The Nigerian Stock Exchange (NSE) has commenced the reduction of the cost of its Trade Alert Service by about N1.24 billion from March 2014.
This will scrap the current charge of 0.6% of every trade on the exchange and introduce an enhanced notification system called X-Alert, which will be charged at a fee of N4 per transaction.
In a statement by the NSE, the X-Alert is a service that will allow the investing public to know when a transaction has been made on their account. “Each time investors buy or sell a security, an alert is sent via a Text Message to the recipient’s mobile phone or via an e-mail to the recipient’s mailbox. So what that does is to bring real time notification plus transparency to the market at market rates, while safeguarding against unauthorised sale or purchase of securities.”
“The big difference for the investing community is that rather than pay 0.12% of every trade round trip, investors will now pay a flat fee of N4.00. Based on 2013 figures, the trade alert charge with the old system was N 1.25billion; with the improved notification system however, the annual cost of the alerts would be some N5.52million based on a N4 flat fee – that is a reduction of N 1.24 billion per annum in the cost incurred by investors transacting in the market”, it added.