If you are interested in the share market and want to begin trading, here are the basic requirements for share trading in Nepal:
Open a bank account
Open a bank account with an authorized bank in Nepal. It is better to choose A-class banks but optional.
Create a Demat account
A Demat account is used to store all your data about shares. To start your trading journey open a Demat account from any bank at any branch. Although it is not compulsory, we advise you to use a DEMAT account and a Bank account of the same bank for your ease.
Example: if you have a bank account in Everest Bank, open a DEMAT account in Everest Bank’s Capital
Note: A person can open up to 2 demat accounts. If you have 2 demat accounts, don’t apply for IPOs from both. Doing so will get both your accounts blacklisted.
Get your CRN number
To get a CRN number fill in a C-ASBA form and submit it to your bank. This will help you link your bank account with your Demat account. C-ASBA is required to apply for IPOs. You will not need it when you’re trading in the secondary market. It allows you to apply for the initial public offerings which blocks the amount required for the shares you applied for.
Create a Meroshare account
Meroshare is a platform that allows you to check for IPOs and apply for IPOs online. You can calculate WACC and transfer shares from EDIS in Meroshare. It also helps in changing dividend destinations and your account details here.
How to begin with the secondary market?
Create a Broker account
Opening a broker account helps you buy and sell securities such as stocks, bonds, and mutual funds in the share market. It is better to pick a brokerage office nearby because if there’s any confusion, you can easily go there to resolve it. Broker accounts can be opened online or by physically visiting the broker’s office.
Your broker company will give you a Trade Management System (TMS) account. This account helps you access the trading platform and place buying and selling orders. Find yourself the best broker in Nepal, who provides good customer service, responsiveness, and investment skills.
Get ConnectIPS
This lets you transfer money to your broker to buy stocks in the secondary market. Many banks in Nepal support Connect IPS for money transfers. You can do it yourself without having to visit a bank.
Market Analysis
To be involved in a secondary stock market, you need to have a good knowledge of the stock market, how the market performs, what factors affect the market, and when to buy and sell the stocks. This involves technical and fundamental market analysis. To succeed in the stock market, always stay updated with the news and keep learning about essential aspects of the stock market.
In the stock market, you should always be patient and keep studying the market, you will be rewarded accordingly. The market has highs and lows, so you should always focus on your goal. You must decide whether you are a trader or an investor. Being an investor you should focus on the long-term goals.
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FAQs
What is required for share trading?
For share trading, you will need a Demat account and a trading account.
What is the eligibility for trading?
You can have a Demat account and start trading both as an adult and a minor. However, you will need a legal guardian during the submission of your necessary documents.
Do I need math for trading?
Yes, you will need a basic understanding of maths to properly trade in the stock market.
Which trading is best for beginners?
Swing trading is the best trading style for beginners.
How do I sell my shares?
You can sell your shares by creating a broker account and appointing a broker.