CMA Regulated Forex Brokers in Kenya

CMA regulated brokers
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Introduction

Ever wanted to learn about registered forex brokers in Kenya, who are more commonly referred to as CMA regulated forex brokers in Kenya? Well, this here is your chance. Forex Trading is a business that is becoming highly associated with middle-class Kenyans and young adults who want to make a living while trading online. It’s hard even to try and know how many Kenyans rely on forex trading for a living, but the number is well past 100,000 people.

The forex market is also becoming more and more saturated with new brokers every day. Kenya provides a steady demand for them, and as most beginners may not know, a broker does play a massive role in the success and failure of forex trading. As much as they provide platforms that traders use, many behind-the-scenes advantages and disadvantages come with every broker.

However, regulators like CMA (Capital Markets Authority) make these brokers reliable, making sure they do not take advantage of unknowing traders. They also ensure that their terms and conditions do not go against their set rules, which, again, may violate the rights of a forex trader.

In this article, we’ll present the list of regulated forex brokers in Kenya. Before venturing into CMA licensed forex brokers in Kenya and all aspects surrounding it, let’s quickly introduce Forex Trading.

A Quick Overview of Forex Trading

Forex trading is the biggest and most traded liquid market in the financial markets. It has the single most traded volume that is higher than any other available exchange or market. In a single day, it can trade over 5 trillion dollars worth of money around the world.

It works through the exchange of currencies. For example, you have 1000 Kenya shillings but what you want is the money in US dollars. These brokers help change your money to US dollars at the latest exchange rate. However, you may incur fees like bank fees, mark-up fees, and transaction fees.

Forex trading now allows a trader to take into consideration everything that may affect the current market. This includes natural disasters, political news, and financial news, anything with moving the financial market. Then the trader decides whether they should buy or sell the currency pairs to make a profit.

While brokers play an important role in forex trading, they do not all come with their platforms. These platforms allow for a trader to read and understand the markets and also to trade on them. Every broker has a list of platforms that they support and have their services on.

Knowing the cma licensed forex brokers in Kenya can help you decide which broker to trade with.

CMA Definition

CMA stands for Capital Market Authority. As a regulation agency, they focus on capital markets where they supervise, license, and monitor activities that market intermediaries involve themselves in. These are brokers in the stock exchange and forex exchange markets. They provide regulation to the financier service sector following asset allocation guidelines like how much funds can be invested in any asset class. It is therefore their job to oversee the operation of registered forex brokers in Kenya.

Most traders in Kenya prefer using cma licensed forex brokers in Kenya.

They have been tasked with creating capital markets in all aspects and facilitating these stock exchange markets all over the country. They regulate, maintain, and create a financial market where securities can be traded. They are keen on protecting investor interests. They are turbines that developed a framework for electronic commerce in Kenya that these capital markets exist in.

Overall, their role in stabilizing, maintaining, and setting guidelines for the financial markets is essential. It allows for the environment to exist pretty and just like any other business, and it makes sure that all parties involved can make profits. But what licensed forex brokers in Kenya are regulated by CMA?

CMA Regulated Forex Brokers in Kenya

Even though CMA has been in the scene for decades, it licensed its first broker in 2017. Thus, there are not many CMA regulated forex brokers in Kenya. CMA is the only regulatory body in capital markets in Kenya. Compared to most countries, the CMA regulations are liberal in that the limitations and restrictions for forex traders and broking companies are minimal.

It would surprise some traders to find that CMA doesn’t necessarily state the minimum or maximum deposit for brokers and traders! If you are wondering about the tax that these forex traders are subjected to, it stands at 5% of all net earnings on forex.

Broker NameMinimum DepositSpreadsRegulationWebsite
Fx Pesa5$ 0.01CMAVisit Broker
Scope Markets20$ Spreads from 1.2 CMAVisit Broker
Exness10$ From 0.0 CySEC and FCA Visit Broker
Hot Forex5$ From 0.0 FCA, DFSA, FSCA and FSA Visit Broker
Pepper StoneNoneECN spreads from 0 pips for EUR/USDFCA, ASIC and DFSAVisit Broker
FXTM50$ 0.1 on ECN accounts and 0.5 on Standard accounts CySEC and FSC Visit Broker
Comparison Table of Forex Brokers in Kenya

With so many brokerage firms in the market, we look at some of the best CMA licensed forex brokers in Kenya

  1. EGM Securities

EGM securities was the first to join the list of CMA licensed forex brokers in Kenya. This is its most significant advantage because most Kenyan forex traders prefer locally regulated brokers. EGM securities are a part of Equity Groups, from the global groups of FX and CFD companies available in different regions.

They are recognized as a Non-Dealing Desk (NDD) which means that they provide direct access to Interbank exchanges. They use both the Straight Through Processing (STP) and Electronic Communication Networks as trade executions. They give these trade executions independently, but sometimes they provide them as hybrids of both. What it does is that they allow forex traders to trade directly with interbank exchange rates with no brokers in between.

Their service can be rated a little above average. They allow forex readers to trade in currency pairs, stocks CFD, commodities, metals, and indices. Their biggest letdown remains that they have a support system that is not dedicated to their traders.

To all their traders, they can choose either one of the three account types they provide. They include a premiere account, an executive account, and an Islamic account. These accounts differ in margin calls, minimum deposits, commissions paid, spreads, and leverage offered. The executive account type, however, is what is considered the standard account for EGM Securities.

For the EUR/USD currency pairs, they have a standard spread of 1.6 pips and the lowest spread being 0.2 pips. The minimum amount to be deposited with EGM Securities is $200 with a maximum leverage of 400:1. EGM Securities is compatible with Metatrader 4 and 5 for both PC and Mobil, Web platforms, and Mac.

Commissions charged on this site stand at $7 for the premier account, meaning that $3.5 goes for opening the trade and $3.5 for closing the trade. They also charge an overnight cost for all overnight trades with a deposit and a withdrawal fee. Another significant advantage is that they allow for M-Pesa to be used as a deposit or withdrawal option. EGM Securities is a safe option for trading for all Kenyan forex traders, having been regulated with CMA.

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  1. Scope Markets

They are also known as Scope Markets Kenya. They have been among CMA licensed forex brokers in Kenya since 2019, which is something that makes most Kenyan forex traders believe in them. It is also held by two other regulation agencies namely, CySEC and FSCA. The regulatory bodies are top tiers in the regulation industry.

Their trading execution accounts occur through STP, ensuring no conflict of interest between the traders and the brokerage firm. There have been situations where traders have had their brokers steal from them by reducing or moving the markets. The trader gets fewer pips which transforms into less profit than they should generally get.

Scope Markets Kenya com’s with three different account types. They include Gold, Platinum, and Silver accounts which also differ in the commission paid, leverage, type of liquidity offered, and spreads.

The average account, which is the silver account type, they have an average spread of 1.1 pips on the EURUSD currency pair. The minimum amount deposited with Scope Markets stands at $20, which is very affordable, especially for beginners in the field. The maximum leverage offered by the Scope Markets is 400:1 and can be supported with Metatrader 5 on PC, Mac, and Android.

For the Gold account type, Scope Markets offers variable spreads with an average spread of 1.2 pips and a leverage of 500:1 with no commissions charged. The gold account also comes with a signals package. The Platinum account has no spread even though it is still under variable spreads, with leverage of 500:1 a signals package, a manager for your account, and a 3 per lot commission charged.

Overall the feed charged by Scope Markets includes a $7 commission for opening and closing trades, each at $3.5. They have no deposit and withdrawal fees and no inactivity fees charged. It gets better for Kenyan forex traders because they accept M-Pesa as a withdrawal and deposit option making Scope Markets among the best-licensed forex brokers in Kenya.

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3. Exinity

Exinity is now a forex regulated broker. In late 2020, Exinity received a license from CMA to operate as a regulated non-dealing forex broker.

5 Alternative Forex Brokers for Kenyan Traders (Not CMA Regulated)

CMA licensed forex brokers in Kenya offer the best advantage to secure your funds with the brokerage firm of your choice. However, there are only four brokers regulated by CMA in Kenya, covering three of them. Here are five other alternatives you can go for:

a) Pepperstone

You have probably heard of it. They offer STP trading executions to ensure there is no conflict of interest between the traders and them. They have low trading fees. Their spread for the EURUSD currency pair is 1.1 pips, a minimum deposit of $200, and maximum leverage of 1:500. They are supported on platforms like Metatrader 4 and 5, web trading platforms, and cTrader for PC and are among the safest options available. They, however do not accept M-Pesa as a withdrawal and deposit option.

b) Exness

This is another broker firm present in the Kenyan market, but it is among licensed forex brokers who are not CMA Regulated. They have low fees and are regulated by other top tiers in regulation. They are best known for their low spreads, excellent customer support, and education support regarding strategies and market analysis. Their standard account requires a minimum deposit of $1, while the other account has a minimum deposit of $500, but their leverage is high at 1:2000. They work great with both pros and beginners alike, and they accept M-Pesa as a withdrawal and deposit option.

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c) XM Forex

XM Forex is a licensed forex broker that is regulated by other top-tier institutions but not CMA. They have various instruments that forex traders can trade with and have a minimum deposit of $5 and maximum leverage of 1:888. They have excellent customer care support that is available 24/5 because of the trading days. They educate beginners by offering tutorials, and they have great tools that help the traders too. They do accept M-Pesa as a withdrawal and deposit option.

d) Hotforex

This is another tremendous and licensed forex broker that CMA does not regulate. They are still as safe as possible because other top tiers in the industry regulate them. They are recommended because they are a completely average company, inclusive of their spreads and fees. They charge a spread of 1.2 pips for the EURUSD currency pair, have a minimum deposit of $5, and maximum leverage of 1:1000. They have loyalty programs and are considered among the best beginner-friendly brokers around.

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e) FXTM

This broke firm works under the Exinity Group, with a couple of sites claiming that they are CMA licensed forex brokers in Kenya, yet they haven’t stated it on their website. They are, however, a safe brokerage company that will excite Kenyan traders with their superfast order execution, education and tutorial materials, and fast client approvals. The minimum deposit is $100 with an averagely high spread of 1.5 pips on the EURUSD currency pair and a $4 commission on all lots. Their leverage can go as high as 1:2000, and they accept M-Pesa as a withdrawal and deposit option.

Advantages of Trading With Forex Brokers Regulated by CMA

i) Forex brokers regulated by these top-tier agencies are transparent to their users and can not deal with them. Their trading options are often honest since they are tied down to these laws.

ii) Trader funds are kept safe and can not b misused by the company, which vows to keep their customers’ funds separate from their funds.
iii) Regulators ensure that every broker has customer care support that is working. Therefore, in case of any problems that may exist, the customer can get assistance quickly.
iv) Regulators ensure that the licensed forex brokers do not involve themselves in any malpractices or fraudulent activities that may compromise the standings of their traders.
v) Forex traders get to enjoy small fees and spreads thanks to these requirements set by the regulators leading to more profit.
vi) Having a regulated broker means having a broker who is always looking for new opportunities.
vii) Regulated forex traders have no right to distort the market, making sure that the traders can get the most from them.

FAQs

Which is the Best Forex Broker in Kenya?

The best forex broker in Kenya remains to be FX Pesa. They have the best fees in the market with average spreads and great account types. These are CMA regulated forex brokers in Kenya that you can trust to keep your funds safe. Plus, their platforms support both beginners and pros in forex trading.

Which is the Most Reliable Forex Broker in Kenya?

The title for the most reliable forex broker in Kenya is EGM Securities. They are well known for their excellent trading accounts, competitive trading options, and very reliable payment methods. Their trading tools are among the best in the market, and they are a CMA licensed forex broker.

Is Exness Regulated in Kenya?

Exness, though one of the most popular brokers in Kenya, is not regulated by CMA. However, it is regulated by CySec and FCA.

Which are the Forex Brokers in Kenya With M-Pesa Option?

The number of forex brokers in Kenya with an M-Pesa option include the following

  • EGM Securities
  • FX Pesa
  • Exness
  • FXTM
  • Hotforex
  • XM Forex
  • Binance
  • Scope Markets Kenya

Does CMA regulate Pepperstone?

Pepperstone is a CMA licensed forex broker in Kenya, meaning that they indeed are regulated with CMA. They are a safe option for most forex traders though it is another as common as some other forex traders.

Is FXTM Regulated in Kenya?

Every forex broker has to be regulated to be allowed to operate in Kenya. Otherwise, they would get away with many fraudulent activities they feel like they should engage in. FXTM is a CMA licensed forex broker in Kenya since their parent company is the Exinity Group.

Parting Shot for Forex Traders in Kenya

Every single name in the list of licensed forex brokers in Kenya named above comes with a list of advantages and disadvantages that will affect how you carry out your trades. Understand what and how these advantages and disadvantages work out for you and whether you can live with them or they cost you too much. Choosing a brokerage firm regulated by CMA is much better since they will be bound by rules that have taken into consideration the needs of the local region.

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