This a rejoinder to myjoyonline stating that the BoG has shut down Hebron Fin Investment Ltd for unauthorized online forex trading.
The news stated that Hebron’s operation was in breach of section 3(1) of the Foreign Exchange Act, 2006 (Act 723).” Which states that A person shall not engage in the business of dealing in foreign exchange without a licence issued under this Act.
I hereby submit that this is absolutely false. In recent times, online currency and derivative trading has become an emerging trend in Global markets. The average Joe can log on to their computers from the comfort of their rooms and begin trading within seconds without authorization from any governing body. Currency trading is however leveraged and can result in severe capital losses.
Over the past 5 years various online forex brokers including: www.ghanafx.com (GFx brokers), www.fabbanking.com (a subsidiary of Fidelity Bank Ghana Limited ), gm.ibrokerghana.com (CAL Brokers Limited), a SEC regulated broker.
Have been established in the country affording the individual Ghanaian the opportunity to trade forex online(only an ID and proof of residence required to satisfy KYC requirements) if they so please. The problem here is trading currencies is a skill that takes years to master and the few tutorial videos usually offered on the brokers website does not equip the new trader for what’s ahead and hence many lose their funds and abandon online forex trading altogether.
Hebron is not a microfinance institution and has never claimed to be one. What Hebron does is to train forex trading newbies and trade on behalf of clients who are impressed by our 2.9 to 6 % avg. monthly return over the years. Clients sign a Power of Attorney authorizing Hebron to trade on their behalf.
The clients are fully in charge of their funds which are deposited with the broker by the client. Clients are able to also monitor daily trading activities from their mobile platforms provided by the broker and profits are shared in a 40 -60/ trader-client ratio that is Hebron only gets paid if our clients are in profits at the end of the month. Returns are not guaranteed, however Hebron trades at very low risks to ensure our clients don’t make extreme losses should markets go south.
What the BoG is saying in effect is if individuals subscribe to trade forex online on their own on these Global markets made available by SEC-regulated brokers, and make their own losses then everything is okay (they are authorized/licensed to trade ), however if they authorize Hebron to trade on their behalf to help them make sustainable returns then they are in breach of Section3(1) of the Foreign Exchange Act,2006(Act 723)? I find this absurd and a hard pill to swallow.
It’s understandable that the BoG wants to protect the general public given the recent DKM scandal; but does that warrant defaming a company that is genuinely putting money in the pockets of Ghanaians who understand the risks and are willing to explore this Global Investment Opportunity?
After a couple of meetings with some personnel from the BoG I came to the conclusion that they do not fully understand this new emerging trend, and rather than work with us to understand how things really work, they prefer to squash us and sweep us under the carpet.
I rest my case.
Ebo Eshun,
CEO Hebron Fin Investment Ltd
