Looking for in-depth information about Broker Commission in Nepal before investing in the stock market? Find all the information you need right here to make informed decisions about investing in Nepal’s stock market.
It is all about the commission and how one should successfully invest in the stock market with the help of professional stockbrokers.
The commission is a charge paid to the broker for carrying out an order to buy or sell stock traded in the stock market. The commission, therefore, forms a part of the total cost of executing a whole trade.
For any transaction to take place, another broker must be willing to accept the opposing position and act as the counterparty to the trade. This counterparty can either be a broker or a dealer.
New Stock Broker Commission in Nepal
It is best to know the commission that the broker, SEBON, and others, charge as brokerage fees. The good part about the brokerage fees is that recently Securities Board of Nepal (SEBON) reduced the stock commission by 33%. so, here you have to pay less fee compared to the previous one while buying and selling shares.
There are 5 different broker commission types according to different individuals/institutions.
- Equity Shares
- Government Bonds
- Corporate Bonds/Debenture
- Mutual Funds (Close-End)
- Other Categories
Other than this, you need to know that there are different charges you need to pay in each transaction. They are
- DP Charge: This Depository Participant (DP) Charge is Rs. 25 fixed per transaction for both buying and selling.
- Capital Gain Tax (CGT): You only have to pay Capital Gain Tax only when you book a profit. The charges are different like 5% and 7.5% for Individuals and 10% for Institutions.
- SEBON Fee: It is the fee paid to the Securities Board of Nepal.
- Broker Commission: It is the commission you need to pay to the Broker after each successful transaction.
Also Read: Income Tax Rate in Nepal
The commission for Equity Shares ranges from Rs. 10 or 0.4% to 0.27%. so if the range of total transaction amount is Rs. 50,000 or Less then you have to pay 0.4% or Rs. 10 whichever is a higher commission. Also, if the range of amount is higher then the commission fee is lower i.e. if the range of total transaction amount is above Rs. 10,000,000 then the commission is 0.27%.
| S.N. | Total Transaction Amount (NPR) | Broker Commission Charge (%) |
|---|---|---|
| 1 | Up to Rs. 50,000 or Less | 0.4% or Rs. 10 (whichever is higher) |
| 2 | Rs. 50,001 to Rs. 500,000 | 0.37% |
| 3 | Rs. 500,001 to Rs. 2,000,000 | 0.34% |
| 4 | Rs. 2,000,001 to Rs. 10,000,000 | 0.30% |
| 5 | Above Rs. 10,000,000 | 0.27% |
2. Broker Commission For Government Bonds
The commission for Government Bonds ranges from Rs. 10 or 0.10% to 0.02%. so if the range of total transaction amount is Rs. 50,000 or Less then you have to pay 0.10% or Rs. 10 whichever is a higher commission. If the range of transaction amount is Rs. 5,00,001 to Rs. 50,00,000 then the commission charge is 0.05%. Also, if the range of amount is higher then the commission fee is lower i.e. if the range of total transaction amount is above Rs. 50,00,000 then the commission is 0.02%.
| S.N. | Total Transaction Amount (NPR) | Broker Commission Charge (%) |
|---|---|---|
| 1 | Up to Rs. 5,00,000 or Less | 0.10% or Rs. 10 (whichever is higher) |
| 2 | Rs. 5,00,001 to Rs. 50,00,000 | 0.05% |
| 3 | Above Rs. 50,00,000 | 0.02% |
3. Broker Commission For Corporate Bonds/Debenture
The commission for the Corporate Bonds/Debenture ranges from Rs. 10 or 0.10% to 0.02%. so if the range of total transaction amount is Rs. 50,000 or Less then you have to pay 0.10% or Rs. 10 whichever is a higher commission. If the range of transaction amount is Rs. 5,00,001 to Rs. 50,00,000 then the commission charge is 0.05%. Also, if the range of amount is higher then the commission fee is lower i.e. if the range of total transaction amount is above Rs. 50,00,000 then the commission is 0.02%.
| S.N. | Total Transaction Amount (NPR) | Broker Commission Charge (%) |
|---|---|---|
| 1 | Up to Rs. 5,00,000 or Less | 0.10% or Rs. 10 (whichever is higher) |
| 2 | Rs. 5,00,001 to Rs. 50,00,000 | 0.05% |
| 3 | Above Rs. 50,00,000 | 0.02% |
4. Broker Commission For Mutual Funds (Close-End)
In the case of the Mutual Funds (Close-End) Broker Commission, it’s different. If It’s Up to Rs. 5,00,000 or Less the charge is 0.15% or Rs. 10 (whichever is higher). If the transaction amount is Rs. 5,00,001 to Rs. 50,00,000 then the percent of the charge is 0.12% and above that amount, the charge is 0.10%.
| S.N. | Total Transaction Amount (NPR) | Broker Commission Charge (%) |
|---|---|---|
| 1 | Up to Rs. 5,00,000 or Less | 0.15% or Rs. 10 (whichever is higher) |
| 2 | Rs. 5,00,001 to Rs. 50,00,000 | 0.12% |
| 3 | Above Rs. 50,00,000 | 0.10% |
5. Broker Commission For Stocks in Other Categories
If the stocks are other than the above-mentioned 4 categories then the commission is as follows.
| S.N. | Total Transaction Amount (NPR) | Broker Commission Charge (%) |
|---|---|---|
| 1 | Up to Rs. 5,00,000 or Less | 0.75% |
| 2 | Rs. 5,00,001 to Rs. 50,00,000 | 0.60% |
| 3 | Above Rs. 50,00,000 | 0.40% |
Check Out: Upcoming IPO in Nepal
How to Calculate Broker Commission in Nepal?
To calculate the Buy/Sell Broker Commission in Nepal, you can use our Share Calculator where you can find the Amount Before Commission, Total Commission, DP Charge, SEBON Fee, Total Profit, Return On Investment, Total Receivable Amount, etc.
Example of Buying Stock with Commission Rate: If you want to BUY 500 shares of a company at Rs. 100 per share then you have to pay Rs. 50232.50 including SEBON Fee, Commission, and DP Charge.
Example of Selling Stock with Commission Rate: If you share 500 Share Quantity of a company purchased at Rs. 100 per share, then if you sell the share at 200 per share the total amount you will receive is Rs. 95901.50 including SEBON Fee, Commission, and DP Charge.
Frequently Asked Questions
How many Brokers are there in Nepal?
According to NEPSE (Nepal Stock Exchange Ltd.), there are currently 50 licensed stockbrokers plus one stock dealer in Nepal including inside and outside the Kathmandu valley.
Is DP Charge in Nepal Fixed?
Yes, the DP (Depository Participant) Fee in Nepal is fixed i.e. Rs. 25 for every transaction both for buying and selling.
Is Capital Gain Tax different for Individuals and Institutions?
Yes, the Capital Gain Tax is different for both Individuals and Institutions i.e. for individuals if the holding period is less than one year then you’ll be taxed 7.5% capital gain tax, otherwise, it’s 5%. For institutions (Corporate), the capital gain tax is 10% fixed.
How Many Brokerage Accounts Can I Have in Nepal?
You can have two Demat Accounts in Nepal from two different Brokers for Buying and Selling Purposes but you can’t apply IPO from both of the accounts.
Can I change Stock Brokers in Nepal?
If you are going to change your broker then the initial thing you need to do is request the first broker to close it and ask the second broker to open your Demat account.
Conclusion
This guide specifically covers broker commission in Nepal including rates for individuals and institutions for the secondary market. By reading through it, you’ll gain a better understanding of how commissions function in the stock market.
If you have any queries related to this Broker Commission in Nepal guide then, please feel free to comment below.