Kenyan Regulator Warns Against FX Scams
- The central bank said brokers have been targeting Kenyans via social media and mass emails
In the past couple of years, retail brokers have been expanding their set of operations in Africa. With the European market already saturated, these firms are looking for new sets of customers in the continent's emerging markets.
But, in the least surprising piece of news you'll read today, there are also some scammers accompanying those brokers on their journey to the Land of Ham.
Moreover, on Friday, the Kenyan financial regulator warned the public against trading with unregulated entities.
"[Kenyans] should only deal with genuine and licenced [sic] financial institutions and entities," said the Central Bank of Kenya (CBK) in a statement.
"Members of the public are therefore advised to confirm the licencing status of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term dealers from the CBK website...before engaging with the dealers, as they risk being defrauded and losing their money to unlicenced [sic] and unregulated forex dealers."
Apps and emails
The regulator added that these unregulated brokers are advertising their services through social media websites and mass emails.
On top of this, the Kenyan financial watchdog said that brokers are encouraging traders to access their services through applications.
As it's rare for scam brokers to have proprietary software, this could mean that some of the 'unregulated' brokers that the CBK is discussing just aren't based in Kenya. By way of comparison, there are many European-regulated brokers targeting Nigeria that don't have a license from local authorities in the country.
Despite other 'review' websites' claims to the contrary, there are some regulations in place that govern the Retail Trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term industry in Kenya.
Equiti Group, for instance, received a license from local regulators in mid-2018 and launched a broker, EGM Securities, shortly afterward.
In the past couple of years, retail brokers have been expanding their set of operations in Africa. With the European market already saturated, these firms are looking for new sets of customers in the continent's emerging markets.
But, in the least surprising piece of news you'll read today, there are also some scammers accompanying those brokers on their journey to the Land of Ham.
Moreover, on Friday, the Kenyan financial regulator warned the public against trading with unregulated entities.
"[Kenyans] should only deal with genuine and licenced [sic] financial institutions and entities," said the Central Bank of Kenya (CBK) in a statement.
"Members of the public are therefore advised to confirm the licencing status of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term dealers from the CBK website...before engaging with the dealers, as they risk being defrauded and losing their money to unlicenced [sic] and unregulated forex dealers."
Apps and emails
The regulator added that these unregulated brokers are advertising their services through social media websites and mass emails.
On top of this, the Kenyan financial watchdog said that brokers are encouraging traders to access their services through applications.
As it's rare for scam brokers to have proprietary software, this could mean that some of the 'unregulated' brokers that the CBK is discussing just aren't based in Kenya. By way of comparison, there are many European-regulated brokers targeting Nigeria that don't have a license from local authorities in the country.
Despite other 'review' websites' claims to the contrary, there are some regulations in place that govern the Retail Trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term industry in Kenya.
Equiti Group, for instance, received a license from local regulators in mid-2018 and launched a broker, EGM Securities, shortly afterward.