Fintech trading apps are making Nigerian equities more accessible than ever, but beneath the sleek interfaces, fee structures vary in ways that impact investor returns. A recent comparison using 100 shares of Transnational Corporation Plc at ₦50.05 per share offers a clear look at how costs stack up across three leading platforms: Cowrywise, Bamboo, and I-invest.
The Bottom Line Costs
- Cowrywise: ₦5,695.62
- Bamboo: ₦5,189.94
- i-invest: ₦5,620.62
On the surface, Bamboo emerges cheapest, with Cowrywise the priciest. But the devil is in the details.
Brokerage Fees: The Biggest Differentiator
- Cowrywise: 1.35%
- I-invest: 1.35%
- Bamboo: 1.00%
This alone explains much of Bamboo’s competitive edge, it charges a lower brokerage commission on trades.
Consistent Regulatory Charges
Across all three platforms, SEC (0.3%) and stamp duty (0.08%) remain constant. These are statutory fees applied to all trades, ensuring fairness at the regulatory level.
Processing, VAT, and Hidden Costs
Here’s where differences creep in:
- Value-Added Tax (VAT): Bamboo’s VAT looks higher due to unclear computation, which could confuse new investors.
- Trade alerts: Cowrywise and Bamboo charge ₦10 per alert, while i-invest charges only ₦4.
- CSCS fee adjustment: i-invest still lags behind in updating the CSCS trade alert fee to the new ₦10 standard, creating a minor but noticeable gap.
Cowrywise’s Buffer Advantage
Cowrywise builds in a ₦511.60 buffer to cover price swings at the time of order placement. While this inflates upfront costs, it shields investors from the risk of failed trades or negative balances when stock prices move unexpectedly.
By contrast, Bamboo does not provide such a buffer, which may explain reports of negative balances among its users.
Platform Experience Matters
- Cowrywise: Prioritizes investor experience with real-time pricing and trade buffers, which may justify its higher costs.
- Bamboo: The most affordable option on paper, but users may trade off some convenience and safeguards.
- I-invest: Competitive pricing, but slower to adjust to market-wide fee changes, which could be frustrating for detail-oriented investors.
Final Word for Investors
While Bamboo is the cheapest option in pure monetary terms, Cowrywise offers reliability and user-friendly safeguards that some investors might find worth the extra ₦500. i-invest sits in the middle, attractive for its lower alert costs but less responsive to fee updates.
For retail investors, the choice boils down to priorities:
- Do you want the lowest cost per trade? Pick Bamboo.
- Do you value smooth execution and fewer surprises? Cowrywise may be worth the premium.
- Do you want a budget-friendly compromise? i-invest fits the bill, though with caveats.
Ultimately, transparency around fees is just as important as the raw numbers.
