The Capital Markets Authority (CMA) has approved the issue of licenses to Tadenex Limited to operate as a non-dealing Online Foreign Exchange Trading broker and to Tradesense Limited to operate as a Money Manager 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 money managers.
The CMA Chief Executive Officer Wyckliffe Shamiah said, ‘the Authority has noted a keen interest from Kenyans to participate in online forex trading and is pleased to grow the pool of non-dealing online forex trading brokers and money managers.’
Firms licensed as non-dealing online foreign exchange brokers act as a link between the online foreign exchange market and a client in return for a commission or mark-up in spreads.
The licensees do not engage in market-making activities (buying and selling of foreign currencies). They will provide their clients with access to trading platforms, enabling them trade from anywhere and at any time using their electronic devices.
Online foreign exchange trading platforms give access to global markets and an opportunity for clients to educate themselves on the global financial markets. Non- dealing Online Forex brokers do not offer client advice or trade on behalf of their clients.
A money manager is licensed to choose and manage investments prudently for its online forex trading clients and develop appropriate investment strategies. They also conduct financial analysis and monitor foreign exchange portfolio investments on behalf of its clients.
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