HFM Investments Limited, a Mauritius-based online currency trader, has begun its operations in Kenya under the HotForex brand, this made the brand the sixth company to set up shop in Nairobi.
The Capital Markets Authority has licensed and regulated the HotForex brand, according to the HF Markets Group (CMA).
This enables it to sign up individuals and institutions to trade FX and contract for differences (CFDs), a credit agreement that pays the difference in settlement prices between open and closing trades.
Exinity East Africa Limited, EGM Securities (trading as “FXPesa”), SCFM (trading as “Scope Markets”), Pepperstone Markets Kenya, and Windsor Markets are among the six non-dealing online foreign exchange brokers authorised by CMA.
The dealers are gaining popularity and creating huge market opportunities of offshore investment options that offer diversification of portfolio which includes
the traditional asset classes such as real estate, stocks and government bonds.
While online forex comes with great rewards, it also has a considerable risk of loss, making it only suitable for sophisticated and high-net-worth individuals.
“This new license marks a new milestone in HotForex’s steady expansion over the last 10 years, as it has evolved into a trusted and multi-regulated brand,” the company stated.
“It also highlights the HF Markets Group’s continuous success, which is made possible by our clients, partners, and the HotForex team’s dedicated efforts to provide the safest trading environment possible to millions of traders around the world.”
Kenyans are becoming more aware of opportunities abroad as a result of multinational companies establishing operations in Nairobi.
Given Kenya’s solid laws that have restored sanity to online forex trading, online forex dealers operating from Cyprus, the United Kingdom, Dubai, and Mauritius are focusing on Nairobi to get into regional markets.
The CMA’s action to filter fake websites and licensing of the six companies has given inventors an opportunity to safely access offshore markets, which has seen increased participation of local traders, as well as brokers, joining the fray to link their customers to opportunities abroad.
Sterling Capital recently partnered with licensed online forex broker EGM Securities to tap into global stocks, as well as other asset classes such as indices and commodities like gold and oil.
