Transaction costs on BODIVA are structured across four layers: exchange fees, broker commissions, custody charges, and applicable taxes. For an investor trading the five listed equities – BAI, BFA, BCGA, ENSA, and BODIVA – understanding the full cost stack is critical for accurately calculating net returns, particularly in a market where the BNA benchmark rate stands at 17.5% and competing fixed-income yields are in the 16-18% range.
Fee Schedule Summary
| Fee Category | Payable To | Approximate Rate | Notes |
|---|---|---|---|
| Exchange trading fee | BODIVA | 0.05% - 0.15% of trade value | Per-transaction; varies by instrument |
| Broker commission | SCVM / SDVM | 0.25% - 1.00% of trade value | Negotiable; varies by broker and trade size |
| Custody fee (annual) | Custodian bank | 0.10% - 0.25% of portfolio value | Charged quarterly or annually |
| Settlement fee | CEVAMA | ~0.02% per settlement | Per-transaction via CEVAMA depository |
| CMC supervision levy | CMC | Included in exchange fee | Regulatory cost passed through by BODIVA |
Source: BODIVA fee schedule and market participant disclosures. Rates are indicative and subject to change. Confirm current fees with your broker and custodian.
Exchange Fees (Taxas da Bolsa)
BODIVA charges a per-transaction fee on all trades executed through the SETIC electronic trading system. These fees are typically calculated as a percentage of the total trade value (valor da transaccao) and vary by instrument type:
| Instrument | Exchange Fee |
|---|---|
| Equities | ~0.10% of trade value |
| Treasury Bills (Bilhetes do Tesouro) | ~0.05% of nominal value |
| Treasury Bonds (Obrigacoes do Tesouro) | ~0.05% - 0.08% of nominal value |
| Corporate Bonds | ~0.10% of nominal value |
Broker Commissions (Comissoes de Corretagem)
Licensed brokers – both Sociedades Corretoras de Valores Mobiliarios (SCVMs) and Sociedades Distribuidoras de Valores Mobiliarios (SDVMs) – charge commissions for order execution. Rates are negotiable and typically fall within a range of 0.25% to 1.00% of trade value, with lower rates available for larger transactions or institutional clients.
Key factors affecting broker commissions:
- Trade size: Larger orders typically qualify for lower percentage rates
- Client relationship: Institutional clients with ongoing mandates negotiate preferential terms
- Instrument type: Equity commissions may differ from fixed-income commissions
- Frequency: Active traders may secure volume-based discounts
Custody Charges (Taxas de Custodia)
Custodian banks charge fees for safekeeping securities in CEVAMA accounts, processing corporate actions (dividends, rights issues), and providing account statements. Custody fees are typically calculated as an annual percentage of portfolio value, charged quarterly.
| Service | Approximate Fee |
|---|---|
| Annual custody (portfolio-based) | 0.10% - 0.25% of market value |
| Account opening | Varies by custodian; some waive this fee |
| Account maintenance (annual) | Kz 5,000 - Kz 25,000 |
| Corporate action processing | Typically included in custody fee |
| Statement generation | Typically included |
Taxes on Trading Activity
| Tax | Rate | Applicable To |
|---|---|---|
| Imposto sobre Aplicacao de Capitais (IAC) | 10% | Dividends and capital gains |
| Capital gains tax | 10% | Realized profit on share disposals |
| CEOC (foreign exchange operations tax) | 0% | Exempt for capital markets transactions (Aviso 15/19) |
| Stamp duty (Imposto do Selo) | 0.1% | On certain financial transactions |
The exemption of capital markets transactions from the CEOC under Aviso 15/19 is a significant cost advantage for foreign investors, eliminating what would otherwise be an additional tax on kwanza purchases and repatriations related to securities trading.
Total Cost Illustration
For an investor buying Kz 10,000,000 (~$10,900 at Kz 914.60/USD) of BAI shares:
| Component | Rate | Cost (Kz) |
|---|---|---|
| Exchange fee | 0.10% | 10,000 |
| Broker commission | 0.50% | 50,000 |
| Settlement fee | 0.02% | 2,000 |
| Total buy-side cost | 0.62% | 62,000 |
An equivalent cost is incurred on the sell side, bringing the round-trip transaction cost to approximately 1.24% before taxes. This compares favorably with many frontier market exchanges but is higher than developed market platforms.
For market operating hours, see Market Calendar. For account setup, see How to Open a BODIVA Custody Account.