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Kenya Online Forex Broker Licenses

Brief Overview:

Kenya’s Capital Markets Authority (CMA), licenses and regulates all forex brokerage businesses under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017. Forex brokers provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. Scope and features of each license type:

Dealing online foreign exchange broker

  • Open clients’ accounts;
  • Provide a traders with trading platforms
  • Provide access to market information that the clients may utilize in formulating their strategies;
  • Monitor traders’ positions; or
  • Provide end-of-day reports.
  • trade as principal and market maker

A non-dealing online foreign exchange broker:

  • Avails a trading platform to their clients that enables the clients to trade from anywhere and at any time using their electronic devices.
  • Provides access to global markets and also provides an opportunity for clients to educate themselves on the global financial markets. Non- dealing
  • Do not offer client advice or trade on behalf of their clients.
  • Clients deposit their investment amount with an account to be offered by the broker.

NB// The trader (client) is responsible for executing trades – buying and selling of any products on the platform and the requisite risk assessments are undertaken to determine the suitability of clients to participate in online forex trading.

A money manager

  • Choose and manage investments prudently for his or her clients;
  • Develop an appropriate investment strategy;
  • Take positions in the market to meet the investment goals of the client;
  • Undertake financial analysis; and
  • Monitor foreign exchange portfolio investments on behalf of the client.

An online foreign exchange broker is prohibited from trading

  • Currency pairs involving the Kenya shilling; and
  • Binary options.