Top 8 Locally Based Brokers
6 Best CMA Regulated Brokers in Kenya
The 6 Best CMA Regulated Forex Brokers in Kenya revealed. We tested and verified the best CMA-regulated forex brokers for Kenyan Traders.
This is a complete guide to CMA-regulated forex brokers for Kenyans.
In this in-depth guide you’ll learn:
- What is the Capital Market Authority (CMA)?
- Why traders in Kenya should sign up with a Kenyan CMA-regulated broker?
- Who are the best CMA-regulated forex brokers for Kenyans in 2022?
- Which forex broker is best for beginner Kenyan traders?
- How to choose a forex broker –Compare the brokers against each other.
- Which forex broker can you use with M-PESA?
- Which brokers offer a sign-up bonus for first-time traders?
- Which brokers offer a minimum deposit of $5 (583 KES)?
And lots more…
So if you’re ready to go “all in” with the best-verified Capital Market Authority (CMA) forex brokers for Kenyans…
Let’s dive right in…
- Louis Schoeman
Best CMA Regulated Brokers in Kenya
| 🥇 Broker | ✔️ CMA-Regulated Broker? | 💰 Minimum Deposit? | 💸 Kenyan Shilling (KES) Deposits Allowed? | 👉 Open Account |
| 1. HF Markets | Yes | $5 (580 KES) | Yes | 👉 Open Account |
| 2. Pepperstone | Yes | $150 (17 506 KES) | Yes | 👉 Open Account |
| 3. Exinity East Africa Limited | Yes | $20 (2 334 KES) | Yes | 👉 Open Account |
| 4. FXPesa | Yes | $5 (583 KES) | Yes | 👉 Open Account |
| 5. Scope Markets | Yes | $100 (11 671 KES) | Yes | 👉 Open Account |
| 6. Windsor Brokers | Yes | $100 (11 671 KES) | Yes | 👉 Open Account |
6 Best CMA Regulated Brokers in Kenya (Updated 2023)
- HF Markets – Overall, Best CMA-Regulated Broker in Kenya
- Pepperstone – Best ECN Forex Broker
- Exinity East Africa Limited – Best Lowest Spread Forex Broker in Kenya
- FXPesa – Best CMA-Regulated Broker with a Trading App
- Scope Markets – Best Broker with a Low Minimum Deposit Broker
- Windsor Brokers – Best CMA-Regulated Nasdaq100/NAS100 Forex Broker in Kenya
What are CMA Regulated forex brokers?
👉 The Capital Markets Authority (CMA) is responsible for licensing and regulating the activities of forex brokers in Kenya.
1. HF Markets
Overall Rating
- 4.8/5
Total Pairs
50+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 HF Markets, formerly known as HotForex, is a low-risk CFD and forex broker for Kenyan traders, with an overall rating of 9/10 for trading conditions, retail investor accounts, client fund security, and customer support.
👉 HF Markets is well-regulated by several reputable entities, and the Capital Markets Authority (CMA) in Kenya recently granted a license to HFM Investments Limited, a subsidiary of the brokerage company.
👉 HF Markets is a proud MetaTrader broker, providing trading platforms for MetaTrader 4 and MetaTrader 5. HF Markets’ retail investor accounts are appropriate for both novice and expert traders, as well as professional traders seeking a competitive edge in their trading.
👉 Each retail trading account has its own set of features and trading conditions to accommodate traders with varying trading styles, trading abilities, and investment objectives. HF Markets has won over 55 forex industry awards in the last decade and has over 2.5 million active accounts.
Unique Features
| Feature | Information |
| ⚖️ Regulation | FSCA, CySEC, DFSA, FSA, FCA, FSC, CMA |
| 📱 Social Media Platforms | • Facebook • Telegram • YouTube |
| 💻 Trading Accounts | Micro Account, Premium Account, HF copy Account, Zero Spread Account, Auto Account |
| 📊 Trading Platform | MetaTrader 4 and MetaTrader 5 |
| 💰 Minimum Deposit | 5 USD or 580 KES |
| 💵 Trading Assets | Forex, Precious Metals, Energies, Indices, Shares, Commodities, Cryptocurrencies, Bonds, Stocks DMA, ETFs |
| ✔️ Kenyan Shilling-based Account? | No |
| 💵 KES Deposits Allowed? | Yes |
| 💸 Bonuses for Kenyan traders? | Yes |
| 📉 Minimum spread | From 0.0 pips |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Tight, competitive spreads from 0.0 pips on EUR/USD are offered | HF Markets only offers a few deposit and withdrawal methods to Kenyans |
| Kenyan traders have access to MetaTrader 4 and 5 across desktops, mobile apps, and web-based platforms | |
| A demo account is available for beginners who are learning to trade and professional traders who are testing strategies | |
| Kenyan traders can register a trading account in either USD, ZAR, or NGN | |
| Several asset classes can be traded through HF Markets |
Trust Score and Kenyan Market Share
🥇 HotForex has a trust score of 83% and a Kenyan market share of 2.5%.
2. Pepperstone
Overall Rating
- 4.1/5
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128
Overview
👉 Pepperstone Markets is a multi-location broker that adheres to tight rules with offices based around the world, including in Nairobi, Kenya. In Kenya, the Capital Markets Authority (CMA). has granted Pepperstone Markets Kenya Limited a license to operate.
👉 Pepperstone is known for its exceptional client service and extensive selection of third-party platforms. The research offerings are superior to the industry norm, but the number of tradeable items is a small drawback.
👉 Founded in 2010, Pepperstone Markets is a prominent CFD, and forex broker based in Kenya while the Pepperstone group is based in Australia.
👉 Daily, Pepperstone Markets processes an average of US $8.3 billion in deals and provides online trading to more than 170 nations across the world. Pepperstone Markets makes use of technologies designed to facilitate large-ticket trading by institutions.
👉 Pepperstone Markets is capable of handling multiple order fills, allowing them to feed bigger orders into a liquidity aggregator on numerous levels. Orders placed by clients are filled on a “market execution” basis without requotes, with the possibility of positive or negative slippage, and without broker interference.
Unique Features
| Feature | Information |
| ⚖️ Regulation | ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB |
| 📱 Social Media Platforms | • Facebook • YouTube |
| 💻 Trading Accounts | Standard account, Razor Account, Professional Account |
| 📊 Trading Platform | MetaTrader 4, MetaTrader 5, cTrader, TradingView, Myfxbook, DupliTrade |
| 💰 Minimum Deposit | 150 USD |
| ✅ Trading Assets | • Forex • Cryptocurrencies • Shares • ETFs • Indices • Commodities • Currency Indices |
| ✔️ Kenyan Naira-Based Account | No |
| 💳 Bonuses for Kenyan traders? | No |
| 📉 Minimum spread | from 0.0 pips |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Pepperstone caters for traders of all trading experience or style | Leverage restrictions apply |
| Pepperstone is a multi-regulated and multi-award-winning broker | Additional fees applied to the Islamic account |
| Pepperstone ensures client fund security by keeping it in segregated accounts | |
| Pepperstone accepts Kenyan traders and provides enough educational material for beginners | |
| Demo account and Islamic account offered | |
| Several funding options offered | |
| No deposit fees and withdrawal fees charged |
Trust Score and Kenyan Market Share
🥇 Pepperstone has a very high trust score of 92% and a market share of <5% in Kenya.
3. Exinity East Africa Limited
Overall Rating
- 4.5/5
Min Deposit
–
Regulators
–
Trading Desk
–
Crypto
Yes
Total Pairs
–
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Exinity East Africa Limited launched in June 2021, joining sister companies Alpari and FXTM as the Exinity Group’s third broker. It provides traders with three intriguing products, a competitive pricing environment, and high leverage, making it an ideal platform for novices, scalpers, and other types of forex and CFD traders.
👉 Exinity Group received a licence from Kenya’s Capital Markets Authority (CMA) in November 2020 to provide trading products and solutions to Kenyan traders. Exinity, as a non-dealing forex broker, joins only a few other CMA-regulated brokers in providing trading services to Kenyan retail traders.
👉 The new licence was Exinity Group’s latest addition to the African continent, joining licences and regulation from the Financial Sector Conduct Authority (FSCA) in South Africa and the Financial Services Commission (FSC) in Mauritius.
Unique features
| Feature | Information |
| ⚖️ Regulation | FSC, FSRA, CMA, FCA, FSCA |
| 📱 Social Media Platforms | • LinkedIn • YouTube |
| 💻 Trading Accounts | • Exinity World • Exinity Trader • Exinity Trader Pro |
| 📊 Trading Platform | MetaTrader 4, MetaTrader 5 |
| 💰 Minimum Deposit | $20 (2 334 KES) |
| ✅ Trading Assets | • Forex • Precious Metals • Energies • Commodities • Indices • Equity CFDs • Stocks |
| 📉 Minimum spread | From 0.0 pips |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Exinity is well-regulated in several regions by reputable regulatory entities, including the CMA | Limited base account currencies |
| Powerful MetaTrader platforms offered | Kenyan traders cannot register an account with KES as the base account currency |
| Negative balance protection is provided | Limited trading platforms |
| The commission charges on trades are lower than competitors | There is no proprietary trading platform |
| Flexible leverage with competitive ECN pricing and execution available | |
| There is a comprehensive affiliate program offered by Exinity | |
| Kenyan traders can use local deposit and withdrawal methods |
Trust score
🥇 Trust score for Exinity Kenya is 64%
4. FXPesa
Overall Rating
- 4.1/5
Min Deposit
USD 5 / 578 KES
Regulators
Capital Markets Authority Kenya
Trading Desk
FXPesa mobile, MyFXPesa, MT4, MT5
Crypto
Yes
Total Pairs
–
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 FXPesa (EGM Securities) is a well-known forex and CFD trading platform that was released in 2019.
👉 Kenya’s Capital Market Authority has authorized EGM Securities Limited, a non-dealing desk broker, to handle forex and CFD trades over the Electronic Communications Network (ECN), with FXPesa as its trading name.
👉 FXPesa is an easy-to-use trading platform that provides Kenyan traders with some of the most transparent and straightforward trading solutions available. FXPesa, Kenya’s first trading platform to offer these options, accepts fast and flexible payment methods such as M-Pesa, Skrill, and Mastercard.
👉 Because EGM is a non-dealing desk broker, Kenyan clients can obtain interbank market exchange rates immediately (NDD). The Electronic Communications Network (ECN) used to conduct transactions connects its customers to the market via interbank trading rates, removing the need for any intermediaries.
👉 This lowers market marker brokers’ transaction costs and brokerage fees, making trading more affordable.
Unique Features
| Feature | Information |
| ⚖️ Regulation | Capital Markets Authority (CMA), Financial Conduct Authority (FCA) |
| 📱 Social Media Platforms | • Facebook • Telegram • YouTube |
| 💻 Trading Accounts | • Executive Account • Premiere Account |
| 📊 Trading Platform | • FXPesa Mobile • MyFXPesa • MetaTrader 4 • MetaTrader 5 |
| 💰 Minimum Deposit | $5 (583 KES) |
| ✅ Trading Assets | • Forex • Indices • Commodities • US Shares • UK Shares • EU Shares |
| 📉 Minimum spread | 0.0 pips |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Several financial instruments can be traded | Spreads are higher on the Executive Account |
| FXPesa is well-regulated by the FCA and CMA | The commission fees are not the lowest |
| The account verification is simple and quick | No KES-denominated account available |
| There is a choice between trading platforms | Withdrawal fees are charged |
| There is an unlimited demo account | No negative balance protection on ECN accounts |
| There are local Kenyan deposits and withdrawals offered | |
| Kenyan traders can deposit and withdraw funds in KES | |
| There are many positive broker reviews for FXPesa | |
| There is maximum leverage of 1:400 offered |
Trust Score
🥇 The trust score for FXPesa in Kenya is 90%.
5. Scope Markets
Overall Rating
- 4.6/5
Min Deposit
50% of your initial deposit
Regulators
–
Trading Desk
MT4, MT5
Crypto
Yes
Total Pairs
–
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Scope Markets is the trading name for SCFM Limited, a Kenyan limited liability company regulated by the Capital Markets Authority that provides trading services and solutions to Kenyan traders (CMA).
👉 Scope Markets, a trading broker with offices in Kenya, South Africa, and the European Union (Belize and Cyprus), offers online Forex and CFD trading via the Metatrader 4 (MT4) and MetaTrader 5 (MT5) platforms for desktop, web, and mobile trading.
👉 Scope Markets’ online trading services, which include Forex and CFD trading across multiple asset classes, are available to both retail and institutional traders. The Scope Markets executive team is well-versed in the financial industry, having over 20 years of experience. Scope Markets is a viable option for Kenyan traders looking for quick execution, little slippage, and tight spreads.
👉 This Scope Markets review will give traders the information they need to decide whether the broker is a good fit for their specific trading goals and needs.
Unique Features
| Feature | Information |
| ⚖️ Regulation | IFSC, FSCA, CMA, CySEC |
| 📱 Social Media Platforms | • Facebook |
| 💻 Trading Accounts | One Account |
| 📊 Trading Platform | • MetaTrader 4 • MetaTrader 5 |
| 💰 Minimum Deposit | $100 (11 671 KES) |
| ✅ Trading Assets | • Forex • Indices • Energies • Metals • Shares |
| 📉 Minimum spread | 0.9 pips |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | No |
| ✔️ Pros | ❌ Cons |
| Scope Markets is well-regulated | The spread is marked-up |
| The broker has a local office in Kenya | There are limited additional trading tools and resources |
| There is a choice between MetaTrader 4 and 5 across devices | There are limited tradable instruments |
| Dedicated customer support is offered | There is no KES-denominated trading account |
| Trading fees are transparent and competitive | |
| There are local deposit and withdrawal options for Kenyan traders | |
| Client fund safety is guaranteed and there is investor protection provided by Scope Markets | |
| All trades are commission-free |
Trust Score
🥇 The trust score for Scope Markets in Kenya is 80%
6. Windsor Brokers
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 11667 KES
Regulators
CySEC
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
50
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Windsor Brokers is considered low-risk overall, with a Trust Score of 88 out of 100. Windsor Brokers is licensed by zero Tier-1 (high trust) regulators, two Tier-2 (average trust), and three Tier-3 regulators (low trust). Windsor Brokers provides three retail trading accounts: an MT4 Prime Account, an MT4 Zero Account, and a VIP ZERO Account.
👉 Windsor Brokers is a reputable investment firm that has been in business since 1998. Windsor Brokers recently became the sixth CFD and Forex broker to be regulated and authorized by Kenya’s Capital Markets Authority (CMA) to provide financial services and products.
👉 Windsor Brokers offers access to a diverse range of assets via sophisticated trading platforms. Customers can rely on them for market research, educational materials, and trading resources. Their costs are not the lowest when compared to other brokers, and the best trading conditions require deposits of at least $2,500.
👉 According to the broker, investing in technology, people, and a relentless focus on the company’s goal has been the key to its success and longevity.
👉 The ever-popular MetaTrader 4 (MT4) platform offers over 100 trading products. Windsor Brokers is also involved in corporate social responsibility through sponsorships.
👉 This Windsor Brokers review will provide traders with the information they need to determine whether the broker is appropriate for their specific trading objectives and needs.
Unique Features
| Feature | Information |
| ⚖️ Regulation | FSC, CySEC, JSC, FSA, CMA |
| 📱 Social Media Platforms | • Facebook • YouTube |
| 💻 Trading Accounts | • MT4 Zero Account • MT4 Prime Account • VIP ZERO Account |
| 📊 Trading Platform | • MetaTrader 4 • Windsor Brokers App |
| 💰 Minimum Deposit | $100 (11 671 KES) |
| ✅ Trading Assets | • Forex • Spot Metals • Energies • Soft Commodities • Indices • Treasuries • Spot Indices • Forex CFDs • Precious Metals • Shares • Crypto CFDs |
| 📉 Minimum spread | 0.0 pips |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Windsor Brokers is well-regulated | The best trading conditions require a premium account, which has a higher minimum deposit |
| Traders can choose from a selection of forex and CFD instruments | Withdrawal fees are charged |
| The broker offers modern platforms that can be used across devices | The Islamic account is only available on one trading account |
| There is multilingual customer support | There is no KES-denominated trading account and local deposits/withdrawals are not offered to Kenyans |
| Several promotions and the benefit of a no-deposit bonus are offered | |
| There are several educational materials offered | |
| There are transparent fee schedules | |
| An expert market analysis is offered |
Trust Score
🥇 The trust score for Windsor Brokers in Kenya is 88%
How to choose a CMA regulated forex broker
👉 Kenyan traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
👉 This is the first important component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Kenyans must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
Account Features
👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
👉 Kenyans must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Kenyans must consider what they wish to trade and what is available.
Customer Support
👉 Customer Support is another crucial factor and Kenyans must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
Trading Platform
👉 A trading platform is the Kenyan trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
➡️ eBooks
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ Commentary
➡️ Status of International Markets
➡️ Price movements
➡️ Market sentiments
➡️ Whether there is a volatile market
➡️ Exchange Rates
➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Forex Brokers in Kenya
👉 In this article, we have listed the best Forex brokers which offer CMA Regulated forex brokers to traders in Kenya. We have further identified the forex brokers that offer additional services and solutions to Kenyan traders.
Best MetaTrader 4 / MT4 Forex Broker in Kenya
👉 Overall, Exness is the best MT4 forex broker in Kenya although it is not CMA regulated. Exness provides dynamic and adaptable account types and some of the most advantageous trading conditions in the industry. Exness gives access to over 200 financial products, a variety of retail account types, and a wealth of resources.
Best MetaTrader 5 / MT5 Forex Broker in Kenya
👉 Overall, BD Swiss is the best MT5 forex broker in Kenya although it is not CMA regulated. BDSwiss is also a well-regulated broker with a large international clientele. It has a wide range of instruments available for trading, including forex, commodities, stocks, indices, and many cryptocurrencies.
Best Forex Broker for beginners in Kenya
👉 Overall, Tickmill is the best forex broker for beginners in Kenya although it is not CMA regulated. Tickmill’s VIP and Pro accounts also provide highly attractive commission-based pricing. In addition to low spreads, huge leverage, and fast execution speeds, Tickmill offers a wide range of CFD currency, stock, commodity, and index CFDs.
Best Minimum Deposit Forex Broker in Kenya
👉 Overall, HF Markets is the best CMA-regulated minimum deposit forex broker in Kenya. HF Markets, formerly known as HotForex, also is a low-risk CFD and forex broker that offers fair trading conditions, retail investor accounts, client fund security, and customer support.
Best ECN Forex Broker in Kenya
👉 Overall, Pepperstone is the best CMA-regulated ECN forex broker in Kenya. Pepperstone is also known for exceptional client service, research offerings, and an extensive selection of platforms.
Best Islamic / Swap-Free Forex Broker in Kenya
👉 Overall, CM Trading is the best Islamic/swap-free forex broker in Kenya although it is not CMA regulated. CM Trading is also a trading services broker that accepts Kenyan traders even though the Capital Markets Authority (CMA) does not regulate the broker.
Best Forex Trading App in Kenya
👉 Overall, Trade Nation has the best forex trading app broker in Kenya although it is not CMA regulated. Trade Nation is also a platform with minimal risk and an effective trading app. Trade Nation further has competitive costs, a secure trading environment, and cutting-edge solutions.
Best Lowest Spread Forex Broker in Kenya
👉 Overall, FBS is the best lowest spread forex broker in Kenya although it is not CMA regulated. FBS is also a top forex and CFD broker for Kenyans that provides a wide range of trading accounts as well as an innovative and powerful proprietary trading app. FBS charges low, competitive fees, and traders can be confident that their clients’ funds are secure.
Best Nasdaq 100 Forex Broker in Kenya
👉 Overall, XM is the best Nasdaq 100 forex broker in Kenya although it is not CMA regulated. XM also offers tight security, excellent customer service, account financing, and low fees.
Best Volatility 75 / VIX 75 Forex Broker in Kenya
👉 Overall, AvaTrade is the best Volatility 75 / VIX 75 forex broker in Kenya although it is not CMA regulated. AvaTrade is worldwide regulated by financial watchdog authorities and is lauded as CFD and FX broker.
Best NDD Forex Broker in Kenya
👉 Overall, FP Markets is the best NDD forex broker in Kenya although it is not CMA regulated. FP Markets also offers over 10,000 products in stocks, indices, forex, commodities, and cryptocurrencies, as well as a user-friendly mobile app and several account types.
Best STP Forex Broker in Kenya
👉 Overall, OctaFX is the best STP forex broker in Kenya although it is not CMA regulated. OctaFX is also a dependable broker because of its low required minimum deposit, commission-free trading, and the availability of an unlimited practice account.
Best sign up bonus Broker in Kenya
👉 Overall, Oanda is the best sign-up bonus broker in Kenya although it is not CMA regulated. Oanda also offers competitive trading conditions, an award-winning proprietary platform, and high-quality trading solutions. On OANDA’s platform, both professionals and novices can access a wide range of indicators and charting tools.
Understanding how CMA Regulated forex brokers work
👉 Kenya has regulations in place for foreign exchange trading.
👉 The Capital Markets Authority (CMA) in Kenya is in charge of overseeing and regulating online retail forex trading, and the expansion of forex trading in Kenya can be partially attributed to the CMA’s oversight of the industry.
👉 In Kenya, it is the responsibility of the CMA to provide licences to currency brokers and regulate their business activities.
👉 There are only six non-dealing forex brokers that have been granted licences by the CMA at this time. FXPesa, Scope markets, Pepperstone markets, Exinity, HotForex, and Windsor markets are the six brokerage firms that have been granted CMA licences. The CMA recommends that new traders in the foreign exchange market conduct their business exclusively with regulated brokers.
👉 However, there are numerous offshore forex brokers that are offering their services in Kenya and accepting local payment methods. These offshore forex brokers include those that are regulated by top-tier authorities.
👉 However, investors should not trade with these brokers since the CMA recommends against it and because you will not receive investor protection or redress in the event that the broker engages in illegal activity.
👉 Although it is beneficial for brokers to be under the regulation of CMA, many brokers in Kenya are not interested because they feel that some regulations are only profitable for traders, not for brokers. Therefore, they don’t register their businesses with CMA, which is in fact illegal.
Advantages of CMA Regulated forex brokers
👉 CMA Regulated forex brokers have several advantages. These advantages include:
➡️ If you don’t use a regulated broker, you open up risks associated with forex trading.
➡️ Strict rules and regulations imposed by the CMA assure fair dispute resolution and the safety of traders’ funds.
➡️ Trading risks are lowered, including being the victim of a fraud or scam.
Disadvantages of CMA Regulated forex brokers
👉 CMA Regulated forex brokers also have some drawbacks of traders in Kenya should take note of in order to mitigate their risk of losses:
➡️ There are currently only six non-dealing forex brokers that have been granted licenses by the CMA.
Conclusion
👉 Overall, it is the responsibility of the CMA to provide licenses to currency brokers in Kenya and to regulate their business activities. There are only six non-dealing forex brokers that have been granted licenses by the CMA at this time. The CMA recommends that new traders in the foreign exchange market conduct their business exclusively with regulated brokers.
FAQ
Is online forex trading legal in Kenya?
Forex trading is legal in Kenya and it is regulated by the Capital Markets Authority (CMA). The CMA has granted operating licenses to six non-dealing Online Forex Brokers and one money manager in Kenya.
Do you need a license to trade forex in Kenya?
Online Forex Trading in Kenya is regulated by Kenya’s CMA which has licensed 6 non-dealing forex brokers. These brokers only act as intermediaries between the online market and the client. They do not carry out forex trading on behalf of the customer or act as counterparty.
What is CMA in Kenya?
The Capital Markets Authority (CMA) is responsible for licensing and regulating the activities of forex brokers in Kenya.
Is the CMA an official authority?
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A.
Are all brokers that are elsewhere regulated, automatically regulated by the CMA?
No, currently only six brokers are certified and regulated by the CMA.
Addendum/Disclosure:
👉 No matter how diligently we strive to maintain accuracy, all financial markets feature a volatile environment that may change at any time, even if the information supplied is correct at the time of going live.
