CMA licenses two online forex trading intermediaries
NAIROBI, Kenya May 11 – The Capital Markets Authority (CMA) has approved the issuance of licenses to Tadenex Limited to operate as a non-commercial online foreign exchange broker and Tradesense Limited to operate as a fund manager.
The settlement approved both licenses under the Capital Markets (Online Foreign Exchange Trading) Regulations 2017.
These approvals bring the number of licensed online forex trading brokers to seven and two fund managers.
“The Authority has noted strong interest from Kenyans to participate in online forex trading and is delighted to grow the pool of online forex trading brokers and non-trading fund managers,” Wyckliffe Shamiah said. , CEO of CMA.
Firms licensed as non-dealing online forex brokers act as a link between the online forex market and a client in exchange for a commission or increased spreads.
Dealers do not engage in market making activities (buying and selling foreign currencies).
They provide their clients with access to trading platforms, allowing them to trade from anywhere and anytime using their electronic devices.
Online currency trading platforms provide access to global markets and allow clients to learn about global financial markets.
Non-trading online Forex brokers do not offer advice to clients or trade on behalf of their clients.
Furthermore, a fund manager is authorized to choose and manage investments prudently for their online forex trading clients and to develop appropriate investment strategies.
They also perform financial analysis and monitor foreign currency portfolio investments on behalf of its clients.