Kenyan forex traders should demand a pay by phone application from their forex brokers - forex trading demo konto

Kenyan forex traders should demand a pay by phone application from their forex brokers ~ forex trading demo konto

I have been thinking- now that the number of Kenyan forex traders in the online market is steadily rising, why shouldn’t the numerous forex brokers trying to lure the Kenyan forex traders adopt the pay by phone system? It may just attract more forex beginners into the online market. Forex brokers are quick at adopting any technology that comes by because they just know very well that ignoring technology in the modern age is a self defeating plot. The mobile money system presents itself as the latest opportunity and whoever takes it first might just win in the forex brokers’ arms-race.

Already there are forex brokers that support trading of the markets through the phone while others provide SMS alerts to those who would like to receive instant information about movements within the markets. Mobile and forex are therefore not strange bedfellows and the relationship can as well be extended to including opening and holding forex trading accounts through the phone.

Banks are always applying their own conversion rates when a trader needs to send money from his account to a forex broker. More and more hidden charges abound when transacting with the bank. The banks benefit when you are credited by your forex broker and when you are debited. A pay by phone system can enable both the forex trader and the forex broker to do away with the banking institutions and cut unrelated trading costs often visited upon the forex trader.

In Kenya more and more people are finding it safer to have their money deposited in their mobile phone accounts than within the tradition banking institutions. Even the traditional banking institutions in Kenya have had to adopt the mobile banking system to curtail the rate at which they have been losing money to the phone companies. At least all the local banks now support banking by phone for their customers. Customers can deposit and withdraw money from their bank accounts by the use of the phone. Notice that the bank system does not do away with the customer’s bank account. I propose doing away with the bank account and only holding an account with your forex broker which can be financed directly from the mobile phone.

In Kenya, M-pesa has been a success story with over 20 million Kenyans having an account. Millions are transacted everyday through the phone in Kenya and last year the transactions through the mobile money system of Safaricom in Kenya alone exceeded the worldwide transactions of the Western Union money transfer. Mobile money is now a multi billion investment and all talk of its fall that characterised its advent have all but disappeared.

Of course there are challenges associated with allowing a forex trader with only a mobile phone banking account to operate a forex trading account. This may include the possibility that the forex trader may be below 18 years of age and therefore not bound by the forex trading terms and conditions. It may especially be true with forex traders from South Africa because the mobile money system there allows any person at the age of 16 to have a mobile money account. In Kenya however, the nation with the largest and most promising number of users of the mobile money system, checks are in place to make sure that you cannot have a mobile money account without a national identity card which is only issued to those over 18 years. A forex broker eyeing the Kenyan market is therefore safe in this regard.

Another challenge that may arise with having a forex trader with only a mobile money account may be in terms of exchanging the local currency into dollars which is the preferred trading currency worldwide. Mobile money operators such as Safaricom do not transact in dollars. But this can be cured by the forex broker operating a local mobile money center and expressly agreeing with the forex trader on the conversion rate with every trade. Hence whenever the forex trader sends money through phone to the forex broker, a message is sent back to the trader confirming receipt and stating the amount received not in local currency but in dollars.

It is costly to fund a forex trading account through a bank account especially if you are a retail trader engaged in an on and off relationship with the markets. The danger that your forex broker may also at times mistakenly credit your bank account for trades that never happened is always lurking and imminent with each passing day. With a mobile money account, if I desire to enter a trade that will cost me only fifty dollars, I send by phone an equivalent of that in the local currency. If the trade is a loser I get a message to that effect and if it’s a win the forex broker sends the money to my mobile phone number as a profit. It is then upto me to decide what to do with the money.

The mobile money system is fast. Banks may require some number of days before they can clear your transaction and this may cause you to lose in a good trade if you had no enough margin in your forex trading account. The mobile money system is also safe. An electronically engineered message is sent to the recipient of any amount and the sender and the possibility of claiming that you either sent or received any money when in reality you did not is cancelled out.

With the mobile money system it is also possible to transact money 24/7, 365 days a year. So it doesn’t matter the time of day. As long as the local office of the forex broker can confirm it received the money, transactions will go on. The markets never sleep and in the mobile money system it has a friend that shares in the same trait of never going to bed.

There is therefore a compelling need for a partnership between the mobile money service providers and the forex brokers. More and more people will find trading forex attractive when all they have to do is finance their forex trading accounts with money through their phones. The good thing is that a forex broker in partnership with a local mobile company enhances its legitimacy by defeating any questions of credibility. This is because no local mobile service provider would engage in a scam and a great deal of background check must take place before such a deal sees the light of day.

Forex traders will have to pay a transfer cost whenever they transfer money to the forex broker’s account by use of their phones. With the ease of transacting through a mobile phone, most traders would rather finance their forex trading accounts through the phone than by their visa cards through their bank accounts. The transfer cost will not repel. If you are a forex trader from Kenya, kindly leave your thought below on the suggestion that we should be able to finance our forex trading accounts by the use of the phone.
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