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In recent years, there has been a discernible rise in the volume of trading activity in Kenya. The foreign exchange market, sometimes known as the FX market, is the largest and most liquid market on the planet.
Even though there are hundreds of different forex and CFD brokers from which to pick, not all of them can be trusted.
Scam brokers are able to pass themselves off as reputable, which makes it easy for novice traders in Kenya to fall victim to them. Every individual who engages in retail trading is responsible for ensuring that they check the regulations and licenses held by the broker that they decide to work with.
Here, we discuss the five major benefits to signing up with CMA regulated brokers in Kenya.
1. You receive information about relevant risks
Because novice forex traders lack the expertise, experience, and skills essential to make educated and informed trading decisions, it is not always possible for them to be successful traders, even when employing sound trading techniques.
CMA regulated brokers are required to supply all different kinds of traders with the appropriate cautions, education, knowledge, and any other materials and instruments that might assist them in a variety of different competitive financial marketplaces.
There are many different types of warnings, some of which include those against maximum leverage, derivative instruments, financial instruments, trading expenses, trading accounts, and more.
2. You benefit from transparency
By law, CMA regulated brokers in Kenya are required to guarantee that all aspects of the trading activity they facilitate are honest, safe, and open to public inspection.
Regular reports on any and all activity are often provided to Kenyan investors and traders by brokers who are subject to stringent regulatory oversight.
3. You are guarded against fraudulent activity
Brokers who are subject to adequate regulation and hold appropriate licensing and authorization will not engage in illegal operations of any kind.
Client money is stored in separate accounts at reputable financial institutions and is only used for transactions that have been pre-approved by the client.
4. Your funds are protected
Traders in Kenya run the risk of having their money lost if one of their brokers declares bankruptcy. If a regulated broker is a member of a compensation system, investors can be assured that their money will be protected in the event that the broker is unable to fulfil its financial commitments.
In addition to this, client fund safety also refers to the fact that the broker does not use client funds for operational purposes, but rather directs those assets solely toward trading activities that have been permitted by the client.
5. Your broker adheres to financial law
It is the responsibility of regulatory authorities such as the CMA in Kenya to ensure that all forex and CFD brokers are in compliance with the regulations governing the conduct of markets.
Brokers who are regulated are required by the governing body to adhere to the rules and regulations that it has established. This makes it possible for them to maintain their licenses and authorizations, allowing them to continue providing Kenyan merchants with financial products and services.
Also read: Investment Mistakes You Shouldn’t’ Make, According to Experts
Source: Leadership
