Effects of Internet Integration on Forex Trading in Kenya

Abstract

In foreign exchange market, internet integration has led to the increase of forex trading through online foreign exchange trader that increase exponentially since the introduction of internet technology. The number of foreign exchange traders has greatly increase thanks to online traders. This inquiry sought to determine the influences of Internet integration on Kenyan foreign exchange trading. The study was based on actor-network theory, ethical theory and the law of one price (LOP). This study research design was a descriptive survey. The study’s population of interest comprised of foreign exchange traders who include Commercial Banks, Forex bureaus, and forex brokers. Stratified sampling was used to obtain representative sample of the main participants. Data was presented by use of both inferential and descriptive statistics. SPSS version 21 was used in analysing the collected data. The multiple linear regression equation was used. The findings from this study revealed a direct association amid internet integration and Kenya’s forex trading. The study suggests that the Kenyan Government should enhance internet integration as this will have an upward effect on the forex trading in Kenya as well as make sure the economy is stable in both long and short-run. Forex firms in Kenya ought not to just concentrate on forex trading; they should also make sure there is efficient and effective management of internet integration so as to improve the growth of forex firms in Kenya.