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Kenya Online Forex Broker Licenses
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.