Online forex brokers are firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency trading broker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume of the overall foreign exchange market. Kenya’s financial watchdog, the Capital Markets Authority (CMA), regulates all forex brokerage activities under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017. Any person or entity willing to carry on business as an online forex broker must be granted approval by the Authority.
Kenya Online Forex Broker License Key Features
- A) An online foreign exchange broker may— Standards of conduct.
- Open clients’ accounts;
- Provide a trading platform; Kenya Subsidiary Legislation, 2017
- Provide access to market information that the clients may utilize in formulating their strategies;
- Monitor traders’ positions; or
- Provide end-of-day reports.
- B) A non-dealing online foreign exchange broker:
- Avails a trading platform to their clients that enables the clients to trade from anywhere and at any time using their electronic devices.
- Provides access to global markets and also provides an opportunity for clients to educate themselves on the global financial markets. Non- dealing
- 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 trader (client) is responsible for executing trades – buying and selling of any products on the platform and the requisite risk assessments are undertaken to determine the suitability of clients to participate in online forex trading.
- C) A money manager shall.
- Choose and manage investments prudently for his or her clients;
- Develop an appropriate investment strategy;
- Take positions in the market to meet the investment goals of the client;
- Undertake financial analysis; and
- Monitor foreign exchange portfolio investments on behalf of the client.
An online foreign exchange broker shall not offer for trading
- Currency pairs involving the Kenya shilling; and
- Binary options.
Kenya Online Forex Broker License Legal Requirements
|Kenya Online Forex License||Description|
|Share capital or equivalent|
|Service Providers Required|
Kenya Online Forex Broker License Tax Treatment
A Corporate tax is charged as per the Income Tax Act CAP 486 as below;
- The current corporate tax rate applicable in Kenya is 30% in the case of resident corporations (i.e. limited liability companies).
- A non-resident company with a permanent establishment in Kenya is taxed at 37.5%. The tax is computed on the taxable income of a company, having deducted expenses which are wholly and exclusively incurred in the production of income.
Kenya Online Forex Broker License Duration for Set up
Online Forex Broker License- takes about 6 months post submission of the application. The timeline also depends on any workload of CMA and any clarifications and queries that CMA may request in relation to the application.
Kenya Online Forex Broker License Distinctive Benefits
Kenya is a globally recognized jurisdiction and it only takes about 2-4 weeks to incorporate. You can acquire a Kenyan Broker License in about 6 months if the application and documents are in order and satisfy the requirements of the CMA.
Kenya has a low minimum capital requirement adding another advantage over other jurisdictions.
Other key advantages include the following:
- Dynamic economy expected to grow around 4.5 % per year
- The finance sector is the fourth highest in the service sector at 7.4%
- Services industry currently accounts for 50% of GDP
- Financial services sector expected to grow at 6% per year
- Use of the country as a platform for business between Asia and Africa
- No exchange controls
- Kenya is part of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) Cooperation.
Why US (Key Strengths)
- We will advise you on the optimal legal structure for your requirements, size, expectations, and circumstances.
- Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
- We are very hands-on in the post-filing period checking with re regulator and service providers and updating you regularly.
- Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
We have a full in-house compliance support for all compliance requirements with the regulator and service providers