The Capital Markets Authority (CMA) has issued a license to Ingot Africa Limited to operate as a non-dealing Online Foreign Exchange Trading broker.
This approval brings the number of licensed online forex trading brokers to eight.
‘‘The Authority encourages Kenyans interested in online forex trading to participate through the licensed online forex trading only to ensure they are protected. We continue to grow the pool of licensed entities due to the growing interest in online forex trading,’’ CMA Chief Executive Officer Mr Wyckliffe Shamiah said.
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.