Category Archives: EFG Hermes

Simple Nairobi stock trades with EFG Hermes One

Background: Kenya’s top stockbroker, EFG Hermes has set out to expand from its institutional investors and also target retail customers. They launched their EFG Hermes One app in July 2021 allowing Kenyan investors to purchase shares on the Nairobi Securities Exchange (NSE) anytime on their mobile phones.

First Impressions: To get started, one had to go through the Kenyan regulatory requirements of KYC (know your customer). While the process is extensive for investors, with a lot of forms, ID, address and other details, new clients can scan and email documents, including photos to EFG Hermes.

Once you’re done, download the app and log-in with the credential to start trading. One fund an investor using mobile money (M-Pesa pay bill) and selects their share account (CDS) to get credited.  

For any issues, there are quick responses via email from EFG Hermes Kenya client services on issues like registration and trades. 

How It Works: Investors can view equities, and their portfolios with up-to-date prices, and also see their cash balances. They can place trades, set the prices and the expiry dates and see the commission/fee calculation before executing any buy or sell trades.

One useful feature of the app is that it allows trading of “odd lots”. This is something not available at many brokers who still only allow  investors to buy or sell shares in multiples of a hundred (100) shares – yet many investors end up with odd lots as a result of selling other shares in ’00s or getting bonus issues.

another odd feature from the stockbroking industry is T+3 days/ again this is somewhat standard and after you sell shares, it will take about two days for funds to reach your account after that one indicated at the account opening where the funds will be sent. 

For now, the Kenya app only allows trades of equities on the NSE, but in future may have more issues – bonds, derivatives, REIT’s, ETF’s regional and international products from EFG Hermes in different markets and assets classes and also as the NSE comes up with more products for retail investors such as day-trading and short-selling.

Verdict: It enables investors to trade from anywhere securely and tracks their trades and portfolios with up to date prices. The app is really small, just 10 MB, and does not use a lot of data to run. Many retail investors have other apps, laptops and sources to analyze what trades to make, and they can turn to the One app which can also be used to place trades after hours to execute when the NSE opens.

At the end of the month, investors get emailed a statement by EFG Hermes of trades during the month. This is a useful record to keep and they should cross-check with the one that comes from the CDSC.  

The EFG Hermes One app is available in the Google Android and Apple App stores.

EFG Hermes launches online trading in Kenya

Kenya’s leading stockbroker, EFG Hermes has launched One, a new online platform that enables retail investors to trade shares on the Nairobi Securities Exchange (NSE).

EFG Hermes One, the equities trading platform will be available to clients of the stockbroker. The One app has been very successful in other markets, notably in Vietnam and the firm hopes to capitalize on the high mobile phone density in Kenya, reported at 108%. 

Speaking at the launch, the CEO of the NSE Geoffrey Odundo said that Kenya has an active retail investor base as seen with M-Akiba, a government bond issued and traded on mobile phones that drew 500,000 investors. He added that the new NSE platform has the ability for “day-trading” and “short-selling” and those would be products that appeal to retail investors.

Muathi Kilonzo, Head of Equities at EFG Hermes Kenya said that retail investors across the globe showed great activity in powering different equities and investments markets while the world was slowed by Covid-19.

Ali Khalpey, the CEO of Frontier Markets, said EFG Hermes started in Egypt 35 years ago and had grown to have 5,500  employees and offices in Egypt, Dubai, Nigeria, Kuwait, USA, Oman, UK, Kenya, Jordan, Saudi Arabia, and Pakistan offering stockbroking, investment banking, asset management, securities brokerage, research, and private equity services.

In 2017, EFG Hermes launched a greenfield operation in Kenya that has grown to be the top stockbroker by value traded on the Nairobi Securities Exchange in 2021. Last year it was acclaimed as the top frontier research institution and the best broker in Kenya and Nigeria. It produces highly prized research reports on frontier markets with recent ones on Kenyan banks, the silicon savannah potential and digitizing COVID-19 stimulus initiatives.

Download the One app from the Apple app store and Google play store, register to be an EFG Hermes client, and get on board after a regulator-mandated, know-your-customer (KYC) process.