Best Forex Brokers 2025

For traders in Kenya, the easiest solution is to go with a forex broker that has an office in Kenya and is regulated and licensed by the Kenyan Capital Markets Authority (CMA). If you instead decide to pick a broker that is based in another country and licensed abroad, there are several things to consider. Below, we will take a look at a few points that can be good to keep in mind if you are interested in forex brokers that are based abroad and licensed by a foreign financial authority.

10 Best Forex Brokers for traders in Kenya 2025

Jurisdictional complexity

If you are living in Kenya but use a broker that doesn´t have an office in Kenya and isn´t licensed by the Kenyan Capital Markets Authority (CMA), you step into a situation that could get complicated if you run into trouble with this broker.

When a brokerage company is not based in Kenya, it can be very difficult for the Kenyan legal system to do anything about a broker that is misbehaving, e.g. one that is manipulating price information on the trading platform or is making it impossible for your to withdraw your money from your trading account. Questions can arise regarding jurisdiction, and even if Kenyan authorities find that the broker has broken the law in Kenya, it can be very difficult or impossible for the Kenyan justice system to actually step in and force the broker to repay you.

You may be forced to turn to the justice system of the country in which the broker is based and to the financial authority from which the broker has obtained its license. In some cases, they can be very helpful and resourceful, but there are also situations where they will only be willing or legally able to take action when a trader in their own country is filing a complaint or being wronged.

The Kenya CMA investor compensation program

The Kenyan Capital Markets Authority (CMA) is responsible for granting compensation to investors who suffer pecuniary loss due to the failure of a CMA licensed broker or dealer to meet its contractual obligations. If you pick a broker that is not CMA licensed, you are not protected by this compensation program.

What To Look For In A Foreign-Licensed Forex Broker

Here are a few examples of points that can be good to consider if you, a trader in Kenya, is considering using a broker that is regulated abroad.

Strictness of the Financial Authority

Not all foreign financial authorities work the same way. Some are known to be very strict and pro-active when it comes to trader protection, while others take a more lax approach.

Note: A financial authority can have very strict rules on the books, but be very lax in reality, sometimes due to a lack of the resources required to actually enforce the rules.

Track record of helping traders abroad

Does this foreign financial authority have a track record of actually taking action to help protect traders outside their own jurisdiction? Are they willing and legally able to open an investigation against a broker if a complaint comes in from abroad? Does the brokerage license even require the broker to adhere to a certain standard abroad?

It is not simply a question about what the financial authority is willing to do – it also concerns the limitation of its legal powers to act. A financial authority can be very strict within its own jurisdiction, but trying to control what a broker does in another jurisdictions is another kettle of fish. Some brokers regulated by strict financial authorities have a policy of upholding a regiment of transparency and fairness in all their dealings, globally, since they do not want to earn a bad reputation abroad that could foul their relationship with the licensing authority at home, but there are also brokers who will act very differently in different countries.

A financial authority´s ability to act to help traders in Kenya can also depend on the diplomatic relationship between its government and the government of Kenya. Some countries have a stronger history of cooperation with Kenya than others.

Compensation program

Find out where the broker is based and where it is licensed. Is the goverment or the licensing authority operating any type of compensation program for investors who are harmed financially when an authorized broker does not uphold its obligations, e.g. due to insolvency?

Is this compensation program limited to domestic traders, or would a forex trader in Kenya be entitled to compensation too?

Leverage limits

Where a broker is licensed can impact how much leverage they will offer retail traders. Many of the stricter financial authorities have caps in place to limit how much leverage a broker is permitted to give a retail trader (a non-professional trader). Some brokers stick to these rules globally and not just within the jurisdiction where they are licensed.

Many of the stricter financial authorities have a general leverage cap of 1:30 for retail traders, and then even lower ceilings for certain high-risk assets. You may for instance find that the 1:30 leverage is only for major currency pairs, and that the available leverage is even lower for minor currency pairs, exotic currency pairs, and any speculation involving at least one cryptocurrency.

Negative Account Balance Protection

Many of the stricter financial authorities around the globe require brokers to give all retail trading accounts (accounts belonging to non-professional traders) Negative Account Balance Protection. This means that when you are using leverage, your account balance can never drop below zero even if the market goes against you.

Some brokers that are licensed by a strict financial authority will uphold this rule globally and not just within the jurisdiction where they are licensed. While this might sound great for you as a retail trader, it comes with strings attached that you should read up about before you use any leverage. Negative Account Balance Protection will typically give the broker far-reaching rights to automatically close one or more of your leveraged positions if the market goes against you beyond a certain point. The broker does this to make sure you don´t end up in the red. It is similar to a traditional margin call, but the exact rules can be different, and it is important that you find out in advance if your account has Negative Account Balance Protection and exactly what that entails before you use any leverage.

The broker´s reputation in Kenya and nearby countries

Some brokers will behave impeccably in one part of the world while being considerably less stellar towards traders in other locations. Therefore, it is a good idea to try to find out more about the reputation of a broker among traders in Kenya and nearby countries, and not only rely on reviews posted by traders in Europe, the UAE, etcetera.

Examples of financial authorities known for having a high level of trader protection

The Australian Securities and Investments Commission (ASIC)

The Australian Securities and Investments Commission (ASIC) regulate company and financial services in Australia and enforce laws to protect Australian consumers, investors and creditors. Established in 1998, ASIC is a an independent commission of the Australian Government and reports to the Treasurer. The current scope of ASIC is determined by the Australian Securities and Investments Commission Act 2001. Examples of areas of responsibility for ASIC are corporate governance, financial services, securities and derivatives, consumer protection, and the Australian Stock Exchange (added in 2009). ASIC is one of

The Cyprus Securities and Exchange Commission (CySEC)

Since Cyprus is a European Union membership country, a broker licensed by the Cyprus Securities and Exchange Commission (CySEC) is automatically licensed to be active in all EU membership countries. It also means that EU laws and regulations apply. Examples of EU level entities to take into account are the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA).

BaFin (in Germany)

The Federal Financial Supervisory Authority (BaFin) is Germany´s integrated financial regulatory authority. Its German name is Bundesanstalt für Finanzdienstleistungsaufsicht, which is abbreviated BaFin.

BaFin is an independent federal institution under the supervision of the Federal Ministry of Finance. It is based in both Bonn and Frankfurt, but not in Berlin (the capital of Germany). Among other things, BaFin supervises roughly 2,700 banks and circa 800 financial services institutions.

Since Germany is a European Union membership country, a broker licensed by BaFin is automatically licensed to be active in all EU membership countries. It also means that EU laws and regulations apply. Examples of EU level entities to take into account are the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA).

The Estonian Financial Supervision and Resolution Authority

The Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon) works on behalf of the Estonian state, but is independent in its decision-making and operates with an autonomous budget. Among other things, it supervises banks, investment firms, and the securities market. Founded in 2002, Finantsinspektsioon is located in Tallinn, the capital of Estonia.

Estonia has been a member of the European Union since 2004 and a broker with a license from

Estonia´s Finantsinspektsioon is therefore licensed to operate throughout the union. A broker licensed by the Finantsinspektsioon must adhere not just to Estonian law, but also to the European Union rules. Examples of EU level entities to take into account are the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA).

Estonia consistently ranks as one of the least corrupt countries in the world and has the lowest level of corruption among the former Soviet Union states. It also places high in rankings regarding the digitalization of public services and the prevalence of technology companies.

The Financial Conduct Authority (FCA) in the United Kingdom

In the United Kingdom, the Financial Conduct Authority (FCA) is responsible for regulating the financial service industry, in accordance with applicable laws, and it works in close cooperation with HM Treasury, the Prudential Regulation Authority, and the Financial Policy Committee.

Among other things, the FCA works to protect consumers, keep the financial industry stable in the UK, and promote healthy competition between financial service providers, including both retail and wholesale firms. The FCA has become famous for taking a very pro-active approach rather than just sitting back and wait for complaints.

The FCA has wide reaching powers, and can for instance investigate both organisations and invidiuals, as well as freeze the assets of organizations and individuals that are under investigation.

The FCA was established as a part of a restructuring that saw the abolishing of the UK Financial Services Authority (FSA). The FCA derives its powers from the Financial Services Act 2012, which came into force in April 2013. Instead of being tax funded, the FCA collects fees from its members in the financial services industry.

Note: Since January 31, 2020, the United Kingdom is no longer a member of the European Union.

The Swiss Financial Market Supervisory Authority (FINMA)

The Swiss Financial Market Supervisory Authority (FINMA) is a Swiss government body responsible for financial regulation and – among other things – the supervision of banks, stock exchanges, securities dealers, and financial intermediaries in Switzerland.

FINMA was established in 2007 and succeeded the Federal Banking Commission which had been active since 1934. FINMA is an independent institution based in Bern, the de facto capital of Switzerland. Even though it is a government body, it is institutionally, functionally and financially independent from the central federal administration and the Federal Department of Finance, and it reports directly to the Swiss parliament.

FINMA grants five types of authorisation and the requirements and level of supervision vary depending on which authorization an entity holds. When broker or other entity claims to be auhtorized by FINMA, it is therefore a good idea to check exactly which type of authorization they have: license, recognition, authorisation, approval, or registration.

Since 2020, FINMA requires all financial service providers to be affiliated with an ombudsman recognized by the Federal Department of Finance (FDF). The ombudsman can help resolve issues between clients and brokers under FINMA supervision.

Switzerland is a European country, but it is not a part of the European Union.