Best Stock Broker In Nepal: Interactive Brokers
If you’re a Nepal-based investor looking for the best brokerages who have services in Nepal, theNepal 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
Contents
- 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 afuture 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 theForeign Investment Actincluded 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 has50 authorized brokersthat 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 beregistered members of the exchangeand regulated by the SEBON. All financial companies in Nepal, including stock brokers, must be registered and regulated by the SEBON.
TRADING PLATFORM
At this time, the NEPSE’s NATS system is onlyavailable 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.
RESEARCH
Most full-service brokers offer clients market research and other information traders and investors find useful. The NEPSE publishesresearch 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, abroker’s commissionscould add up over time. Even if you trade infrequently, you will still benefit from lower broker commissions.
CUSTOMER SERVICE
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 aremembers 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
Naasa Securities Company Ltd.
Trade with the broker that represents about 10% of the entire NEPSE market volume.open an account
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 roughly10% 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 getcurrent market informationsince 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 to0.40% 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.
Aryatara Investment And Securities Pvt. Ltd.
Aryatara Investment and Securities Pvt. Ltd. is a member of NEPSE and fully licensed by SEBON.open an account
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 youhow much commission is at that pricefor 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 itsoffices in Kathmandu.
BEST FOR DAY TRADERS: IMPERIAL SECURITIES COMPANY PVT. LTD.
Imperial Securities Company Pvt. Ltd.
Get NEPSE stock news and information from Imperial Securities.open an account
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, althoughno online research resources were otherwise available.
The broker’scommissions 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
COMMISSIONS
$4.95
BEST FOR
- Beginner investors
- Advanced traders
- Investors seeking commission-free etfs
Open an accountsecurely through Charles Schwab’s website
If you prefer to trade international and U.S. stocks, U.S.-basedCharles Schwabaccepts clients from Nepaland 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 internationallyvia the Schwab Global Investing Services desk.
To trade stocks in the U.Sstock marketand 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 asStreetSmart Edgeand 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.
Read Benzinga’s full Charles Schwab Review
HONORABLE MENTION: INTERACTIVE BROKERS
COMMISSIONS
$0.005 per shareminimum $1 and maximum 0.5% of trade value; volume discount available
BEST FOR
- Forex traders
- Professional traders
- Frequent traders with a thirst for different order types (63!)
Open an accountsecurely through Interactive Brokers’s website
U.S.-basedinternational brokerInteractive Brokersdoes 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 accessmore than 120 world exchangeswith Interactive Brokers’ Integrated Investment Account. You can trade:
- International stocks
- ETFs
- Futures
- Options
- Warrants
- Precious metals
- Forex
- Bonds
- Funds
- Structured products
Interactive Brokers features an intuitive trading platform calledClient Portalfor less-experienced traders, as well as a professional Trader Workstation (TWS) platform. The TWS platform includestrading softwarefor more sophisticated traders. In addition to its two flagship platforms, Interactive Brokers offers itsWebTrader 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 isavailable 24/6and can be accessed through email, live chat and telephone.
Read Benzinga’s full Interactive Brokers Review
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/
