Recently, the Kenyan Forex market has taken a significant hit. This is because there are few reliable Forex brokers within the country. This has been a long-term issue in Kenya. There are few qualified brokers who go through all of the related legal channels to provide adequate services for Forex traders. Subsequently, there are many scams and fraudulent acts within this field. In the past few weeks, there have been serious issues brought to light because of another unlicensed Forex broker that has been using the market. The online Forex broker that is currently under investigation is Interweb Global Fortune.
Not only is Interweb Global Fortune (IGF) a matter of concern for any and all Kenyan Forex traders, but it is also a concern for the Kenyan government as well as international regulatory agencies. Currently, the Capital Markets Fraud Investigation Unit is diving deeper into the company to unveil its misdoings. Currently, the appropriate authorities have completely frozen all bank accounts run by IGF.
Currently, there are only two Kenyan Forex brokers that are licensed with the appropriate authorities. These are EGM Securities and SCFM Limited. Besides them, there are plenty who turn to international brokers for their Forex needs. Despite claiming to be fully licensed, new information has come to light that this company never even applied for the necessary licenses and permits.
Furthermore, the company seems to be corrupt at its core. Rather than behaving like a traditional Forex broker, the structure of the company in some ways resembled a pyramid scheme, where individuals gain profits by recruiting others into the company. Those individuals who are recruited then continue to do the exact same. All the while, everyone who is recruited is promised profits that are incredibly unrealistic. That is currently the known information about the inner-functions of the company.
Fraud in the Kenyan Forex Market
This unfortunate incident further demonstrates the issue of Forex trading in Kenya. Because of the unreliable local brokers, many people have been lied to or misled. Others, unfortunately, are not as knowledgeable in the field and end up going into business with fraudulent companies like these. Despite the potential lucrative nature of Forex trading, it is definitely better to be unable to partake in this endeavor than to be robbed of one’s money by malicious cash-hungry companies that are only trying to make capital gain.