Professional trading platform in Kenya

What is a professional trading platform? 

Today's review will be useful for those who want to learn more about trading in Kenya.  Especially since trading has become very democratic and is now available to a wide range of people. We will help you to understand what professional trading platforms are and why they are needed, and will touch upon some details that will be definitely useful for beginners as well as for experienced traders.

So, all professional trading platforms (trading platforms) are programs that provide access to financial markets and allow conducting transactions online. Being an intermediary between a trader and a broker, the platform allows you to trade from anywhere in the world and at any time.

The trading platform provides information about quotes in real time, thus displaying the situation on the market.  Further, this information is converted and displayed in the form of clear charts. Using modern trading platforms, you can make trading operations by placing market and pending orders, as well as monitor the status of the trading account at any time.

The professional trading platform has tools for technical analysis, thanks to the built-in indicators, and provides the ability to enter into transactions in automatic mode.

Please note that in order to facilitate your work, the platform has tools such as real-time news feed from the main news agencies, sound alerts indicating the important system and trade events, generating reports on the deals, saving the trading history, etc.

So how to choose a trading platform, and what should you pay attention to?

Of course, reliability is one of the most important criteria when choosing a platform.  Ideal would be platform, where there are almost no problems with the technical side of trading. Such a platform works properly and thanks to the high speed of execution of tasks, advanced "hotkeys" setting and connection of additional modules to set up an automatic process, you can get an advantage over other traders.

The user-friendliness of the interface and the ease of use of the platform also play a big role, especially for beginners.

It is important that the interface is fit for purpose and context. The trader must be able to react quickly and constantly monitor the situation, as the markets are very dynamic. And it's necessary to have all the indicators on one screen. A quality trading platform must simplify, not complicate the task - all the most important things must be "at hand", before your eyes.

Another factor that you need to consider is the lack of compatibility problems. In simple terms, you should be able to install the platform on a mobile device if needed.  The developers must ensure that the software works properly on any operating system. The mobile app is preferred by experienced traders.  It provides access to the trading account from the phone. It is useful when you want to check information or urgently need to open an order. The mobile version is especially handy when you are travelling or on holiday.

Choosing the best trading platform can actually be a challenge, especially for beginner traders. A trader has to choose a strategy and decide on the main market to trade, as well as the list of assets and the necessary functional scope of the terminal, and only then the choice of the platform will be really optimal.

When choosing trading platforms in Kenya, be aware that they can be universal or specifically adapted to specific markets such as stocks, currencies, options, etc.

Online share trading platform 

Stock trading is a great way to make money in the stock market. Most of the best equity trading platforms allow you to trade assets listed on world stock exchanges. The best platforms of this type will provide you with all the tools you need to succeed, most notably a comprehensive set of training materials that you will need to improve your stock trading skills, as well as various research and analysis tools.

If you are a long-term investor, you can own stocks and earn dividends before you decide to sell. This kind of stock ownership gives you the opportunity to build an effective investment portfolio and reduce your risk. If you wish to trade shares on a leveraged basis, then you will need to use a CFD contract.  This financial instrument is particularly suitable for those who do not have a lot of capital to enter the market and for those who are short-term investors. These contracts are convenient, but it is important to remember that trading CFDs with leverage imposes an overnight rollover charge, i.e. a fee for each night that your position remains open. 

Be aware that trading CFDs does not allow you to own stocks, but gives you the opportunity to benefit from price movements in the short term.

Platform for online forex trading 

Forex is an interbank foreign exchange market that is almost entirely online and where millions of market participants exchange one currency for another. In all, more than 20 currencies are traded on the forex market, making up more than 70 currency pairs.

Forex trading platforms provide clients with exchange rates for all currencies in which transactions can be made.

Before a trade, you select two different currencies, a currency pair. One is the base currency and the other is a quoted currency. Most often the dollar is chosen as the base currency, while quoted currency can be any other currency. 

What is the essence of currency trading?  

You should be able to forecast how the rate of quoted currency will change against the base currency. If you believe the rate of the quoted currency will rise, you can open a "buy" position on it. If you think it will fall, you can 'sell' it. A correct prediction of the movement of the currency will result in an increase in your deposit, and vice versa.

You should remember that the currency market has always been dependent on many political and economic factors, the way the biggest banks, funds and companies of the world behave. You will not believe it, but even  rumours affect currency rates.

Online options trading platform 

Trading options has great potential, although it carries a certain level of risk. It requires at least a basic knowledge of the terminology and analytical skills.

An option - a contract that allows you to buy or sell an underlying asset (commodity, security) at a fixed price in the future.

Its distinctive feature is that the option holder may or may not exercise his right to buy or sell. There are two types of option contracts: Call and Put. A Call is the right to buy, while a Put is the right to sell the underlying asset at the strike price.

The price of options may be affected by factors such as interest rate and volatility of the underlying, strike price, current price of the underlying and expiration time. The low entry threshold for trading, the use of leverage, and the variety of underlying assets (currencies, futures, equities and physical commodities) all make options attractive to traders.

Binary options deserve special attention. Their essence is in forecasts of price changes (rise or fall) of certain assets. Binary options are applied to assets such as: indices, stocks, currency pairs. The ability to conclude many short-term contracts for various assets allows a trader to conclude transactions 24 hours a day, five days a week.

Platform for online commodity trading 

Commodities are an important aspect of everyday life. Like any other type of trading, commodity trading is about buying and selling assets. Traditional examples of commodities include sugar, wheat, coffee, gold, oil and natural gas. For investors, commodities can be an important way of diversifying their portfolio.

Many investors who are interested in entering the market for a particular commodity invest in stocks of companies that are in some way related to the commodity. For example, if you are interested in the gold sector, there are options to buy shares in mining companies, steel mills, or any bullion firm etc.

When you trade on the platform you do not need to buy physical assets, for example bars of gold or tons of wheat, you can simply speculate on the price differences of the underlying asset with the help of so-called contracts for difference (CFD). By correctly forecasting the direction of value, which is determined by supply and demand in the market in question, you can profit from the rise and fall in the price of the asset you are trading.

Commodity ETFs receive particular attention, giving you a ready and diversified portfolio.

ETF online trading platform 

Today, ETFs (Exchange Traded Funds) are one of the most popular financial instruments in the world. Each ETF has an underlying asset, which can be stocks, bonds, commodities, etc. In short, it is an instrument that is a ready-made basket of investments.  Buying one ETF share is like buying hundreds of shares of the largest companies and investing in different economies.

Exchange-traded funds can help you diversify your securities portfolio and thereby reduce your risk. Such funds provide a great opportunity for people who are not financial experts to invest in a professionally created investment product without any specialized financial knowledge.

Online cryptocurrency trading 

Cryptocurrency trading is a new and promising area of online trading, which allows you to generate income by trading digital currencies. One of the best options for your trading, would be to use a trading platform that allows you to be comfortable with digital currencies and makes trading functional.

 What is the essence of cryptocurrency trading?

In this case, instead of the usual assets (stocks, currencies, bonds, etc.), you trade digital currencies (Bitcoin, Quarkcoin, Litecoin etc.)

The main tools in cryptocurrency trading for you will be:

• Charts, which will allow you to determine the trend of the currency: up or down, down or up.
• Orders - (requests) from crypto market players to buy or sell the currency.
• Transaction history, which will allow you to track a list of transactions on the exchange and which   instruments were used to execute them. 

You can trade cryptocurrencies using CFDs, which in turn gives you leverage. Or, you can buy the digital currency in its original form and keep it in your cryptocurrency wallet until the price goes up, and you want to sell it. The choice is yours, but keep in mind that this market is very dynamic, and you will need to be able to take advantage of the information quickly and react to the changing market sentiment in a timely manner.

Online index trading 

A stock index is a measure of the average price of a particular set of instruments.  For example, shares of various companies grouped into one group.  The price of the index can be influenced by each company included in the index.

Applying technical and fundamental analysis, you will be able to earn good money on indices. Through the platform, traders with a small initial amount of money are given the opportunity to trade with tools such as CFDs on indices. There are many index mutual funds and ETFs.  For example, by buying an index ETF, you will get a balanced, diversified portfolio of stocks of leading companies in a particular industry.

ETFs provide high volatility due to the fact that there are changes in the economy. This in turn leads to greater trading opportunities.

 Keep in mind that index trading is strictly limited to local time business hours.

How to start using a professional trading platform in Kenya?

So you have already understood from our review that online trading offers limitless possibilities as it allows you to access the financial markets from your computer or mobile device.  Now let's break down how to use a professional trading platform in Kenya.

And let's start with the most important thing.

Registration 

Don't think that the registration process is anything complicated, or that it requires any technical knowledge. On the contrary, it is a very straightforward procedure, and you don't even need any help. On the registration page, you will need to provide the data required by the system. Just follow the instructions. Enter a valid email address, create a password (do not disclose this information to any third party under any circumstances), then confirm that you agree with the conditions of the online platform, but make sure you read them carefully before proceeding.  After completing and submitting the form, you will receive an email to activate your account.

Demo account 

Once you have successfully registered, you will be offered a Demo account. This is free on all modern platforms.

For beginner traders, working on a demo account is a must in preparation for real trading.

You need a demo account so you can successfully apply the knowledge you have acquired in practice, but without the risk of losing money. What is the difference between a demo account and real trading? The only difference is that in the demo-mode, the trading is in virtual money (not real money or assets). All the rest - trading tools, price dynamics, execution of orders, market situations, are the same.

Real account and depositing 

In order to fund your live account and start trading for real, you will have to make a small deposit of the minimum amount set on the platform. Clicking on the "Deposit" option will take you to the payment page, where you will deposit your account using the payment systems listed on the platform. Using the same payment systems, you can easily withdraw your funds.

Now let's talk about the risks.

It's no secret that money brings profits as well as losses. And unfortunately there is no ideal recommendation that will give you 100% security in trading. But! Understanding all possible risks, knowing how they can be controlled and contained will make you a trained trader. Risk management is now your primary concern. Many risks, if properly monitored and accounted for in your trading strategy, can help you protect and extend the profitability of your trading portfolio.

Study investment instruments, diversify your investments, and rigorously follow your chosen strategy. With a clear understanding of what you're doing and why, you can save your money from the most common mistakes.

Devote your free time to learning. Read professional literature and attend webinars, and use only proven and reputable professional trading platforms that offer free video lessons, live chat with other participants, 24/7 technical support to help you.

We hope you found our article useful and wish you good luck!