If you’re a Nepal-based investor looking for the best brokerages that 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 and find the best stock brokers in Nepal with Benzinga's list.
Quick Look at the Best Stock Brokers in Nepal:
- Best Overall: Interactive Brokers
- Best for Futures: NinjaTrader
- Best for Forex: FOREX.com
- Best for Stocks: Charles Schwab
- Best for CFDs: XTB
Best Stock Brokers in Nepal
Our picks below have oversight from the SEBON and are members of the NEPSE, except the major U.S.-based stockbrokers, Interactive Brokers and Charles Schwab. All of the Nepalese brokers below have their bases in Kathmandu.
Best Overall: Interactive Brokers
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
Interactive Brokers is considered a top choice for Nepali investors due to its global market access, advanced trading platform, competitive pricing, regulatory compliance, a wide range of investment products, educational resources, and responsive customer support.
Offering access to diverse international markets, IB's sophisticated trading tools and analytics cater to experienced traders seeking in-depth market analysis and execution capabilities. Its competitive pricing structure and adherence to strict regulatory standards provide investors in Nepal with cost-effective trading options and a sense of security.
Pros:
- Global market access
- Advanced trading platform
- Competitive pricing
- Regulatory compliance
- Wide range of investment products
- Educational resources
- Responsive customer support
Cons:
- Limited focus on the Nepali market
- Potential language and cultural barriers
- Lack of tailored services for Nepali investors
- Limited local market expertise
Best for Futures: NinjaTrader
- Best For:Advanced Futures TradingVIEW PROS & CONS:securely through NinjaTrader's website
NinjaTrader, primarily known for its trading platform rather than brokerage services, is considered advantageous for futures trading in Nepal due to several factors. First, its robust and customizable trading platform offers advanced features tailored for futures trading, providing traders with powerful tools for analysis and execution.
Second, NinjaTrader's competitive pricing structure may appeal to cost-conscious traders, offering competitive commissions and fees for futures trading. Additionally, NinjaTrader's direct connectivity to various futures exchanges worldwide enables efficient order execution and access to a wide range of futures contracts, allowing Nepali traders to diversify their portfolios and capitalize on global market opportunities.
Pros:
- Robust and customizable trading platform
- Competitive pricing for futures trading
- Direct connectivity to global futures exchanges
- A diverse range of futures contracts is available
- Reputable customer support
- Educational resources for traders
Cons:
- Limited focus on the Nepali market
- Regulatory considerations for international trading
- Potential language and cultural barriers
- The platform may require a learning curve for new traders
Best for Forex: FOREX.com
- Best For:Excellent Trading Conditions and Overall OfferingsVIEW PROS & CONS:securely through Forex.com Europe's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% to 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account
FOREX.com is a leading choice for forex trading in Nepal for several reasons. Firstly, it offers a user-friendly and feature-rich trading platform, equipped with advanced charting tools, technical indicators, and customizable trading interfaces, catering to both novice and experienced traders. Secondly, FOREX.com provides competitive pricing with tight spreads and transparent pricing, ensuring cost-effective trading for Nepali investors.
It offers various currency pairs, allowing traders to diversify their portfolios and capitalize on various market opportunities. FOREX.com prioritizes regulatory compliance, providing Nepali traders with a sense of security and trust in their trading activities. Moreover, its reputable customer support and educational resources further enhance the overall trading experience, offering assistance and guidance to Nepali traders as they navigate the forex markets. Nepali traders need to conduct thorough research and consider their individual trading needs and preferences before selecting FOREX.com as their forex broker.
Pros:
- User-friendly and feature-rich trading platform
- Competitive pricing with tight spreads
- Wide range of currency pairs available
- Regulatory compliance for security and trust
- Reputable customer support
- Educational resources for traders
Cons:
- Limited focus on the Nepali market
- Potential language and cultural barriers
- Regulatory considerations for international trading
- Platform may require a learning curve for new traders
Best for Stocks: Charles Schwab
Charles Schwab offers a user-friendly and comprehensive trading platform, equipped with advanced research tools and real-time market data, facilitating informed investment decisions for Nepali traders. Schwab provides competitive pricing with low commissions and fees, ensuring cost-effective trading for Nepali investors. They offer a diverse range of investment options, including stocks, ETFs, mutual funds, and more, allowing Nepali traders to build diversified portfolios tailored to their investment goals.
Schwab's commitment to customer service and investor education further enhances its appeal as a potential brokerage option for Nepali traders, offering support and guidance to help them succeed in the stock market.
Pros:
- User-friendly and comprehensive trading platform
- Competitive pricing with low commissions and fees
- Diverse range of investment options available
- Commitment to customer service and investor education
Cons:
- Limited focus on the Nepali market
- Potential regulatory barriers for international trading
- Platform may not be optimized for Nepali traders' needs
- Language and cultural differences may impact customer experience
Best for CFDs: XTB
XTB emerges as a top choice for CFD trading in Nepal due to its exceptional offerings. Renowned for its advanced trading platform, XTB provides traders with cutting-edge tools and features to optimize their trading strategies and decisions. XTB's competitive pricing structure ensures cost-effective CFD trading, allowing Nepali investors to maximize their returns while minimizing expenses.
The commitment to regulatory compliance instills confidence and trust among traders, ensuring a secure trading environment. With a diverse range of CFD instruments available, including forex, stocks, indices, and commodities, XTB enables Nepali traders to access various markets and seize opportunities for portfolio diversification.
Pros:
- Low trading fees and non-trading fees, often with no withdrawal fees.
- Outstanding customer service.
- Wide variety of forex and CFD offerings.
- Well-regulated brokerage provides access to global trading instruments under competitive conditions.
Cons:
- Detailed information on CDs specifically in Nepal may be limited.
Before You Open an Account
Before opening an account with a Nepalese broker to trade stocks on the NEPSE, consider several things. 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 SEBON.
Trading Platform
At this time, 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.
Research
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.
Customer Service
A good customer service department is attentive to client needs, which is a big plus when you select a broker in Nepal. You should be able to contact them by phone, email and chat.
Before You Start Trading
Wedged between the two world economic giants of China and India, landlocked Nepal could become a future bridge for trade between the two countries. 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 and operate 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 except Saturdays and holidays which 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.
Ready to Start Trading?
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 by finding the best stock brokers in Nepal.
Frequently Asked Questions
Can I trade stocks in Nepal?
You can trade stocks in Nepal by using an international broker.
Can I use a local stock broker in Nepal?
You can only use a local stock broker in Nepal if you are a Nepalese citizen. Otherwise, you must use a foreign broker who trades stocks in Nepal.
Where can I find a list of good stockbrokers who trade in Nepal?
You can find a list of reputable stock brokers who trade in Nepal on the list above.
About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.