Exclusive: Scope Markets Officially Launches in Kenya - Finance Magnates

Posted: 26 Nov 2019 01:14 AM PST

Scope Markets, a global online trading provider, announced this Tuesday that it has officially launched its trading operations in Kenya, and already has 1,000 client accounts open.

The company's entity in Kenya is SCFM Limited, with the trading name of Scope Markets. The company is a non-dealing online foreign exchange (forex) broker and is licensed by the Capital Markets Authority (CMA), Kenya's government regulator for the FX space.

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In particular, Scope Markets provides a trading platform where investors can trade forex, global shares, indices, and commodities. The platform is accessible online, via mobile and desktop.

Speaking to Finance Magnates, Jacob Plattner, the CEO of Scope Markets, said: "At Scope, our strategy has been to take our institutional heritage to the retail market. In order to do that we had to identify some key markets to penetrate in a meaningful way. We have been looking at Africa for a number of years and we identified Kenya as a place where we could build our hub for Africa…"

"We believe that Scope Markets will be the number one online broker in Kenya and soon thereafter Africa. This will help us achieve our ultimate goal of becoming one of the best retail and institutional broker worldwide."

Plattner said that Kenya has a number of attributes that are important for both retail traders and institutions. Namely, the country has an educated and young workforce, and the country heavily regulates online trading through the CMA.

Scope Markets wants to lead the online FX space

SCFM is a fully owned subsidiary of SM Capital Markets Limited, which is a company registered in Cyprus. SM Capital Markets is part of the larger Scope Markets group.

"We want to lead the way in the online forex trading space as an income generating scheme and a means of job creation for the youth in the digital economy," added Kevin Ng'ang'a, the CEO of Scope Markets Kenya.

"We need to give Kenyans and Africans in general, a safe, secure and regulated platform that they can relate to and easily walk up to and carry out online forex trading. The biggest gap in the trading space is the lack of information, and we as Scope Markets are dedicated to closing this gap through training and capacity building through mentorship."

Scope Markets expands further into emerging markets

Scope Markets is the second brokerage to secure a non-dealing online forex broker license from the CMA under the new regulations. The forex and contracts for difference (CFD) broker has been actively trying to expand its presence in emerging markets in recent months. The firm's launch in Kenya appears to be another step along that journey.

As Finance Magnates reported, Equiti Group was the first forex broker to receive a license from the CMA back in April of last year and commenced offering its services in the country in the following month.

A case for gig economy via online trading - Business Daily

Posted: 26 Nov 2019 11:01 AM PST

Ideas & Debate

A case for gig economy via online trading

Tuesday, November 26, 2019 22:00

By KEVIN NG'ANG'A |

The gig economy is seen as a platform to provide alternative economic opportunities to the youth. FILE PHOTO | NMG

Foreign exchange trading was previously a preserve of a few. But the internet and electronic devices such as mobile phones and Computers have revolutionised foreign exchange trading space allowing investors access local and offshore products on a platform.

Forex trading is simply the speculation of one currency price against another currency. Online foreign exchange trading allows investors into the world of buying and selling of foreign currencies.

To enable Kenyans, especially the youth, get a piece of the online forex market, the Capital Markets Authority (CMA) has allowed the setting up of regulated entities within the foreign exchange trading space such as brokers and money managers. The regulator has so far issued two non-dealing brokerages and one Money Manager licence.

These forex trading platforms play a big part in supporting Kenya's digital workforce, popularly referred to as the gig economy.

According to a recent study by Mercy Corps, Kenya's gig economy is estimated to be worth around £85 million, employing 36,573 gig workers.

Based on current investment levels, it is expected to grow by 33 percent over the next five years to £269 million, employing 93,875 gig workers, the research findings show.

CMA's licensing of trading platforms means young Kenyans can engage in online forex trading in a transparent manner and lock out unscrupulous and phony players in this highly lucrative but risky market.

These trading platforms, which act as a link between the online foreign exchange market and a client, provide an avenue for young Kenyans to try their hand at trading currencies from the comfort of their phones or any other electronic device. These platforms are also available 24 hours, five days a week

With a high number of young people joining the labour market every year, the gig economy is seen as a platform to provide alternative economic opportunities to the youth.

All that is needed is for investors to deposit their investment with an account offered by the broker, and they begin trading, akin to trading in securities such as global stocks which are also available on the CMA licensed platforms.

Kenyan youth are not only ambitious, but also exploratory. There have been previous cases of young people losing the savings in online forex scams. With licensing of trading platforms, young people now have credible, regulated channels to speculate on world currencies, as a gainful activity.

Furthermore, the CMA online FX Regulations and the conduct of business regulations provide a controlled environment in which these entities offer their products, focusing on investor protection.

For instance, CMA- licensed platform, Scope Markets (SCFM Limited) has so far seen a significant increase in uptake of trading accounts set up on our platform, highlighting Kenyans' thirst to venture into forex trading.

By offering free daily workshops, we are actively increasing the literacy levels of this growing number of interested investors and injecting informed traders into the market.

The writer is CEO, Scope Markets Kenya.

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