The good news is that we have done the hard work for you. We compared dozens of companies to find the top forex brokers for beginners who can set you up for trading success. These brokers stand out for their affordable costs, many regulated licenses, instructional resources, and user-friendly websites.
Instead of guessing, you can be confident that you are making the right decision based on our extensive testing and real user reviews. We will also discuss crucial elements to consider when selecting a forex broker as a newbie trader, so you know what to look for.
By following our top selections, you may avoid deceptive marketing tricks and swiftly learn forex trading fundamentals with reliable instructors by your side. Continue reading to learn about the finest forex brokers on which beginners may rely for years, regardless of their skill level or account size.
What is Forex Trading?
Before we go into the top forex brokers for beginners, let's define forex for people who are completely new to trading.
Forex, often known as foreign exchange or currency trading, is the practice of speculating on currency pair movements by purchasing one currency and selling another. For example, if you believe the Euro will appreciate about the US dollar, you would buy EUR/USD. The opposite is true when selling EUR/USD.
The currency market is open 24 hours a day, five days a week at banks all around the world. This high liquidity allows traders to enter and exit positions quickly. It also produces tremendous volatility, which can result in significant profits (or losses) from correctly guessing whether currency rates will rise or fall.
While complicated institutional money flows drive long-term currency swings, beginners should not worry. You can profit from short-term movements lasting hours or days. Fortunately, respectable forex brokers provide educational tools to help newbies learn established and lucrative forex trading tactics.
Benefits of Forex Trading for Beginners
While forex trading, like any other market, carries dangers, numerous intrinsic benefits entice new traders to the foreign currency market:- Brokers provide leverage of up to 30:1 or higher, allowing you to trade larger quantities with less upfront cash. If you put $1,000, you can manage a stake worth $30,000. Just think about risk management.
- 24-Hour Market Access - The FX market is open 24 hours a day, five days a week, across banks worldwide. This allows you to identify trade opportunities at any time of day or night that fits your schedule.
- High Liquidity - The vast FX market is extremely liquid. In contrast to thin, illiquid markets, this allows for quick entry and exit of positions. Liquidity reduces slippage, allowing you to enter and exit at the appropriate pricing.
The disadvantages of forex trading for beginners
While enticing characteristics entice newcomers, numerous intrinsic issues make profitable forex trading difficult:- High Volatility - Sharp changes in currency pairs can result in massive losses if you're on the wrong side of the move or leveraged incorrectly. Use stops and limit risk to ~1-2% per trade.
- Leverage Magnifies Losses - While increased leverage increases earnings, it also compounds losses because it works both ways. Manage risk accordingly.
- Education is required for profitable trading. This includes establishing an edge through market analysis, testing sound strategies, and managing emotions. Expect a learning curve. Top brokers offer a wealth of training materials to help you learn faster and with greater consistency.
FXPesa is a non-dealing desk (NDD) broker, thus there is no conflict of interest. They provide market execution of deals for all of their trading accounts. They provide two trading accounts: 'Executive', which requires a $5 deposit, is a normal account with no fee and a spread of 1.4 pips. The alternative account is Premiere ($100 deposit), which has a reduced spread of 0 pips but charges a $7 commission per regular lot for FX.
They offer 66 currency pairs, but their other CFD options are somewhat restricted.
FXPesa is a MetaTrader 4 broker; they do not offer the latest MT5 or cTrader versions. However, they have their own platform that works on all devices.
They have an office in Nairobi and a local phone line for support. Their live chat is also really nice and informative.
They provide funding in both USD and Kenyan Shilling (KSh) through local bank transfers. However, the account currency will be in USD. They also accept deposits and withdrawals via mobile wallets.
#2. FX Pro
FxPro is a multi-regulated forex broker situated in the United Kingdom that accepts clients from Kenya. However, they are not regulated by the CMA and are instead subject to foreign Tier-1 and Tier-2 rules like as the FCA, CySEC, and FSCA.
FxPro offers several account kinds, and the actual costs vary depending on the account type. If you trade a major currency pair like EURUSD on a MetaTrader 4 account using a market execution-based model, the normal spread is 1.41 pips, with a minimum of 0.5 pips (depending on market conditions).
You can also select a commission-based low-spread trading account. You can pick between MT4 Raw+ and a cTrader account. The typical EURUSD spread with a cTrader account is 0.45 pips (0.3 pips on average), plus a $7 charge per Standard lot. This results in an average spread of about 1 pip for EURUSD, which is considered moderate.
FxPro offers both MetaTrader and cTrader platforms. They also provide a smartphone app for traders.
Local traders can fund their accounts with MPesa. If you deposit using mobile money, the minimum funding account balance is KSh 200. This method also allows for instant withdrawals (usually within a few hours at most).
FxPro does not have a local office in Kenya. Their office is located in London (UK). There is no local phone number for assistance on their website, but you can request a callback via their Contact form. You can also contact their support team via live chat on their website.
#3. HF Markets
FxPro offers several account kinds, and the actual costs vary depending on the account type. If you trade a major currency pair like EURUSD on a MetaTrader 4 account using a market execution-based model, the normal spread is 1.41 pips, with a minimum of 0.5 pips (depending on market conditions).
You can also select a commission-based low-spread trading account. You can pick between MT4 Raw+ and a cTrader account. The typical EURUSD spread with a cTrader account is 0.45 pips (0.3 pips on average), plus a $7 charge per Standard lot. This results in an average spread of about 1 pip for EURUSD, which is considered moderate.
FxPro offers both MetaTrader and cTrader platforms. They also provide a smartphone app for traders.
Local traders can fund their accounts with MPesa. If you deposit using mobile money, the minimum funding account balance is KSh 200. This method also allows for instant withdrawals (usually within a few hours at most).
FxPro does not have a local office in Kenya. Their office is located in London (UK). There is no local phone number for assistance on their website, but you can request a callback via their Contact form. You can also contact their support team via live chat on their website.
#3. HF Markets
HF Markets (formerly HotForex) is our recommended forex broker for Kenyan traders. HFM is regulated by the CMA as a non-dealing online forex broker under license number 155 (regulated in 2021). They are also regulated by Tier 1 and Tier 2 regulators such as the FSCA of South Africa, the DFSA of the UAE, and the FCA of the United Kingdom. This makes HFM a low-risk forex broker for Kenyan traders.
In terms of expenses, their Premium account has a modest spread (1.3 pips on average for EURUSD) and no deposit or withdrawal fees. The lowest deposit necessary to start a Micro account is $5, and the maximum leverage available on this account is up to 1:400 (1:400 with a Premium account for forex, but varies by trading instrument for other CFDs).
For low spreads, traders can open a Zero account, which has spreads starting at 0 pips. The minimum deposit is $200, or Kes. 22,000 (depending on your account currency). The commission per lot on this account is Kes. 660 ($6) for majors and Kes. 880 ($8) for other pairs.
Traders at HFM can open accounts using USD or KES as the base currency. Only a few brokers provide this service. In addition, you can deposit and withdraw KES using mobile money or a local bank transfer in Kenya. They use the payment gateway Dusupay on their website, with a minimum deposit of Kes. 600 and a minimum withdrawal of Kes. 1000. This approach allows for quick funding and withdrawals, with no additional expenses.
HF Markets offers a 100% deposit incentive to new customers in Kenya, as well as excellent reward programs for existing clients.
It also provides a very good and rapid live chat option for its clients. Their website also includes a local office address in Nairobi. They also provide local phone and email support for Kenyan traders.
#4. Exness
In terms of expenses, their Premium account has a modest spread (1.3 pips on average for EURUSD) and no deposit or withdrawal fees. The lowest deposit necessary to start a Micro account is $5, and the maximum leverage available on this account is up to 1:400 (1:400 with a Premium account for forex, but varies by trading instrument for other CFDs).
For low spreads, traders can open a Zero account, which has spreads starting at 0 pips. The minimum deposit is $200, or Kes. 22,000 (depending on your account currency). The commission per lot on this account is Kes. 660 ($6) for majors and Kes. 880 ($8) for other pairs.
Traders at HFM can open accounts using USD or KES as the base currency. Only a few brokers provide this service. In addition, you can deposit and withdraw KES using mobile money or a local bank transfer in Kenya. They use the payment gateway Dusupay on their website, with a minimum deposit of Kes. 600 and a minimum withdrawal of Kes. 1000. This approach allows for quick funding and withdrawals, with no additional expenses.
HF Markets offers a 100% deposit incentive to new customers in Kenya, as well as excellent reward programs for existing clients.
It also provides a very good and rapid live chat option for its clients. Their website also includes a local office address in Nairobi. They also provide local phone and email support for Kenyan traders.
#4. Exness
Exness is a Cyprus-based broker with one of the world's largest FX and CFD trading volumes. They are well regulated by several top-tier agencies, including the CMA, FCA, FSCA, and CySEC, hence we consider them a safe broker.
Given that Exness is a CMA-licensed broker in Kenya, they are regarded as low risk. They were recently licensed with License No. 162.
Exness provides good assistance, low spreads, and education via videos, methods, and free analysis tools.
Exness provides services for two sorts of accounts: standard and professional. The Standard account has a minimum deposit of $1 and a minimum spread of 0.3 pips on the EUR/USD currency pair, whilst the Professional account has a minimum account balance of $500. The maximum leverage for both accounts is 1:2000.
One of the primary advantages of Exness is that its spread is far lower than that of most other rival brokers. Account kinds provided benefits to both beginner and experienced traders. Other advantages include easy access to assistance, quick executions, daily market reports, expert adviser support, and MetaTrader plugin support.
The spreads at Exness are competitive. For majors such as EURUSD, the spread with a Pro account (spread just, no commissions per lot) is 0.7-0.8 pips during normal trading hours. According to our testing, their spread is greater during the Asian session, averaging roughly 2 pips for EURUSD.
We discovered that Exness uses market execution, which results in requotes during events, which is typically associated with higher volatility. Because the price moves swiftly during events, you are more likely to receive requotes on Exness, therefore keep this in mind when trading in a dynamic market.
Exness' support is subpar. We discovered that their chat assistance responds quite slowly to requests, and there are typically delays of a few minutes when connecting. Also, their email responses are rather slow, and we received a response within a few days (whereas other brokers typically respond within a few hours).
#5. XM Forex
XM Trading is another broker that provides low-cost FX and CFD trading. There are over 1000 instruments available, including forex, precious metal CFDs, energy, and indexes.
XM is regulated by two top-tier regulators: CySEC and ASIC. However, because they are not regulated by the CMA in Kenya, they are deemed a riskier broker than the others on our list. XM's trading rates are fairly competitive, and they provide plain normal spread trading accounts with no additional commissions. Their fees are the lowest with their Ultra Low account.
Their trading accounts are rather easy. XM offers four account choices. For Standard and Micro accounts, the minimum deposit is 5 USD, with a maximum leverage of 1:888. The minimum deposit amount for an XM Ultra Low account is USD 50, with identical leverage. XM also offers a Share account for equities trading, which requires a minimum deposit of $10,000 and has no leverage.
The spread at XM is higher. During our tests, under normal market conditions, their typical spread for EURUSD with their Micro account was 1.8-2 pips. This is relatively pricey when compared to other brokers. Their spread with Ultra Low accounts is competitive, as the spread is typically 0.8 pips, which is comparable to Pro accounts at other brokers.
So, if you're starting an account at XM, you should open an Ultra Low account because the costs on other accounts aren't competitive, resulting in lesser returns.
Their service is also excellent, and it is available around the clock during market hours. They also provide free forex market education, such as research, forex webinars, video tutorials, and free daily technical analysis, to all of their customers. Additionally, they accept M-Pesa for account funding.
Given that Exness is a CMA-licensed broker in Kenya, they are regarded as low risk. They were recently licensed with License No. 162.
Exness provides good assistance, low spreads, and education via videos, methods, and free analysis tools.
Exness provides services for two sorts of accounts: standard and professional. The Standard account has a minimum deposit of $1 and a minimum spread of 0.3 pips on the EUR/USD currency pair, whilst the Professional account has a minimum account balance of $500. The maximum leverage for both accounts is 1:2000.
One of the primary advantages of Exness is that its spread is far lower than that of most other rival brokers. Account kinds provided benefits to both beginner and experienced traders. Other advantages include easy access to assistance, quick executions, daily market reports, expert adviser support, and MetaTrader plugin support.
The spreads at Exness are competitive. For majors such as EURUSD, the spread with a Pro account (spread just, no commissions per lot) is 0.7-0.8 pips during normal trading hours. According to our testing, their spread is greater during the Asian session, averaging roughly 2 pips for EURUSD.
We discovered that Exness uses market execution, which results in requotes during events, which is typically associated with higher volatility. Because the price moves swiftly during events, you are more likely to receive requotes on Exness, therefore keep this in mind when trading in a dynamic market.
Exness' support is subpar. We discovered that their chat assistance responds quite slowly to requests, and there are typically delays of a few minutes when connecting. Also, their email responses are rather slow, and we received a response within a few days (whereas other brokers typically respond within a few hours).
#5. XM Forex
XM Trading is another broker that provides low-cost FX and CFD trading. There are over 1000 instruments available, including forex, precious metal CFDs, energy, and indexes.
XM is regulated by two top-tier regulators: CySEC and ASIC. However, because they are not regulated by the CMA in Kenya, they are deemed a riskier broker than the others on our list. XM's trading rates are fairly competitive, and they provide plain normal spread trading accounts with no additional commissions. Their fees are the lowest with their Ultra Low account.
Their trading accounts are rather easy. XM offers four account choices. For Standard and Micro accounts, the minimum deposit is 5 USD, with a maximum leverage of 1:888. The minimum deposit amount for an XM Ultra Low account is USD 50, with identical leverage. XM also offers a Share account for equities trading, which requires a minimum deposit of $10,000 and has no leverage.
The spread at XM is higher. During our tests, under normal market conditions, their typical spread for EURUSD with their Micro account was 1.8-2 pips. This is relatively pricey when compared to other brokers. Their spread with Ultra Low accounts is competitive, as the spread is typically 0.8 pips, which is comparable to Pro accounts at other brokers.
So, if you're starting an account at XM, you should open an Ultra Low account because the costs on other accounts aren't competitive, resulting in lesser returns.
Their service is also excellent, and it is available around the clock during market hours. They also provide free forex market education, such as research, forex webinars, video tutorials, and free daily technical analysis, to all of their customers. Additionally, they accept M-Pesa for account funding.
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