Trading Ethiopian Shares Can Cost More Than 2% Per Transaction
Buying shares on Ethiopia’s emerging securities market can cost investors more than 2% of the transaction value once brokerage commissions and statutory market fees are combined, according to a comparison of published charges by local securities intermediaries.
The analysis by StockMarket.et found that the stated all-in cost of buying shares on the Ethiopian Securities Exchange’s (ESX) Main and Growth Markets ranges from 2.01% to 2.11% among six intermediaries whose fee schedules were examined.
The cost consists of two main components: the commission charged by the intermediary and statutory fees imposed by the ESX and the Ethiopian Capital Market Authority (ECMA).
What does a Birr 100,000 share purchase cost?
For an investor buying Birr 100,000 worth of listed shares, the combined stated transaction cost would be approximately Birr 2,010 to Birr 2,110, depending on the intermediary’s published headline commission.
That means the investor would need to spend between Birr 102,010 and Birr 102,110 to acquire Birr 100,000 worth of shares, before any other applicable charges.
The underlying ESX fee schedule sets the exchange transaction charge for Main and Growth Market equities at 0.36%, while the ECMA charge is 0.15%, giving a combined statutory cost of 0.51%.
| Cost component | Main & Growth equity |
| Broker commission | 1.50%–1.60% |
| ESX fee | 0.36% |
| ECMA fee | 0.15% |
| Combined stated cost | 2.01%–2.11% |
The difference between the lowest and highest headline brokerage rates in the comparison is only 10 basis points, but the cost becomes more significant when an investor buys and later sells the same position.
For a Birr 100,000 position that is bought and sold at the same value, the combined stated transaction cost would be approximately Birr 4,020 to Birr 4,220, before other applicable charges.
Fixed-income trading is considerably cheaper
The cost structure is different for government and corporate debt instruments.
The ESX charges 0.021% on treasury bills, treasury bonds, corporate bonds, commercial paper, sub-national bonds and Sukuk under its published fee schedule. The ECMA charge for these fixed-income instruments is 0.005%, producing a combined statutory charge of 0.026%.
The intermediaries examined generally publish a 0.10% brokerage commission for these instruments.
That produces a stated combined transaction cost of 0.126%.
For a Birr 100,000 fixed-income transaction, the stated cost would therefore be approximately Birr 126, substantially below the cost of trading listed equities.
| Instrument | Stated all-in cost |
| Main & Growth equity | 2.01%–2.11% |
| OTC / unlisted equity | 2.55%–2.65% |
| Corporate bonds | 0.126% |
| Treasury bills | 0.126% |
| Treasury bonds | 0.126% |
| Commercial paper | 0.126% |
| Sukuk | 0.126% |
OTC shares carry higher costs
Investors trading OTC or unlisted equities face higher charges.
The ESX fee for OTC/unlisted equity is 0.50%, compared with 0.36% for Main and Growth Market equity. Combined with the brokerage rates published by the intermediaries, the stated all-in cost ranges from approximately 2.55% to 2.65%.
The higher cost reflects both the higher exchange fee and the higher brokerage rates applied to the OTC/unlisted segment.
Negotiated rates can lower the cost
Published headline commissions do not necessarily represent the lowest rate available to every investor.
StockMarket.et’s comparison identifies negotiated floors published by two intermediaries. Ethio Fidelity lists a negotiated rate of 1.30%, while Wegagen Capital lists 1.40% for Main and Growth Market equity.
At the 1.30% negotiated rate, the brokerage and statutory charges would amount to 1.81% before any additional applicable fees.
This is important because investors comparing intermediaries should distinguish between a firm’s headline commission and any disclosed negotiated rate or eligibility conditions.
The market’s fee structure is still developing
The transaction costs come as Ethiopia’s securities-market infrastructure continues to expand.
ESX admitted First Addis Investment Bank and Siinqee Investment Bank as trading members in May 2026, expanding the number of institutions able to facilitate trades on the exchange.
The Exchange subsequently amended its fee schedule in May, introducing a 0.18% transaction fee for block trades in the Equity Main and Growth Markets, alongside changes to listing and OTC admission fees. The amendment took effect on May 2, 2026.
At the same time, the range of investment products available through Ethiopia’s capital-market framework is expanding. The ECMA’s newly approved Collective Investment Schemes Directive provides a regulatory framework covering money-market funds, mutual funds, real-estate investment funds, ETFs, alternative investment funds and special-designation funds.
For investors, the growing market means that comparing the total transaction cost, rather than looking only at a broker’s advertised commission, will become increasingly important.
The current comparison also does not mean every possible cost is included. Central Securities Depository services and other applicable charges may add to the final amount depending on the transaction.
Source: StockMarket.et analysis published September 17, 2026, supported by the Ethiopian Securities Exchange’s published fee schedule and subsequent amendments.