This archive report was first published on 19 August 2019.
As the forex market continues to grow in popularity, the Central Bank of Kenya has issued a warning to the public to be cautious of unlicensed and unregulated online forex traders.
Published on August 19, 2019, the Central Bank of Kenya's notice advises members of the public to only deal with genuine and licensed financial institutions and entities, and to report any complaints to the banking fraud investigations unit.
According to the Central Bank of Kenya, many unregulated platforms can be easily found on Google and the Apple Store, posing a significant risk to users who may lose their hard-earned money.
Forex trading works similarly to sports betting or live trading on a stock exchange, where traders buy and sell currencies with the aim of making a profit.
However, to trade successfully, one needs to understand how the currency market behaves, taking into account various factors such as economic indicators, interest rates, and global events.
The Capital Markets Authority regulates forex trading in Kenya, requiring brokers to have a minimum capital of at least Ksh. 30 million to Ksh. 50 million.
Despite this regulation, an estimated 50,000 people are still involved in forex trading in Kenya, mainly using offshore platforms that are not regulated in the country.
