Dipo Olowookere
By Dipo Olowookere
Several times, I have been asked the types of trading fees or commissions investors in the Nigerian stock market pay when they execute a transaction.
This transaction could be a buy or sell and each time this is made, certain amount of money is charged by different groups involved in the market.
Agencies You Pay
First, let me state here those agencies that get a certain cut from every share you buy or sell at the market.
These agencies are the Nigerian Stock Exchange (NSE), the Securities and Exchange Commission (SEC) and the Central Securities Clearing System (CSCS).
Others who get cuts from transactions at the stock market are the brokerage firms or stockbrokers, the Nigerian government through payment of Stamp Duty and the telecommunications companies, who charge for alerting you of the trades.
What They Charge You
When you execute a buy, the NSE charges no fee, but when it is a sell action, you are charged 0.3 percent of the total value. This is the same thing with the CSCS, which takes no fee for any purchase of shares, but gets 0.3 percent for selling your equities.
However, when you execute a buy action, you are charged 0.3 percent by SEC, but nothing is taken by the apex capital market regulator when you sell your stocks.
When you buy or sell your stocks, your brokerage company or stockbroker take a commission between 0.75 percent and 1.35 percent from the total value of your transaction.
Also, for every buy or sell action you execute, you are charged 0.075 percent for stamp duty, while N4 is charged as alert for any transaction you carry out.
I have taken efforts to highlight these processes in a pictorial form, which is attached below this article. Please, if you require additional information or further clarification, feel free to use the comment section below. Happy trading.
