HotForex awarded FX broker license in Kenya
HotForex, a multi-regulated foreign exchange and CFD platform, has been granted an FX brokerage license in Kenya.
HotForex joins a handful of non-dealing online foreign exchange brokers that were licensed by the Capital Markets Authority (CMA) over the last two years. The notable entrants into the African forex scene includes EGM Securities Ltd (FXPesa), which received its first license in 2018, followed by SCFM Ltd (Scope Markets) in 2019, and Pepperstone in 2020. Exinity Capital East Africa Limited, which was founded by Andrey Dashin, owner of brokerage companies Alpari and FXTM, also secured a similar approval less than two years ago.
This brokerage license allows HFM Investments Limited, which operates under license number 155, to provide its clients with access to currency markets but without being engaged in market-making or managed accounts activities.
A spokesperson for HotForex commented, “This new license marks a new milestone in the steady growth of HotForex, which has become a truly global and multi-regulated brand over the past ten years. It also demonstrates the continued success of the HF Markets Group, made possible by our clients, partners and the dedicated efforts of the HotForex team to offer the safest trading environment possible to millions of traders around the world.”
Oversight of Online FX brokers Came under CMA
The addition of this coveted license extends the group’s regulatory arsenal to include regulated companies authorised by the Financial Sector Conduct Authority (FSCA) of South Africa, the Financial Services Commission (FSC) of Mauritius, the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Dubai Financial Services Authority (DFSA).
Applicants seeking a forex license in Kenya must be a company limited by shares, have a minimum capital of 30 million Kenya shillings ($277,000), and maintain the minimum capital at plus 5 percent of liabilities owed to customers in excess of this amount. In addition, the firm has to ensure that 80 percent of its capital is in form of cash or equivalents.
The applicants that operate as a subsidiary of a regulated foreign forex firm are required to provide proof to confirm the existence of such a relationship. Additionally, its parent entity must provide a letter from that regulator confirming that it is not only licensed but also in good standing and that there is no objection to operate in Kenya.