Regulator Warns Against Unlicensed FX Brokers

While COVID 19 has had a negative impact on the global financial markets, there are those who see a silver lining. Anyone watching the news over the last few weeks cannot fail to notice the price swings as Shares, Oil, Gold and the Forex markets react.

This turbulent scenario is likely to continue in the coming months. But as negative as it may seem to a casual eye, the global price swings present unique opportunities for one to participate in the global markets.

The Capital Markets Authority (CMA) in its March 3o 2020 Cautionary Statement, warns Kenyans against engaging in online foreign exchange trading through platforms of unlicensed entities as they risk losing their investments and may not be protected by the law. The authority has warned the unlicensed players to cease and desist from trading, conducting sensitizations in Kenya and onboarding Kenyan investors or managing online foreign exchange portfolios.

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CBK issues an alert on unlicensed forex dealers

CMA cautions the public on unlicensed online forex brokers

Hopefully, investors will adhere to the multiple warnings issued by CMA as well as the Central Bank of Kenya about the inherent risks in trading with unregulated and unlicensed online entities.

EGM Securities Limited was the first online non-dealing foreign exchange broker to be licensed and regulated by the Capital Markets Authority (CMA) in Kenya. Its FXPesa flagship product is an easy on-the-go trading platform that allows clients to explore investment opportunities in currencies, commodities, precious metals, indices and shares from their mobile devices.

The online platform allows different mobile payment options; MPESA, Airtel Money, Equitel and bank transfers making deposits and withdrawals instant and convenient through the mobile phone.