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FXPesa Review and Tutorial

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 Kenya, in the capital Nairobi, 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 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, 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.

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.

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 trial the service using 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, the broker does not currently run referral schemes or provide a no deposit bonus.

Regulation

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

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.

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 demo account
  • Accepts MPesa deposits and withdrawals

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, 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. AdroFX – AdroFX is a regulated, global broker offering forex, CFD and crypto trading with MT4 access and attractive welcome bonuses.
  2. Exinity – Exinity provides flexible low-cost trading in FX, commodities, indices and equities alongside unique education and support provided by teams located across the world. Now operating in the Middle East, through regulation from the Financial Services Regulatory Authority in Abu Dhabi and the Financial Services Commission of Mauritius, Exinity provides a range of services to traders and investors looking for new opportunities in the financial markets.
  3. Pacific Union – Pacific Union is a multi-asset broker offering trading via the MT4 and MT5 platforms.
  4. Avatrade – Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4
  5. Vantage – 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.

FAQ

How Does FXPesa Work?

FXPesa is a forex and CFD broker that offers retail trading on popular financial markets. Clients must deposit a minimum of $5 and can open trades using leverage up to 1:400.

Is FXPesa Regulated?

Yes, FXPesa is regulated by the Capital Markets Authority of Kenya (CMA). Whilst not widely recognized internationally, CMA is the top financial regulator in Kenya.

Who Owns FXPesa?

FXPesa is owned by EGM Securities Limited. The regulated company is run by established professionals who have decades of experience operating in financial services.

Is FXPesa Legitimate?

Yes, FXPesa is a legitimate retail trading broker that provides clients with FX and CFD investing opportunities.

How Much Capital Do I Need To Trade With FXPesa?

The minimum deposit for the standard FXPesa account is $5. For the premium account, the minimum deposit is $100.

FXPesa LogoFXPesa offers forex and CFD trading from its headquarters in Kenya.

Compare FXPesa with any other broker by selecting the other broker below.

FXPesa is a fully licensed and regulated forex broker in Kenya. In fact, the broker ranks among the top 5 in our list of Capital Markets Authority (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.

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 Kenyan 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.

FxPesa Spreads

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 Leverage

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:

  1. They accept local payment methods including Mpesa, Airtel Money, and Equitel (Best Forex Brokers That Accept Mpesa)
  2. Account opening and verification is easier than with most international forex brokers.
  3. FxPesa offers free forex trading education to traders in Kenya. Open a live trading account to benefit from this offer.
  4. The 30% Fxpesa Karibu Bonus is a great incentive for traders who might not have sufficient capital to start trading
  5. 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.

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