Forex Market Hours – FX Guide
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The foreign exchange market in Kenya is the biggest financial market in the world. However, the fact that new traders work almost 24 hours a day in different time zones makes them hardly consider the impact of Forex market hours on their investment decisions.
Even though Forex is reported to operate 24 hours a day, the market usually closes at the end of the day like any trading market. However, the internet now makes it possible for traders in Kenya to speculate anytime, day or night, weekday, or weekend.
There are different forex trading sessions because of the time difference between these centres: Tokyo Session, London Session, New York Session, and Sydney Session. So let’s look at how the forex market in Kenya operates according to different time zones.
Forex trading sessions for Kenyan traders
As opposed to stock markets, which follow a standardised schedule, Forex operates during the normal business hours of four different time zones, making it a volatile market that is available 24 hours a day, 5 days a week.
Forex market conditions in Kenya can vary greatly from day to day. In other words, trading strategies are as important as understanding time differences, when different forex markets overlap, and when highs and lows occur.
You will be best positioned to capitalise on the market’s ups and downs when you understand the risk factors and the time differences. This article will benefit traders from African countries, including Kenya, as many new traders join the forex market.
Since forex trading is carried out in various time zones, it is affected by time zones in different regions. Several major forex trading centres can be found in Sydney, Tokyo, London, and New York.
The four major forex trading sessions are as follows:
- Sydney Session
- Tokyo Session
- London Session
- New York Session
The following three sessions are considered to be more important than the rest: Tokyo (Asian), London (European), and New York (North American).
Instead of focusing on trading throughout all sessions, expert traders often concentrate on one or two sessions. There are three forex trading sessions in Kenya, commonly known as the “forex 3-trading system”, the forex marker’s most active session.
In addition to the above-described major trading session, active traders are also concerned with four other minor sessions:
- Singapore Session
- Hong Kong Session
- Wellington Session
- Frankfurt Session
In this way, trading sessions work like a domino effect. One closes, another begins. Furthermore, some forex markets in Kenya work simultaneously or overlap. In the case of London and Frankfurt, both of which are in the same time zone, opening and closing times differ by just one hour.
We should group different forex markets by continent for easier navigation. Despite being technically part of the Oceania continent, Australia is not considered such on the Forex market. Trading sessions in Sydney and Wellington are both included in the Asian session.
Asian trading session
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FSCA
up to 30%
USD 100
1:400
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FCA, ASIC, CySEC, FSCA, BVIFSC
up to 50%
USD 100
1:300
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SFSA, FSC (BVI), CBCS, FSCA, FSC (Mauritius)
up to 10%
USD 10
1:2000
Broker Verified
FSCA
up to 100%
USD 250
1:300
While the first sunrise occurs in New Zealand, Tokyo (Japan) begins major trading activities. Trade commerces at 7 pm and ends at 4 am. Forex trading in Asia takes place mostly in the Tokyo session after it opens.
Most forex transactions take place on the USD/JPY pair. Trade-in GBP/CHF and GBP/JPY are also fairly frequent. During Asian trading sessions, Japan makes up nearly 20% of all forex transactions, making it the world’s third-largest trading spot.
But Tokyo is not only an important forex centre in the Asian market. Singapore and Hong Kong are also important forex centres. In the meanwhile, these two centres are seeing a greater volume of trading than Tokyo. 7.6% of the volume came from Singapore, and Hong Kong combined, while the Japanese forex market contributed 4.5%.
Forex trading in Sydney takes place from 5 pm to 2 am.
What to expect during the Asian trading session?
- During the Tokyo session in Kenya, it is primarily the central banks and companies in place. In Japan and China, both of which are export-oriented economies, truncations are commonplace.
- During the Asian session, economies in the Asia Pacific region (the US, Japan, Australia, etc.) became more active. As a result, the major moves in currency pairs often occur in Asian currencies like USD/JPY, AUD/USD, and NZD/USD rather than in non-Asian currencies like USD/EUR or GBP/EUR.
- Most of the movement occurs early in the trading session.
London trading session
Forex trading on the European markets begins just as the Asian trading session is ending for the day. Although the European session coincides with several forex markets (Frankfurt, Amsterdam, etc.), London’s forex market dominates. Trading begins at 2 am and ends at 11 am.
There is no doubt that London is the capital of finance in the world. Because London is located in Asia and North America, the trading session overlaps the Asian and North American sessions. Furthermore, the market becomes more volatile during these overlapping sessions, and many currency pairs experience major fluctuations. Therefore, it is no surprise that 43% of all forex transactions are carried out during the London session.
What to expect during the London trading session?
- As London’s session overlaps with Asian trading in the evening and American trading in the afternoon, a volatile and highly liquid forex market is created.
- Trading in New York is often based on London’s trends.
- In the lunch hour, forex market volatility decreases.
- London trends frequently serve as a guide for technical traders.
- This session’s most actively traded currencies include EUR/USD, GBP/USD, USD/JPY, and USD/CHF. Spreads are often quite high in this session.
New York trading session
New York’s session starts at 8 am, just when European traders are returning from lunch breaks. It’s second only to London in terms of volume. Around 17-18% of foreign exchange transactions take place there. In addition to New York, Toronto and Chicago are important foreign exchange trading centres.
Because of this, some traders in Kenya refer to the New York session as North American trading. Many movements are observed in currencies tied to the dollar because US dollars remain the most traded currency (often referred to as the ‘global trading currency’).
What to expect from the New York session?
- Since it overlaps with the European session for three hours, it tends to be more volatile and liquid in the early session.
- The Federal Reserve’s announcements or the release of economic data can affect the trading day. In addition, four out of five global trades involve dollars, meaning everything related to the dollar can impact the forex market.
- Around midday, the US market becomes less volatile as European markets wrap up their sessions. As a result, there is little movement in the market on Friday evening.
- You can trade almost any dollar-based currency pair, but investing in major exchange rates like USD/EUR, USD/JPY, and GBP/USD is certainly a good idea.
| Trading Session | EST | GMT+1 | Major traded currencies |
| Sydney | Open: 3PM Close: 12AM | Open: 10PM Close: 7AM | AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, GBP/JPY, NZD/JPY |
| Tokyo | Open: 7PM Close: 4AM | Open: 1AM Close: 10AM | JPY/USD, AUD/JPY, EUR/JPY, NZD/USD, NZD/JPY |
| London | Open: 3AM Close: 11AM | Open: 8AM Close: 4PM | GBP/USD, EUR/CHF, USD/CHF, GBP/JPY |
| New York | Open: 8AM Close: 5PM | Open: 1PM Close: 10PM | EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, USD/CHF |
What is the best time to trade Forex in the Kenyan time zone?
Due to Kenya’s location in East Africa, the time zone is Eastern African Time.
Firstly, let’s examine how Kenyan time relates to global forex trading hours.
| Trading Session | EST | EAT Nairobi |
| Sydney | Open: 3PM Close: 12AM | Open: 11PM Close: 8AM |
| Tokyo | Open: 7PM Close: 4AM | Open: 3AM Close: 12AM |
| London | Open: 3AM Close: 11AM | Open: 11AM Close: 7PM |
| New York | Open: 8AM Close: 5PM | Open: 3PM Close: 12PM |
Kenyan traders are most active from 11 am to 5 pm, as they trade simultaneously during the London and New York sessions. During these hours, volatility will be at its highest.
It may not be practical for most traders to burn the oil at night, even though you can trade during any session. However, except for Tokyo, you can see that the rest of the three sessions are evenly distributed throughout the day. As a result, trading during those overlapped sessions can be worthwhile.
Based on 4 major sessions, here are the best times to trade in Kenya:
- 11 pm – Sydney Session
- 3 am – Tokyo Session
- 11 am – London Session
- 3 pm – New York Session
Taking advantage of the most liquid and volatile sessions is possible if you wake up when Tokyo and London overlap or if London and New York overlap.
Part-time and full-time forex trading in Kenya
Traders who work part-time can commute from the Nairobi CBD to Kahawa Wendani, take a quick shower, and trade right in time for the New York session to begin.
Before the overlap, forex traders in Kenya can also access market trend information from the Tokyo and London morning sessions.
You can make good money through forex trading in Kenya by reading markets during the day and taking positions between 6 and 7 pm when the London and New York sessions overlap. Markets are most liquid at this time, so you have a good chance of making money.
Best days of the week to trade
Knowing when to trade Forex will significantly impact your success and knowing the best days to trade. Tuesday, Wednesday, Thursday are among the most active days in the market.
Ultimately, learning when and where to trade Forex in Kenya efficiently will help you manage your schedule. The forex market is open 24 hours every trading day, but this does not mean traders must trade all hours. You must have a trading plan if you plan on becoming a successful forex trader in Kenya.
How to pick the best forex market hours for you?
When picking the best time to trade Forex in Kenya, you need to consider different factors. Several factors should be taken into account, such as the availability of forex brokers and the forex market condition. In addition, the different forex trading sessions in the Kenyan time zone should also be considered before choosing your session.
The currency markets offer an opportunity for trading when economic statistics are not released regularly. By doing so, any emotional effects on the price charts of a particular pair may be reduced, allowing for more effective technical analysis.
A manufacturing report from Germany is scheduled to be released at 10:00 pm GMT+3, and another from Japan is scheduled at 02:50 am GMT+3.
The benefits of finding a good time zone for your trade
Forex trading sessions and time zones determine the best time for trading in Kenya or you individually. Benefits of forex trading sessions include:
It allows you to trade in a market conducive to your trading style if you set a time zone.
Before you make a trade, you get the chance to see how the market will react to information released during these time zones.
Traders can choose the best currency pairs to trade based on trading time zones that give power to the biggest currencies in the region. So, in some ways, they assist you in choosing the best forex broker for you.
What to do to know if it’s the best time to trade Forex in Kenya for you?
By now, you should have a reasonable idea of what forex trading time zones are. Now that you know which forex trading sessions are available in Kenyan time, you can prepare for your next trade. Thus, you are well-positioned to pick the best forex trading hours and develop a successful forex trading strategy.
There are all different time zones, so what works for one person may not work for another. If you want to select a reliable forex trading time zone, go with your gut feelings and try them out before making a final decision.
Bottom line
Central banks, international trade, and businesses rely on currencies as a means of transacting across market hours, so the currency market must operate around the clock. Consequently, it is not possible for a forex market participant to not engage in currency trading at any point during the trading week. For example, Kenyan traders prefer to trade in the New York session between 2 pm and 1 am. As a result, forex trading during this session is the second-largest in the world. The USD is the most traded currency globally, so it is one of the main reasons for this.
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Heinrich is a forex and CFD enthusiast with a passion for writing good informative quality content. He strives to showcase the best forex brokers in Africa. Join him on his Journey!
Content Writer | Market Analyst
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