Online trading

Kenyans urged to tap their potential in e-commerce

Nairobi – Kenyans have been urged to harness their high levels of knowledge in e-commerce to derive maximum benefit from local and global markets.

Speaking to Capital Business, Scope Markets chief market analyst James Hughes noted that in his more than 20 years of experience in the trading industry, the level of knowledge of the base Kenyan market share in the markets is quite high.

“The Kenyan retail market is one of the best for us in the world with higher knowledge levels than even the UK for starters,” he said.

Hughes noted that Kenya’s great potential can be seen with the number of licensed online forex traders setting up shop in the country.

“When we came to Kenya we were the second licensed trader, but now there are more than 10,” he said.

He further noted that the pandemic which has seen many people staying at home has created a huge appetite for e-commerce.

Scope Markets offers a trading platform for commodities such as oil, gold, you can also trade currencies, individual stocks and indices.

The platform currently has over 80,000 customers in Kenya, it is also based in South Africa and Nigeria.

Despite the big appetite, Hughes noted that the industry is also prone to unscrupulous and unregulated traders who end up scamming Kenyans unknowingly.

“In order for you to trade you need to watch for warning signs to notice scammers, for example, no regulated company will ask you to pay into a personal bank account. When you are authorized by regulators such as the Authority of financial markets (CMA), you are supposed to have a payment provider as a merchant,” he said.

The CMA planned to eliminate a large number of bogus websites and the licensing of these companies gave investors the opportunity to operate the offshore markets safely, increasing the participation of local traders and brokers.

Although online forex offers high returns, it also comes with major downside risks, making it suitable for sophisticated and wealthy clients.

Forex trading has gained traction among young people who are digitally savvy and looking for opportunities beyond traditional asset classes such as bonds, stocks and real estate.