Forex trading in Kenya using M-Pesa

By The Exchange Last updated Nov 23, 2021

M-Pesa, a payment solution provider that began operations in 2007, has proven to be a game-changer in the financial services industry. With over 100 million subscribers, this is a massive financial ecosystem, and it is so surprising that M-Pesa won the award for the best successful payment system in developing countries. Users can use the app as an e-wallet and make deposits, transactions, withdrawals, and other payments via the payment solution. M-Pesa has regulations best suited for each territory it operates in. This adaptability has made it the ideal platform for a range of digital payments, including Forex trading.

Since M-Pesa is the most extensive digital payment system in Kenya, most M-Pesa Forex brokers have embraced this platform. Several reputable international Forex brokerages now accept M-Pesa payments. The M-Pesa system’s ease of use and accessibility for its users promises to be an excellent opportunity for these businesses to develop their operations in African markets.

Secure payment gateway

Security is an important feature whenever money is involved. When a platform is perceived to be secure, it gives users confidence. The last thing you would want is your hard-earned money being at risk now, would you? Particularly if you are transacting with large amounts of money.

Transactions Fee

The key criterion is determining how many M-Pesa Forex trading accounts customers will pay a service fee whether or not they are registered. For example, if the transfer value is between 101 and 500 Kshs, traders within Kenya will be charged a 66 Kshs fee for transfer to any unregistered traders. However, if you transfer to a registered user, the cost will be 27 Kshs for the identical amount of money transferred. Meanwhile, the maximum transfer amount is 35,000 Kshs, with a 275 Kshs cost for non-registered users. Transactions to several platforms have become exceedingly easy thanks to many corporate agreements, such as the transaction from Skrill to M-Pesa. These favourable rates are attractive to forex traders who make numerous transactions on the platform.

Regulations

A handful of regulators regulate M-Pesa achieving a high level of openness and reliability in its operations for its customers. The Financial Conduct Authority (FCA) of the United Kingdom and the Payment Card Industry (PCI) of the United States are the two organizations (PCI). The organization also adheres to the KYC (Know Your Customer) policy, which demands all its users supply data. The date will be kept private but will assist them in ensuring that you are a person with no nefarious intents when it comes to Forex trading—instilling further emphasis on M-Pesa as a stable platform to use when trading.

Forex trading brokers that accept M-Pesa have several advantages.

Forex brokerages utilizing M-Pesa gain several benefits provided by the local payment system rather than paying higher costs for using foreign ones may explain the method’s popularity in countries like Kenya.

There are no set minimum or maximum transfer amounts.

There is that there is no minimum amount to transmit. As a result, anyone can utilize the service. Overall, M-Pesa delivers benefits to all citizens, not just those who engage in Forex trading, because the development of such a financial platform leads to the growth of the entire financial market.

The M-Pesa payment method has some limitations.

Even though the company is investing a lot of money to become one of the leading payment solution providers, it still has some restrictions. Due to inexperience in the business and a lack of partner companies, M-Pesa still has a few challenges. However, The number of M-Pesa partners has increased dramatically in recent years, with more trading platforms now working with the platform.

Geographical limitations

The significant disadvantage of the M-Pesa payment platform is unavailable in many countries worldwide. M-Pesa is a popular payment system on the African continent, with 70% of the countries participating. However, M-Pesa is only available in a few countries outside of Africa. If traders on the platform plan require the services of some overseas companies via M-Pesa payment methods, this poses a significant challenge.

Limited amount of brokers

Because M-Pesa does not serve many Forex traders, few Forex brokers are interested in forming relationships with the company. Even though foreign payment options such as PayPal, Skrill, and Neteller are more expensive, people frequently choose them.

Final word

Forex trading requires stability which fortifies trust, especially with the large amounts of money forex traders handle—making M-Pesa an attractive payment gateway to use when trading. Kenyans are tech-savvy, and the possibilities are endless, particularly when making investments. Forex trading can open investment avenues to cryptocurrencies such as Bitcoin, and M-Pesa is proving to be a very reliable payment gateway. Whilst there are still hurdles to circumvent, the future is bright for Kenyan traders.

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