Best Forex Proprietary Trading Companies In Nairobi
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If you're too busy to read the entire article and want a quick answer, the best Forex proprietary trading company in Nairobi is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Access to significant capital
- Cutting-edge technology
Top prop trading companies in Nairobi are:
Prop trading companies in Nairobi help traders adept at trading currency pairs generate additional profit trading currency pairs without risking their funds. Professional traders without the financial resources to open sizable positions benefit from the funded accounts offered by these Forex prop firms. They provide traders with capital that they can use to trade currencies, futures, derivatives, commodities, stocks, and more.
However, if you require the best prop trading companies in Nairobi, you may have to compare the services of these brokers. Considering the various factors you must verify and the abundance of scam prop firms, comparing different prop companies might be difficult for a trader to undertake.
But you won't be going through this process, as TU experts have assembled a list of reputable prop trading companies in Nairobi. Before you learn about these prop firms, let's find out if trading with a prop firm in Nairobi is a good idea.
What is prop trading?
Proprietary trading (also known informally as Prop trading) refers to when a financial institution such as a commercial bank, a brokerage firm or even an investment bank directly trades or invests in activities in the stock market. These organizations can trade bonds, stocks, commodities, derivatives, currencies, and other instruments.
These institutions use their own funds for trading and investing in the stock market and not their clients’ money. So on top of the commission from processing trades for their clients, they can earn the full profits from engaging in the trades as well.
Top 3 prop trading accounts in the Nairobi
Topstep
As a broker, Topstep has always had an outstanding reputation, fantastic trader support, and very generous payouts. As a result of their current promotion, they're one of the best bargains in the industry for Forex trading.
You keep 100% of your first $5,000-$10,000 profit when you first get started (depending on which account you choose). In addition to that, you get 90% of your profits going forward, which is the industry's highest payout ratio.
Furthermore, Topstep has streamlined its two-step evaluation process, known as Trader Combine. The minimum trading requirement in Step 2 has been eliminated, so both steps can be completed in less than two weeks.
To pass the Trader Combine Topstep gives traders unlimited time to hit their profit targets. No matter how long it takes, just make sure you don't reach your loss limit or trailing maximum drawdown. While you're in the Trader Combine, you'll be charged a monthly fee, but once you're confirmed as a funded trader, those fees will disappear.
FTMO
FTMO offers an opportunity for traders to potentially manage significant capital by demonstrating their trading skills. Their evaluation process consists of two stages - a Challenge and Verification - designed to identify disciplined traders with consistent performance.
The Challenge is the first step, where traders must adhere to specific Trading Objectives assessing risk management and trading ability. Successfully completing the Challenge allows progression to the Verification stage.
During Verification, traders continue exhibiting compliance and stable results as a final confirmation of their capabilities. Upon passing both stages, traders become official FTMO Traders with access to accounts of up to $200,000.
FTMO also offers an Account Swing option allowing weekend position holding and trades during releases. Consistent profitability leads to Scaling Plans growing balances by 25% every 4 months, incentivizing long-term growth.
For accessibility, FTMO provides a Free Trial experience without financial commitment. Traditional payout ratios are 80%, increasing to 90% under Scaling Plans. FTMO offers flexible payout options, allowing traders to request payouts on-demand after a minimum of 14 days, with the ability to select their own Profit Split Day and make changes up to three times.
To support their traders, FTMO provides a comprehensive suite of tools and resources. These include custom trading apps, performance analysis, multilingual support, educational resources, and performance coaching. FTMO maintains exceptional conditions such as low costs, 1:100 leverage, reimbursable fees, and major platform flexibility across instruments. Traders can freely utilize preferred strategies.
The5ers
The5ers are known for their unique ways of handling forex funded accounts. These methods may be beneficial to traders who would like to try something different.
The5ers take a completely different path from the other apps on this list. Each funded trading account is a live, real-money funded trading account funded by The5ers and tradeable by subscribers.
All forex majors such as EUR/USD, USD/CHF, and key cross-currency pairs such as AUD/CAD and GBP/JPY are tradable assets. Each trader must complete the Level 1 Program with a profit target ranging from 10% to 25%.
The Level 1 Program will be closed once the profit target has been archived by trading according to the guidelines. Profit will be distributed in accordance with the profit split, and a new trading account on the next higher financing level will be established with you as a Portfolio Manager Partner. The entry cost ranges from $275 to $875. The 5%ers offer a 50/50 split on profits.
Rules and Regulation
- Regulation
Licensing is not obligatory for prop firms given that they don't require initial deposits or don’t provide real trading services. Payments for the challenge are not considered financial services. Trading on demo accounts doesn’t require licensing. However, registration is mandatory. Most often, companies choose the U.S. or Europe. Upon completion of the challenge, funds are transferred under trust management by a partner broker.
- Investor protection
The regulator of Kenya is the СМА (the Capital Market Authority). It considers claims and participates in dispute resolution between residents and foreign companies.
Other authorities that protect traders’ rights and interests are:Regulators of the country where a prop firm or its partner broker are registered;
Financial ombudsman or similar authority;
Self-regulatory organizations (SROs), such as the Financial Commission.
- Taxation
Forex income is subject to taxes on a common basis. The income tax rate can be up to 30% depending on the taxable amount;
Cryptocurrency exchange is taxed at 3% and trading income is taxed at the common rate.
Is Forex prop trading a good idea in Nairobi?
Yes. Forex prop trading is a good idea if you are an expert trader or a beginner trader willing to learn how to trade Forex with a lot of enthusiasm. Forex prop firms offer Kenyan traders the flexibility to open trading positions that surpass what their financial capacity says. In Forex proprietary trading firms, a trader's knowledge and expertise in trading currency pairs pave the way for them. Once traders pass the evaluation stage and prove their professionalism, they get access to a funded Forex account, although there are prop firms without challenge.
Additionally, since proprietary trading companies and institutions use their funds, clients are not concerned about having enough capital to trade. But how do Forex prop firms make money?
Prop firms use their extensive informational and technological resources to their advantage while implementing various trading strategies like arbitrage and technical analysis. As a result, reputable Forex prop firms profit when profitable traders use funded Forex accounts to execute their trades.
After sharing profits with the prop company, Forex prop traders also receive a convincing sum. Forex prop traders needs sophisticated trading tools to be successful; reputable Forex prop firms in Nairobi present them. Simply put, the number of successful traders a prop firm hires influences its revenue.
The benefits and drawbacks of signing up with Forex prop firms in Nairobi are as follows.
- Advantages of Forex prop firms in Nairobi:
- Disadvantages Forex prop firms in Nairobi:
- Prop firms offer appropriate funding options and a simple path to becoming a profitable trader in Nairobi. Traders can also earn from a prop firm affiliate program.
- If a trade goes south and a trader loses, the prop firm will not ask the traders to cover the losses.
- Forex prop traders in the Forex market have access to sophisticated trading platforms, substantial data feeds, in-depth research reports, and cutting-edge analysis tools.
- Prop firms offer traders free trials and guidelines on ethical risk management
- Traders have access to tier-1 liquidity and compensation for increasing market liquidity.
- There is a nonrefundable evaluation fee that you must pay when you first register, and there is a rigorous evaluation process.
- Prop trading companies typically have strict trading restrictions that traders must follow. Limitations on trade size and the maximum exposure to a single security or asset class are a couple of them.
- Some prop firms might have a low daily loss cap that keeps traders from increasing their trading volume to take a bigger loss.
How to choose a prop trading account in Nairobi?
With the number of prop trading companies in Nairobi, traders' confusion over which companies to choose is common. However, if you are familiar with prop trading nuances and know how to locate the top Forex prop firms in Kenya, you are more likely to find the best.
The following list includes the crucial factors that Forex prop traders should compare when assessing Forex proprietary trading companies.
Check the Forex prop firm's reputation. The reliability of a reputable Forex proprietary trading company in Nairobi is undeniable, but you can be certain if you evaluate their services.
Check the restrictions and terms of the Forex prop firm. It is crucial to find out if the prop firm has any terms or guidelines that could influence how you trade because every trader has a different trading style.
Verify how long the prop firm has been in business. Therefore, working with Forex prop firms interested in forming a long-term partnership is a wise financial move for traders. You need a trader who will not cancel the program within the first year of your membership.
The drawdown limits, share ratio, and profit split. Study the broker split percentage to understand how it varies between brokers. However, you can look for prop trading companies in Nairobi that provide a 70% or even 80% profit share.
Available markets, leverage, and customer support. Furthermore, it is crucial to comprehend the markets that can be accessed through the broker's trading platform, the limitations of leverage, and the responsiveness of customer support.
No, there are usually costs associated with participating in prop trading programs. A subscription fee (between $100 and $250) is applicable during your enrollment. Therefore, prop trading is not essentially free in Nairobi.
Topstep Forex - Topstep has monthly subscription costs starting at $165
The 5%ers - This prop firm requires an enrollment fee of €235
FAQs
Are there prop firms in Kenya?
Yes. Traders can access prop trading companies in Nairobi, although most of them are offshore Forex prop firms
Which is the best trading platform in Kenya?
FTMO, Topstep, and The5ers top the list of prop trading companies in Nairobi.
How much do prop firms pay traders?
Several prop trading firms in Nairobi pay traders a 100% profit payout of up to $10,000 or a maximum 90/10 profit split.
Who is the best Forex broker in Kenya?
While there is no one fit for all brokers for different trades, Fusion Markets, Exness, HF Markets, FxPesa, FxPro, RoboForex, AvaTrade, and XM are top options.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
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Team that worked on the article
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).
