Today, let’s dive into a head-to-head comparison of two popular brokers in Kenya: FxPesa and Scope Markets. Both have made a name for themselves in the Kenyan forex trading scene, but how do they stack up against each other? Let’s find out!
FxPesa Overview
FxPesa, operated by EGM Securities, is a Nairobi-based broker that’s been making waves since 2019. It’s regulated by the Capital Markets Authority (CMA) and the Financial Conduct Authority (FCA), which is a big deal because it means they’re under strict oversight to protect traders like you.
With a minimum deposit of just $5 (or about 570 Kenyan Shillings), it’s super accessible for traders who are just starting out or those who prefer to test the waters with a smaller investment. Their maximum leverage is a hefty 1:400, which can be a double-edged sword – great for amplifying gains but remember, it can also magnify losses.
FxPesa offers MetaTrader 5, which is a favorite among traders for its advanced features. And if you’re into keeping things halal, they’ve got Islamic accounts too.
One of FxPesa’s key benefits is the acceptance of MPesa for deposits and withdrawals, making it convenient for local traders. However, it lacks MT5 support and two-factor authentication, which could be a downside for some traders.
Scope Markets Overview
Scope Markets, on the other hand, seems to cater to a broad audience, from newbies to institutional traders. They’re also regulated by the CMA, so you’ve got that peace of mind when trading.
Scope Markets offers a wide range of products, including single stock CFDs from big names like Apple and Facebook, and over 1700+ other products. Their leverage goes up to an eye-watering 1:400, which is incredibly high and, honestly, not for the faint-hearted.
In terms of spreads and commissions, FxPesa offers spreads starting at 1.4 pips for the Executive account and as low as 0 pips for the Premier account, which is an ECN account with commissions of $7 per lot for forex pairs and precious metals, and $10 for CFDs. Scope Markets’ Silver Account is a spread-only account with no commissions, whereas the Gold Account is an ECN type with low spreads but a $7 commission per lot.
Account Types
Both FXPesa and Scope Markets offer competitive account types for forex traders in Kenya. Your choice between the two will depend on your trading style, risk tolerance, and preference for certain features such as spreads, commissions, and leverage.
FXPesa offers two types of retail accounts:
- The Executive Account
- The Premier Account.
The Executive Account is ideal for traders who engage in fast-paced and high-volume trading. The minimum deposit for this account is $5. The account offers a variety of platforms including MetaTrader 4, FXPesa Trader, and MetaTrader 5.
The Premier Account, on the other hand, requires a minimum deposit of $100 and offers super-tight spreads from 0.0 pips. Both accounts offer a maximum leverage of 1:400 and a stop-out level of 30%.
Both FxPesa accounts give you access to trade on MT4, MT5, and Equiti Trader platforms. Plus, there’s a cherry on top: a 30% Karibu bonus when you fund a new account, subject to terms and conditions. FXPesa also provides an unlimited demo account and an Islamic account option for Muslim traders.
ScopeMarkets Kenya also keeps it simple with two account types:
- The Silver Account
- The Gold Account
The Silver Account offers a spread of 1.1 pips on EURUSD and does not charge any commissions. The minimum deposit for this account is $100. The Gold Account, on the other hand, offers a tighter spread of 0.2 pips on EURUSD but charges a commission of $3.5 per side. The minimum deposit for this account is also $10. Both accounts offer a leverage of 1:400 and a stop-out level of 20%.
Now, for my two cents. If you’re just starting out or want to keep your trading costs down, FxPesa’s Executive account seems like a no-brainer with its zero commission and low entry barrier. However, if you’re all about those tight spreads and have a bit more to invest, FxPesa’s Premiere account and ScopeMarkets’ Gold account are both compelling options.
ScopeMarkets’ Gold account does have an edge with its extremely low spread on EURUSD, but remember, there’s a commission to consider. It’s a trade-off, but if you’re trading large volumes, that spread could make all the difference.
Fxpesa vs Scope Markets Trading Platforms
FxPesa offers a diverse range of trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and its own Equiti Trader. This variety caters to different trading preferences and styles.
MT4, known as the world’s most popular trading platform, is notable for its extensive range of chart types and tools, customizable interface, and support for Expert Advisors (EAs). FxPesa’s MT4 platform promises instant deposits and withdrawals, spreads starting from 0 pips, and up to 1:400 leverage on various markets. MT5, on the other hand, offers advanced financial trading functions, as well as superior tools for technical and fundamental analysis.
Equiti Trader, built specifically for FxPesa, is a mobile trading platform compatible with iOS 12+ and Android 7.1+. It offers features such as interactive TradingView charts, a transparent activity log, and a full economic calendar.
Scope Markets on the other hand has positioned itself as a strong contender in the forex trading space, offering the MT5 platform. Scope Markets, however, exclusively offers the MetaTrader 5 platform. MT5 is the latest iteration in the MetaTrader platform series, providing enhanced trading features, more indicators, and charting tools, and better access to CFDs, stocks, and commodities.
MT5 also offers 21 different chart timeframes, ranging from one minute to twelve hours, providing traders with a comprehensive view of the market. This platform is compatible with Android and iOS, ensuring that traders can keep an eye on the market and make trades on the go.
While MT5 is a powerful platform, the lack of MT4 might be a drawback for traders who are more accustomed to or prefer the older version.
If you prefer having a choice between two robust platforms, with MT4 being particularly popular for its user-friendliness and stability, FxPesa is an excellent choice. However, if you are inclined towards a more advanced trading environment with sophisticated tools, Scope Markets with its exclusive MT5 platform would be more suitable. Both platforms offer a rich set of features and tools, making them viable options for different types of traders in Kenya.
FxPesa vs Scope Markets Trading Instruments
Both FxPesa and Scope Markets offer a wide range of trading instruments, which is great for traders who like to diversify their portfolios. However, the choice between the two will likely come down to personal preference. If you prefer a user-friendly platform and tight spreads, FxPesa might be the better choice for you. On the other hand, if you’re looking for a wide range of instruments and advanced trading tools, Scope Markets could be the way to go.
Scope Markets offers a broader range of instruments, this can be a double-edged sword. For a newbie, this might feel like being a kid lost in a candy store – overwhelming and a tad confusing. That’s where FxPesa, with its focused approach, might be more appealing.
FxPesa vs Scope Markets Customer Support
When it comes to customer support, both FxPesa and ScopeMarkets Kenya have made efforts to provide quality service to their clients. FxPesa offers multilingual customer support, with services available in English and Swahili.
They provide support through email and phone, with a toll-free number for Kenyan clients and an international number for clients outside Kenya. Their customer support is available 24/6, and they also have a Frequently Asked Questions (FAQ) section on their website where some common queries are answered.
The support services at FxPesa have been described as exceptional and fair.
On the other hand, ScopeMarkets Kenya offers technical support that is highly evaluated by users and experts. Their customer support is available through standard communication channels such as phone, email, and live chat.
However, it’s important to note that their support team does not work at night or on weekends. Despite this, their support has been described as quite good, responsive, and accurate in answering questions. They also have local phone numbers in Kenya that clients can use to reach out to their agents