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HC Brokerage signed a cooperation agreement with Contact Factoring for launching the first margin lending factoring program, aimed at financing HC retail clients interested in Margin Trading, with a total value of EGP400mm. This program will contribute in growing the trading volume in the Egyptian stock market and allows easier access to financing for retail and institutional clients.
This cooperation comes in line with the decisions of the Financial Regulatory Authority to allow factoring companies to provide quick loans for the retail clients of brokerage companies who offer margin trading. This cooperation conveys Contact’s confidence in HC as one of the biggest brokerage companies in Egypt, based on the trading volume and array of services that HC provide to a large base of clients, both institutions and retail.
Hassan Choucri, Managing Director of HC Brokerage, affirmed that this agreement allows great opportunities for a multitude of stock market investors across all segments, by facilitating the needed financing through the first margin lending factoring program. He noted that HC concluded this deal based on its extended expertise in the stock market, as well as its strong relations with its clients and NBFS companies.
He added that “Brokerage companies mainly depended on their own resources to serve margin traders. Given the current interest in encouraging small retail investors to trade and spread the culture of stock market investments, such agreements offer great opportunities for injecting new money, where clients can trade with larger sums, which in turn increases the market liquidity and creates a better investment environment.”