Thousands of Nepali investors apply for IPOs every week, but only a few go beyond and start trading actively in the secondary market. So, what’s stopping most people? And how do you begin if you’re new?
Here’s a complete and beginner-friendly guide to becoming a secondary market investor in NEPSE, designed for those who want to take the next step after IPOs.
Step 1: Get the Basics in Place
To trade in the stock market, you must have:
- A DEMAT account to hold your shares
- A bank account with ASBA service
- A MeroShare account (optional but helpful to track your shares)
These are the same things you need for IPOs, but they’re also the foundation for the secondary market.
Step 2: Open a Broker Account
This is where most IPO-only investors stop. But to trade in NEPSE, you need a stock broker.
Choose a broker from the official list on the NEPSE website. Many now offer online account opening through apps or websites. After submitting your documents and completing KYC, you’ll receive a trading code.
Want to open a broker account? We can help you with that – our team has experts to guide you.
Step 3: Fund Your Trading Account
Before you can buy any stock, you need to deposit money into your broker’s account. You can usually do this via:
- Online bank transfer
- ConnectIPS
- eSewa or Khalti (for some brokers)
Your broker will guide you on how to link your bank for smooth transactions.
Step 4: Learn How to Place Orders
You can place buy and sell orders through:
- The broker’s office (physically)
- The TMS (Trade Management System) portal online
You set a price at which you want to buy or sell a specific stock, and if the market matches your price, the trade happens.
Step 5: Choose the Right Stocks to Start
For new investors, it’s smart to begin with:
- Stable companies like commercial banks and insurance firms
- Stocks with a strong dividend history
- Sectors you understand (e.g. hydropower, finance)
Avoid chasing rumors or hype—focus on steady, long-term performers.
Step 6: Track Your Investments
After buying shares, use MeroShare, your broker’s portal, or stock tracking apps to:
- Monitor prices
- Track dividends and bonuses
- Follow company updates
Active tracking helps you make better sell/buy decisions later.
Step 7: Understand the Costs
When trading in NEPSE, there are a few charges:
- Broker fee: Usually 0.4%–0.6% of your trade value
- SEBON fee
- Capital gains tax: 5% for short-term, 7.5% for long-term holdings
Ask your broker for a full breakdown to avoid surprises.
Step 8: Keep Learning and Stay Informed
Secondary market trading requires ongoing learning. Follow trusted financial news sites like:
Also, monitor the NEPSE Index and sector trends regularly.
