Getting Started as an Investor
~4 min read
Brokerage Fees Explained
Understanding Trading Costs
Every time you buy or sell shares on the NSE, you pay a set of fees. Understanding these fees helps you make better investment decisions.
Fee Breakdown
| Fee | Rate | Paid To |
|---|---|---|
| Brokerage commission | 1.5% – 2.1% | Your broker |
| CMA levy | 0.14% | Capital Markets Authority |
| CDSC fee | 0.04% | Central Depository |
| NSE fee | 0.0024% | Nairobi Securities Exchange |
Tips to Minimize Fees
- Negotiate — High-volume traders can negotiate lower brokerage rates
- Fewer trades — Buy and hold costs less than frequent trading
- Larger orders — Fixed minimum fees mean smaller orders cost proportionally more
Remember: fees eat into your returns. A 2% fee on a 10% gain means your real return is closer to 8%.