Stockbroking firm Morgan Capital increases fee for first time in seven years

Morgan Capital, one of Nigeria’s most popular online stockbrokers, has announced an increase in its transaction fees for the first time in seven years, citing rising operational costs and persistent inflation.

Effective July 1, 2025, the firm’s brokerage fee will rise from 0.5% to 0.75% per transaction. The decision marks the first price adjustment since 2018 and has drawn mixed reactions, particularly from young and first-time investors who make up a large portion of the firm’s client base.

Morgan Capital gained national attention in 2013 when it slashed its brokerage commission from the then-standard 1.35% to 0.25%. In 2018, it adjusted the rate to 0.5%, maintaining that level for seven years – making it arguably the cheapest retail broker in the country throughout that period.

In the first week of May, Morgan Capital handled 4.73% of the entire volume of trades, the sixth largest of any stockbroker.

In a statement to clients on Friday, the company said, “…in the last 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.”

“For us to remain competitive and continue to serve you better, the need for us to adjust a slight uptick of 0.25 percent to the rate on our brokerage commission charged cannot be overemphasized,” said Dipo Olomofe, Managing Director of Morgan Capital.

Nigeria’s inflation surged above 30% in 2024 driven by the removal of fuel subsidies, a sharp currency devaluation, and rising food prices. Annual inflation eased to 23.71% in April after the National Bureau of Statistics rebased the data.

While Morgan Capital’s new 0.75% fee remains below the industry average of 1%–1.35%, some users voiced frustration.

“See Morgan Capital I ran to because of low brokerage fees. They have also increased their fees slightly. I’ll still use them, but their mail shocked me,” a user wrote on a Nairaland forum for retail investors.

Others were more understanding. “It’s better to pay 1% brokerage fees and get better services,” another investor added.