem a little dated, navigation is intuitive, making it easy to open and close trades. MT4 is equally suitable for beginners and advanced traders and comes with a host of additional features, including automated trading, signals, advanced charts, plus research and analysis tools. MT4 is free to download for clients on both Windows and Mac.

Assets

FXPesa specializes in forex pairs and CFDs. The key assets available include:

  • Index CFDs – 12 global indices, including the Nasdaq 100
  • Forex – 66 currency pairs, with a range of majors, minors, and exotics
  • Commodity CFDs – There are eight commodities, including gold, silver, oil, and platinum
  • Share CFDs – A variety of stocks from the Nairobi Stock Exchange (NSE) are available as well as US, UK, and European shares

When comparing FXPesa vs competitors like Scope Markets, the broker offers a substantial range of trading instruments.

Note, that cryptocurrencies like Bitcoin are not available.

FXPesa MT4
MetaTrader 4

Spreads & Commission

FXPesa does not charge a commission and there are no deposit and withdrawal fees. However, there is an inactivity charge after 180 days with no account movement.

Typical spreads vary between the Executive account (the standard account) and the Premier account (the broker’s top-tier service).

Typical spreads on the Executive account:

  • EUR/USD – 1.4
  • EUR/GBP – 2.0
  • GBP/USD – 2.2
  • AUD/CAD – 2.6
  • FTSE 100 – 0.7
  • Crude Oil – 0.028
  • Gold – 0.42

Typical spreads on the Premier account:

  • EUR/USD – 0.0
  • EUR/GBP – 0.2
  • GBP/USD – 0.2
  • AUD/CAD – 1.1
  • FTSE 100 – 0.7
  • Crude Oil – 0.028
  • Gold – 0.32

Leverage

The maximum leverage available at FXPesa varies by asset. For currency pairs, this is set at 1:400. For most other instruments, the maximum is 1:200, while indices are 1:50. Although leverage up to 1:400 is offered, trading on margin is optional.

Leveraged trading increases risk by allowing greater market exposure. While this can mean larger profits, the potential for losses is also increased. For example, if you open a trade with a $100 deposit, your market exposure will be $40,000. If the asset’s value moves in your favor, profits are 400x what they would have been without leverage. But equally, if the market declines, your losses are also multiplied.

To protect traders, FXPesa implements a margin call system. If your account balance drops below the specified amount, a margin call occurs and you will not be able to open a new position until funds are deposited.

If you require leverage higher than that, you might want to take a look at HotForex and XM Trading which offer a maximum leverage of 1000 and 888 respectively.

Mobile Trading

FXPesa Mobile is the broker’s mobile trading application. It is available to download on Android (APK) and iOS. All products and assets are available and trade execution is simple. Research and analysis tools are also offered, ensuring a seamless on-the-go trading experience.

FXPesa Mobile Trading Platform
Mobile app

Deposits & Withdrawals

FXPesa charges no fees on deposits, however, there are minimum thresholds. For the Executive account, this is just $5, while the Premier account is $100. Bank transfers typically take one to three working days to be processed, while other methods, such as MPesa deposits, are instant. Fees may be incurred externally for currency conversions.

Deposit methods include:

  • Debit/credit card
  • Bank transfer
  • EazzyPay
  • Neteller
  • MPesa
  • eLipa
  • Skrill

FXPesa has no withdrawal limit or minimum withdrawal amount. Bank transfer withdrawals are processed within three to five working days, while e-wallet and mobile payments take around three hours.

Withdrawals are free for all methods except e-wallets (Skrill and Neteller), which charge a 1% fee, capped at $30. Before withdrawals can be made, customers must complete the full registration and verification process by providing proof of identity and address.

Demo Account

Clients can try the services offered by FXPesa by opening a demo account, which can be used to practice trading without having to risk real funds. The account has unlimited virtual funds and access to real market pricing, allowing users to trial MT4 execution and new trading strategies. Clients are not limited to MT4, they can also trade through the proprietary web trader, as well as the mobile app.

Deals & Promotions

FXPesa offers a Karibu bonus of up to $150. To access this, clients must register for an account and complete the verification steps, then deposit at least $100 and opt-in for the bonus. Customers will then receive an additional account balance equivalent to 30% of the deposit amount. Clients must then trade the minimum FX volume to convert the bonus into cash.

Note, that the broker does not currently run referral schemes or provide a no deposit bonus.

You can open an account here to qualify for the bonus.

Is FXpesa Regulated

FXPesa, or more specifically its parent company, EGM Securities Limited, is regulated by the Capital Markets Authority of Kenya (CMA). All transactions are processed by Equiti Capital UK Limited, which is regulated by the Financial Conduct Authority (FCA). The CMA is the top regulatory body in Kenya, giving clients a degree of trust in the platform.

Additional Features

FXPesa runs its own trading academy, providing investors with educational resources. The client portal hosts a selection of PDF help guides, tutorials, and more. Clients can also sign up to free online webinars within the members’ area.

In addition, FXPesa has a dedicated news section, providing economic insights and articles on recent events. This is a great opportunity for traders to discover new investment opportunities.

Live Accounts offered by FXPesa

FXPesa offers two live account types: the Executive (standard) account and the Premier (premium) account. The minimum deposit for an Executive account is $5, while for the Premier account, it’s $100. Both options provide access to the same instruments, leverage, and lot size when you create an account. The key difference comes in the spreads. Typical spreads start at 1.4 pips on the Executive account, while they start at 0 pips on the Premier account.

The brokerage also offers swap-free accounts, suitable for Islamic customers. Unfortunately, there is no cent account available.

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.

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.

Benefits

There are several advantages to trading with the online platform:

  • Over 60 currency pairs
  • Optional 1:400 leverage
  • Strong customer reviews
  • Easy live account sign up
  • Simple verification process
  • MetaTrader 4 platform available
  • Wide range of trading instruments
  • Unlimited training via a demo account
  • They accept local payment methods including Mpesa, Airtel Money, and Equitel (You can have a look at Forex Brokers that accept Mpesa)

Drawbacks

Disadvantages of trading with FXPesa include:

  • The best spreads require a larger minimum deposit
  • No negative balance protection
  • No, refer a friend bonus
  • No 2FA authentication
  • No MT5 platform

Trading Hours

Trading hours vary by an asset. Forex is available to trade 24 hours a day, five days a week, and is closed on weekends. Other assets, such as commodities and share CFDs, are available to trade when their respective exchanges are open.

Customer Support

Customer care and support are priorities for the company. Whether you have lost your account ID or have forgotten your password and need to reset it, the firm has a team on hand to help. The helpline is available 24 hours a day, six days a week. The details of all services are captured below.

  • International phone – +254 730 676 002
  • Phone number – 0800 211 185
  • Email – [email protected]

The broker can also be reached via Telegram and Facebook.

Security

One of the biggest disadvantages is that FXPesa does not offer two-factor authentication (2FA). This presents a security concern, as hackers only need to break through one level of protection to access your account.

For those looking to utilize leverage, the broker does not provide negative balance protection. This means clients are at risk of losing more than their deposit amount. As a result, traders should be cautious and consider their risk appetite before they start margin trading.

FXPesa Verdict

FXPesa is a popular Kenyan forex and CFD broker. It offers a wide range of financial instruments, including forex pairs, indices, commodities, and shares. It also provides access to more currencies than many of its competitors, making it a strong choice for aspiring FX traders. And by signing up for the premium account, traders get access to competitively low spreads. So, if you are looking to start trading in Kenya or abroad, it could be worth considering FXPesa.

Accepted Countries

FXPesa accepts traders from Australia, Thailand, Canada, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar, and most other countries.

Traders can not use FXPesa from the United States, and Israel.

Alternatives to FXPesa

If you are looking for alternatives to FXPesa we have compiled a list of the top 5 brokers that are similar to FXPesa below. This list of brokers like FXPesa is in order of similarity and only includes companies that accept traders from your location.

  1. Pepperstone – Pepperstone offers CFD trading to both retail and professional traders. Clients can trade FX, indices, commodities, and shares on MT4, MT5, and cTrader platforms.
  2. XM – It’s a global broker offering Forex, CFD trading on stocks, stock indices, oil, and gold on MT4 and MT5. It was started in 2009 and it has over 1.5 million active clients.
  3. eToro – eToro is an Israeli social trading and multi-asset brokerage company that focuses on providing financial and copy trading services such as forex and crypto. It has registered offices in Cyprus, the United Kingdom, the United States, and Australia.
  4. AvaTrade – Leading forex and CFD broker regulated in Ireland, Australia, Canada, and South Africa. Avatrade is particularly strong in integration, including MT4
  5. Vantage Markets – Reliable and affordable trading since 2009. Join over 400,000 others trading on 300+ CFD products over assets like forex, gold, indices, and shares from 0.0 spreads through TradingView, MT4, or MT5. Vantage is ASIC regulated and client funds are segregated. Open an account in under 5 minutes.

Frequently Asked Questions

We hope this FXPesa review helped you learn more about the broker. You may also want to see our step-by-step guide on how to open an FXpesa trading account and our ultimate guide on how Login to FXPesa.

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