Sigma Company Overview

Founding Date and Background

Sigma Broking was founded in 2008 by Matthew Kent, who has extensive experience in the financial markets, particularly in futures and options. The company was established to provide brokerage solutions and facilitate trading across various financial instruments.

Parent Company/Ownership Structure

Sigma Broking operates as a private entity and is not part of a larger parent company. The company is owned by its founders and key stakeholders, including its board members who bring a wealth of experience from different sectors of the financial industry.

Headquarters Location

The headquarters of Sigma Broking is situated at 20th Floor, 125 Old Broad Street, London, England, EC2N 1AR, United Kingdom. This central location in London places Sigma in a prominent position within one of the world's leading financial hubs.

Global Business Scope

Sigma Broking offers a range of brokerage services that span across multiple financial markets. While its primary focus is on futures and options, the company has expanded its offerings to include contracts for difference (CFDs), spread betting, and other derivatives. Sigma serves clients globally, with a particular emphasis on markets in North America and the United Arab Emirates.

Main Regulatory Bodies

Sigma Broking is subject to regulations from the Financial Conduct Authority (FCA) in the UK. However, it has faced scrutiny regarding its compliance with these regulations, particularly concerning transaction reporting and market abuse identification.

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Company History and Development

Key Milestones

Since its founding, Sigma Broking has achieved several key milestones, including the establishment of a CFD trading desk in December 2014, which significantly expanded its service offerings. However, the company has also faced regulatory challenges, including a £531,000 fine imposed by the FCA for reporting failures.

Business Expansion Journey

The expansion of Sigma's business into CFDs and spread betting marked a significant shift in its risk profile. Between early 2015 and 2016, the company increased its CFD trade volume by over 200%. This growth necessitated the recruitment of additional brokers to manage the increased trading activity.

Customer Base Growth

Sigma Broking has developed a diverse customer base, attracting clients from various sectors looking for trading solutions in futures, options, and CFDs. The firms growth has been fueled by the establishment of relationships with traders and institutions seeking access to major financial markets.

Platform Development History

The company has traditionally relied on manual trade surveillance processes, which have been criticized for their inefficiency. As the business grew, the need for automated systems became apparent, but Sigma has faced challenges in implementing such technologies effectively.

Important Awards or Recognitions Received

While Sigma Broking has not been noted for specific awards, its reputation in the industry has been shaped by its operational history and regulatory scrutiny. The company's commitment to innovation and service excellence is acknowledged within the financial community.

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Trading Services Offered

Forex Trading Options

Sigma Broking offers trading in various currency pairs, although the exact number of pairs available is not specified. The company provides access to the forex market, allowing clients to engage in currency trading with competitive spreads.

Stock Trading Options

The firm facilitates equity trading, enabling clients to trade shares in publicly listed companies. This service is part of Sigma's broader offering of financial instruments.

CFD Trading Products

Sigma Broking has positioned itself as a significant player in the CFD market, offering a range of products across different asset classes, including indices, commodities, and more. The CFD trading desk has been a focal point of the company's growth strategy.

Other Financial Instruments

In addition to forex and stock trading, Sigma Broking provides access to various financial instruments, including commodities and indices. However, the firm does not currently offer cryptocurrency trading options.

Special Services or Unique Advantages

Sigma's unique advantage lies in its focus on providing tailored brokerage solutions and its commitment to innovation in the financial markets. The company aims to deliver precision and efficiency in executing trades for its clients.

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Regulatory and Legal Background

Detailed Regulatory Information

Sigma Broking is primarily regulated by the Financial Conduct Authority (FCA) in the UK. The FCA oversees the firm's compliance with regulatory standards, particularly concerning transaction reporting and market conduct.

Legal Entity Structure by Region

As a UK-based brokerage, Sigma operates as a limited company under UK law. The firm does not have a complex corporate structure involving multiple subsidiaries in different jurisdictions.

Client Fund Protection Measures

While Sigma Broking is regulated by the FCA, specific details regarding client fund protection measures, such as segregation of client funds or insurance coverage, have not been explicitly stated. Clients should inquire directly with Sigma for comprehensive details on fund safety.

Countries/Regions Served

Sigma Broking serves clients globally, with a significant presence in the UK, North America, and the United Arab Emirates. The firm aims to cater to a diverse clientele, including individual traders and institutional investors.

Compliance History

The firm has faced regulatory challenges, particularly concerning its compliance with transaction reporting obligations. The FCA's enforcement action against Sigma highlighted significant deficiencies in its reporting practices and internal controls.

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Competitive Landscape

3-5 Main Competitors

Sigma Broking operates in a competitive landscape that includes several notable firms:

1. Fidelitrade - A financial services provider offering a range of trading options.
2. GFI Group - A global brokerage specializing in various financial instruments.
3. HKEX - The Hong Kong Stock Exchange, which offers a broad range of trading services.

Positioning in the Industry

Sigma Broking positions itself as a specialized brokerage firm focused on futures, options, and CFDs. Its emphasis on tailored solutions and client service differentiates it from larger, more generalized brokers.

Market Differentiation Factors

Key factors that differentiate Sigma Broking from its competitors include its specialized focus on futures and options trading, a commitment to innovation, and a personalized approach to client service. However, its recent regulatory challenges may impact its market positioning and reputation.

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In conclusion, Sigma Broking has established itself as a notable player in the brokerage industry, offering a range of trading services while navigating regulatory challenges. Its commitment to innovation and tailored solutions positions it well for future growth, but it must address compliance issues to enhance its reputation and operational effectiveness. For more information about Sigma Broking, learn more.