London, Dubai – Equiti Group has been awarded the first online forex broker license in Kenya through its local subsidiary, EGM Securities Limited.
This is the first license to be issued under the new regulations, which brought the oversight of online foreign exchange brokerage services under Kenya’s Capital Markets Authority (CMA). The CMA is the government regulator responsible for licensing and regulating the capital markets in Kenya.
Iskandar Najjar, CEO of Equiti Group, said: “We are absolutely delighted to be awarded the first online forex broker license in Kenya after an intense application process and having met the strict license requirements.
“Our license in Kenya supports Equiti Group’s vision to extend our global footprint to new markets and new regions by providing a fully-resourced office in highly-regulated global markets.
“We are excited to make our debut in Africa through Kenya, which is the most well-regulated, largest and most advanced economy in East Africa.”
EGM Securities Limited license is expected to create a shift from traditional stocks and shares in Kenya and provide investors with a local appetite for new and innovative products such as margined FX and CFD (contracts for differences) trading.
The license means Kenyans can now trade in foreign currency online under strict regulatory controls that provide a secure online forex trading environment. It will allow Kenyans to safely use mobile payments as a way of transacting for the purpose of trading online forex.
EGM Securities Limited will be fully operational in May 2018.
The company will soon announce the appointment of a local CEO, who will be based at EGM Securities Limited office in Nairobi. EGM Securities Limited will employ a fully-resourced team of professionals to support its business in the region backed by its global team of experts with depth of industry knowledge and extensive global experience.
“Equiti Group is extremely pleased to be at the forefront of regulatory changes in the online foreign exchange trading industry in Kenya, and around the world,” added Najjar.
In recent months, regulators in both Kenya and Jordan have taken serious steps to strictly regulate the online foreign exchange market to offer greater consumer protection and deepen the capital markets.
Providing a legal framework for the online trading of foreign currency will help ensure potential traders have a safer trading environment, facilitate diversification of financial activities and will strengthen Nairobi’s position as a financial hub in East Africa.
Mohamed Alahmad, managing director of Equiti Group for the Middle East and Africa region, said: “Equiti Group is well-positioned to apply our global expertise to offer Kenya a world-class online forex trading platform and global service-excellence.
“Online forex trading is relatively new to Kenya so we are pleased to work with the regulator in Kenya to develop the local market.”
Equiti Group provides 24/5 support service as well as extensive ongoing educational support and training that will inform, educate and empower traders through its online educational portal - Equiti Academy.
Equiti Academy provides a wide range of educational tools including regular seminars, webinars, videos by well-known experts, trading guides, educational articles and market updates on social media channels.
Earlier in 2018 Equiti Group became the first specialised global brokerage to announce its license issued by the Jordan Securities Commission (JSC) in over 10 years after Jordan also tightened regulatory controls.