I know this topic has been discussed severally on this forum, but times have changed and some brokers have improved their services while others are worse. Which stockbroker would you consider the best in terms of customer service, online platforms, efficiency among other criterion?

You views are welcomed.

NIC sues broker, share custodian over client fraud

NIC Securities has sued a stockbrokerage firm and the custodian of shares traded at the stock market, Central Depository and Settlement Corporation (CDSC), for allegedly allowing fraudulent sale of its client’s shares valued at more than Sh10 million.

NIC has accused CDSC of allowing the fraudulent transfer of 300,000 of its client’s shares to another stockbrokerage firm, Genghis Capital, which subsequently sold them without the investor’s consent.

The 279,400 Barclays Bank shares, 24,207 Nation Media Group (NMG) shares, and 100 Standard Chartered Bank shares allegedly belonged to NIC Securities’ client Hilary Gabrielle Erculiani, a Caucasian female, but were fraudulently transferred to a Hilary Gabrielle Erculiani, a Caucasian man.

NIC argues that CDSC negligently created and operated internal procedure and systems that allowed fraud to be perpetrated by its employees in contravention of its regulatory obligations.

“CDSC allowed unauthorised workers access to information and materials that paved way for the alleged fraud,” states NIC in court papers filed on September 12.

Genghis is accused by NIC of failing to establish the identity of the person claiming to be Hilary Gabrielle Erculiani to ascertain the veracity of the identification documents presented to the broker.

A CDSC employee alleged to have schemed the fraud, Simon Kabata Ngethe, was arraigned in a Nairobi court on March 2 and denied defrauding customers shares worth Sh15 million. Mr Ngethe was the custodian of electronic investor share accounts and headed the help desk at CDSC.

He denied seven counts of making electronic records, conspiracy to defraud and stealing.

“The real Hilary Gabrielle Erculiani is elderly Caucasian female whilst the person who purported to be NIC customer, Hilary Gabrielle Erculiani was a Caucasian man,” argues NIC.

The broker subsequently sold the securities, causing the investor loss. NIC Securities is seeking a refund of the shares from CDSC and Genghis.

Going by Friday’s market price of the three firms’ stocks, the 303,707 shares are valued at about Sh10 million but the claim could be significantly higher taking into account dividend payments, bonus issue and share splits.

NIC said it received communication from the Capital Markets Authority (CMA) on January 3 alerting them of suspected fraud of certain share transfers purportedly transacted by its client Erculian.

Further investigations by NIC revealed a Central Depository Settlement (CDS) account held by Erculiani had been unlawfully transferred to Genghis Capital with the approval of CDSC.

NIC now wants the court to declare the purported transfer of Erculiani CDS account by CDSC and Genghis as illegal and null.

The broker is also seeking a full statement of the Barclays Bank, NMG and Standard Chartered shares in addition to bonuses and share splits.Alternatively, NIC wants the defendants to pay for the value of the shares from the date the judgement will be delivered and all dividends which would have accrued on the shares.

CDSC and Genghis have not filed their defence to counter the allegations. NIC argues in the suit that CDSC, while approving the share transfer, failed to verify the authenticity of its seal appearing on the CDS forms where they would have detected forgery.

CDSC is also accused of failing to confirm whether the transaction was in conformity with central depository rules and procedures.

They have the same commission rate as other players but a massive customer base!

The high commissions signify high profits and capital base!

Cfc are good. my bankers cheque reflected the next day. pap.
customer care is excellent and responsive.
trading platform is more than you can ask for(except few hiccups- cant log in- very rarely). Im so happy with their service( almost emailed them to tell them)

My broker is equity custodial...ie equity bank...no regrets so far...no reason to shift...mimi ni mkulima mdogo

Which broker do you work for or trade with?