SCFM Limited has become the country’s second Non-Dealing Foreign Exchange Broker after the Capital Markets Authority (CMA) issued it with a licence to operate as one.
According to a news report by the Kenyan Wallstreet, with the new licence, SCFM will join EGM Securities which was authorized in 2018, to become the only non-dealing firms in the country mandated by the CMA to link clients with online foreign exchange markets in exchange for commissions.
The Kenyan Wallstreet similarly reports that Non-Dealing Online Forex Brokers offer clients with trading platforms that grant them access to global markets while helping them keep track of trends in the said markets. The trader 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.
Non-Dealing Foreign Exchange Brokers do not however engage in market activities such as the buying and selling of foreign currencies. They also do not offer client advice or trade on behalf of their clients.
SCFM Limited is a fully owned subsidiary of SM Capital Markets which is a Cyprus based firm with a cross border license that allows it to offer investment services internationally. SM Capital Markets Ltd is registered as a Cyprus Investment Firm (CIF) and licensed by the Cyprus Securities and Exchange Commission (CySEC) in accordance with the Markets in Financial Instruments Directive.