In the last decade (2010 -2019), Kenya’s online forex trading scene witnessed increased curiosity from the public looking for ways to make money online. However, innocent investors (traders) have lost their funds to unregulated/unscrupulous dealers.
This necessitated the Capital Markets Authority to develop a framework to regulate online forex trading. The regulator in 2016 drafted rules aimed at regulating the online forex trading activities undertaken by individuals/companies in the country. The Online Foreign Exchange Trading regulations became effective in 2017 and this paved way for players such as EGM Securities to begin offering their services in the Kenyan market.
According to EGM Securities CEO Samuel Kiraka, working closely with the regulator ensures credibility, trust, and transparency. Furthermore, he says CMA promotes investor protection through the separation of client funds with those of the non-dealing forex operator. Therefore, the traders can access their funds in case a broker shuts down.
What To Expect in 2020
Mr Kiraka expects 2020 to a good year for local online forex traders as the EGM intends to roll out forex trading across other counties outside Nairobi. Mr Kiraka says that they have received interests from people in major towns such as Mombasa, Nakuru, and Kisumu. Plans are underway to establish offices in the regions to facilitate free seminars and training to build a community of well-informed traders.