The net assets base of online forex dealers was KSh 234.27 Million as at 31st May 2020. This is compared to KSh 5.3 Billion held by fund managers, KSh 971.3 Million for Stockbrokers, KSh 8.9 Billion for Investment Bankers and KSh 1.9 Billion held by investment advisors.
Data from the Capital Markets Authority (CMA) Soundness Report, Q2. 2020, shows that total assets controlled by non-dealing online forex dealers were worth KSh 1,055.96 Million while liabilities amounted to KSh 821.69 Million.
Online forex brokers provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies.
CMA has already granted a license to three firms- SCFM Limited, EGM Securities Limited and Pepperstone Markets Kenya Limited to operate as a Non–Dealing Online Foreign Exchange Brokers.
An non-dealing online foreign exchange broker links the online foreign exchange market with a client, earning a commission in the process. This broker does not engage in buying and selling of foreign currencies.
The first non-dealing online foreign exchange broker license was issued to EGM Securities Limited in 2018.
Non-dealing Online Forex Brokers avail a trading platform to clients to enable them trade online using their electronic platforms.