RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
EGM Securities is a forex and CFD broker regulated in Kenya,which is also a part of a broader group of brokers licensed in the UK, Jordan, UAE, and Australia.
EGM Securities offers over 60 currency pairs and a selection of CFDs with a leverage of up to 400:1 (with forex pairs), a choice of two account types and the MetaTrader4 trading platform. In the following paragraphs you can find more about their offer.
We tested EGM Securities trading platform with a demo account and the selection of forex pairs turned out to be pretty good. We counted some 62 pairs, many of which minor, crosses or exotic like USDAED, USDZAR, USDTRY, USDSGD, USDSEK, USDRUB, USDPLN, USDMXN, USDNOK, USDHKD, USDDKK and USDCNH.
And we also found CFDs on all major indices, precious metals like gold, silver, platinum and palladium, as well as various energy and agricultural commodities including WTI Crude, Brent, natural gas, coffee and cotton.
EGM Securities trading conditions
As tested with the demo account the benchmark EURUSD spread floated between 1,5 pips and 1,6 pips and that is in line with what traders usually expect with a standard account.
And with the EGM Securities premium Premiere Account spreads are advertised to start as low as 0,4 pips, but here the broker asks for a trading commission of 7 USD per standard lot (round trip), which in practice adds another 0,7 pips to the spread. (1 standard lot is 100 000 base currency units). Still, spreads starting at 1,1 pips are definitely attractive so we give EGM Securities credit for that too.
As we noted the maximum leverage allowed with forex transactions is 400:1, which is basically as good as it can get, especially after the regulators in Europe, Japan, the USA and Canada restricted all higher margin trading on the grounds that it is too risky for retail traders.
With CFDs the maximum leverage allowed at EGM Securities is 1:100, which we also consider generous.
EGM Securities regulation & safety of funds
EGM Securities is the trading name of EGM Securities Limited, which is registered in Kenya and is regulated by the local Capital Markets Authority (CMA). And as we noted, EGM Securities is a part of a larger group of brokers operating throughout the Middle East and Europe. Equiti UK (Equiti Capital UK Limited) for example, which is also a part of the Group is licensed by the Financial Conduct Authority (FCA) in the UK.
Since September 2017 the Capital Markets Authority (CMA) in Kenya requires all locally operating brokers to obtain a license. To do that they are obliged to rise a minimum capital of at least 50 million Kenya Shilling, or roughly 500 000 USD. Foreign brokers targeting customers in Kenya are also required to maintain an equivalent of 40 million Kenya Shilling, or 400 000 USD of their capital reserves in financial instruments in Kenya.
Still, the regulation of CMA is somewhat lighter than the requirements imposed by the FCA in the UK or the Cyprus Securities and Exchange Commission (CySEC), under which regulated brokers should maintain at all times no less then 730 000 EUR in operational capital. On top of that with a FCA broker your account will be insured for up to 85 000 GBP, while with a CySEC regulated broker your insurance will cover 20 000 EUR, even in the unlikely event your broker files for bankruptcy.
EGM Securities trading platforms
EGM Securities supports MetaTrader4, which is undoubtedly the most popular trading platform on the market, featuring numerous customizable market indicators and trading bots, designed to help you run automated trading sessions. Besides, because MT4 has an excellent charting package and user friendly interface, it is not a surprise that the platform is preferred by professional and beginner traders alike.
EGM Securities deposit/withdrawal methods and fees
EGM Securities accepts payments with major credit or debit cards like VISA and MasterCard, bank wire and iPay, a payment aggregation that allows customers to make and receive mobile and card payments through an online portal, using mobile money channels such as M-PESA, Airtel Money and Equitel. The broker also accepts some other local e-wallets like EazzyPay, Lipa na Bonga and eLipa, but not international e-wallets like Neteller, Skrill or Paypal and that is a disadvantage.
Otherwise the minimum deposit requirement is reasonable – 200 USD for the standard Executive Account, while for a Premiere Account you should deposit at least 5000 USD.