- Two foreign exchange service providers Tadenex Limited and Tradesense Limited have been licensed by the Capital Markets Authority.
- Tradesense, as a fund manager, is authorized to select and manage the investments of its online forex trading clients and to develop appropriate investment strategies.
- As a non-dealing online forex broker, Tadenex will act as a link between the online forex market and its clients in exchange for a commission or increased spreads.
Two foreign exchange service providers, Tadenex Limited and Tradesense Limited, have been licensed by the Capital Markets Authority (CMA), bringing the number of licensed online forex trading brokers to seven and two fund managers.
Tadenex Limited has been licensed to operate as a non-dealing online foreign exchange broker, while Tradesense Limited will operate as a fund manager under CMA regulations.
“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,” said Wyckliffe Shamiah, Managing Director of CMA.
Tradesense, as a fund manager, is authorized to select and manage the investments of its online forex trading clients and to develop appropriate investment strategies.
He will also perform financial analysis and monitor currency portfolio investments on behalf of his clients.
As a non-dealing online forex broker, Tadenex will act as a link between the online forex market and its clients in exchange for a commission or increased spreads.
The firm will not engage in activities such as buying and selling foreign currencies or offering advice or trading on behalf of its clients, but will provide access to a trading platform, enabling them to negotiate.
Kenyans are increasingly gaining knowledge about overseas opportunities through foreign investments such as buying and selling currencies.
The CMA seeks to weed out a large number of bogus websites and licensing these companies has given investors the ability to access offshore markets safely, increasing the participation of local traders and brokers.
Online currency trading platforms provide access to global markets and allow customers to learn about currencies and financial markets.
Although online forex offers high returns, it also comes with major downside risks, making it suitable for sophisticated and wealthy clients.
Forex trading has gained traction with young people who are digitally savvy and looking for opportunities beyond traditional asset classes such as bonds, stocks and real estate.