If you’re a Nepal-based investor looking for the best brokerages who have services in Nepal, the Nepal Stock Exchange (NEPSE) can offer investment and trading opportunities to Nepalese residents. Keep in mind that not all brokerages are created equal. Carefully consider your needs before you open an account.
Quick Look: The Best Stock Brokers In Nepal
- Naasa Securities Company Ltd.
- Aryatara Investment and Securities Pvt. Ltd.
- Imperial Securities Company Pvt. Ltd.
- Honorable Mention: Charles Schwab
- Honorable Mention: Interactive Brokers – Open an account
- What You Need to Know Before You Start Trading in Nepal
- What to Consider Before You Open an Account
- Our Picks for the Best Stock Brokers in Nepal
- Start Trading in Nepal Today
WHAT YOU NEED TO KNOW BEFORE YOU START TRADING IN NEPAL
Wedged between the two world economic giants of China and India, landlocked Nepal could become a future bridge for trade between the two countries. In order to trade stocks on the NEPSE, you must be a citizen of Nepal. The exchange does not permit foreign investors to own or trade any publicly traded stocks on companies listed.
In 2016, a draft bill of the Foreign Investment Act included a provision that would let non-resident Nepalese citizens invest in Nepal stocks through the secondary market by purchasing shares of companies listed on the stock exchange.
The NEPSE has oversight from the Securities Board of Nepal (SEBON), which also regulates the securities business and companies listed on Nepal’s stock exchange. The SEBON reports to the Nepal Ministry of Finance (MOF).
The NEPSE currently has 50 authorized brokers that execute orders on the floor of the exchange that operates via an automated trading system called the NEPSE Automated Trading System (NATS). This software was fully implemented in November of 2018 and is a full-screen automated system that supports an order-driven market by automatically matching buy and sell orders.
The online NATS is currently only available to brokers, so you should open an account with a broker that has access to the system to trade Nepalese stocks. Stocks trade every day of the week with the exception of Saturdays and holidays that are declared in advance. Trading hours run from 11 a.m. until 3 p.m., though Friday’s trading session is reserved for odd lots that consist of trades in small or unusual amounts that are not multiples of 100 share lots.
Nepalese stockbrokers should be registered depository participants of the Central Depository System and Clearing Limited (CDSC). This acts as Nepal’s central stock depository that allows a broker to open dematerialized (demat) accounts, provide dematerialization services and pledge or un-pledge securities. Demat accounts allow investors to hold stocks in an electronic form.
WHAT TO CONSIDER BEFORE YOU OPEN AN ACCOUNT
Before opening an account with a Nepalese broker to trade stocks on the NEPSE, take several things into consideration. These items include:
REGULATION AND EXCHANGE MEMBERSHIP
Brokers doing business on the NEPSE must be registered members of the exchange and regulated by the SEBON. All financial companies in Nepal, including stock brokers, must be registered and regulated by the SEBON.
At this time, the NEPSE’s NATS system is only available to exchange registered brokers, which means you can only access the system through your Nepalese broker. Otherwise, you’ll need the broker’s website order entry form or telephone number to place trades and receive confirmations.
Most full-service brokers offer clients market research and other information traders and investors find useful. The NEPSE publishes research on stock issues traded on the exchange, so Nepalese brokers tend to lack any notable research offerings.
COMMISSIONS AND FEES
If you plan to be active in the market, a broker’s commissions could add up over time. Even if you trade infrequently, you will still benefit from lower broker commissions.
A good customer service department, attentive to client needs, is a big plus when you select a broker in Nepal. You should be able to contact them by phone, email and chat.
OUR PICKS FOR THE BEST STOCK BROKERS IN NEPAL
Our picks below have oversight from the SEBON and are members of the NEPSE, with the exception of the major U.S.-based stockbrokers, Interactive Brokers and Charles Schwab. All of the Nepalese brokers below have their base in Kathmandu.
BEST OVERALL: NAASA SECURITIES
One of Nepal’s leading stockbrokers, Naasa Securities Company, Ltd. is a member of the NEPSE and is licensed by the SEBON to trade stocks. The broker’s business represents roughly 10% of the NEPSE’s total market volume in 2016-2017.
In addition to stock brokerage on the NEPSE, Naasa is also a registered depository participant of the CDSC.
A link on the broker’s website takes you to the NEPSE data page, where you can get current market information since the broker does not provide that itself, although it does publish market news and events in Nepali on its website.
Naasa charges commission according to the monetary size of your order. For example, a transaction of up to 2,500 Rs. costs a flat 25 Rs., while transactions above 2,500 R to 50,000 Rs cost 0.60% of the total amount of the transaction.
The cost declines to 0.40% on transactions of 10,000,000 Rs. or more. Customer service can be reached through a form on the broker’s website and via email and telephone.
BEST FOR BEGINNERS: ARYATARA INVESTMENT AND SECURITIES PVT. LTD.
Nepalese stock brokers rarely provide educational resources of any kind. Nevertheless, Aryatara Investment made our list because it caters to new traders and remains popular with traders in Nepal.
The broker is a member of the NEPSE and is fully licensed by SEBON. In addition to share broking, Aryatara is a registered depository participant with the CDSC.
Aryatara does not publish its commissions. Instead, it offers clients a share calculator, where you input the number of shares and the price of purchase or sale. The calculator tells you how much commission is at that price for the number of shares requested.
Stock orders are taken over the phone or through Aryatara’s website using downloadable forms. Customer support can be accessed via email, telephone and by physically visiting the broker at its offices in Kathmandu.
BEST FOR DAY TRADERS: IMPERIAL SECURITIES COMPANY PVT. LTD.
One of Nepal’s premier stockbrokers and wealth managers, Imperial Securities, is a full member of the NEPSE and regulated by the SEBON. The broker is a registered depository participant with CDSC.
Imperial states on its website that it provides a trading platform, but besides a login to the Meroshare portal for NEPSE IPOs, no other platform download was found.
Meroshare also provides NEPSE stock news and information and a tutorial for the NEPSE online platform. Additional research may be available directly by speaking to a broker, although no online research resources were otherwise available.
The broker’s commissions are competitive, which makes them attractive to day traders, and fees can be calculated by an online share calculator located on its website. Customer service is accessed through a form on the broker’s website, email, fax and telephone.
HONORABLE MENTION: CHARLES SCHWAB
- Beginner investors
- Advanced traders
- Investors seeking commission-free etfs
Open an account securely through Charles Schwab’s website
If you prefer to trade international and U.S. stocks, U.S.-based Charles Schwab accepts clients from Nepal and is regulated by the U.S. Securities and Exchange Commission (SEC).
The stockbroker is also a member of various world stock exchanges and is overseen by a number of other international regulators.
Schwab does not have a presence in Nepal and is not a member of the NEPSE or registered with the SEBON, so if you plan to trade stocks on the NEPSE, you’d be better off getting a local Nepalese broker.
The Schwab brokerage account used for domestic trading in the United States can be used to trade securities internationally via the Schwab Global Investing Services desk.
To trade stocks in the U.S stock market and internationally, fixed income securities, and offshore mutual funds, you can open a regular Schwab trading account. You can also trade American Depository Receipts (ADRs) and invest in thousands of companies with a base outside the United States.
Schwab’s trading platform is known as StreetSmart Edge and features streaming live quotes, a news feed, as well as sophisticated charting and technical analysis capabilities. A web-based version of the platform and mobile apps for iOS and Android devices are also available.
Customer service is available to clients via telephone, email and a form on its website. A rather hefty minimum of USD $10,000 is required to open an account.
HONORABLE MENTION: INTERACTIVE BROKERS
$0.005 per share minimum $1 and maximum 0.5% of trade value; volume discount available
- Forex traders
- Professional traders
- Frequent traders with a thirst for different order types (63!)
Open an account securely through Interactive Brokers’s website
U.S.-based international broker Interactive Brokers does not have a presence in Nepal, is not a member of the NEPSE and is not regulated by the SEBON. Interactive Brokers does accept clients from Nepal if you prefer to trade in other world markets.
You can access more than 120 world exchanges with Interactive Brokers’ Integrated Investment Account. You can trade:
- International stocks
- Precious metals
- Structured products
Interactive Brokers features an intuitive trading platform called Client Portal for less-experienced traders, as well as a professional Trader Workstation (TWS) platform. The TWS platform includes trading software for more sophisticated traders. In addition to its two flagship platforms, Interactive Brokers offers its WebTrader web-based platform and mobile applications for Android and iOS devices.
Interactive Brokers also has a hands-free add-on called IBot, available for the TWS desktop version, IBKR mobile apps and Client Portal platforms. The minimum deposit to open an Interactive Brokers account is USD $10,000. Customer service is available 24/6 and can be accessed through email, live chat and telephone.
START TRADING IN NEPAL TODAY
If you think trading Nepali stocks is for you and want to get started now, you must be a Nepalese citizen and do so through a local stockbroker based in Nepal. Otherwise, you can open an account with a foreign broker that takes clients from Nepal to trade stock markets located outside of the country.
In any case, keep in mind that not all stockbrokers offer the same services, so choose one carefully and make sure your needs are met before opening an account.
Source : https://www.benzinga.com/money/best-stock-broker-in-nepal/