EGM Securities Company

EGM Securities Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

EGM Securities Company, established in 2018, is a pioneering online forex and multi-asset broker based in Kenya. It was the first non-dealing online forex broker licensed by the Capital Markets Authority (CMA) in Kenya, marking a significant entry into the East African financial services market.

Parent Company/Ownership Structure

EGM Securities is part of the global Equiti Group, which is a well-known provider of online trading technology and financial products. The Equiti Group consists of multiple regulated subsidiaries across various regions, enhancing EGM Securities' operational capabilities and market reach.

Headquarters Location

The company is headquartered at Delta Corner Towers, Waiyaki Way, Westlands, Nairobi, Kenya. This strategic location positions it well within the East African financial hub.

Global Business Scope

EGM Securities serves a diverse clientele that includes individual traders, institutional clients, brokerages, and fund managers. The company offers a wide range of trading products across multiple asset classes, catering to both local and international markets.

Main Regulatory Bodies

EGM Securities is primarily regulated by the Capital Markets Authority (CMA) of Kenya. Additionally, it adheres to the regulations set forth by the Financial Conduct Authority (FCA) in the UK as part of the Equiti Group's compliance framework.

2. Company History and Development

Key Milestones

• 2018: EGM Securities received its CMA license, establishing itself as Kenya's first online broker.
• 2019: The company launched FXPesa, Kenya's first mobile retail trading platform.
• 2020: EGM Securities became a trading member of the Nairobi Securities Exchange (NSE).
• 2021: The rollout of the FXPesa Academy, which aimed to enhance financial literacy among East Africans.
• 2022: Launch of Kenya's first women-only financial literacy workshops and the opening of a new satellite office in Eastleigh.

Business Expansion Journey

Since its inception, EGM Securities has focused on expanding its footprint within the East African region. The company has opened several satellite offices across Kenya, including in Eldoret, Thika, and Kitengela, to enhance customer support and accessibility.

Customer Base Growth

EGM Securities has witnessed significant growth in its customer base, particularly among East African traders. The company's commitment to providing a user-friendly trading experience and educational resources has attracted both novice and experienced traders.

Platform Development History

EGM Securities utilizes advanced trading platforms such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), alongside its proprietary web-based trading platform, WebTrader. The continuous development of these platforms has allowed the company to offer a robust trading experience with advanced features.

Important Awards or Recognitions Received

In 2021, EGM Securities was recognized as the Best Forex Broker in Kenya by the World Economic Magazine, highlighting its commitment to quality service and innovation in the financial sector.

3. Trading Services Offered

Forex Trading Options

EGM Securities offers a comprehensive selection of forex trading options, providing access to over 62 currency pairs. This includes major, minor, and exotic pairs, allowing traders to diversify their portfolios.

Stock Trading Options

The company also facilitates trading in stocks, offering CFDs on more than 240 equities from major global markets, including the US, UK, and EU.

CFD Trading Products

EGM Securities provides a variety of CFD trading products, including indices and commodities. Traders can access 37 indices and several commodities, enhancing their trading strategies.

Other Financial Instruments

While EGM Securities does not currently offer cryptocurrency trading, it provides access to precious metals such as gold and silver, which are popular among traders looking to hedge against market volatility.

Special Services or Unique Advantages

EGM Securities offers several unique advantages, including:

• Low Minimum Deposits: Traders can start with a minimum deposit of just $15.
• No Additional Fees: The company does not charge account maintenance fees or platform fees, making it cost-effective for traders.
• Educational Resources: The FXPesa Academy provides free financial education resources, including webinars and seminars.

4. Regulatory and Legal Background

Detailed Regulatory Information

EGM Securities is regulated by the following bodies:

• Capital Markets Authority (CMA) in Kenya
• Financial Conduct Authority (FCA) in the UK through its parent company

Legal Entity Structure by Region

EGM Securities operates as a registered entity in Kenya, with its legal structure compliant with local regulations. The companys parent, Equiti Group, has subsidiaries in various regions, ensuring adherence to international regulatory standards.

Client Fund Protection Measures

To protect client funds, EGM Securities employs several measures:

• Segregated Accounts: Client funds are held in segregated accounts with reputable banks.
• Negative Balance Protection: This ensures that clients cannot lose more than their deposited funds.

Countries/Regions Served

EGM Securities primarily serves clients in East Africa, but it also caters to traders from Europe and Asia, expanding its reach beyond the local market.

Compliance History

The company maintains a good compliance record with the CMA, adhering to the regulatory requirements set forth to ensure transparency and protect investor interests.

5. Competitive Landscape

3-5 Main Competitors

EGM Securities faces competition from several other brokers in the region, including:

• FXPesa - A direct competitor offering similar services.
• IC Markets - Known for low spreads and a wide range of trading instruments.
• Exness - Offers flexible leverage options and a diverse trading platform.

Positioning in the Industry

EGM Securities positions itself as a reliable and innovative broker in the East African market, leveraging its regulatory compliance and advanced trading technology to attract clients.

Market Differentiation Factors

Key differentiation factors for EGM Securities include:

• Low Cost of Trading: With zero platform fees and low minimum deposits, the company appeals to cost-conscious traders.
• Educational Initiatives: The FXPesa Academy sets it apart by providing free educational resources to enhance trader knowledge and skills.
• Localized Support: EGM Securities offers customer support tailored to the East African market, ensuring that clients receive assistance in their local languages and contexts.

By focusing on these aspects, EGM Securities continues to establish itself as a leading player in the online trading landscape, dedicated to providing quality services and fostering financial literacy in the region.

Learn more about EGM Securities and explore their offerings today!