FAQ

1

In case of coming in person to the company’s residence to open an account, what are the required documents?

Egyptian Citizens:

·         National ID Number (valid, issued within a period not more than 7 years) + (Photocopy of the ID in case of code joining).

·         Photocopy of birth certificate in case of underage clients.

Foreigners:

·         A photocopy of valid passport.

Companies:

·         A photocopy of commercial register, tax card and articles of association.

·         National ID number of individual or individuals authorized for dealing, and powered by the party having the right to sign on behalf of the company in accordance with the company’s commercial register. 

·         Company’s authorization to the individual or individuals authorized for dealing and their powers.

·         All papers should be sealed and stamped with the competent authority’s seal.

·         Bank’s authorization of signatures.

2

In case of not attending in person to the company’s residence, how can an account be opened?

·         Accessing the company’s website and printing opening account contracts.

·         Completing the required data and signing in the blank allocated for signature.

·         Having an authorization of signature from any bank in which the client has a personal account.

·         A photocopy of the client’s identification card, signed by the client and such signature is authorized from the bank and then sent accompanied with contracts to the company’s residence at 40, Lebanon Street or Building B16, Smart Village, Km 28, Cairo Alex. Desert Road.

3

What’s the minimum fund required for opening an account?

In case of electronic dealing, the minimum funds required for opening an account isEGP10000.

4

Are there any fees or commissions required for opening an account?

·         No fees or commissions are required.

5

How much is brokerage commission?

·         Brokerage commission is 3.5 per thousand for online trading and 4 per thousand foroffline trading , other than Stock Market, Clearing and Custody commissions. More dealings lead to lower brokerage commission. But it is worth noting that accounts are quarterly valued by end of March, June, September, and December.

6

Which custodian is the company dealing with?

·         The company’s custodian is those at Naeem Holding for Investments. If the client appointed another custodian, it should be mentioned by the client within the contract.

1

Is the online dealing required program downloading?

·         No, online dealing is implemented via accessing the company’s website: egy.naeemonline.com by typing username and password of each client.

·         In case of utilizing mist for dealing, the program should be downloaded from the coming link:

 http://misti.mist-net.com/mistwsiVers/mistws553.msi

2

What if the client owns shares at more than one custodian bank?

·         The client shall select one custodian bank to which the shares existing in other banks should be transferred.

3

Can the client use sales value in intraday day purchasing?

·         Yes, upon selling, cash should be added to the client’s account in order to be able to purchase by the same value, but such cash cannot be withdrawn except after settlement.

4

Can the same day trading executed?

·         Yes, the client can adopt the same day trading of shares allocated for the intraday trading and within the allowed quantities for being sold during the same day trading.

5

Is the T+0 commission different from the ordinary purchase and sale commission?

·         Yes, the T+0 commission is different in that it is calculated on the basis of half of the ordinary brokerage commission in addition to 0.25 per thousand of the share value and EGP 11 per bill.

6

What if shares were not sold at the same day trading?

·         In case of not being sold at the same day trading, the shares shall be transferred to ordinary settlement T+2

7

Can margin purchase implemented by the client?

·         Yes, margin purchase can be implemented in the current time after signing margin purchase contract, signature being authorized by any bank in which the client has a personal account. 

8

GDRs can be traded?

·         Yes, but via the client’s account manager.

9

How safe the clients’ accounts are?

·         The company’s website is secured by the coding system ©Thwarte SSL Certificate

10

What if the client desires to place order where no available computer or internet?

·         The client shall contact the account manager; the phone call is recorded after identifying the client’s personality. The orders shall then be placed by the account manager.

11

How can complaints or suggestions sent to the company’s management?

·         The client shall access the company’s website, particularly complaints and suggestions tab, the client shall send complaints or suggestions to the company’s management, and they will be answered within 48 hours. 

1

What types of orders that can be placed at the company’s website?

There are three types of orders:

·         Buy

·         Sell

·         Sell at “Same Day Trading” T+0

2

What types of prices upon which the orders shall be placed?

There are two types of prices:

·         limit price

·         Market price

3

What are types of orders validity?

There are three types of validity:

·         Valid for one day

·         Valid till cancellation

·         Valid till the date “number of days”

4

What are the procedures that should be followed at the same day purchase and sale?

To utilize the same day trading option, the following shall be put into consideration:

·         Trading on one of the shares permitted for same day trading

·         Upon purchasing, “purchase” order is selected

·         Upon selling, “the same day sale’ option is selected.

·         The number of sold shares should not exceed the number allowed for being sold at the same day trading. Schedule of shares T+0

5

How can placed orders be confirmed?

Upon placing the order, a confirmation message appears as follows:

6

Can the Order be amended or cancelled?

·         Yes, any pending order (not implemented) can be amended or cancelled. Kindly note that number of shares, price and order validity can only be amended

7

Upon amending any order, is it relocated in Stock Market table?

·         Yes, when an order is amended, it is relocated if increasing the quantity or change price

8

Can I know the orders placed on my account?

·         Yes, all orders with different types being placed on the account could be known through “orders” toolbar, showing all orders being placed as of the day of opening account. The period can be defined according to need.

-          Pending order: still existing in the Stock Market, not executed yet.

-          Executed orders: an order being executed in the Stock Market.

-          Partially executed order: an order of which a part was executed.

-          Expired order: an order which is not valid.

-          Cancelled order: an order being deleted.

9

Can executed orders be known?

·         Yes, all executed orders can be known via “execution” toolbar showing executed orders as of the day of opening the account and the period can be defined according to need.

10

Shall the cash available in the account be affected by sale and purchase?

·         Yes, the cash existing in the account is affected directly after sale and purchase.

11

How long does it take the order to reach the Stock Market?

·         The order takes less than 5 seconds to reach the Stock Market if the client uses the line 512 Kb DSL via any company known for its efficiency.

12

Is it possible to buy shares in the currency of the U.S. dollar despite the lack of balance in dollars?

·         No , according to instructions from the central bank of Egypt .

13

Is it possible to engage in IPOs by NAEEM?

·         Yes, the company provides service offerings to its customers with a commission of 5 per thousand with a minimum of 20 pounds and a maximum of 250 pounds.

·         When there is a subscription, the company sends an email to each customer indicating the date of maturity of its IPO - open for subscription in the company –, deadline for receipt of applications - the deadline for payment of the subscription ratio - deadline to subscribe via a bank - the IPO price and expenses of issuance. If the client wants to subscribe, an email including the number of shares to be subscribed by shall be sent to the account official. However, available cash should be existed in the account of the client at the time determined by the company, provided that the e-mail shall be sent prior to the closing of the IPO within a maximum of 48 working hours. In case of non-Naeem custody, the client should send a notification to the company (the movement of shares to be subscribed by the custodian who has the stock).

14

Can NAEEM collect coupons?

·         Yes, the company provides coupon collection service to its clients with a commission of 5 per thousand with the minimum of 5 pounds and maximum of 500 pounds.

·         In case Naeem is the custodian: the coupons shall be collected automatically and added to the client’s account at the company.

·         In case the non-Naeem custodian: the client is to make a power of attorney at the Real Estate Office authorizing Naeem to collect the coupons at Misr for Clearance and Settlement, and adding such coupons to the client’s account at the company. 

15

In case the online trading system is broken down, how can the client place orders?

·         If the online trading system is broken down, the client shall contact the account official to place the order. The call shall be recorded or the details of such an order (username, full name, unified code, custodian, type of order, name of share, number of shares and validity of order) shall be sent to the account official’s e-mail and the order shall be placed through the broker’s screen available at the company.

1

Can the client deposit or withdraw cash in/from the company directly?

In case of withdrawals:

-          Either cash or by cheques

·         The client can withdraw cash money from the company’s treasury up to 5000 pounds or its dollar equivalent. Cheques shall be issued or Swift transfer to the client’s account at any desired bank, both in case of desire to withdraw money exceeding the aforementioned amount.

In case of Deposits:

·         Cash less than 10000 pounds shall be received at the company’s treasury. The client shall deposit any amount exceeding the aforementioned at the company’s account in any bank with which the company is dealing, almost all banks operating in the ARE.

·         The client can do direct Swift transfer from account thereof to the company’s account mentioned in advance. The client shall provide the company with a photocopy of the bank deposit receipt.

Kindly visit download at our web site to get file of Banks with which Naeem Brokerage is dealing

2

How can the client know the cash balance available at the account and stock portfolio?

·         The balance available at the account shall be known via the company’s electronic website by accessing “client’s status”.

1

How can real-time shares price be followed?

·         The company provides screen of real-time prices of “Mist Internet” in cooperation with Mist Company and with monthly subscription of 55 pounds deducted from the client’s account on monthly basis. If the client’s trading exceeds EGP million, the monthly subscription shall not be deducted from the account and the service is provided for free during that particular month.

2

What are information and privileges provided by Mist screen?

-          Mist Internet screen provides the following information:

·         Name of share

·         Reuter code

·         Last execution

·         Opening

·         Closing

·         Best offer/ demand

·         Quantity of best offer / demand

·         Quantity of offers and demands

·         Quantity/ value of trading

·         Summary/ details of offers / demands ( all or best ten)

·         Daily or past news related to shares

·         Egyptian and Arab news

·         Knowing companies’ budgets

·         Knowing dates of coupons

·         Daily or chronological graphs

-          Privileges provided by Mist Internet are:

·         Trading through Mist Internet on account via broker’s link after entering username and password of the website.

·         Creating portfolio or screen for the shares desired for noticing.

3

Can the client use any screen other than Mist?

·         Yes, the client can use any screen other than Mist Internet, but trading service is not available except at Mist Internet.

1

What are types of researches and studies provided by NAEEM to its clients?

·         Our daily message or what is called “daily report”: a summary of the events of the last day session

·         Technical analysis of a number of shares.

·         Detailed studies of the largest companies available at the trading market

2

What are special services provided by NAEEM to its clients?

·         Each client has an account official

·         A large number of account official’s assistants help the clients in case the account official is busy or absent

·         “Online” intraday trading via company’s website

·         GDR trading

·         Subscriptions

·           Coupons collection

·         Margin trading

1

What is Margin loan?

·         Margin loan is personal loan added to the client’s account to ensure equity by 100% of active stocks and specific stocks to buy and sell at the intraday session

2

How can the client start using margin loan?

·         The client enters an agreement concerning margin trading by signing the following

-          Naeem’s custodian contract

-          Margin trading contract

3

How can margin loan be used?

·         A new account shall be opened for margin loan as supplementary account which is effective by one of the following methods:

-          Cash deposit in the account of margin trading

-          Transferring active stocks from free account to margin trading account

4

Is it possible to purchase shares in the margin trading account outside the cabin?

·         No, no shares can be bought except those allocated for sale and purchase in the same day trading reaching 84 shares.

Kindly visit download at our web site to get the same day shares file

5

How can margin loan interest income be calculated?

·         Margin Loan interest income can be calculated by one of the following method:

-          Method (1): 16.5% interest is calculated on the debt balance per day and being deducted at the end of every month.

6

Is it possible for the client to be forced to close margin loan account?

·         No, the client shall not be forced to close the debt balance as long as it is within safe limits of the loan. If the margin rate declined to 40% of portfolio, the client is alarmed that he/she has to deposit in cash or sell some shares. The account official shall not sell shares in order to cover the client’s debts except when margin rate is 30% of portfolio according to the contract.

7

Is it possible to sell shares owned by the client at the beginning of opening margin loan account or they are retained?

·         No, shares are not retained and the client can sell them whenever he/she wants.

8

Is it possible for the client to withdraw from such account?

·         Yes, the client can withdraw from the account provided that he/she shall settle the debts first.

9

When are interests and commissions deducted?

·         Interests and commissions are deducted at the end of each month.