Best Time to Trade in Kenya
What is the Best Time to Trade Forex in Kenya revealed. We tested and verified the best time to trade Forex in forex trading for Kenyan traders.
This is a complete guide to when the best time to trade forex in Kenya.
In this in-depth guide you’ll learn:
- What is the best time to trade forex?
- When is considered the best time to trade forex in Kenya?
- Our recommended forex brokers?
- How to compare forex trading brokers against each other?
- When is the best time to trade forex in Kenya?
- Which currency pairs can you trade at night in Kenya?
- What is the difference between low and high currency pairs?
- When does the market open in Kenya, every day of the week?
- Which sessions are only open Monday to Friday?
- Best trading times for beginner traders?
- Which forex brokers offer a low minimum deposit of $5 (592 KES)?
- Which brokers offer a signup bonus for first-time traders?
And lots more…
So if you’re ready to go “all in” with the best time to trade forex for Kenyans…
Let’s dive right in…
Best Time to Trade in Kenya (Updated 2022)
- Why is timing important when trading?
- The Best Time to Trade in Kenya
- How to choose the Right Broker in Kenya
- The Best Brokers in Kenya
- What is Market Timing?
- The Advantages and Disadvantages of Forex Market Timing
- Pros and Cons
- How Kenyans can determine the Best/Worst Time to Trade
- Introduction to Market Timing Strategies for Kenyans
- Analysis for Kenyans who use a Market Timing Strategy
- Best Days and Months for Kenyans to Trade
- How to choose the best trading platform in Kenya
- The Best Forex Trading Platforms in Kenya
- Understanding how trading platforms work
- Advantages of using a good trading platform
- Disadvantages of trading platforms
Why is timing important when trading?
👉 One of the most important aspects that determine whether a transaction is successful or unsuccessful is timing. Your hypothesis’ potential for profit also depends on the passage of time.
👉 While you could be correct in your analysis, if your timing is poor, you might still end up with a loss.
👉 Many investors spend a lot of time attempting to anticipate how the market will move. While the average Kenyan would not call themselves a “predictor,” they do engage in predictive behaviour whenever they make a deal to increase their capital.
👉 Granted, traders have shorter time horizons than investors do, but timing is crucial, nonetheless.
The Best Time to Trade in Kenya
👉 The foreign exchange market operates around the clock, five days a week. Beginning on Monday morning in Sydney and ending on Friday afternoon in New York, it opens and travels to different cities across the globe as the various markets open and shut.
👉 The market is open all day, every day, but various assets have varied levels of liquidity at various times. Sydney, Tokyo, London, and New York are the primary locations for foreign exchange trading.
👉 Since Tokyo, London, New York, and Sydney all have distinct time zones, the foreign exchange market is divided into separate trading sessions for each.
👉 Most sessions begin between 7 and 9 in the morning and end between 4 and 6 in the afternoon. Sydney’s session begins at 7 am and ends at 4 pm local time, which corresponds to 8 pm to noon GMT and 11 am to 8 pm east African time.
👉 These trading times can be summarized as follows:
|⏰ Local Time||🗓 EST||⌚️ GMT||🇰🇪 EAT Kenya||🕑 BST (GMT+1)|
|Sydney Open – 7 am||3 pm||8 pm||11 pm||10 pm|
|Sydney Close – 7 pm||Midnight||5 am||8 am||7 am|
|Tokyo Open – 9 am||7 pm||Midnight||3 am||1 am|
|Tokyo Close – 6 pm||4 am||9 am||Noon||10 am|
|London Open – 8 am||3 am||8 am||11 am||8 am|
|London Close – 4 pm||11 am||4 pm||7 pm||4 pm|
👉 Traders in Kenya have the most accommodating trading hours. If you are not trading during the London session, which begins at 11 am local time, you will be trading between 4 and 8 pm when the London and New York sessions overlap.
👉 Unless you are a night owl who wants to trade in the wee hours of the morning, the periods previously mentioned are the optimal times to trade forex in Kenya.
👉 Understanding the forex trade clock is crucial to your success as a forex trader. There are periods when the market is very liquid and others when it is quite stagnant, and there are several factors that Kenyans must consider while determining the best time to trade.
The London and New York Session Overlap
👉 The optimal time for forex trading in Kenya is between 4 pm and 8 pm local time. The London and New York trading sessions begin to overlap at 4 pm GMT. The overlap continues until midnight, and it is the most liquid phase for the market.
👉 Therefore, most brokers now provide the lowest spreads during these times as liquidity is extremely high. Except for the apparent overlap of the day’s two most busy sessions, this session is great for the afternoon.
👉 During this time, most Kenyans come home from work or other activities and may begin analysing the charts. During this overlap interval, market patterns that were formed during the European session often remain.
👉 Before investing, it is crucial to examine the market’s recent activity during the last several hours.
The London Forex Session
👉 Typically, the ideal time to trade forex in Kenya is during the London session, when the volume is highest. This is because the London session has the most liquidity, meaning there are more buyers and sellers on the market and prices are more likely to react to news and events.
👉 The London Currency Time is the most active session for forex trading. The reason it is so bustling is that London is the global financial capital. Since several banks and financial organizations have their headquarters in London, there is a considerable quantity of foreign exchange activity.
👉 Approximately thirty percent of all foreign exchange transactions occur during the London session. During this session, major currency pairs have shifts of 80 or more pips.
👉 Depending on the season, the London forex trading session begins around 10 or 11 am local time in Kenya.
👉 If you are a full-time forex trader, you have adequate time to trade during the London session, which is also one of the most liquid periods. The session will continue until 7 or 8 pm. This is enough time for a full-time forex trader to open and settle trades without maintaining crazy hours.
The Best Time for Kenyans to trade EUR/USD
👉 The EUR/USD currency pair is the most traded pair in the world. As one of the most liquid currency pairs to trade, it has some of the lowest spreads among forex brokers.
👉 In Kenya, the best time to trade EUR/USD is between 4 pm and 8 pm local time. This four-hour timeframe represents the overlap between the London and New York currency trading sessions.
👉 There is a great deal of trade activity during this time, with spreads at their tightest and market volatility at its peak.
👉 Most successful forex traders in Kenya, including scalpers and day traders, choose this overlap session. The period is optimal for identifying trading opportunities with high-profit potential.
👉 While it could seem productive to sit at your computer for 12 hours searching for trading chances, it might be most beneficial to trade the EUR/USD for only these few hours.
How to choose the Right Broker in Kenya
👉 Kenyan traders must evaluate the following components of a broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
👉 This is the first vital component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Kenyans must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
👉 Kenyans must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Kenyans must consider what they wish to trade and what is available.
👉 Customer Support is another crucial factor and Kenyans must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
👉 A trading platform is the Kenyan trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ Status of International Markets
➡️ Price movements
➡️ Market sentiments
➡️ Whether there is a volatile market
➡️ Exchange Rates
➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Brokers in Kenya
👉 In this article, we have listed the best brokers that offer several trading opportunities across markets to traders in Kenya. We have further identified the brokers that offer additional services and solutions to Kenyan traders.
Best MetaTrader 4 / MT4 Broker in Kenya
👉 Overall, Admirals is the best MT4 Broker in Kenya. Traders that use Admirals have access to a broad range of shares, currency exchange, and contracts for difference markets. Admirals provides high-quality research content and advanced MetaTrader features, such as the Supreme add-ons.
Best MetaTrader 5 / MT5 Broker in Kenya
👉 Overall, Tickmill is the best MetaTrader 5 Broker in Kenya. Tickmill’s unique mix of online trading services is now available to consumers all around the world. These services are designed to promote education and maximize the usefulness of the user.
👉 Tickmill is a MetaTrader broker that offers a high degree of accessibility and complete fundamental and technical analysis. Tickmill also has a significant level of availability.
Best Broker for beginners in Kenya
USD 100 / 11560 KES
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 AvaTrade offers unlimited access to a more extensive range of financial products as well as many trading platforms that may be used for manual, algorithmic, and social trading. All AvaTrade customers have access to some of the most comprehensive educational materials.
Best Low Minimum Deposit Broker in Kenya
USD 1 / 116 KES
IFSC, FSCA (South africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading pltform, CopyTrade
👉 Overall, FBS is the best Low Minimum Deposit Broker in Kenya. FBS has been in the financial services industry for a significant amount of time and provides clients with a trustworthy trading environment in addition to advantageous trading conditions, such as copy trading on MetaTrader4 and MetaTrader5.
👉 In addition, the minimum deposit required to open an account with FBS is low, and the company offers a wide selection of trading accounts.
Best ECN Broker in Kenya
👉 Overall, BDSwiss is the best ECN Broker in Kenya. BDSwiss is used by over 1.6 million consumers originating from 186 different countries. The terms and conditions of trading on BDSwiss are completely open and easy to understand.
👉 When trading with BDSwiss, Kenyans can anticipate some of the greatest ECN transaction execution available.
Best Islamic / Swap-Free Broker in Kenya
USD 0 / 0 KES
ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA
Metatrader 4 and Metatrader 5
Account Activation Time
👉 Overall, OANDA is the best Islamic / Swap-Free Broker in Kenya. OANDA is right up there among the finest Foreign Exchange (FX) brokers in Kenya when it comes to handling customer funds safely and securely.
👉 OANDA gives its clients access to an excellent platform for desktop trading as well as sophisticated research tools. Muslim traders also have access to a special account that does not include swapping called an Islamic swap-free account.
Best Trading App in Kenya
$0 / 0 KES
SEC, FINRA, CFTC, MAS
Account Activation Time
👉 Kenyans could also anticipate receiving the most accurate market research and the most advanced educational resources available in the sector.
Best Kenyan Shilling Trading Account Broker in Kenya
👉 Overall, Exness is the best Kenyan Shilling trading account Broker in Kenya. Because it offers multi-currency accounts as well as micro-lot trading, Exness is one of the top CFD and Forex brokers for Kenyans.
👉 Exness makes MetaTrader 4 and 5 available to Kenyan customers to give them an advantage over other traders in the market.
Best Lowest Spread Broker in Kenya
USD 5 / 584 KES
IFSC, CySec, ASIC
Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform
No (Just spread)
Account Activation Time
👉 Overall, XM is the best lowest spread Broker in Kenya. When Kenyans register a standard account with XM, they have the option to trade in either the market or immediate execution mode, and full support is provided for both MT4 and MT5 trading platforms.
👉 With XM, transaction fees are not levied for making deposits or withdrawals, and customer service is offered around the clock.
Best Nasdaq 100 Broker in Kenya
👉 Trading on the Nasdaq 100 and numerous other indices are offered to Kenyans without the usual fees that are often associated with such transactions.
Best Volatility 75 / VIX 75 Broker in Kenya
👉 Overall, IG is the best Volatility 75 / VIX 75 Broker in Kenya. IG’s 13 worldwide offices are strategically located in the world’s key financial cities, providing traders with round-the-clock access to IG’s various trading solutions.
Best NDD Broker in Kenya
USD 10 / 1156 KES
MetaTrader 4 and MetaTrader 5
Account Activation Time
👉 In addition, at no additional charge, a demo trading account and access to training webinars are made available to Kenyan customers.
Best STP Broker in Kenya
Best Sign-up Bonus Broker in Kenya
USD 1 / 116 KES
Account Activation Time
👉 Overall, InstaForex is the best sign-up bonus broker in Kenya. When first-time traders from Kenya sign up for an account with InstaForex, they are eligible to get a Start-up No-Deposit Bonus of $1,000.
👉 InstaForex is a flexible broker that provides a variety of Educational Materials for Kenyan traders just starting as well as Trading tools for Kenyan traders with more experience.
What is Market Timing?
👉 Market timing is the process of transferring investment capital into or out of a financial market, or between asset classes, using predictive methodologies. If Kenyan investors can forecast when the market will rise and fall, they could subsequently execute profitable bets in response.
👉 Timing the market is often a crucial element of actively managed investment strategies, and it is virtually always a fundamental trading technique.
👉 For directing market timing choices, fundamental, technical, quantitative, and economic data may be used as predictive tools. Market timing, in the opinion of many investors, academics, and financial professionals, is impossible.
👉 Other investors, especially active Kenyan traders, are big believers in market timing. It is debatable whether it is feasible to successfully time the market, although all market specialists believe that doing so for any length of time is tough.
👉 Sometimes, market timing is seen as the reverse of the buy-and-hold investing approach. However, even a buy-and-hold strategy is susceptible to market timing due to investors’ changing wants or opinions.
👉 The primary distinction is whether the investor considers market timing to be a predetermined component of their investment plan.
The Advantages and Disadvantages of Forex Market Timing
👉 For the ordinary Kenyan investor who does not have the time or inclination to follow the market daily, there are strong reasons to avoid market timing and concentrate instead on investing for the long haul.
👉 One of these reasons is that market timing could be exceptionally risky. Active investors can claim that long-term investors lose out on rewards because they choose to ride out market volatility rather than lock in returns via market-timed exits.
👉 Those who attempt to schedule their entries and exits from financial markets often tend to underperform investors who stay involved. This is attributable to the fact that it is exceedingly difficult to predict the future direction of financial markets.
Pros and Cons
|✔️ Pros||❌ Cons|
|Kenyans can be exposed to larger profits when timing the market correctly||Traders must pay attention to market movements daily|
|There are curtailed losses with this strategy||The transaction costs are more frequent, and Kenyans are subject to commission fees|
|Traders can easily avoid volatile times in the market||There are tax-disadvantaged and short-term capital gains to consider|
|This strategy is suitable for Kenyans using short-term investment timeframes||It can be exceedingly difficult for traders to time their position entries and exits|
How Kenyans can determine the Best/Worst Time to Trade
👉 Before opening a transaction on the market, a beginner in the world of forex trading must digest a large amount of information. A forex trading strategy that takes a disciplined approach to the market requires both awareness and hours of experience to be successful.
👉 However, there is one piece of information that novices often ignore. This relates to the fact that even though the forex market is large, there are both favourable and unfavourable periods to trade.
👉 The optimal trading periods depend on how the market functions, the currency pair you desire to trade, the time zones applicable to your location, and your trading style. Large though the foreign exchange market might be volatile, and liquidity circulates across it in waves.
👉 Your success could rely on your ability to catch these waves at optimal times. When volatility is low and trading is busy, liquidity may be advantageous, resulting in narrow spreads and the ability to enter and cancel positions without difficulty.
👉 Over fifty percent of the foreign exchange market is known as the Interbank market, where daily capital transactions averaging over $5 million per transaction allow international trade and business.
👉 This market is categorized as decentralized over-the-counter since there are no exchange floors where market makers yell bids and accept orders. The banks themselves are the market makers.
👉 These large banks are linked by EBS and Reuters’ significant electronic networks, and competition and huge volume keep trading margins narrow and quickly reflective of economic market circumstances.
👉 The market opens in New Zealand every business day and follows the sun around the world. London is the biggest market, accounting for 43% of the total volume. New York has 17% of the market share, and Asia has over 20% of the trading volume.
👉 Kenya is well located to take advantage of the overlap between the European and North American trading sessions, which are the most advantageous periods for trading. Approximately 70% of the overall daily turnover occurs during these two times.
👉 During this optimal timeframe, the liquidity of most EUR and USD currency pairings find themselves at an all-time high. In rare situations, JPY and/or AUD pairings might have tighter spreads throughout the Asian session.
👉 The worst times to trade are at the opening and closing of these sessions. Professional traders are establishing and closing positions throughout the trading day, resulting in a brief period of extreme volatility.
Introduction to Market Timing Strategies for Kenyans
👉 Executing a market timing plan reliably and successfully may be quite challenging at times.
👉 Despite this fact, it is attractive to investors largely since it offers the opportunity to create a fortune overnight, in contrast to the lengthy time horizon that is needed by most other strategies for value investing or acquisition formulas.
👉 Professional day traders, portfolio managers, and other financial professionals who can commit a significant amount of time to analyse economic projections and correctly predict market moves with such regularity have found success via market timing.
👉 However, for the ordinary investor, monitoring the market daily is not only impractical but also counterproductive. Instead, they would be better served by concentrating on making long-term investments.
👉 The practice of purchasing and selling financial assets at the optimal moment based on projections of future price changes is known as market timing.
👉 The investor’s risk tolerance and desired rate of return will determine the appropriate time horizon for using the strategy, which can either be long-term or short-term.
👉 When the markets are bullish, the trader will often purchase stocks, and when a bear market is about to start, they will sell off their holdings. Recognizing when there would be a shift in the direction of the price fluctuations is a necessary step in this process.
👉 Instead of focusing on the value of the financial instrument itself, the investor must make predictions about how the price will change in the future, whether it will go up or down.
👉 The market timing strategy is an example of an active allocation approach that tries to maximize profit by taking advantage of price discrepancies that are currently present in the market.
Analysis for Kenyans who use a Market Timing Strategy
👉 Any choices about the purchase or sale of an asset must be made per the market timing strategy using one of the following two methods of analysis.
👉 An analyst makes certain assumptions about the factors that influence purchasing and selling choices when doing fundamental analysis. These assumptions are taken into consideration in the context of the analysis.
👉 Timing the market is a mathematical function that is based on such factors. It is essential to research to determine the most appropriate time to make the choice. The time for which fundamental analysis is appropriate ranges from the medium to the long term.
👉 In the context of technical analysis, “market timing” is a function that is derived from the previous performance of the stock as well as the historical behaviour of investors. In most cases, a short- to medium-term time frame is appropriate for using the usage of technical analysis.
Best Days and Months for Kenyans to Trade
👉 Kenyans who have had some exposure to the live markets will have noticed that volatility is not constant or consistent. Thus, traders must take note of volatility and how they can use appropriate risk measures to protect their capital during such times.
👉 In addition, traders must consider that trading fluctuates on different days of the week, and we will detail this in the sections below.
Sunday – Monday
👉 The functioning of time zones also affects daily volatility. In Europe, it is still Sunday night when it is Monday morning in Australia. The American and European sessions are closed at this time. Market activity is already underway, although volatility is still modest.
👉 In addition, it is improbable that the market would adapt to new circumstances since there is not much business on weekends. The only period throughout the trading week when currency pair gaps arise often is on Sunday night.
👉 Sunday is not the ideal day to trade on the forex market because of this, and it is not advisable to begin your trading week on Sunday for this reason.
During the Middle of the Week
👉 Tuesday often experiences a quickening of trade and the market’s first surge in activity. Tuesday’s market volatility is between 120 and 130%lower than Monday’s.
👉 Subsequently, Tuesday is one of the best days for Kenyans to trade forex. In addition, there is a minor decrease in volatility on Wednesday, and the level of trading activity falls midway between Monday and Tuesday levels. This is attributable to the existence of swaps.
👉 The popular currency pairings from the Asian and European sessions tend to overlap on Fridays, and they continue to be as erratic as they were on Thursday.
👉 This refers specifically to the EUR/JPY and GBP/JPY currency pairings. Currency pairings from North America and the Asia-Pacific region see volume declines.
👉 This is a result of Friday night’s market closure. The first part of Fridays often sees a lot of trading activity and provides favourable trading conditions. Kenyans must remember that when the weekend draws near, volume decreases dramatically in the second part of the day.
👉 Additionally, weekly trends might alter when traders settle their holdings to reduce risk during the weekend.
👉 Diverse traders have diverse perspectives on the optimal time to trade forex. Some individuals feel that trading throughout the day is optimal, while others like trading at night. Some traders concentrate on prominent currency pairings, whilst others trade a broader selection of currencies.
👉 There are, nevertheless, some broad guidelines that might help you choose the optimal time to trade forex.
👉 One of the most essential things is to be aware of world happenings. Consider market volatility and your own schedule as additional factors. You will want to trade at the most volatile periods of the day if you are a day trader.
👉 You may prefer to trade at more steady periods of the day if you are a swing trader or position trader. Remember to constantly adhere to your trading strategy and never trade based on your emotions.
What time is the London session in Kenya?
In Kenyan time, the London session opens at 10 or 11 am and it closes between 7 and 8 pm.
How much do you need to start trading forex in Kenya?
Brokers have different minimum deposits required when traders register an account. However, HF Markets and FxPesa are two brokers that only require a deposit of 590 KES ($5) to register an account.
Is it good to trade at night?
Trading at night might allow you to benefit from the retracement of any gains or losses in currency pairings gained on the US and European markets since it is common for major swings to reverse during night trading.
What are the four main trading sessions?
There are typically four primary trading sessions: Sydney, Tokyo, London, and New York. Conventionally, both the Sydney and Tokyo sessions are referred to as Asian sessions.
Therefore, the foreign exchange market is often referred to as the three-session market: Asian, London, and New York.
What is the easiest currency pair to trade?
EUR/USD is not just the simplest currency pair to trade, but also the most stable. Not only is it the finest option for newbies, but also seasoned traders. Attributable to narrow spreads and liquidity, it is one of the most actively traded currency pairings.