Whenever you are ready to enter the secondary market, you should open a trading account or broker account.
You can easily open a trading account. I just opened a broker account for my friend within ten minutes.
Are you confused about how to open a trading account in Nepal? Are you unsure of where to begin?
There is no need to worry, we have you covered. We will discuss the opening of a trading account in Nepal in this article.
The desire to make more money is universal. In the share market, you can make very good money.
Therefore, they see huge potential in the stock market. They are tempted to invest their hard-earned money to make more money. Therefore, they invest it in the stock market.
It is mandatory to open a trading account to purchase or sell shares. So, to start trading, you need a brokerage account.
If you plan to open a trading account, ensure you have the following requirements:
A Demat account is an account that holds your shares and securities in electronic form. You must open a Demat account before setting up a trading account.
You cannot hold shares without a Demat account.
If you do not yet have a Demat account, you can open one at any bank, brokerage firm, or depository participant.
Linked Bank Account:
Your bank account should be linked to your Demat account in order to receive the proceeds of your share sales.
Likewise, when you want to buy your share, you can deposit the collateral through a bank account.
Connect IPS is the payment platform that is trustable by SEBON.
If you don’t have a Global IME Bank Account, then you should load your collateral through Connect IPS.
All you need to do is transfer your money to Connect IPS and load your collateral.
SEBON has only allowed these two to load collateral so far.
A copy of your Pan Card and citizenship must be verified by the government.
Once you have these, you are good to go.
What is a trading account?
In simple terms, a trading account is an account that is used for buying and selling stocks and securities. It is also called a broker account.
Without a trading account, you cannot buy or sell the shares. The trading account is typically the primary account of a day trader. These types of traders buy and sell the shares frequently.
Nevertheless, a trading account is different from other accounts because it is active, for a purpose, and involves greater risk.
Some differences between Demat and Trading Account
Although a Demat account is linked to a trading account. They don’t have the same feature. Their differences also exist.
The shares are held in the Demat account, not in the trading account. Stocks can be bought and sold through a trading account, not a Demat account.
Demat accounts act as a bank where we deposit and withdraw the shares. Whereas, Trading account is used for either buying or selling them.
How to Open a Trading Account in Nepal?
As of now, there are 50 brokers in Nepal. You can open a trading account with any of them. If you choose a broker near your home, it will be easier for long-term purposes as well.
You can open your trading account by following these steps:
Step1:Select the right broker
Choose a brokerage firm that has a legal license from SEBON. Select a broker who pays your money on time and doesn’t overcharge commission.
Step2: Analyze brokerage fees
When buying or selling stocks, you should choose a broker with lower commissions. Some brokerage firms may take more, while others may take less. Choose those who take fewer broker fees.
Step3: Contact broker
To contact the brokers, you can use the internet or call them. Get information about the required documents and charges for opening a trading account.
Step4:Visit broker Office
When visiting the broker’s office, make sure you have everything you need. Fill out the forms provided by the brokers. You should also provide them with all the required documents.
You may need to wait for 2-3 days depending on the broker.
The brokerage firm will verify your trading account. When it’s verified and everything goes well, you’ll be notified.
They will send you the NEPSE TMS credentials once the verification is complete. After that, you can start trading and buying shares on the secondary market.
How to open Online Trading Account in Nepal
There are usually thousands or even millions of clients at a stock brokerage firm. They must interact with them regularly.
As a result, every client may not be able to visit their office physically as they may be busy. To make trading easy, it is best to open an online trading account and begin trading online.
You can open your online trading account by following this process:
Visit Broker Website:
Go to your web browser and type the broker’s website on which you intend to open your trading account.
You can find the Register or Create TMS option at the top of the website.
Click on the register option. You will then be taken to the next interphase as shown in the figure below.
Fill up the form:
Fill out the form with the details that are asked. It is essential that you fill out the General, Address, Bank, and Depository details patiently with each step.
Upload the documents:
Upload the documents requested in the form.
The documents required for opening a trading/ Broker account are:
- Citizenship Certificates
- PP Size photo
- Your valid signature
- Any government Issued ID
- Pan Card (Not compulsory)
- Online Trading Agreement
- Birth certificate and Guardian Photo ( In case of a minor)
All the documents should be in pdf or jpg format depending upon the brokerage firm.
Reset Your Trade Management System (TMS) Password:
Your broker will send you a link to the password once your form has been verified and you receive the Client code.
You can reset your password by clicking the link provided by your broker.
Congratulations. Your trading account is now opened.
Enter your username and password with the right captcha. After that, you will be able to trade stocks.
Frequently Asked Questions
Which is the Best broker in Nepal?
Clients are the lifeblood of every broker. They satisfy their clients in their own way.
Here are some of the best brokers in Nepal:
Nasa Securitiescompany ltd
Online Securities private ltd
Malla and Malla Securities
Vision Securities Pvt ltd
Does the broker charge Money for opening Trading Account?
You don’t have to pay to open a broker account.
How long does it take to Open your Trading Account?
It usually takes 2 to 3 days for your trading account to be opened after you have submitted your application. You will receive an email with your username and password.
If you want to get into the secondary market, you will need a trading account. A secondary market is one where you can make more money.
It’s important to have a good relationship with the brokers. The stock market relies on them greatly.
Have you opened your trading account yet? If yes, which broker. If no, which broker are you considering opening?
Also, which broker do you think is the best in Nepal? Are they punctual in paying your money?
We would appreciate hearing from you in the comment section. Please share it with us.