On October 26, 2020, Pepperstone Kenya officially launched its operations in Kenya, and became the 3rd CMA licensed and regulated forex broker in the Kenya.
In this Pepperstone review piece, we decided to critically analyze Pepperstone’s offering in Kenya, and how it compares with competitors. We analyzed the minimum deposit for Peppersone, spreads, ease of registration, Pepperstone deposit and withdrawal methods, speed of execution, customer support, among many other things.
This one is going to be one long review article. So, if you don’t mind, head over to Pepperstone already and grab yourself a demo account, then come back and follow along with us as we lay bare everything you need to know about Pepperstone in Kenya.
86% of retail investor accounts lose money when trading on margin with Pepperstone. That’s a sobering statistic, but it’s not meant to scare you. It’s a reminder to trade smart and understand the risks. Leverage can be a double-edged sword, amplifying losses just as it can amplify gains.
Why Trade with Pepperstone Markets Kenya LTD
Trading forex with Pepperstone in Kenya comes with a host of benefits that make it an attractive choice for both novice and experienced traders. Here are some of the key advantages:
- Lightning-Fast Execution: First off, Pepperstone is known for its lightning-fast execution speeds. This is a big deal because in the fast-paced world of forex trading, every millisecond counts. Most orders are executed in less than 30 milliseconds.
- Raw Spreads and Low Commissions: Pepperstone offers access to raw spreads, which means you’re getting pricing straight from liquidity providers without any markup. This transparency in pricing is fantastic because you know exactly what you’re paying for each trade. Plus, their commissions are low, which helps keep more of your profits in your pocket.
- A Regulated and Secure Broker: Pepperstone is regulated by several top-tier authorities, including the Capital Markets Authority (CMA) in Kenya. They also segregate client funds with tier 1 banks, which adds an extra layer of security for your hard-earned money.
- Diverse Trading Opportunities: With Pepperstone, you’re not limited to just forex; they offer over 1200 instruments across various asset classes, including CFDs and commodities. This variety means you can diversify your portfolio without having to juggle multiple brokers.
- Multiple Trading Platforms: Whether you’re a fan of MetaTrader 4, MetaTrader 5, cTrader, or TradingView, Pepperstone has got you covered. They offer these platforms across devices, so you can trade on your computer, mobile, or tablet with ease.
- Award-Winning Customer Support: Pepperstone prides itself on its customer support, which has won awards for its excellence. They offer 24/5 multilingual support to help you with any issues or questions you might have.
- Active Trader Program: For the high-volume traders, Pepperstone has an Active Trader program that rewards you with cash rebates. It’s like getting a pat on the back for your trading activity.
- No Minimum Deposit: This is a biggie – Pepperstone has no minimum deposit requirement for Kenyan clients. This means you can start trading with whatever amount you’re comfortable with, making it accessible for traders of all levels.
- Local Presence: Pepperstone has an office right in Nairobi, which shows their commitment to serving Kenyan traders. It’s always reassuring to know that your broker isn’t just a name on a screen but has a physical presence you can relate to.
- Market News and Analysis: Stay on top of the markets with Pepperstone’s team of experienced trading research analysts. They follow the markets 24/7 worldwide, so you’re always informed about the latest movements and opportunities.
- Convenient Deposit and Withdrawal Options: Pepperstone accommodates Kenyan traders with local deposit and withdrawal options, including credit/debit cards, a variety of e-wallets, and M-Pesa, one of the most common ways to withdraw money from the broker in Kenya
Pepperstone Review: Safety & Regulation in Kenya
Pepperstone is a well-regulated forex broker, not just in Kenya, but globally. In Kenya, it operates under the name Pepperstone Markets Kenya Limited and is licensed and regulated by the Capital Markets Authority (CMA). This means that Pepperstone adheres to the stringent rules and regulations set by the CMA, ensuring a secure and fair trading environment for Kenyan traders.
But that’s not all! Pepperstone also holds licenses with top-tier regulators globally, including:
- Australian Securities and Investments Commission (ASIC)
- UK Financial Conduct Authority (FCA)
- Cyprus Securities and Exchange Commission (CySEC)
- Dubai Financial Services Authority (DFSA)
- German Federal Financial Supervisory Authority (BaFin)
This extensive regulation provides further reassurance that Pepperstone operates to the highest regulatory standards, making it a safe choice for forex traders in Kenya.
Client Fund Security
Under CMA rules, Pepperstone must keep client funds in segregated accounts separate from their operating funds. This means your money is protected and unavailable to creditors if Pepperstone were to go bankrupt. Furthermore, Pepperstone spreads client funds across several Tier-1 banks to diversify risk. These banks are regularly evaluated to ensure they remain financially secure.
Additionally, Pepperstone provides negative balance protection for Kenyan retail clients trading forex and CFDs. This means your losses will never exceed your account balance, providing an extra shield against unexpected volatility.
Also, as a CMA-regulated forex broker, Pepperstone participates in an investor compensation fund that covers eligible client losses up to KES 500,000 in the unlikely event the broker cannot meet its obligations. This safeguard gives you peace of mind that your capital remains protected.
With top-tier global regulation, robust client fund security, negative balance protection, and access to investor compensation, Pepperstone provides Kenyan traders with a safe and ethical trading environment.
You can confidently trade with Pepperstone knowing your capital and data remains secure while benefiting from fair, transparent pricing and execution. We highly recommend Pepperstone to all Kenyan traders looking for a reliable broker.
Pepperstone Pros and Cons
Wide range of financial instruments: Pepperstone offers a wide range of financial instruments, including forex, CFDs, and commodities, allowing traders to diversify their portfolios and trade a variety of markets.
Advanced trading platforms: Pepperstone offers the popular MetaTrader 4 and MetaTrader 5 trading platforms, which are widely used by traders and offer a range of advanced features and tools. In addition, the broker also offers TradingView.
Low-latency execution and tight spreads: Pepperstone focuses on providing low-latency execution and tight spreads, which is important for traders looking to take advantage of short-term market movements.
Educational resources and trading tools: Pepperstone offers a range of educational resources and trading tools to help traders improve their skills and knowledge, including webinars, ebooks, and trading guides.
Dedicated customer support team: Pepperstone has a dedicated customer support team to assist traders with any questions or issues they may have.
Limited payment options: Pepperstone only accepts a limited range of payment options, which may not be convenient for some traders.
Limited research and analysis tools: While Pepperstone offers some educational resources and trading tools, their research and analysis capabilities may be limited compared to other online brokers.
Not available in all countries: Pepperstone is not available in all countries, so traders in some regions may not be able to use their services.
Pepperstone Kenya Account Types
Pepperstone Markets offers two main types of accounts for Kenyan traders: the Standard Account and the Razor Account.
- The Standard Account
- The Razor account
Let’s explore each of these in detail to help you decide which one suits your trading style and needs best.
The Standard Account is a fantastic starting point for beginner and intermediate traders. This account type offers a straightforward trading experience with no commissions on trades. Instead, the costs are built into the spread, which starts from 1.0 to 1.2 pips.
The Standard Account gives you access to over 1200 trading instruments, including forex, indices, commodities, and shares. You can also trade on various platforms such as MetaTrader 4, MetaTrader 5, cTrader, and TradingView.
One of the standout features of the Pepperstone Standard Account is that there’s no minimum deposit requirement for Kenyans. This means you can start trading with whatever amount you’re comfortable with. Plus, Pepperstone doesn’t charge any inactivity or account-keeping fees, making it a cost-effective choice for traders on a budget.
The Pepperstone Razor Account, on the other hand, is designed for more advanced traders, including scalpers and those using Expert Advisors. This account type offers raw spreads starting from 0.0 pips, with a commission charged per trade.
Like the Standard Account, the Pepperstone Razor Account gives you access to over 1200 trading instruments and allows trading on MetaTrader 4, MetaTrader 5, cTrader, and TradingView platforms.
The Razor Account also has no minimum deposit requirement, making it accessible for traders of all levels. However, it’s worth noting that the commission costs on trades could add up, so it’s essential to factor this into your trading strategy.
For traders who can’t receive or pay swaps due to religious beliefs, Pepperstone offers a Swap-Free account. This account type is interest-free while allowing traders to take advantage of Pepperstone’s cutting-edge trading technology. However, an admin charge is applied for trades held for more than five days.
Both the Standard and Razor accounts have their unique advantages, and the choice between the two largely depends on your trading style and experience level.
The Standard Account is ideal for those who prefer simplicity and cost-effectiveness, while the Razor Account is perfect for advanced traders seeking low spreads and fast execution.
Pepperstone also offers a demo account where you can practice your trading strategies before going live. This is a great way to familiarize yourself with the platform and test out different trading strategies risk-free.
Opening an account with Pepperstone in Kenya is a breeze. The process is fast, fully digital, and user-friendly. Once your account is set up, you can deposit funds using M-Pesa and start trading right away.
Pepperstone Kenya Funding and Withdrawal Options
Pepperstone offers a variety of funding and withdrawal methods, making it easy for you to manage your account. As a Pepperstone client, you’ll have access to a secure client area where you can handle all your funding and withdrawal needs safely and securely.
Pepperstone accepts a range of funding options, including Visa, Mastercard, Bank transfer, MPESA, and Paypal . This is a great advantage for Kenyan traders, especially with the inclusion of MPESA, a popular mobile payment system in Kenya. This shows that Pepperstone is keen on catering to the specific needs of its Kenyan clientele.
The withdrawal process at Pepperstone is also straightforward. You simply log in to your secure client area, select the ‘Funds’ tab, and click on the ‘Withdraw Funds’ tab to find all withdrawal options.
Pepperstone typically processes withdrawal requests within 1-3 business days. However, the actual time it takes for the funds to reach your account can vary depending on the withdrawal method used and your bank’s processing times. For instance, withdrawals made by Bank Wire Transfer usually take 3-5 working days to reach your account.
Pepperstone does not generally have a minimum withdrawal amount. However, there is an exception for international wire transfers. If you are making an international wire transfer, the minimum withdrawal amount is $80.
Pepperstone Assets Offerings
Pepperstone offers access to over 90 currency pairs, including majors, minors, crosses, and exotics. This means you can trade all of the world’s markets with ease. They offer competitive conditions, including low spreads and deep liquidity. The leverage available is up to 1:400, which means for every $1 that you have in your trading account, you can trade $400 in the forex market.
Pepperstone boasts of consistently competitive spreads, thanks to pricing from multiple Tier 1 banks. This means you can trade major pairs like EUR/USD and GBP/USD with spreads as low as 0.09 pips.
The most popular currency pairs to trade on Pepperstone Markets Kenya LTD are the major currency pairs, which are the most actively traded in the forex market. These include:
- EURUSD (Euro against the US Dollar)
- GBPUSD (Great British Pound against the US Dollar)
- USDJPY (US Dollar against the Japanese Yen)
- AUDUSD (Australian Dollar against the US Dollar)
- USDCAD (US Dollar against the Canadian Dollar)
- USDCHF (US Dollar against the Swiss Franc)
These pairs are popular due to their high liquidity and relatively low spreads. For instance, the GBP/USD spread is low at Pepperstone, which means high liquidity and relatively low costs for traders.
Recently, Pepperstone has expanded its forex offerings to include emerging market currencies such as USD/BRL, USD/IDR, USD/INR, USD/KRW, USD/CLP, USD/COP, and USD/TWD. This expansion provides you with more opportunities to diversify your trading portfolio.
Trading Commodity CFDs on Pepperstone
Pepperstone offers a wide range of commodities for trading, including precious metals like gold, silver, and energy commodities such as crude oil and natural gas. You can also trade soft commodities like coffee, cocoa, cotton, orange juice, and sugar. Trading is done through Commodity Contracts for Difference (CFDs), which allow traders to speculate on the price movements of commodities without worrying about physical delivery, ownership, or rollovers.
The minimum spread for silver against the US dollar (XAGUSD) is 1.00, while for gold against the US dollar (XAUUSD), it’s as low as 0.50. These razor-sharp pricing conditions are made possible by Pepperstone’s use of multiple Tier 1 Banks as liquidity providers.
CFD Indices on Pepperstone
Pepperstone has a robust selection of index CFDs that you can trade, including major names like the S&P 500 (US500), Nasdaq-100 (NAS100), Russell 2000 (US2000), and even the CBOE Volatility Index (VIX). The spreads are razor-sharp, with the US500 starting at just 0.40 and the US2000 at an impressive 0.30. These tight spreads are a big deal because they mean lower trading costs for you.
Currency Index CFDs on Pepperstone
Currency indices are a fantastic tool for forex traders. Currency indices measure direct changes in the value of a currency against a basket of other currencies. This differs from a typical currency pair, which only involves two currencies. For example, the US dollar index measures the value of the US dollar against a basket of currencies, including the euro, yen, pound sterling, Canadian dollar, Swiss franc, and Swedish krona
Pepperstone offers trading on several currency indices, including the Euro Currency Index (EURX), Japanese Yen Currency Index (JPYX), and the US Dollar Index (USDX).
The spreads on these indices are quite competitive. For instance, the EURX and JPYX have a minimum and average spread of 2.00 and 1.00 respectively, while the USDX has a spread of 6.00. These spreads are quite attractive, especially when compared to other forex brokers in Kenya.
Pepperstone offers a wide range of stocks to trade, categorized according to regions like the US, UK, Germany, and Australia, or according to industry, such as tech giants or global blue-chip companies.
You can trade around 1,400 stock CFDs at Pepperstone, which is quite impressive compared to the average 1,000-2,000 stock CFDs available at other brokers. This gives you a broad spectrum of options to choose from, including stocks from various sectors and regions, such as US stocks, UK equities, German shares, and Australian equities.
EFT Trading on Pepperstone
ETFs, or exchange-traded funds, are unique investment products that allow investors to express their views on broader stock markets, specific countries, or globally. These funds trade on an exchange just like regular stocks, offering investors plenty of flexibility when trading them.
ETFs are essentially a basket of securities that can include stocks, bonds, commodities, and currencies. They track the performance of an underlying asset or index, offering a diversified and low-cost way to invest in a variety of assets.
Pepperstone Kenya is your gateway to over 100 ETFs that track everything from mining and energy to technology and bond markets.
By not offering cryptocurrency CFDs, Pepperstone Kenya may be missing out on a significant market segment. Africa, and specifically Kenya, has shown a rising interest in cryptocurrencies, with Kenya being among the top 10 nations in terms of Bitcoin-related Google searches. This suggests a strong potential customer base for cryptocurrency CFDs in the region.
While the absence of crypto CFDs on Pepperstone Markets Kenya is a notable gap, it’s not a deal-breaker. The platform still offers a wide range of other instruments, competitive spreads, and a robust trading environment. However, for those specifically looking to trade crypto CFDs, this could be a significant limitation, and they might have to look at other brokers that offer these products.
Commission vs Spreads
When you are looking to trade in the Forex market, you will come across the terms of commission and spreads. In order to understand which is better for you, it is important to understand the difference between the two.
The commission is a fee that is paid to your broker for each trade that you make. This is a set amount, regardless of the size of your trade. For instance, the Pepperstone Razor account charges $7.00 commission for every $100,000 traded.
Spreads, on the other hand, are the difference between the bid price and the ask price. This varies depending on the size of your trade. Generally, it is better to pay attention to spreads rather than commissions, as they are typically lower. In Pepperstone, the spreads on the Standard Account Type are 1.0 to 1.3 pips on the EURUSD.
Pepperstone vs FxPesa vs ScopeMarkets
FxPesa by EGM Securities and Scope Markets Kenya were the first two forex brokers to get licensing from the CMA in Kenya. Among the 3 brokers legally operating in the country, FxPesa is our number one recommendation. (Click here for the official FxPesa website).
There are a few reasons why we have consistently ranked FxPesa as the #1 forex broker in Kenya, to start with, their customer support is very efficient. Through phone calls or online chat on their website, www.fxpesa.com, they, will take you through the whole process of creating your account, funding it using Mpesa, and they even have an online academy where they teach new traders some of the most profitable trading strategies in existence…
But I digress…
This article is not about FxPesa. Our goal here is to discuss the 3rd CMA licensed forex broker, Pepperstone Kenya.
Compared to FxPesa and Scope Markets, Pepperstone is way ahead in terms of the trading platforms available for forex traders in Kenya. FxPesa only offers the Metatrader 4 and their proprietary FxPesa Webtrader platforms. Scope Markets only offers Metatrader 5 platform.
These pales in comparison to Pepperstone who offers the innovative cTrader platform in addition to MetaTrader 4 and 5. With Pepperstone, you can also trade directly from TradingView.
In addition, Pepperstone offers superior market analysis tools including the very famous Autochartist software. You can either download Autochartist for use on your MT4 trading platform or use the web-based interface. Autochartist identifies numerous high probability trading opportunities, which is something a lot of beginner forex traders will appreciate.
Does Pepperstone Kenya Accept Mpesa?
Yes. Pepperstone Kenya accepts Mpesa as one of the ways of funding and withdrawing profits from your forex trading account. The instant Mpesa funding and withdrawal is a big boost for forex traders in Kenya who would otherwise have to make deposits using wire transfers and other electronic payment systems such as PayPal and Skrill.
Pepperstone Minimum Deposit
Pepperstone Kenya has a minimum deposit of $10. This is applicable when you are funding your account using Mpesa or using a Visa/Mastercard. The low minimum deposit at Pepperstone makes it one of the more affordable options for traders who are looking to invest in Forex trading.
However, although $10 is the minimum deposit at Pepperstone, we do not recommend you start trading forex with such a low amount. The ideal capital that will give you an edge over the market is approximately $250. Some traders have been able to start forex trading with as low as $100, but these are the minority and most often have honed their trading skills to perfection.
Is Pepperstone Regulated in Kenya?
Yes. Pepperstone is fully regulated by the Capital Markets Authority, which is the body that regulates and licenses forex brokers in Kenya. Pepperstone obtained their trading license in October last year, making them the third CMA licensed forex brokers in Kenya.
There are a number of benefits to trading with a CMA regulated forex broker. One of the most important is that you know that your broker is operating within the bounds of the law. This gives you peace of mind, knowing that your money is safe and that you are not being taken advantage of.
Additionally, CMA regulated forex brokers must adhere to strict rules and regulations, which means they are much more likely to offer high-quality customer service and products.
Finally, by trading with a regulated broker, you can be assured that any disputes will be handled fairly and in accordance with the law. That’s why we recommend you choose Pepperstone Kenya as your goto forex broker.
Do We Recommend Pepperstone Kenya?
Pepperstone is a CMA regulated forex broker that offers its clients access to the world’s largest and most liquid market – the foreign exchange market. With over $7 trillion in daily trading volume, it’s no wonder why forex is one of the most popular investment vehicles in the world.
In addition to CMA licensing, Pepperstone is also regulated by multiple other regulatory authorities including the UK’s FCA, Australia’s ASIC, and Cyprus’s CySec. This makes it one of the safest and most legit forex brokers in Kenya.
Another reason why we recommend Pepperstone is because of their low trading fees compared to other CMA licensed forex brokers. The trading fees on their Standard Account are much lower than those charged at FxPesa and ScopeMarkets Kenya.
Having an office in Nairobi, with support staff that can speak in local languages and available via local phone number is also an added advantage.
Pepperstone Kenya also offers its clients a wide variety of trading platforms and account types, giving traders of all experience levels the ability to trade the markets how they want. And with 24/7 customer support and tight spreads, Pepperstone has quickly become one of the most popular Forex brokers in the world.