Opening an account and passing verification
What you learn in 3 minutesThis lesson shows what a regulated broker has to ask for when you open an account, and why the checks can take time. In Kenya, a broker supervised by the CMA will ask for your ID, a photo of you, and proof of where your money comes from. Getting these right the first time can save you days of waiting before you can place your first EUR/USD trade.
How a KSh 10,000 deposit turns into a EUR/USD position
| Step | Amount | Note |
|---|---|---|
| Deposit in KSh | KSh 10,000 | Sent by M-Pesa or bank transfer to the broker |
| Broker converts to USD | About USD 77 | At a rate the broker sets; this rate varies between brokers |
| One pip on one standard lot of EUR/USD | USD 10 | 100,000 x 0.0001 = 10 units of the quote currency |
| One pip on 0.10 lots of EUR/USD | USD 1 | 0.10 x USD 10 = USD 1 |
| One pip on 0.10 lots, in KSh | About KSh 130 | USD 1 converted at the same rate; this figure varies |
The broker may round the exchange rate, charge a deposit fee, or quote a slightly different price on EUR/USD around 1.0850. Check the fee schedule before you send money.
The mistake people make here
The common mistake is sending a deposit before the documents are approved. The money may sit in the broker's account while the application is on hold, and you cannot trade it. Instead, submit your ID, selfie, and proof of address first, then wait for the approval email. Only after that should you send KSh by M-Pesa or bank transfer. If a document is unclear, the broker will ask again, which adds more days.Check yourself
If one pip on one standard lot of EUR/USD is USD 10, what is one pip on 0.25 lots?
0.25 x USD 10 = USD 2.50. At a rate of about KSh 130 per USD, that is about KSh 325. The exact KSh figure depends on the rate your broker uses.
You deposit KSh 20,000 and the broker converts it at a rate of KSh 130 per USD. How many USD do you get before fees?
KSh 20,000 / 130 = about USD 153.85. After any deposit fee, the amount will be lower.
In Kenya
- Regulator
- The Capital Markets Authority (CMA) licenses and supervises brokers that offer forex and CFD trading to residents.
- Typical ID documents
- A national ID card or passport, plus a clear selfie holding the document.
- Proof of address
- A utility bill or bank statement from the last three months, showing your name and address.
- Payment methods
- M-Pesa and bank transfer are common; the broker may accept one or both.
- Verification time
- Checks can take from a few hours to several days, depending on how clear the documents are and how busy the broker is.