Non-Regulated Forex Brokers for Kenyan FX Traders 2025

Generally speaking, it is best for forex traders to use a broker that is regulated and licensed in their country (or union of countries), as this reduces the risk of running into jurisdiction issues if there is a problem. There are exceptions though; your home country may not license online forex brokers, or the financial authority may be know for being lax when it comes to trader protection. In such situations, many traders pick a forex brokers that is regulated and licensed by a strict financial authority instead, such as the UK FCA.

There are also traders that, for various reasons, prefer to go with a non-regulated forex broker, or one regulated by one of the lax financial authorities. A so called non-regulated broker can for instance be a broker that has such a complex corporate structure that it is difficult for any national authority to really, properly enforce trader protection rules. It can also be a broker that is headquarter in country A, but operating without a license from country A. As long as the broker makes sure to not accept any country A traders, the country A authorities might not be very interested in pursuing legal action against the broker.

When Kenyan traders decide to go with a non-regulated (unregulated) broker, or one regulated in lax jurisdiction, they are increase the risk of ending up with a fraudulent broker. If an issue arises between you and your broker, it will be more difficult, or impossible, for you to get actionable help from the authorities. Still, some Kenyan traders decide to sign up with and use non-regulated brokers.

The Best unregulated forex brokers 2025

Why do some Kenyan forex traders use non-regulated forex brokers?

Good reputation

A trader may decide that a brokers reputation and long-term good standing within the trading community is more important that a license. There have been situations where a broker has defrauded their clients despite having a proper license. For some brokers, this signals that reputation and long-term conduct is more important that a piece of paper from a financial authority.

Higher leverage

Strict financial authorities with strong trader protection rules are typically also authorities that want to limit how much leverage a non-professional trader (retail trader) can use. Many retail traders, in Kenya and elsewhere, feel that this is a decision they should be allowed to make on their own, in accordance with their own trading strategy, risk management routines, and risk-willingness.

Even with a financial authority that is currently not limiting leverage for non-professional traders, many traders feel that it is only a question of time before such rules are put in place, and they rather not be forced to find a new broker when that happens. Therefore, they prefer to select a non-regulated broker from the get go.

No Negative Balance Protection For Retail Traders

Strict financial authorities will often require brokers to give retail traders Negative Account Balance Protection. This means that you can not end up owing your broker money, even if the market goes against you when you are doing leveraged trades.

While Negative Balance Protection might sound great, it also comes with strings attached, including a far reaching right (and sometimes even a legal requirement) for your broker to automatically close one or more of your leveraged positions if the market goes against you beyond a certain point. It is to prevent your account from ending up in the red, but it can be horrible to witness in a situation where the market takes a sharp but short-lived turn (e.g. reacting to news) and you would have preferred to keep the positions open and allow the market to correct itself. Therefore, some retail traders seek out non-regulated brokers where they can use leverage without Negative Account Balance Protection.

Bonus offers

Strict financial authorities with strong trader protection will typically have rules against using bonus offers to lure in non-professional traders. If you want a big welcome bonus and recurring deposit bonuses, you may need to go with a non-regulated forex brokers.

Many international brokers have removed their bonus offers for retail traders in all countries, even in countries where it is legal, because they need to stick with the rules enforced by the financial authorities from whence they get their license.

Access to special features

Some traders find themselves in a situation where the best broker for their particular strategy turns out to be a non-regulated one, when it comes to special features required for the strategy.

A dislike of governmental involvement

Some Kenyan trader dislike the general idea of having any government meddling in their forex trading activities, and prefer to pick forex brokers that are as independent as possible. This can be for a variety of reasons, including a reluctance to have their profits or trading account balances reported to any authority.

Do I have to use a non-regulated forex broker for fx trading in Kenya?

No, you don´t. Forex trading is legal and regulated in Kenya, and there are many regulated forex brokers available. In Kenya, the Capital Markets Authority (CMA) is responsible for supervising, licensing and monitoring the activities of the capital markets and market intermediaries in Kenya. Established in 1990, this is a governmental financial regulatory entity under the Ministry of the National Treasury & Planning. The CMA issues several different types of licenses, including the the Non-Dealing Online Forex Exchange Broker Licence, the Dealing Online Forex Exchange Broker Licence, and the Online Forex Exchange Money Manager License. It is also responsible for granting compensation to investors who suffer pecuniary loss due to the failure of a licensed broker or dealer to meet its contractual obligations.

Note: Some scammers claim to be licensed by the CMA. Always verify directly with the CMA before you make any decisions.

Downsides of using a non-regulated forex broker

Below, we will look at a few examples of downsides associated with using a non-regulated forex broker.

Lack of Investor Compensation Schemes

In Kenya, the Capital Markets Authority (CMA) is responsible for granting compensation to investors who suffer pecuniary loss due to the failure of a licensed broker or dealer to meet its contractual obligations. This investor compensation scheme is only available when you use a broker licensed by the CMA.

Lack of Dispute Resolution

If you encounter a problem with a licensed broker that can not be resolved directly with the broker, your next action would be to contact the licensing authority. For brokers licensed in Kenya, that would be the Capital Markets Authority (CMA).

When you are using a non-regulated broker, you can still file a report with the CMA to let them know that a non-regulated broker is accepting Kenyan clients, but CMA´s ability to actually offer any mediation or other dispute resolution will be extremely limited.

Lack of Recourse

You can always report and have charges filed against a fraudulent broker, but when if it is a non-licensed broker operating from abroad, it can be very difficult for the Kenyan legal system to act in an efficient manner.

Going after a broker through legal channels abroad can also prove difficult, especially since many non-licensed brokers deliberately create a complex web where they might have a company registered in one country, have the management team in another country, keep money in several other countries, operate through various subsidiaries and seemingly independent consultant companies, and so on. Many different countries may need to cooperate to unravel the mess and it can take a very long time or prove to be impossible.

No Money Segregation Requirement

Strict financial authorities will normally demand that the broker keep client money segregated from company funds. This makes it much easier for the traders to get the money in their accounts back if the company becomes insolvent.

Non-regulated brokers operating without oversight can easily put all money together, and may for instance use client funds to pay for company expenses. When the company has been run to the ground, there is no money left to pay back to the traders. If there is any money left that has been frozen by the authorities, it will most likely be used by the bankruptcy court to pay back all the claimants equally, which means that trader money can be used to also pay back contractors, vendors, staff, etcetera, preventing traders from getting their money back in full.

Lack of Rules That Promotes Transparency and Fair Trading Conditions

Financial authorities normally have rules and routines in place to promote transparency and fair trading conditions. This can for instance pertain to book keeping and auditing, and govern which persons that are allowed to open and run a brokerage service. With a non-regulated broker, there are no such rules.

Lack of Scrutiny

The CMA has far-reaching authorization to supervise and investigate brokers operating with a Kenyan license. With a non-regulated broker, there will be no such scrutiny, especially when the company/entity is not even based in Kenya.

You Can Lose More Than Your Deposit

Some traders feel that it is safe to go with a non-regulated broker if they only make a tiny deposit. After all, if you only deposit $10 you can only lose $10, right? There are a few problems with this, including:

• Some fraudsters play the long game. They behave great in the beginning, making your feel safe enough to make larger deposits. Deposits and withdrawals will run smoothly, until the fraudster decides that your account balance is big enough and it is time to clean out your account.
• In order to withdraw your money, you will be required to verify your identity, e.g. by sending in copies of your national ID and utility bills. This is standard procedure, intended to prevent theft, money laundering, etcetera. The problem is that if you send this information to a fraudster, you run the risk of being the victim of identity theft. Just like you used this info to prove your identity, the fraudster will use this material to “prove” they are you. You run the risk of losing considerably more than just the $10 you deposited. You may even become involved in a criminal investigation, when the fraudster has committed crimes while claiming to be you. Even if you come out alright in the end, it will be a lot of stress and wasted time, and you may need to spend $$$ on good legal representation.
• Software from a sketchy broker can be infested with viruses, spyware, etcetera.

Things To Look For When Comparing Non-Regulated Brokers

In absence of strong regulation and trader protection, other things become more important when comparing brokers. Here are a few examples of points that are good to keep in mind if you consider using a non-regulated forex broker.

Reputation

A brokers reputation within the trading community is always important, but it becomes even more important when picking a broker that is operating without proper supervision. Pay special attention to the broker´s reputation among traders in Kenya, because some brokers will behave better in certain markets where they, for various reasons, have decided that it is more important to be perceived as a serious and trustworthy broker.

Always verify claims with other sources than the broker. Any broker or scam site can claim to have X amount of active clients in Kenya and post fake testimonials.

Length of Service

How long has this broker been active?

For how long has it been a reputable and well liked broker?

Was it always a brokerage company, or has it switched recently?

How long has the broker been active on the Kenyan market?

You may be able to confirm that a broker has been in existence for a long time, but for how long has current ownership and management been in place? Sometimes, fraudsters purchase an existing company and use it for their frauds, as they know a brand new enterprise is likely to send up more red flags within the online trading community.

Track Record

Look up the brokerage company, the owners, and the company principals to see if anyone has been under investigation for wrong doings and what the investigation concluded. Sometimes, a company or individual might get away from the long arm of the law, but anyone taking a look at the investigation can see that they have been sketchy – and really good at skirting the law and not leaving enough evidence behind.

Note: A group or individual can found a brokerage company, use it for shady dealings, and then discard it in favour of a new company with a clean record. Do some digging to see if there are any major ties between this current broker and previous entities that may warrant a better look-into.

The Trading Platform

Will you be using a well-established third-party trading platform, a less-known third-party platform, or the broker´s own proprietary software? All options can be 100% legit, but it is even easier for a sketchy broker to manipulate a proprietary trading platform.

Market Price Data

Is it clear where the market price data comes from with this non-regulated broker?

Price Structure

Is this broker showing you a transparent price structure that is easy to understand and compare?

Demo Account

It is always a good idea to test run any broker and trading platform using a free demo account before you make your first deposit. Some fraudsters will be reluctant to give you access, because they don´t actually have a trading platform, as they are only interested in collecting first deposits and stealing the money. There are also sketchy brokers that know that their trading platform is so shitty that they need to get that first deposit from you before you find out.

Another warning sign is a broker that demands that you pay for access to the demo account, or only let you use the demo account for a very short time. Not giving you any free play-money to actually use the platform for trading is another warning signal, and so is having many features blocked in demo mode.

Do not verify your identity with copies of your national ID etcetera when you only want to sign up for a free demo account. You are not trading real money, so there is no need to prove who you are.

Support

Before you sign-up with any broker (regulated or unregulated) and make a deposit, it is a good idea to check out the support. Being able to get help quickly if an issue arises is very important in the fast-paced world of forex trading.

• Will the support be open and staffed by humans during the hours your are most likely to trade? Some brokers advertise 24/7 support, but some or all of those hours will be “staffed” by chat robots.
• If the broker is offering support during office hours, is that Kenyan office hours, or the office ours in another time zone? Confusion can arise when using brokers headquartered outside of Kenya. Make sure you find out in advance, to avoid unpleasant surprises.
• Does this broker offer support through your favoured channel, e.g. phone call, live chat, or email?
• Can you get real-time help? If the broker only offers email support, you will not be able to get step-by-step guidance in real time. You will have to sit around and wait for an email response, try their suggestions, and then get back to them.
• If support is only available when you are logged into the platform, who will help you if you encounter issues with logging in?
• If you want phone support, is there a local Kenyan number available, or will you be required to make a potentially costly phone call to another country? Or maybe the broker is offering a call-back service or a solution where you can make the call over the internet?
• Is support available in a language you are comfortable with using, such as English or Swahili? Be aware that some non-regulated brokers promise English-language support, but when you reach the support, it becomes clear that the support staff is really struggling with English communication.
• Is the support staff skilled and can they help you quickly when you run into an issue? Does it seem like they actually understand forex trading in Kenya, or are they just reading from a script and offering platitudes?