Regarding online trading in Kenya, one name that has gained a lot of attention is FXPesa. As an online forex and CFD broker, FXPesa is widely known for providing traders of all levels easy access to global financial markets. But is FXPesa worth your time and money? In this FXPesa review, we’ll dive into every aspect of the platform, including its features, fees, pros and cons, and much more.
FXPesa Overview
FXPesa is a trading platform that was established in 2019 by EGM Securities, a licensed and regulated non-dealing forex broker. Headquartered in Nairobi, Kenya, FXPesa is the first online forex and CFD broker in Kenya to be licensed by the Capital Markets Authority (CMA). This gives the platform a certain level of legitimacy and trustworthiness, particularly for Kenyan traders.
FXPesa allows users to trade a wide range of assets, including:
- Forex (currency pairs)
- Commodities (gold, silver, oil, etc.)
- Indices (global market indices)
- Shares
- Cryptocurrencies (Bitcoin, Ethereum, etc.)
Key Features of FXPesa
Before you sign up for FXPesa, it’s important to understand its standout features. Here are some of the most noteworthy:
1. Trading Platform
FXPesa offers a MetaTrader 4 (MT4) trading platform, which is widely known for being user-friendly, especially for beginners. MT4 provides access to advanced charting tools, technical analysis, and automated trading.
For those who are new to trading, FXPesa also provides a simplified web trading platform that offers basic tools, ensuring you won’t feel overwhelmed.
2. Regulation
One of the most important aspects of FXPesa is that it is licensed and regulated by the Capital Markets Authority (CMA) of Kenya. This regulation ensures that the broker adheres to strict guidelines, offering security to your funds and peace of mind.
3. Payment Methods
FXPesa supports multiple payment methods that suit both Kenyan and international clients. For Kenyans, you can fund your account via M-Pesa, which is an incredibly convenient option. Other options include bank transfers, debit/credit cards, Airtel Money, Equity Bank, Family Bank, and even e-wallets like Skrill, and Neteller.
4. Educational Resources
FXPesa prides itself on offering a variety of educational resources, including webinars, tutorials, and live events. These resources are particularly helpful for beginners who want to improve their trading knowledge and skills.
5. Leverage Options
FXPesa offers a maximum leverage of 1:400, which means that you can trade positions up to 400 times larger than your actual investment. While this can significantly boost profits, it’s important to note that high leverage also increases your risk of losses.
6. Customer Support
Customer support is available 24/5 through live chat, email, and phone. For those in Kenya, having a broker that offers local customer service is a big advantage.
Account Types offered by FXPesa
FXPesa offers two main account types, each designed for different levels of traders:
1. Executive Account
The Executive Account is the standard offering, with spreads starting at 1.4 pips. There are no commissions charged on this account, making it suitable for beginner traders who prefer straightforward pricing.
2. Premier Account
The Premier Account offers tighter spreads starting from 0.0 pips, but you will be charged a commission of $7 per lot. This account is more suited for experienced traders who are looking for lower trading costs.
Fees and Commissions
One of the most crucial factors to consider when choosing a broker is its fee structure. FXPesa provides transparent pricing, but you should be aware of the following fees:
- Spread: The difference between the bid and ask price. Spreads on FXPesa vary depending on the account type.
- Commission: Only applicable to the Premier Account, where traders are charged $7 per lot.
- Overnight Fees: If you hold positions overnight, FXPesa will charge you a swap fee.
- Deposit/Withdrawal Fees: FXPesa does not charge for deposits, but some payment methods might incur a small withdrawal fee.
Pros and Cons of FXPesa
| Pros | Cons |
|---|---|
| Regulated by the Capital Markets Authority (CMA) in Kenya | Commission fees on the Premier Account |
| User-friendly platforms (MetaTrader 4 and web-based) | Limited cryptocurrency offerings |
| Multiple account types to suit different traders | Swap fees for overnight positions |
| Convenient local payment options like M-Pesa | Limited global presence outside of Kenya |
| Strong educational resources for beginners | |
| Competitive spreads, especially on Premier Account |
Pros:
- Regulated by the Capital Markets Authority (CMA) in Kenya.
- User-friendly platforms (MT4 and web platform).
- Multiple account types to suit various traders.
- Convenient payment methods like M-Pesa.
- Strong educational resources for beginners.
- Competitive spreads, especially on the Premier Account.
Cons:
- Commission fees on the Premier Account might not suit all traders.
- Limited offering of cryptocurrencies compared to other brokers.
- Swap fees could add up for long-term traders.
Is FXPesa Safe?
When it comes to safety and security, FXPesa ticks many of the right boxes. Being regulated by the CMA ensures that the broker complies with strict financial regulations. Moreover, FXPesa uses segregated accounts to hold client funds, meaning that your money is kept separate from the broker’s operational funds. This provides an additional layer of protection.
Furthermore, FXPesa employs advanced encryption technology to secure all transactions, ensuring that your personal information is safe from cyber threats.
How to Get Started with FXPesa
Getting started with FXPesa is a relatively simple process. Here’s a step-by-step guide:
- Sign Up: Visit the FXPesa website and click on “Open Account.”
- Verify Your Identity: You’ll be required to submit proof of identification (like a national ID or passport) and proof of residence.
- Fund Your Account: Once verified, you can deposit funds via M-Pesa, bank transfer, or card.
- Start Trading: After funding your account, you can start trading on either the MT4 platform or the web platform.
Bottom Line
FXPesa is undoubtedly one of the top forex brokers in Kenya, especially for traders looking for a locally regulated option. The platform offers a robust set of features, from competitive spreads and multiple account types to excellent customer support and user-friendly trading tools. Whether you are a beginner or an experienced trader, FXPesa has something to offer.
That being said, the broker is not without its downsides. The commission fees on the Premier Account and the limited cryptocurrency options may be drawbacks for some traders. However, for those focused on forex and commodities, FXPesa is an excellent choice.
Finally, FXPesa is a reliable and safe platform that provides access to a broad range of trading instruments, all while being regulated by Kenya’s financial authority. If you’re looking to trade in a regulated environment with local support and M-Pesa funding options, FXPesa is worth considering.
Top 3 Alternatives to FXPesa
If by the above review, FXPesa doesn’t seem a viable option for you, then you can compare FXPesa with the top 3 similar brokers that offer similar services.
XM Global
XM is a well-established forex and CFD broker founded in 2009, with over 5 million clients globally. Regulated in multiple jurisdictions, XM offers over 1,000 financial instruments, including forex, indices, stocks, and commodities. With access to MT4 and MT5 platforms, users can trade with ultra-low spreads and no hidden fees. The broker also provides extensive educational resources and dedicated 24/5 customer support in multiple languages.
Pepperstone
Established in 2010 in Australia, Pepperstone is regulated by ASIC, CMA, FCA, and CySEC, and has quickly gained a reputation for providing fast execution, low spreads, and a wide range of markets to trade. Pepperstone offers access to MetaTrader 4, MetaTrader 5, cTrader, and TradingView, catering to both beginners and advanced traders. With its transparent fee structure and award-winning customer support, it’s a popular choice for traders worldwide.
HFM
It is a multi-asset broker founded in 2010. Regulated by multiple authorities, including CySEC and the FCA, CMA. HFM provides traders with access to a wide variety of financial instruments, including forex, commodities, indices, and shares. The broker offers cutting-edge technology, low-cost trading, and comprehensive trading tools, including MetaTrader 4, MetaTrader 5, and the proprietary HF App. With excellent customer support and a solid educational offering, HFM is a strong competitor in the online trading space.
FXPesa vs Other Brokers
The most popular FXPesa comparisons:
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- FXPesa vs FxPro
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.
