In a significant development for the financial markets in Kenya, FP Markets, a leading brokerage firm, has been awarded a non-dealing Foreign Exchange Broker License by the Capital Markets Authority (CMA) of Kenya.
This move marks a significant step in the company’s expansion strategy, solidifying its presence in the African market. In this article, we will explore the implications of this acquisition and the potential benefits for both FP Markets and its clients.
Also Read: FP Markets Review – Kenya edition
Key Points
- FP Markets CEO, Craig Allison, expressed his excitement about the new license, stating that “Kenya has emerged as an important market for FP Markets”
- The Kenyan regulation adds to FP Markets’ growing regulatory footprint in Africa, having previously received a regulatory license from the Financial Sector Conduct Authority (FSCA) in South Africa.
- With the acquisition of the CMA license, FP Markets joins a select group of CFD brokers that are licensed by the Capital Markets Authority in Kenya.
- FP Markets is based in Sydney and has been operating in South Africa since last year. The acquisition of the CMA license now gives the company two regulatory approvals in Africa.
Expanding Presence in Africa
The acquisition of the CMA license demonstrates FP Markets’ commitment to expanding its presence in the African market. By obtaining this license, the company can now offer its services to clients in Kenya, a country that has emerged as an important market for FP Markets.
With the addition of the CMA license, FP Markets now has a stronger regulatory footprint in Africa. This will provide clients with increased confidence in the broker’s commitment to compliance and adherence to regulatory standards.
The CMA license is a significant milestone for FP Markets as it allows the firm to offer its services to Kenyan traders, providing them with access to global financial markets. The CMA is the regulatory body responsible for supervising, licensing, and monitoring the activities of market intermediaries, including the stock exchange, and the central depository and settlement system and other persons licensed under the Capital Markets Act.
FP Markets joins a select group of forex brokers who have been licensed by the CMA, demonstrating their commitment to adhering to the highest standards of service and security for their clients. The CMA license is not easily obtained and requires brokers to comply with strict regulatory requirements, including capital adequacy, segregation of client funds, and regular reporting to the CMA.
Requirements for Obtaining a CMA License in Kenya
To obtain a CMA license in Kenya, applicants must meet specific requirements set by the Capital Markets Authority (CMA). These requirements include:
- Accounts: 6 months unaudited accounts plus 2 years where relevant.
- Paid-up share capital: Minimum of Kshs 2,500,000.
- Shareholders’ funds: Minimum of Kshs 2,500,000.
- Liquid capital: Minimum of the higher of Kes. 1,000,000 or 8% of total liabilities.
- Board of Directors: Comprising a minimum of 3 directors, a third of whom must be natural persons, at least one-third should be independent and non-executive directors, not more than one-third of the directors who are close relations of any director
- Place of business/premises
For non-dealing foreign exchange brokers, the capital requirements are set at 30 million Kenya shillings, and an executive director with a solid background in financial markets is a strict requirement.
The Kenya CMA also mandates that all licensed FX brokerages maintain a local office in the country
With this new license, FP Markets is likely to offer Mpesa deposits and withdrawals. If you’re not familiar with Mpesa, it’s a mobile money transfer service that’s extremely popular in Kenya. It’s known for its flexibility, versatility, and the security it offers to its users.
So, what does this mean for you as a Kenyan trader? Firstly, it means convenience. With Mpesa, you can easily fund your trading account or withdraw your earnings right from your mobile phone. No need to visit a bank or fill out complex forms. It’s as simple as a few taps on your screen.
About FP Markets
FP Markets has established itself as a reliable and trustworthy forex broker for Kenyan traders. With a history spanning nearly two decades, FP Markets has proven its commitment to providing a high-quality trading environment.
The broker is well-regulated, holding licenses from top regulators such as ASIC, CySEC, and FSCA, which adds to its credibility and trustworthiness.
FP Markets offers a diverse range of trading platforms, including MT4, MT5, and cTrader, catering to the needs of both beginner and advanced traders.
The broker provides a wide range of tradable instruments, boasting over 10,000 across forex, commodities, indices, shares, and cryptocurrencies. This diversity allows traders to diversify their portfolios and explore different markets.
One of the standout features of FP Markets is its fast execution speeds, with an average execution time of 0.033 seconds. This is particularly beneficial for traders who employ strategies that require quick order execution.
Additionally, FP Markets offers competitive spreads and no commissions, making it a cost-effective choice for traders.
FP Markets also provides multiple account types, catering to different trader levels and strategies. This flexibility allows traders to choose an account that best suits their trading style and risk tolerance.
The broker also offers 24/5 multilingual customer support, ensuring that traders can get assistance whenever they need it.
In terms of education, FP Markets provides resources for beginner traders, helping them to understand the forex market and develop effective trading strategies. This commitment to trader education is a testament to FP Markets’ dedication to its clients’ success.