The key considerations for FX & CFD Introducing Brokers in Kenya

The global trading landscape for retail investors is not always as seamless straightforward as it appears.

In the age of near-universal internet access and the easy availability of online educational resources, it is vital to remember that traders have a range of different needs.

At Scope Markets, we recognise the importance of tailoring the insight we offer to active traders depending on their specific circumstances, including where they are based.??

In Kenya, we spoke to our local team to get their insight into the key considerations IBs in the East African nation should be considering when building a successful brand and thriving business.

Leverage the tools at your disposal

Robinson Gitonga, Head of Sales at Scope Markets Kenya had a clear answer when asked which single piece of advice he would offer IBs in Africa keen to build a bigger client network:

“The key to success is in leveraging the tools and resources that your broker provides, and the sales agent is the gateway to this. A well-informed sales agent will help you cater to your clients' needs more effectively.”

There are two key attributes to this approach. Firstly, the IB needs to build a strong relationship with the sales agent, something that is crucial for IB success.

Then, using the range of tools offered by the partner broker can maximise the potential end-clients can unlock. The agent can also assist with a setup designed for unique client requirements from spreads, swaps and commissions to specific trading flow needs.

And facilities like MAMs, trading platforms, and VPNs are essential for supporting clients effectively.

A focus on education

Next comes your broker’s educator panel. Developing a strong connection with it can help as the participants can gauge the knowledge of the IB and its clients to offer a tailored tuition package. These are often free and enhance understanding while building trust.

One-on-one sessions can lead to increased trading activity. Over time, relationships are boosted and confidence rises.

That can help develop a key attribute singled out by David Nyaga, Director/Shareholder:?

“The ability to adapt, whether to shifting market trends or client requirements, is what separates a successful IB from the rest. Staying ahead of the curve is crucial.”

As the industry develops, trading strategies are taking on deeper complexity.??

Khilan Shah, Shareholder, explains:

?“We’re seeing a growing interest in commodities and indices as clients in Africa are becoming more sophisticated in their trading strategies.”

So whilst there is increasing use of such asset classes to diversify portfolios and hedge against risk, currency trading remains popular. The EUR/USD pair is still by far the most traded locally, due to the volatility it features and the returns on offer.

In commodities, oil is popular, reflecting its high geopolitical profile. But gold remains the most frequently traded asset, helped in popularity by its status as a hedge against inflation.??

Technology counts

The technology used by traders is also vital consideration. David Nyaga adds:??

“Mobile trading has transformed the landscape in Africa. Access to secure, reliable smartphones and internet connections is essential for a successful trading journey.”

In this inter-connected global industry, there is a key factor that has not lost its significance, points out Robinson Gitonga:

"Local market knowledge is the foundation of success for IBs in Africa. Understanding the economic conditions, regulatory frameworks, and cultural nuances gives IBs an edge in providing customized strategies that resonate with their clients.”

And that can help with what Kenneth Waiganjo, Ag. CEO, singles out as what should be the primary motivation at work – long-term growth and trust building:

“IBs should think beyond short-term gains. Building trust through consistent education and support will ensure long-term success and client loyalty.”

To find out more about how Scope Markets already works with Introducing Brokers via our global reach of regulated entities, visit our website or contact the partners team at [email protected].

Stay tuned for our next issue, and join us on this journey to unlock new potentials and drive your business forward. Together, let’s expand horizons and achieve greater success!

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