- A well-established and fully licensed broker will adhere to all of the guidelines stipulated by international and Kenyan regulatory authorities.
- Locally licensed and reliable brokers such as Exness offer superior levels of account security while simultaneously appreciating the nuances that are often attributed to regional indices.
Forex trading is one of the fastest growing investment sectors globally, and for good reason.
Not only is this global marketplace currently worth in excess of $2.4 quadrillion dollars, but it is open 24/7, thus, it’s a magnet for traders seeking to capitalize on the liquid nature of currency trading, especially in fast-evolving markets such as Kenya.
In our country, the forex trading landscape is witnessing a significant surge in participation, underscoring the need for traders to engage with forex brokers not just advanced trading tools, but also the paramount aspects of reliability and security.
Security in Modern Times: The Technical Side of Things
The main purpose of this article is to highlight the security concerns associated with the Forex trading industry and how these issues translate directly to the forex brokers themselves.
We will examine the benefits of working with multi-licensed brokers and firms, analyze why the compliance of the local trading regulations is essential and provide a handful of practical tips to ensure your trading endeavors in Kenya’s forex market are shielded from risks due to insufficient regulatory oversight.
SSL Encryption
SSL encryption remains the gold standard for securing online transactions in the currency trading arena, essential for safeguarding traders' investments in the forex market.
This is regardless of whether we are discussing Forex trading, CFDs, commodities, or shares. SSL (Secure Sockets Layer) is a protocol designed to scramble any information sent between two parties (in this case, between the investor and the forex broker).
This security feature is denoted by the symbol of a padlock found immediately to the left of the address bar. This is very important in any website, but due to the sensible data in the financial industry, is absolutely essential to secure your information and your money.
2FA and KYC
These next two acronyms are defined as follows:
- 2FA: Two-factor authentication
- KYC (Know your client) verification
As the first abbreviation denotes, two-factor authentication will require the user to provide an additional type of confirmation (such as replying to an SMS message) before a transaction is approved. This system is in place in different sectors: it can be seen in e-commerce and in a currency trading platform at the same time, it is not exclusive to the financial industry.
KYC verification is likewise used to verify the identity of a trader. He or she will need to provide personal documentation in the form of a photograph. In the case of the Kenyan market, a recent passport or the national identity card would be enough.
These methods are becoming increasingly commonplace throughout the financial industry due to the simple and unfortunate fact that instances of fraud and identity theft are on the rise.
Leveraging the Talents of Reputable Online Forex Brokers
There is little doubt that the cutting-edge tools mentioned in the previous section are valuable instruments.
However, these advancements would be of little use if traders choose substandard forex brokers for their currency trading activities, underscoring the need for diligence in the financial industry. Why are trading regulations so vital in this day and age?
The Role of Transparency Within the Financial Industry
A well-established and fully licensed broker will adhere to all of the guidelines stipulated by international and Kenyan regulatory authorities. This helps to ensure that the interests of the investor are safeguarded at all times.
Such an approach also guarantees superior levels of transparency. Furthermore, let us remember that these very same trading regulations can help to protect the company itself; offering assistance in the event of fraudulent claims and similar dubious actions on behalf of the client.
The Importance of A Licensed Broker from Kenya
There is much to be said about well-established financial regulatory bodies such as the United States Security and Exchange Commission (SEC) and the United Kingdom Financial Conduct Authority (FCA).
These entities have set industry-wide benchmarks that are now mirrored throughout the world. However, what about those who choose to work with a local licensed broker?
In this case, appreciating the "big picture" in regard to international guidelines may not always be sufficient. It is just as important to adhere to regional trading regulations and to understand the finer points that may be associated with a specific marketplace (such as the Nairobi Securities Exchange). Not all brokers can offer this level of targeted insight.
This is the very same reason why traders who are looking to break into smaller and/or emerging marketplaces will often choose to partner with brokers.
Locally licensed and reliable brokers such as Exness offer superior levels of account security while simultaneously appreciating the nuances that are often attributed to regional indices. Furthermore, the ability to offer localized support will guarantee reliability and superior levels of client satisfaction.
The Evolving Landscape of the Forex Market
Kenyan Forex traders find themselves at an interesting crossroad at the moment. While geographic borders have been all but abated within the trading community, entering into emerging markets will require a discrete knowledge of local rules and regulations.
This synergy with a well-rounded licensed broker, knowledgeable in the intricacies of currency trading, represents a cornerstone for achieving long-term success in the forex market.
There is also little doubt that online security threats will continue to emerge. Remaining one step ahead of this digital curve is the best way to ensure that cutting-edge investment opportunities can be accessed at a moment's notice.