Checking a broker in the local register
Two readers start with KSh 50,000. One checks the register first and keeps the full amount. The other skips the check and sends KSh 50,000 to a firm that is not licensed for what it sold. That is the whole difference.
Compare a register entry with the product you were offered
A register entry and a product offer are two different documents, and the check works only when you hold them side by side. The entry states what a firm is permitted to do. The offer states what the firm wants to sell you. Your task is to see whether the second sits inside the first. A reader who compares the two before sending money catches mismatches that a reader who reads only the firm name will miss.
Take a concrete pair. One offer describes forex and CFD trading on EUR/USD. One register entry describes insurance distribution. The firm name is real, the entry is real, and the two do not connect. A second offer describes forex and CFD trading, and the register entry lists those same activities under the same legal name. Only the second pair matches. The comparison, not the name search, is what protects the money.
The register is kept by the Capital Markets Authority, known as the CMA. It is public and free to read. You do not need an account, a payment, or a broker's help to open it. Because it is public, nobody can tell you that the check is impossible or that it takes days. If a firm discourages the check, treat that as information about the firm.
Read the licence category, not the company name
A search result that shows a company name proves one thing only: a company with that name exists somewhere in a record. It does not prove that the activities you were offered are licensed. Registers are organised by activity, and one firm can hold several entries for several activities. The activity line is the part that matters to you.
Licence categories use specific words. A category for insurance, fund management, or investment advice is not the same as a category for dealing in forex and contracts for difference. When you read the entry, look for the words that describe the product you were sold. If those words are absent, the entry does not cover the offer, whatever else the entry says.
Some firms trade under a name that differs from the licensed legal entity. The register lists the legal entity, so a brand name alone may return nothing. Search the legal name from the firm's own documents, then confirm that the licensed entity is the one you would be sending money to. If the entity that holds the licence is not the entity that receives your funds, the licence does not follow your money.
Record the date and the exact page you used
Registers change. An entry that exists today may be amended, suspended, or removed later. A check without a date cannot be reviewed, and a memory of a check is not a record. Write the date, the register page, and the exact wording of the entry you relied on.
Keep the record next to your payment details. If a dispute arises, the date tells you which version of the register you saw. It also tells you how long ago the check was made. A check from two years ago describes a different register from the one that exists today.
A licence does not remove market risk, and it does not remove costs. A licensed firm may still charge spreads, commissions, or conversion costs, and these vary between brokers. The register answers one question: whether the firm may offer you this product. It does not answer whether the product suits you, and it does not promise that you will not lose money on EUR/USD.
Two readers, KSh 50,000 each
| Step | Amount | Note |
|---|---|---|
| Reader A: checks the register before sending money | KSh 50,000 | full amount stays with the reader while the check is done |
| Reader A: finds the firm is licensed for the product offered | KSh 50,000 | the reader can then decide, with the licence known |
| Reader B: does not check the register | KSh 50,000 | sends the amount on the strength of an advert alone |
| Reader B: later finds the licence does not cover the product | KSh 50,000 at risk | the firm was on the register, but not for this activity |
| Difference between the two outcomes | KSh 50,000 | the check itself costs nothing |
A licensed firm may still charge spreads, commissions or conversion costs on top, and these vary between brokers. A licence does not remove market risk.
Doing it once, step by step
Work through the checks once, in order, before any money leaves your account. Each step produces one written answer you can keep.
- 01
Find the legal name and the exact product
Take the legal entity name from the firm's own documents, not from an advertisement. Write down the exact product you were offered, including the words forex and CFD if those are the words used. You now have two strings to compare against the register.
- 02
Open the CMA register and search the legal name
Open the public register kept by the CMA and search the legal entity name. If nothing returns, try the brand name and note the difference. A missing result is an answer, not a failure of the search.
- 03
Read the activity category line by line
Read the category that appears beside the name. Compare its wording with the product you wrote down. If the category describes insurance, fund management, or advice, and your product is forex or CFD trading, the entry does not cover the offer.
- 04
Confirm the entity that receives your money
Check that the licensed entity is the same entity named on the payment instructions. Payment in Kenya commonly runs through M-Pesa or a bank transfer, and the receiving name should match the licensed name. If it does not match, stop and ask why in writing.
- 05
Write the date, the page, and the wording
Record the date of the check, the register page you used, and the exact entry wording. Keep this note with your payment records. This is the only evidence that you checked, and it is what you will read if the entry later changes.
- 06
Decide before you send
If the category covers your product and the receiving entity matches, the licence question is answered. If either point fails, do not send the money for that product. The amount you were about to send, whether KSh 30,000 or any other figure, stays with you.
The mistake most people make here
The common mistake is to see a firm's name somewhere on a regulator's website and stop there. A firm can appear on a register for one activity, such as insurance or fund management, while the forex and CFD product you were offered is not covered by that entry. Read the exact licence category and the exact product names, not just the company name. If the entry does not match what you were sold, treat the licence as absent for that product. Write down the date you checked and the page you used, because registers change over time.Check yourself
You plan to send KSh 30,000 to a broker. You check the register and find the firm listed, but the licence category is for a different activity. What should you do, and what does the KSh 30,000 represent?
Do not send the money for this product. The KSh 30,000 stays with you, because the licence shown does not cover what you were offered.
EUR/USD is around 1.0850. One pip on one standard lot is 10 units of the quote currency. If you hold 0.10 lots, what is one pip worth in the quote currency, before any conversion to KSh?
0.10 lots is one tenth of a standard lot, so one pip is 10 x 0.10 = 1 unit of the quote currency. Converting that to KSh depends on the rate your broker uses, and that rate varies between brokers.
Questions that come up next
Where do I find the CMA register and what does it cost to open it?
The register sits on the Capital Markets Authority website and is free to read. You do not create an account, pay a fee, or ask a broker to open it for you. Search the legal name of the firm, not the brand name on the advert. If a firm tells you the check is slow or unnecessary, that tells you something about the firm.
What exactly do I type into the register search?
Type the full legal name of the entity that would receive your money. That name appears on the firm's account documents, not always on its website banner. If the search returns nothing, try the name on the payment instructions. A brand name that returns no result is not proof of fraud, but it means you have not yet found the licensed entity.
The firm is listed, but the category says insurance. Does that cover forex and CFDs?
No. A register is organised by activity, and each entry covers only the activity named in it. Insurance distribution, fund management, and investment advice are separate categories from dealing in forex and contracts for difference. If the words describing your product are missing, treat the licence as absent for that product. The company name being present changes nothing.
The licensed entity has a different name from the one taking my deposit. What does that mean?
It means the licence does not follow your money. A licence attaches to a specific legal entity, not to a group, a brand, or a payment agent. If the entity receiving your KSh 30,000 is not the licensed entity, the protection you checked for does not apply to that transfer. Ask which entity receives the funds before you send anything.
I checked last year and the firm was listed. Is that check still good?
Registers change, and entries can be added, altered, or removed. A check has a date, and an old date is weak evidence. Note the date you looked and the page you used. Re-check before each new deposit rather than relying on a result you saved months ago.
If the licence covers my product, am I protected from losing money on EUR/USD?
No. A licence addresses whether a firm may offer the product, not whether the trade will work. Spreads, commissions, and conversion costs still apply, and these vary between brokers. Market risk remains yours. The register check removes one specific danger, not the risk of the market itself.
In Kenya
- Regulator
- The Capital Markets Authority (CMA) is the regulator for investment services in Kenya.
- Where the register is
- The CMA publishes a list of licensed and approved firms on its own website.
- What to type
- Search the exact firm name, then read the licence category and the products listed.
- What to record
- Note the date you checked and the page you used, because entries can change.
- Funding
- Deposits and withdrawals are commonly made by M-Pesa or bank transfer, and the methods offered vary between brokers.
The words used on this page
- register
- A public list kept by a regulator showing which firms are permitted to carry out which activities. It is read by activity, not by company name alone. You can open it without paying or registering.
- licence category
- The named activity that a firm's entry covers, such as insurance distribution or dealing in contracts for difference. Only the category that matches your product is relevant to you. A different category does not cover what you were sold.
- legal entity
- The registered company that holds the licence and can receive funds. It may differ from the brand name on the website. If the money goes to a different entity, the licence does not apply to that payment.
- pip
- A small unit of price movement in a currency pair. On EUR/USD around 1.0850, one pip on one standard lot is 10 units of the quote currency. Your position size scales that figure.
- standard lot
- A fixed position size used to calculate pip values. A smaller position, such as 0.10 lots, is one tenth of a standard lot. The pip value falls in proportion.
- CMA
- The Capital Markets Authority, the Kenyan regulator that keeps the public register. Its entries are organised by activity. You read the entry, not the firm's advertising.
What to take away
- Compare the register entry with the product you were offered, side by side, before sending money.
- Read the licence category and the product words, not just the company name.
- Confirm that the licensed legal entity is the one that receives your funds.
- Write down the date you checked and the page you used, because registers change.