EGM Securities Limited, Kenya’s first non-dealing online forex broker has launched its operations in the country that enables trading using multiple payment channels including mobile payment channels such as M-Pesa.
Kevin Ng’ang’a, the Chief Executive Officer said: “Increased access to global forex markets and innovative financial offerings for Kenya’s investment community is a major leap forward for the country to advancing its financial markets depth and economic growth. We are very excited at the prospect that lies ahead for the financial markets in Kenya. EGM will transform the financial market in the near term. We see a significant opportunity for private investors, corporate investors, and institutional investors as well to offer new asset classes. We believe increased access to global forex markets and innovative financial offerings for Kenya’s investment community is a major leap forward for our economy.”
EGM will provide investors with a local appetite for new and innovative products such as margined FX and CFD (contracts for differences) trading.
Paul Muthaura, Chief Executive Officer Capital Markets Authority of Kenya, said EGM Securities entry into the market is inline with the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017 which came into effect last year.
Muthaura noted that Kenya’s financial market is the most advanced in the East African region by the Africa Financial Markets Index (AFMI) ranking by Barclays Africa Group which has made it attractive.
Kenya has ranked ahead of economic giants like Nigeria, Ghana, and Egypt due to the ongoing reforms in its financial markets.
“…the reforms are helping us to continue stimulating innovation which helps in deepening financial liquidity… creating a robust environment with a diversified market,” observed Muthaura.
Aly Khan Satchu, CEO, Rich Investments when it comes to the Forex markets, he observes that: “One of the defining characteristics of the world we live in today is speed…giving us the opportunity to participate in. The people in the streets have an appetite for innovation because they are aspirational too. They are trading across different markets.”
With the CMA’s license, 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.
Non-dealing Online Forex Brokers provide a trading platform to their clients that enable the clients to trade from anywhere and at any time using their electronic devices. The platform provides access to global markets and also forums for clients to educate themselves on the global financial markets.
According to the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, Non-dealing Online Forex brokers do not offer client advice or trade on behalf of their clients. Clients deposit their investment amount with an account to be offered by the broker.
The EGM Securities Limited office in Nairobi will be headed by Kevin Ng’ang’a (CEO), Meshack Mutuku (CFO), Martin Muhoho (Internal Auditor) and David Nyaga (Director).