Is EGM Securities Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with EGM Securities try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether EGM Securities is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker EGM Securities
EGM Securities (EGMSecurities) is an STP, NDD, and ECN broker that is part of the International Equity Group of companies. It offers trading in five asset classes (currency pairs, ETFs, CFDs on stock indices, stocks, and commodities) through the classic MT4 terminal, as well as the MAM system for passive investing. The company is headquartered in Nairobi and is licensed by the Kenyan government regulator Capital Markets Authority (CMA, 107). According to the World Economic Magazine Awards, EGM Securities was named Best Forex Broker Kenya in 2021.
| 💰 Account currency: | USD, AED, KES |
|---|---|
| 🚀 Minimum deposit: | From USD 15 |
| ⚖️ Leverage: | Up to 1:400 for currency pairs and precious metals; 1:200 for CFDs and 1:20 for shares |
| 💱 Spread: | From 1.6 pips (Executive), from 0.2 pips (Premiere) |
| 🔧 Instruments: | Currency pairs (62), CFDs on stocks (240), indices (37), metals (6), and ETFs |
| 💹 Margin Call / Stop Out: | Stop out: 30% |
Pros and cons of EGM Securities
👍 Advantages of trading with EGM Securities:
•Licensed by the state regulator of Kenya.
•Execution of orders using Non-dealing Desk technology, which eliminates a conflict of interest between the broker and its clients.
•The available minimum deposit is USD15 or 100, depending on the type of account.
•A wide range of assets (over 300), high leverage (up to 1:400 for trades with currency pairs and metals).
•No restrictions on the use of automated expert advisors.
•Tight floating spreads on all account types.
•Ability to open a demo or swap-free Islamic account.
👎 Disadvantages of EGM Securities:
•The broker does not offer any bonuses to its clients.
•There is no affiliate program for retail traders. The Company pays fees only to IBs (Introducing Brokers).
•There are no cent accounts in the line of available trading accounts.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is EGM Securities Regulated? Broker’s license
Security (Protection for Investors)
EGM Securities is a trade brand of EGM Securities Limited, which is registered under the number PVT-AAAAFF7 and is regulated by the Capital Markets Authority (CMA). This office is Kenya's main government financial supervisor and is responsible for the licensing and regulation of capital markets.
EGM Securities Limited is part of the international holding company Equity Group, which consists of eight regulated divisions. They operate under the supervision of regulators from the United States, Jordan, the United Arab Emirates, Seychelles, and Armenia. Equity Capital UK operates under the supervision of the Financial Conduct Authority (FCA, 528328).
👍 Advantages
- All clients' money is kept in segregated bank accounts and is not part of the broker's assets or funds
- Clients with an account balance of more than $25,000 participate in the insurance program with maximum coverage of $1 million per trader
- The regulator ensures that the broker properly fulfills its obligations to its clients
👎 Disadvantages
- Under the requirements of the CMA, the company does not cooperate with traders from 27 countries of the world, including the USA
- You cannot replenish your account without providing detailed information about yourself and scans of documents
- No negative balance protection
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by EGM Securities, which you can see below.
A detailed study of the conditions of EGM Securities showed that for trading with an Executive Account, the broker maintains floats from 1.6 pips for each spread. On the Premiere Account, in addition to the spread from 0.2 pips, a commission of $7 or $10 per lot is also charged, depending on the class of the traded asset. Clients do not pay the broker a commission for replenishing or maintaining an account. Withdrawals to a bank in Kenya and withdrawals via mobile payments are also free. For a transfer to electronic wallets, the trader gives the system 1% of the transaction amount, but not more than $30 or its equivalent. For an international bank transfer, the client pays $15.
| Account type | Spread (minimum value) | Withdrawal commission |
| Executive Account | From $16 | Available for international wire transfer and EPS withdrawals |
| Premiere Account | From $2 | Available for international wire transfer and EPS withdrawals |
Brokers that are similar to EGM Securities
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of EGM Securities conditions with its closest competitors.
Comparison of EGM Securities with other Brokers
| EGM Securities | RoboForex | Pocket Option | Exness | Eightcap | Forex4you | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4, WebTrader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, MobileTrading, MT5 |
Min deposit |
$15 |
$10 |
$5 |
$10 |
$100 |
No |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:10 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 1.6 point |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0.1 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
Yes |
The EGM Securities broker offers favorable trading conditions to all clients, regardless of their income or strategies used.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. Some solutions, like Capitalise.ai, have no constructive counterparts. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
Forex4you is an all-in-one broker for active and passive trading, rates well for both novice traders and professional level traders.
Conclusions
EGM Securities is a quite reliable broker for trading. EGM Securities operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.