Kenyan forex traders face dream and reality gap, experts say

Business
By Gerard Nyele | May 18, 2024
Kenyan forex traders face challenges due to lack of proper training and certification. [Standard, File]

Forex trading in Kenya is evolving from a part-time engagement into a full-fledged profession.

The shift is being fueled by factors such as increased sanitisation, regulation and the availability of trading platforms.

However, for many Kenyans, the dream of making a living from trading still remains elusive.

According to Bernd Skorupinski, CEO of Online Trading Campus, there is a global deficiency in proper training curricula and certification for traders.

"Globally, there is a lack of proper training curricula and certification for traders," he says.

Skorupinski suggests that the trading profession should develop a form of training and certification program.

This, he observes, would not only increase credibility but also reduce losses for those seeking to join the profession in a world with diminishing job opportunities.

"A trader needs to be able to control their emotions and stick to a trading plan and strategy. This is especially important in managing risk by using stop losses or taking profits at set points," he advises.

He also cautions traders to seek learning materials only from credible and certified trainers to avoid losses.

On the topic of global trades affecting the sector, Skorupinski notes that election cycles are major informers of indices.

"The market is on a predetermined path informed by election cycles, based on data over the last 50 years," he explains.

However, at the local level, he says, the lack of capital is a significant barrier for many young people aspiring to become professional traders.

Skorupinski notes that the lack of financial literacy in society hinders growth, as trading is often perceived as an easy cash-in platform rather than an investment.

Jesse Ogola, a senior accounts manager at FXpesa, says, "As a trader, don't focus on the money, because you can lose it easily."

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