VCG Markets wins Kenya forex licence

VCG Markets has received approval from Kenya’s Capital Markets Authority (CMA) to operate as a non-dealing online forex broker.

The licence allows the firm to offer forex and CFD trading through an intermediary model. Instead of taking the opposite side of client trades, VCG passes orders to liquidity providers.

Group CEO Brian Myers said the company is investing locally and plans to launch its VCG Mobile App for Kenyan investors.

Kenya introduced a dedicated regulatory framework for online forex brokers in 2017. Firms seeking approval must set up a local company, keep client funds in segregated accounts and meet minimum capital requirements.

VCG also stated that the licence applies only to VCG Markets Limited and the activities covered by that approval. It does not extend to all companies or products across the wider group.

The approval comes during an active period for Kenya's forex sector.

Capital.com received a dealing licence in January. This allows the broker to act as the counterparty to client trades. XM then secured a non-dealing licence in February.

VCG identified Kenya as a target market in July when it obtained a Seychelles licence. The Kenyan approval marks the next stage of the firm's wider expansion plans across Africa.

What RHR thinks

We believe this reflects Kenya’s growing appeal as a regulated gateway to East Africa. As more international brokers establish regulated operations in the country, demand for local leadership, compliance and business development professionals is likely to increase.

What this means for hiring. Growth in Kenya's regulated forex market is likely to support demand for leadership, compliance and business development roles as international brokers expand locally. New regulated entities and market entrants will need staff to support approved operations and local growth plans.