EGM Securities roots for financial literacy among Kenyan FX traders

By Rading Biko

EGM Securities Limited, a subsidiary of Equiti Group, has announced plans to reach over a million youth across the country in the next year through its financial literacy program.

Started three years ago at the peak of the Coronavirus pandemic, the program has since impacted over 330,000 young adults’ the majority of whom are university learners with financial literacy sessions and programs on relevant investment opportunities like forex trading.

According to the firm’s officials, the move is part of a long-term need to prepare the younger generation on available investment and business opportunities via online platforms, but financial literacy will be key in unlocking that potential.

“Since we launched in Kenya we have realized the growing demand from Kenyans to trade online currencies, CFDs, single stocks, commodities, global indices, and precious metals away from the traditional investment classes so we created an offshoot called Fx-Pesa to enable them better their trading skills.

But now we are now planning to partner with public and private universities to offer full-time courses that will equip the youth with the current trends in the sector,” says Samuel Kiraka-CEO EGM Securities.

Forex Trading in Kenya largely grew during the Coronavirus pandemic – a period that coincided with the brand’s local launch in 2019.

Forex trading is basically the process of speculating on currency prices to potentially make a profit. Currencies are traded in pairs, so by exchanging one currency for another, a trader is speculating on whether one currency will rise or fall in value against the other.

Growth rates, not just locally, were more pronounced in developing countries, with traders’ accounts from Africa, Eastern Europe, and Southeast Asia making up about 60 percent of new accounts.

In 2020 alone, FX trading witnessed an increase of 300 percent growth globally during the pandemic.

Samuel was speaking during a financial literacy training session in Nairobi.

“The urge for Kenyans to learn the trade is something that we are considering offering the lessons full time and already we are in talks with over 12 public universities to roll out the course by the end of the first quarter of 2023,” revealed Kiraka in an interview with the Media.

Fx-Pesa is a simplified mobile application that facilitates a smooth trading experience for traders of all levels. This means that traders can trade the global market on the go, 24 hours a day 5 days a week.

Lead Market Analyst Rufas Kamau discloses that “Fx-Pesa has nine total FX educators training students, Treasury departments’ employees, individuals, and corporate. However, just like any other market, any trader can actually have access to all the products across the globe because we have made it easier for them.”

The growth of online forex trading in Africa continues to attract a host of players owing to sound and open regulatory conditions, particularly in the local market, according to Brian Myers, the Chief Commercial Officer for Equiti Group and a director at Fx-Pesa.

“Currently, out of all the major countries, only South Africa and Kenya have put regulations in place to oversee online retail forex trading in their jurisdictions.

Additionally, the recently launched East Leigh training center by Fx-Pesa will go a long way in enabling women with skills in financial management matters which they can then implement in running their own business ventures and also use to invest and save for the future. The center offers women’s only classes.

Trends show that women in developing nations, such as Kenya, have a 20 percent less likelihood of owning a bank account in a formal financial institution.

Financial illiteracy, among such individuals, can result in poor savings, poor spending, excessive credit card use, and bad investment decisions. To some extent, the stress of financial insecurity in some families can lead to divorce, suicide, domestic violence, and other crimes.

Statistics show that such reasons are one of the greatest contributors to poverty in most African households, calling on the government and relevant bodies to champion the call to offer financial literacy programs in schools.

So, if you want to make good money through forex trading in Kenya, spend the day reading the market, and take your position between 6 and 7 PM when the London and New York sessions overlap. At this time the market is most liquid, giving you an opportunity to make good money.

Firms licensed as non-dealing online foreign exchange brokers act as a link between the online foreign exchange market and a client in return for a commission or markup in spreads.

The licensees do not engage in market-making activities (buying and selling of foreign currencies).

They will provide their clients with access to trading platforms, enabling them to trade from anywhere and at any time using their electronic devices. Online foreign exchange trading platforms give access to global markets and an opportunity for clients to educate themselves on the global financial markets.