Stock Broker Charges in Nepal: What Every Investor Should Know

Investing in the Nepal Stock Exchange (NEPSE) can be a rewarding experience, but to truly understand your net returns, you must first grasp how stock broker charges work. Whether you’re trading equities, mutual funds, or bonds, each comes with its own fee structure. In this guide, we break down broker commissions, SEBON fees, DP charges, and Capital Gains Tax (CGT) so you know exactly what you’re paying.

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📊 Broker Commission in Nepal (Updated 2025)

Broker commissions are regulated by the Securities Board of Nepal (SEBON) and vary depending on the type of security and transaction amount. Below is the updated tier-wise rate structure for equity, bonds/debentures, and mutual funds:

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🟩 Equity (Ordinary Shares)

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🟦 Bonds or Debentures

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🟨 Mutual Funds

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💰 Additional Charges You Should Know

🔹 SEBON Fee

• A 0.015% transaction fee is charged on the transaction amount (buy/sell).

🔹 Depository Participant (DP) Charge

• Rs. 25 per stock per transfer day (paid to your DP during the share settlement).

🔹 Capital Gains Tax (CGT)

• 7.5% on short-term capital gains (held < 365 days)

• 5% on long-term capital gains (held > 365 days)

• 10% for institutional investors (flat)
  📝 This is auto-deducted at the time of sale.

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📌 Example Calculation

Let’s say you bought shares worth Rs. 200,000 and sold them later for Rs. 270,000 within a year. Here's a breakdown of the costs:

1. Buy Transaction (Rs. 200,000)

• Broker Commission (0.25%) = Rs. 500

• SEBON Fee (0.015%) = Rs. 30

• DP Charge = Rs. 25
  Total Buy Charges = Rs. 555

2. Sell Transaction (Rs. 270,000)

• Broker Commission (0.25%) = Rs. 675

• SEBON Fee (0.015%) = Rs. 40.5

• DP Charge = Rs. 25

• Capital Gain = Rs. 70,000 → CGT (7.5%) = Rs. 5,250
  Total Sell Charges = Rs. 675 + 40.5 + 25 + 5,250 = Rs. 5,990.5

✅ Grand Total Charges = Rs. 555 + Rs. 5,990.5 = Rs. 6,545.5

💸 Net Gain = Rs. 70,000 – Rs. 6,545.5 = Rs. 63,454.5

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🔍 Key Takeaways

✅ Choose the right broker: Fees may look small but add up quickly
✅ Check your transaction slab: Higher volume = lower commission rate
✅ Hold long-term: Save 2.5% on CGT
✅ Track your DP charges: Especially if you buy multiple stocks on the same day
✅ Watch for tax brackets: Institutional CGT is higher (10%)

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🏦 Final Thoughts

Understanding the breakdown of stock broker charges in Nepal is crucial for investors at any level. These costs directly impact your net returns, and a well-informed investor is always a more profitable one.

If you're planning your next investment on NEPSE, keep this guide handy to make smart, cost-effective decisions.