FRA Approves Marketing of Brokerage Services via E-Payment Apps

Securities brokerage services in Egypt are set to reach users through electronic payment applications and other digital platforms after the Financial Regulatory Authority approved a new regulatory framework governing such activity. The decision, authorised by FRA Chairperson Mohamed Farid, enables brokerage firms to market their services through approved digital channels while maintaining clear boundaries around execution, advice, and data protection.

Under Decision No. 332 of 2026, a digital platform is defined as an FRA-approved business model that facilitates the encrypted transmission of client trading orders to brokerage firms. The framework is aimed at established digital channels, including e-payment applications, and is positioned as a step toward integrating technology into non-banking financial services while preserving market integrity.

Digital platforms seeking accreditation must comply with the authority’s technical infrastructure requirements, including end-to-end encryption, secure data handling, and the maintenance of an electronic log for technical complaints. While platforms are permitted to promote brokerage services through formal agreements, they are prohibited from acting on behalf of brokerage firms, executing trades, or providing investment advice. They are also barred from favouring specific securities, classifying investment options, or using forecasting models or artificial intelligence to influence investor behaviour.

Brokerage firms remain solely responsible for opening accounts and executing client orders. Any partnership with a digital platform requires prior approval from the regulator, and the platform operator must be an Egyptian joint-stock company registered in the FRA’s official outsourcing register. Firms are also required to provide direct digital communication channels for clients and to publish clear information on services, fees, commissions, and the risks associated with electronic trading.