Overview of SBG SECURITIES
Founded in Kenya in 2018, SBG SECURITIES is a financial platform that offers a diverse range of trading assets, including stocks and bonds on the NSE. It aims to provide investors with opportunities to build diversified portfolios. The platform features the user-friendly iTrader platform, ensuring convenient trading and real-time market access.
However, it's important to note that SBG SECURITIES operates without regulatory oversight, which may raise concerns about transparency and investor protection.
Is SBG SECURITIES legit or a scam？
SBG SECURITIES is not regulated by any regulatory authority, which may raise concerns about the transparency and oversight of the exchange.
Unregulated exchanges lack the oversight and legal protections provided by regulatory authorities. This can lead to a higher risk of fraud, market manipulation, and security breaches. Without proper regulation, users may also face challenges in seeking recourse or resolving disputes. Additionally, the absence of regulatory oversight can contribute to a less transparent trading environment, making it difficult for users to assess the legitimacy and reliability of the exchange.
Pros and Cons
Pros:
Diverse Assets: SBG SECURITIES offers various trading assets, including stocks and bonds on the NSE, enabling diversified portfolios.
User-Friendly Platform: SBG SECURITIES provides the easy-to-use iTrader platform for convenient trading and real-time market access.
Competitive Spreads: SBG SECURITIES offers competitive spreads starting from 0.05, reducing trading costs.
Diverse Payment Methods: The platform supports multiple payment options, enhancing funding flexibility.
24/7 Customer Support: The platform provides round-the-clock support for addressing inquiries promptly.
Cons:
Unregulated: SBG SECURITIES operates without regulatory oversight, raising transparency and investor protection concerns.
Limited Education Resources: SBG SECURITIES offers minimal educational resources, lacking comprehensive learning materials.
No leverage provided for trading: SBG SECURITIES doesn't provide trading leverage, potentially limiting profit opportunities and trading strategies.
Market Instruments
SBG Securities provides a range of trading assets and financial services, catering to various investment needs. These services encompass:
Stock Trading: SBG Securities offers a robust platform for stock trading on the Nairobi Securities Exchange. Investors can take advantage of a range of services, including easy account opening, efficient settlement of transactions, and the option to convert physical share certificates into electronic form. These services cater to both individual investors and institutions, providing them with convenient access to the stock market.
Fixed Income: SBG Securities provides valuable insights into the fixed income market, especially in Treasury Bond Primary issues. By closely monitoring market signals and sharing crucial information, SBG Securities helps clients make informed decisions.
Equity Trading: SBG Securities offers advisory services to clients seeking guidance on transaction decisions and investment information. The firm's expertise extends to handling large transactions and illiquid counters in the market.
Account Types
The iTrader account offered by SBG Securities is tailored to provide traders with a straightforward and transparent trading experience. With no leverage provided, traders have full control over their risk exposure. The spreads, starting from 0.05, ensure competitive and fair pricing, catering to traders across various market segments. The absence of a minimum deposit requirement means that traders can start trading with no initial financial commitment.
How to Open an Account？
Opening an account with SBG Securities is a straightforward process. Here are the six steps to guide you through the account opening procedure:
Visit the SBG Securities Website:
Start by going to the official SBG Securities website: https://www.sbgsecurities.co.ke/sbgsecurities/securities
Click on “Open an Account”:
Locate and click on the “Open an Account” button. This action will initiate the account opening process.
Fill Out the Application Form:
You will be directed to an online application form. Carefully complete all the required information. This may include personal details, contact information, and any other necessary information.
Submit Required Documentation:
SBG Securities may require you to upload specific documents for identity verification and compliance purposes. Commonly requested documents include a copy of your ID or passport, proof of address (utility bill or bank statement), and possibly other financial documents.
Account Approval and Activation:
Once you've submitted your application and documents, SBG Securities will review your information. If everything is in order, your account will be approved. After approval, your account will be activated, and you'll receive the necessary login credentials to access the trading platform.
Following these six steps will ensure that you can successfully open an account with SBG Securities and start your trading journey.
Leverage
SBG Securities' choice to abstain from offering leverage for trading is advantageous in terms of risk control and simplifying the trading process. It helps traders avoid excessive risk exposure and eliminates the need to calculate complex leverage ratios, making trading more straightforward.
However, this decision also limits profit potential and may restrict access to certain market opportunities that require leverage for effective execution.
Spreads & Commissions
SBG Securities spread Price spreads are set by the Nairobi Securities Exchange. These spreads are designed to accommodate various share price ranges.
For shares priced below Kshs 20.00, the spread is 0.05. Shares valued between Kshs 21.00 and Kshs 50.00 have a spread of 0.25, while shares in the range of Kshs 51.00 to Kshs 100 are subject to a spread of 0.50. For shares with a price exceeding Kshs 100, the spread is 1.00.
This pricing structure ensures transparency and fair trading conditions for investors in different price segments.
Trading Platform
SBG Securities offers the iTrader platform as a trading solution inspired by extensive research conducted on their client base. The platform is designed to provide real-time access to manage share trading accounts conveniently, whether from the comfort of home or the office. It empowers users to make well-informed investment decisions promptly and execute trades efficiently.
Key features and capabilities of the iTrader platform include:
Real-Time Stock Prices: iTrader grants users access to up-to-the-minute stock prices, ensuring that traders have access to the most current market data. This real-time information is crucial for making informed trading decisions.
Market Information: The platform offers comprehensive market information, allowing traders to stay informed about market trends, news, and developments that may impact their investment choices.
Order Status View: Users can easily monitor the status of their orders, ensuring transparency and allowing for quick adjustments or decisions based on order progress.
Statements: iTrader provides access to account statements, enabling users to review their trading history, account activity, and performance over time.
Contract Notes: Traders can access contract notes, which serve as official records of executed trades. These notes are essential for auditing and record-keeping purposes.
Portfolio Valuations: The platform offers portfolio valuation tools, helping traders track the performance of their investment portfolios in real time.
24-Hour Access: With 24-hour access to their trading accounts, users have the flexibility to manage their investments at any time, accommodating different trading strategies and time zones.
One notable feature of the iTrader platform is its direct access to trading on the Nairobi Securities Exchange (NSE) through a customized trading system known as Active Lite. This system provides real-time access to the Automated Trading System (ATS) of the NSE. This direct market access empowers traders with the ability to execute trades swiftly and efficiently on the exchange.
Deposit & Withdrawal
SBG Securities offers various payment methods for funding your account, making it convenient for clients.
Electronic Funds Transfer (EFT): You can make deposits using EFT, a secure and convenient method for transferring funds electronically.
Cheque: SBG Securities also accepts payments via cheque, providing a traditional payment option.
Telegraphic Transfer: For international clients, telegraphic transfer is available, ensuring efficient cross-border transactions.
RTGS (Real-Time Gross Settlement): RTGS is another electronic payment method that offers real-time settlement of funds.
M-PESA: SBG Securities supports M-PESA, a mobile money transfer service widely used in Kenya. This option is accessible through their digital platforms.
SBG Securities does not have a specific minimum deposit requirement for opening an account. You have the flexibility to start with any amount you're comfortable with.
Minimum Investment:
While there is no minimum deposit, it's important to note that the minimum number of shares that can be sold or purchased is 100.
For bonds, the minimum investment is Kshs 50,000.00. Subsequent investments in bonds should also be made in lots of Kshs 50,000.00.
Payment processing times at SBG Securities may vary depending on the chosen payment method. Electronic methods like EFT, telegraphic transfers, and RTGS typically offer faster processing times compared to traditional methods like cheque.
SBG Securities' diverse range of payment options and flexibility in minimum deposit requirements make it accessible for traders and investors, accommodating a wide range of financial preferences and needs.
Customer Support
SBG Securities offers convinient customer support to address business inquiries.
For general inquiries, you can reach them at +254 20 363 8080, +254 20 363 8942, +254 20 363 8900, +254 73 944 1441, or +254 70 444 1441 during their call center hours, which are from 08:30 to 17:00.
Additionally, you can contact them via email at sbgs@stanbic.com, chiefexec-sbgs@stanbic.com, or customercare-sbgsecurities@stanbic.com.
Their physical address is located at Stanbic Bank Centre, 2nd floor, Westlands Road. SBG Securities is dedicated to providing prompt and efficient support to address your business-related questions and concerns.
Educational Resources
SBG Securities, while offering a range of financial services, has limited educational resources available for its clients. The primary educational support provided by SBG Securities consists of a basic FAQ section. Unfortunately, the platform does not offer comprehensive educational materials such as tutorials, webinars, or in-depth guides that can assist traders and investors in enhancing their knowledge and skills. Clients seeking a more robust educational experience may need to explore alternative sources and platforms that offer comprehensive learning resources to help them navigate the complexities of financial markets effectively.
Conclusion
In conclusion, SBG SECURITIES offers a range of trading assets and financial services to investors, with a focus on stock trading, fixed income, and equity trading. While the platform provides several advantages, such as competitive spreads, a user-friendly trading platform, and diverse payment methods, it operates without regulatory oversight, which raises concerns about transparency and investor protection.
Furthermore, SBG SECURITIES offers limited educational resources and does not provide leverage for trading, potentially limiting profit opportunities. As with any financial platform, potential users should carefully weigh the pros and cons to determine if it aligns with their investment goals and risk tolerance.
FAQs
Q: How do I open an account with SBG SECURITIES？
A: To open an account with SBG SECURITIES, visit their official website, fill out the online application form, submit the required documents, and await approval.
Q: What assets can I trade on SBG SECURITIES？
A: SBG SECURITIES offers a range of trading assets, including stocks and bonds on the Nairobi Securities Exchange (NSE).
Q: Does SBG SECURITIES provide leverage for trading？
A: No, SBG SECURITIES does not provide leverage for trading.
Q: What are the customer support hours at SBG SECURITIES？
A: SBG SECURITIES offers 24/7 customer support to address inquiries and provide assistance.
Q: Are there educational resources available on SBG SECURITIES？
A: SBG SECURITIES offers limited educational resources, primarily consisting of a basic FAQ section.
Q: How competitive are the spreads on SBG SECURITIES？
A: SBG SECURITIES provides competitive spreads starting from 0.05, which can help reduce trading costs for investors.
