MorganCapital Securities Limited has announced a 0.25% increase in the rate it charges as brokerage commission, effective from July 2025.
This was communicated in a letter to its clients dated May 16, 2025, and signed by the Managing Director, Dipo Olomofe.
The firm stated that, starting from July 1, 2025, a new rate of 0.75% will apply to buy and sell transactions—up from the current rate of 0.50%, marking a 0.25% adjustment.
MorganCapital reaffirmed its commitment to delivering quality stockbroking services, noting that it has maintained the same rates for seven years—consistently charging below the 1.35% SEC-approved commission.
“As you know, in the past seven years, we have not increased the cost of our services for our clients, including brokerage commission, despite the harsh economic conditions in the country.”
According to the letter, the revised commission rate is intended to help the company remain competitive and continue operating sustainably amid the global economic uncertainties currently affecting the business landscape.
For context, brokerage platforms such as Bamboo and Trove charge rates that are relatively close to MorganCapital’s. Bamboo charges a 1.5% commission per trade, with a minimum fee of $1 if 1.5% of the trade value falls below that. Trove offers a slightly lower flat rate of 1%.
Call for an upward review of brokerage fees
At the Annual General Meeting of the Association of Securities Dealing Houses of Nigeria (ASHON) held in October 2024, stockbrokers unanimously resolved to seek an upward review of the standard brokerage fee, currently pegged at 1.35%.
The brokers emphasized that the current brokerage fee has remained unchanged for several years, despite rising inflation and increasing regulatory costs—arguing that the static rate no longer reflects the economic realities of doing business in Nigeria’s evolving capital market.
Sam Onwukwe, Chairman of ASHON, emphasized the association’s collaborative efforts with capital market regulators to address the issue.
“Brokerage fees have remained unchanged for many years, despite persistent inflation and rising operational costs,” Onwukwe noted. “After extensive market research and internal consultations, ASHON has formally requested the SEC to consider an upward review of the current rates.”
Beyond the fee adjustment, ASHON also called for the reintroduction of margin trading — a practice that allows investors to borrow funds to trade securities.
The association argued that the suspension of margin trading has severely limited access to liquidity for many stockbroking firms, making it harder for them to seize market opportunities.
Economic uncertainties
President Trump’s second term has been marked by increased volatility in the global economy, capital markets, and business activity.
The administration began rolling out new tariff policies in mid-February and escalated tensions further with an announcement in early April, prompting retaliatory measures from China.
- In early March, the S&P 500 entered bearish territory, falling more than 10% from its peak.
- The Nigerian All Share Index also took a hit, recording its worst single-day loss on April 7, 2025, dropping by 1,295.02 points.
- The market turbulence also impacted major retailers, who likely faced mounting pressure on how to absorb or pass rising costs on to customers.
However, on May 12, 2025, following a two-day negotiation, the U.S. and China agreed to a 90-day pause on tariff escalations.
- As part of the deal, U.S. tariffs on Chinese goods were reduced by 145%, down to 30%, while China cut its tariffs on U.S. goods from 125% to 10%.
Despite the reductions, the remaining 30% and 10% tariffs still place a significant cost burden on global businesses, whether directly or indirectly impacted, which may ultimately be passed on to customers.
About the company
MorganCapital is an investment banking, securities trading, and principal investment firm, licensed by the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX).
The firm provides brokerage services through its i-Trade platform, which allows users to access their accounts securely, view real-time stock positions, and place trades.
MorganCapital also offers investment advisory services, portfolio management, and administrative support, including dividend collection and share certificate management.
