Best Nepalese Stock Exchange Brokers 2025

Introduction to Trading on the Nepalese Stock Exchange

The Nepalese Stock Exchange, known as NEPSE, is the only stock exchange in Nepal, starting its journey in 1994. This guide will simplify how to trade on NEPSE, explain its online system, show you how to open a brokerage account, and offer tips for getting the most out of your investment. We’ll also list top brokers and give advice on how to compare them.

Comparing Nepalese Stock Exchange Brokers

When choosing a broker for trading on NEPSE, consider the following:

• Regulation & Membership: Brokers must be registered with NEPSE and regulated by SEBON. Check their registration details on the regulator’s website. Note that foreign investors aren’t allowed in due to local laws, so visit NEPSE’s site for the latest broker list.
• Platform: NEPSE’s trading is done through registered brokers only, using a system called NOTS. Make sure your broker offers an easy way to trade, like a demo account to try before using real money.
• Commission & Fees: Be aware of a broker’s fee structure. The best brokers have transparent fees and low commissions. Look out for other charges like inactivity fees.
• Customer Service: Ensure your broker has responsive customer support, ideally 24/7 or at least during market hours, via phone or live chat.

Since August 2020, you can register with brokers online, making it easier to start trading without visiting an office.

Understanding the Nepalese Stock Exchange (NEPSE)

Located in Kathmandu, NEPSE is Nepal’s sole stock exchange, launching in 1994. With a market value around NPR 3.92 trillion, it lists over 285 companies. Primarily government-owned, NEPSE is regulated by SEBON. Its goal is to boost market liquidity and Nepal’s economic development.

Investors trade securities through 100 licensed brokers, some also operating remotely across Nepal.

A Quick History

In 1976, Nepal established a securities exchange, renamed NEPSE in 1993. Initially, trading required visiting brokers physically. NEPSE introduced online trading (NOTS) in 2018, modernizing its trading practice.

How Trading Works on NEPSE

NEPSE trading consists of two markets:

• Primary Market: Companies issue new stocks, bonds, mutual funds, and IPOs. Existing shareholders can also buy new shares at a set rate.
• Secondary Market: Traders sell their shares, gained from the primary or secondary market, through brokers.

Interest in the secondary market is growing though the primary market remains dominant.

NEPSE Indices to Know

Familiarize yourself with these key indices for trading guidance:

NEPSE Index

This index adds up all companies’ market values, showing the exchange’s total growth. It reached a peak value of 3,004.33 in July 2021.

Sensitive Index

Calculated from select companies’ market values, criteria include having over 1,000 shareholders and showing profitability for three years.

Float/Float Sensitive Index

Based on the number of actively traded shares, these indices reflect stock market activity, excluding infrequently traded promoter shares.

Sub-Indices

NEPSE has 13 sub-indices, each representing sectors like banking, insurance, and tourism, providing sector-specific insights.

Index-Based Circuit Breakers

These stop trading when market movements hit 4%, 5%, or 6%, enforcing pauses for market stability during these changes.

NEPSE Trading System

Launched in 2018, NOTS enables online order placements, clearing, and settlements. Brokers have individual URLs for managing trades electronically.

Foreign investors can’t trade directly, but local brokers offer trading through NEPSE’s system.

Accessing NEPSE Online

NEPSE’s website offers live market data and tools like candlestick charts, essential for traders to analyze trends. It also provides access to historical data through a paid API.

NEPSE Trading Hours

Trading occurs Monday to Friday from 11:00 to 15:00 NPT, with Fridays reserved for smaller, unusual trades, known as odd lots.

Getting Started with NEPSE Trading

Opening Required Accounts

To start trading, open a bank account and a demat account, which holds your shares electronically, similar to how a bank account holds money.

Opportunities for International Investors

While direct investments by non-citizens are restricted, some international brokers offer products like ETFs tied to NEPSE’s performance.

Tips for NEPSE Trading

Stay Informed

News affects stocks, so keep informed through resources like NEPSE Alpha and Merolagani for competitive insights.

Use Mobile Apps

Download the NEPSE app for live stock data and to manage your portfolio conveniently on your smartphone.

Participate in IPOs

IPO shares, often available at a lower price, can be a safe way to earn good returns quickly via NEPSE.

Conclusion: Choosing the Right Broker

Nepal’s only stock exchange requires Nepalese citizenship for primary trades. However, non-residents can still trade through secondary markets. Use our broker list to find the best options for your trading needs.

FAQs

How Many Stock Exchanges Are There in Nepal?

Nepal has one stock exchange, NEPSE, founded in 1994.

How Can I Start Trading on NEPSE?

First, open a bank and demat account, then select a broker from over 50 options available.

Is Mobile Trading Possible?

Yes, NEPSE’s app for smartphones offers live market data and trading capabilities.

What Trading System Does NEPSE Use?

NEPSE uses NOTS, an automated online system; brokers have their unique URLs for trading.

When Is NEPSE Open for Trading?

Open Monday to Friday, 11:00 to 15:00 NPT, with Fridays designated for odd-lot trading.