Broker is a legal company through which individual investors can sell and buy their stocks. Without brokers, no one can trade stocks in the secondary market. Because brokers act as intermediaries among stock sellers and buyers, they charge certain fees as per the rules and regulations. In this post, we are going to explain the latest Broker Commission in Nepal for common equity share, mutual funds, and government bonds.
1. Broker Commission For Equity Shares
Broker commission for equity shares ranges from 0.40 to 0.27. The broker commission varies in accordance with the trading amount. Higher the trading amount, lower the broker commission and lower the trading amount higher the broker commission. The broker commission percentage is deducted from the trading amount. The following table shows the current broker commission in Nepal.
Updated Broker commission in Nepal (Effective from 2081-02-01)
| S.N. | Trading Amount | Charge in % |
| 1 | Up to 50,000 | 0.36 |
| 2 | > 50,000 & <= 5,00,000 | 0.33 |
| 3 | > 5,00,000 & <= 20,00,000 | 0.31 |
| 4 | > 20,00,000 & <= 1,00,00,000 | 0.27 |
| 5 | Above 100,00,000 | 0.24 |
Previous Broker commission in Nepal
| S.N. | Trading Amount | Charge in % |
| 1 | Up to 50,000 | 0.40 |
| 2 | > 50,000 & <= 5,00,000 | 0.37 |
| 3 | > 5,00,000 & <= 20,00,000 | 0.34 |
| 4 | > 20,00,000 & <= 1,00,00,000 | 0.30 |
| 5 | Above 100,00,000 | 0.27 |
2. Broker Commission For Government Bond
A government bond is a type of instrument generally issued by the central bank of the country in order to maintain financing. Comparatively government bonds are highest secure investment for investors. But it gives the very little amount of interest to bondholders. Following are the fee/charge of broker in the transaction of government bond.
| S.N. | Trading Amount | Charge in % |
| 1 | Up to 5,00,000 | 0.10 |
| 2 | > 5,00,000 & < 50,00,000 | 0.05 |
| 3 | > 50,00,000 | 0.02 |
3. Broker Commission For Mutual Fund
Mutual Funds are temporary fund run and managed by the expert team in order to give the highest possible return to its unitholders. You can read more about the mutual funds in Nepal here. The broker commission for the mutual funds is as follows.
| S.N. | Trading Amount | Charge in % |
| 1 | Up to 5,00,000 | 0.15 |
| 2 | > 5,00,000 & < 50,00,000 | 0.12 |
| 3 | > 50,00,000 | 0.10 |
4. Broker Commission For Stocks That Are Not Listed in A, B and C Category
| S.N. | Trading Amount | Charge % |
| 1 | Up to 50,000 | 0.75 |
| 2 | > 50,000 & < 50,00,000 | 0.60 |
| 3 | > 50,00,000 | 0.40 |
Besides the above-mentioned broker charge, investors have to pay a 0.015% of trading amount transaction charge to SEBON. And separate Rs. 5 per transaction (Buying), as a name transfer charge. Also Rs. 25 is paid to DP (depository participants) as a transaction fee.
Depository Participant Fee in Nepal
Depository participant (DP) acts as the intermediary between the depository system (CDS and Clearing Ltd.) and clients.
Individual clients enrolled in the depository participant services will have a separate account and be entitled as the beneficial owner (BO) of that account. In Nepal, a DP can be a brokerage firm or individual capital of the banks.
Depository Participant services will help individual clients maintain their securities account balances.
What are the Functions of DP
- Open and maintain Beneficial Owner account
- Dematerialization and re-materialization of securities
- Keep record of securities in electronic form
- Settlement of trades by transferring/receiving the securities from/in BO accounts
- Electronic credit of securities allotted by issuers during IPOs
- Deposit of non-financial corporate benefits (such as bonus, right shares, etc) issued by issuers in the Demat Account of BOs
- Facilitation in the pledge/unpledged/freeze/unfreeze etc of dematerialized securities
Also Read:
- 7 Mistakes To Avoid While Applying For IPO
- CASBA Charge of Nepali Banks
- Everything You Need to Know About Collateral
- List of Stock Broker in Pokhara