What Does It Cost to Buy Shares on the DSE?
Buying shares on the Dar es Salaam Stock Exchange costs more than the share price. A trade may include brokerage, DSE, CMSA, CDS and Fidelity Fund charges, plus the cost of moving money. For a TZS 500,000 trade, the DSE’s maximum fee produces TZS 11,884 in charges before any bank or mobile-money fee.
The cost layers in a DSE share trade
The DSE FAQ states that maximum total brokerage fees are 2.3768% of the trade value. It says this total includes brokerage, DSE, CMSA, CDS and Fidelity fees. The percentage applies to a purchase and a sale.
The published DSE fee schedule identifies the underlying equity charges for a trade up to TZS 10 million:
- Brokerage commission: the broker’s charge for handling and executing the order; the schedule shows 1.7% in this band.
- DSE fee: the exchange’s portion of the transaction charge.
- CMSA fee: the capital-markets regulator’s portion.
- Fidelity Fund fee: the schedule says 0.02% goes to the fund, while 0.28% is divided equally between DSE and CMSA.
- CDS charge: the central securities depository transaction fee; the current schedule shows 0.06% of transaction value.
- Applicable VAT: part of the difference between the listed base charges and the DSE’s all-in maximum.
- Bank or mobile transfer cost: a separate provider charge for sending or receiving money. It is not included in the DSE’s 2.3768% figure.
Ask for the broker’s current written tariff before trading. The contract note—the legal record of an executed trade—should show the actual charges applied. Learn how the transaction reaches that stage in Hisa Kiganjani: How to Buy Your First Share from Your Phone.
Example: buying shares worth TZS 500,000
Assume an order executes for exactly TZS 500,000 and the maximum published rate applies. This is an educational estimate, not a quote from a broker.
| Purchase calculation | TZS |
|---|---|
| Value of shares | 500,000 |
| Maximum combined trading charges: 500,000 × 2.3768% | 11,884 |
| Amount needed before payment-provider charge | 511,884 |
| Bank/mobile transfer charge | Add current provider fee |
| Final cash paid | 511,884 + provider fee |
If the payment route displayed a TZS 1,000 transfer fee, final cash paid would be TZS 512,884. That fee is illustrative; use the provider’s current amount.
Do not send exactly TZS 500,000 and assume all of it will buy shares. Confirm whether the order screen requires the trade value plus charges or deducts charges from the money sent. Keep the receipt and compare it with the final contract note.
Example: selling the same value later
Now assume the shares are later sold for a total trade value of TZS 500,000. The unchanged value isolates costs; it does not predict a future price.
| Sale calculation | TZS |
|---|---|
| Gross sale value | 500,000 |
| Maximum combined trading charges: 500,000 × 2.3768% | (11,884) |
| Net proceeds before payment-provider charge | 488,116 |
| Bank/mobile withdrawal or transfer charge | Subtract current provider fee |
| Final cash received | 488,116 − provider fee |
Buying and selling at the same TZS 500,000 value therefore creates up to TZS 23,768 in combined trading charges, before payment costs. A share price must rise enough to cover both sides before the complete round trip breaks even. It could instead fall, and an order may not execute quickly if buyers are scarce.
Why a small trade can feel expensive
A pure percentage fee has the same proportional effect at every value: 2.3768% remains 2.3768%. Small trades become proportionately more expensive when a fixed payment fee or broker minimum also applies.
For example, an illustrative TZS 1,000 payment charge equals 1% of a TZS 100,000 transfer but only 0.2% of TZS 500,000. Repeated small purchases can repeat that fixed cost. This does not mean saving for one large trade is always better; waiting also has consequences, and investment money should never replace an emergency fund.
Check whether your broker has a minimum commission, how partial fills are charged and whether unused money is returned at a cost. Do not assume another investor’s contract note matches yours.
Dividends and tax are separate from trading fees
A dividend is a company distribution, not a guaranteed return. The Income Tax Act publishes a 5% withholding rate for dividends from a corporation listed on the DSE, compared with 10% for other corporations.
However, that source is the Revised Edition 2019, and tax rules can change through later legislation or an applicable tax treaty. The Finance Act 2025 amended parts of the Income Tax Act but the official text reviewed for this article did not change that listed-company rate. Treat 5% as a rate to verify locally, not as personal tax advice. Confirm the current treatment with the Tanzania Revenue Authority or a qualified tax professional, especially if you are non-resident.
What to do next
- Read How to Open a CDS Account in Tanzania.
- Request a written fee schedule from your chosen licensed broker.
- Ask for the total cash required for a proposed order, including VAT and any minimum.
- Check the current bank or mobile-money transfer tariff separately.
- Compare the estimate with the order screen and contract note.
- Keep enough cash for bills and emergencies outside the market.
- Remember that fees add to price, liquidity and company risk.
Frequently asked questions
What is the maximum published fee for a DSE share trade?
The DSE FAQ publishes a maximum combined fee of 2.3768% of trade value, including brokerage, DSE, CMSA, CDS and Fidelity charges. Confirm the actual rate with the broker before placing an order.
Are DSE fees charged when both buying and selling?
Yes. Trading charges apply to the purchase and again to the later sale. Payment-provider costs may also arise in each direction.
Does TZS 500,000 buy TZS 500,000 of shares?
Only if you also provide the applicable charges. At the maximum published rate, a TZS 500,000 purchase requires TZS 511,884 before a separate payment fee.
Is a bank or mobile-money fee included in 2.3768%?
No. The DSE figure covers trading-related charges. The cost of moving money depends on the provider, channel and amount.
Is dividend tax the same as a trading fee?
No. Trading fees arise when shares are bought or sold. Dividend withholding may apply when a company pays a dividend, even when the investor does not sell.
Last updated: August 2026.