Kenya’s Capital Markets Authority (CMA) is engaging with two potential brokers who are seeking approvals with regards to venturing into the country’s fast growing online forex trading market. The two firms, Cyprus based Windsor Brokers and Kenyan money transfer company Upesi could soon become brokers if their talks with the regulator goes through.
The CMA has revealed these engagements on its June 2018 research paper which is based on a study of the low uptake of capital markets products in Kenya.
“The Authority has remained alive to its envisioned contribution towards increasing Kenya’s overall GDP. As such, it has made significant steps towards expanding the functioning of Kenya’s capital markets as evidenced by the (i) development of supporting regulations, (ii) incentives to promote capital markets instruments, (iii) licensing of intermediaries, (iv) introduction of new capital markets products, and (iv) implementing a comprehensive investor education and public awareness strategy, amongst other reforms,” the research paper states.
Online Forex Trading in Kenya
In February this year, UK-based Execution Point Limited received a license from the CMA to operate as a non-dealing online foreign exchange broker in Kenya.
The company applied for the license in August 2017. This was the first license issued under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
Non-dealing online foreign exchange brokers simply offer an online trading platform to clients allowing them to trade from anywhere in the world. However, these brokers do not provide advice to clients or trade on their behalf.
Online forex trading is one of the new services the CMA has launched between 2012 and 2017. Now, other companies such as Windsor Brokers and Upesi Money Transfer are eying this untapped market in Kenya.
Windsor Brokers is a global forex and cfd trading investment firm with history that dates back to 1988. The company offers a powerful suite of trading platforms, allows clients to trade more than 45 currencies, gold, oil, soft commodities, cryptocurrencies, shares, indices and more.
On the other hand, Upesi Money Transfer allows customers to send and receive money through their mobile app. The company is licensed and regulated by the Central Bank of Kenya.
