The rising adoption rate of online trading platforms, young traders and ample opportunities for access to foreign markets is transforming the financial scene in Kenya.
Below is an insight into the progress being made with online trading platforms.
If you have been following the latest buzz on financial discussions in Kenya, then it would be very hard for you to have missed the fact that online trading has transcended beyond its status as a special alternative and emerged as perhaps one among the most widely discussed realms within the online economy.
Whether it’s foreign currencies, stocks or commodities, more and more people from Kenya are making use of their smartphones and computers and getting involved with online global market trading.
A world once understood as very intricate and exclusively meant for experts has happily transformed into something more mainstream.
And compared to a few years back, nowadays there are just too many reliable platforms available. Online platforms for trading have created an opportunity for common people to invest and participate in markets which otherwise seemed distant.
Online business and trade have revolutionized various markets and made them more accessible.
A rapidly growing industry
Younger traders are taking the lead
However, among the main factors fueling the trading revolution in Kenya is the young and technologically inclined population. Smartphones are ubiquitous, and data costs are getting lower and lower. As a result, young people in Kenya are taking up online finance with a degree of curiosity and fervor that would not have been witnessed a few years back.
Most people today perceive online trading as an investment alternative as well as a side business or even a career.
There’s also an emerging need for financial literacy. Social media personalities, online learning platforms and online communities have made trading easier to understand compared to traditional learning from institutions. As a result, there are more new traders who are confident enough to venture into global markets.
A more varied selection of platforms will emerge
The number of platforms offering brokerage services within Kenya has significantly increased. These platforms provide traders with access to a variety of assets, including forex and indices as well as commodities such as gold and oil.
The local platform that usually gets mentioned as an example within these discussions would be for people who wish to engage with an account known as an Exness standard account, and its popularity can be attributed to it having low entry requirements and benefits such as immediate withdrawals and rapid execution.
It’s with these levels of convenience, speed and transparency that have made these modern platforms so attractive.
The old ways with cumbersome interfaces and confusing ways of making deposits are no more. These modern platforms have understood what traders want and have delivered.
Regulation promotes confidence
CMA’s role is expanding
The Capital Markets Authority, CMA, has been working hard at tightening control over and regulating the rapidly growing online trade environment.
Although some online traders have, in the past, been very reserved due to fear of scams and unregulated brokers, recent developments have encouraged them.
Local regulation ensures that traders have a sense of security, particularly when they are working with licensed bodies. The CMA has been warning and approving more and more, and all these measures are helping it build a safer trading platform.
A call for investor education
Apart from controlling these platforms, there have also been efforts to improve investor education. There have been more webinars and campaigns covering financial literacy for young traders. The message here is for traders to be aware of risks associated with these platforms and not get caught up in the notion that they will make rapid profits.
But it’s not just the government that is emphasizing educational standards. Many online platforms have invested heavily in offering free learning materials and live market analysis. These have made all the difference for many Kenyans who might have been winging it before.
Economic factors drive interest
Expensive cost of living forces people to look for alternative sources of income. Due to the ever-changing cost of living, there are people who seek alternative sources of income. Online trading has become an alternative source of income as it requires no significant capital and no special equipment.
Trade, of course, does not guarantee an income stream; nonetheless, its potential usefulness as a source of additional financial flexibility may be argued as a reason for its growing popularity.
The stronger global link
As Kenya integrates more and more into global business, so too have there been rising levels of interest in international markets. It would appear that Kenyans are using online trading platforms in Kenya to track developments such as US tech stocks, international oil prices and major foreign currency exchanges. All it takes is seconds with online traders, and curiosity becomes commerce.
Issues which continue to be addressed
Risk of mis-information
Although online trading forums have proliferated, it should be remembered that not all information on these sites is reliable. It becomes easy for a newbie to get confused with misleading information posted on these forums by “gurus.” Financial knowledge becomes imperative at this stage.
Internet reliability and costs
Although there have been improvements made, there still exist challenges. Unreliable internet connections might bring about problems in live trade sessions. It becomes annoying very soon for an active trader.
