The process below is how it usually works at the time of writing. Rules and forms change, so confirm details with your bank or broker.
Step 1: Open a bank account
You need a bank account in your name. Most people use a commercial bank account that is linked to online payments, because you will move money in and out of your trading account from it.
Step 2: Open a Demat account
A Demat account holds your shares electronically. You open it through a Depository Participant (DP), which is usually a bank or a broker, and it is registered with the Central Depository System (CDSC). You will need citizenship or ID, photos, and your bank details.
Step 3: Set up Meroshare
Meroshare is the online service from CDSC where you can see your Demat holdings and apply for IPOs. After your Demat account is ready, you register for Meroshare with your DP details.
Step 4: Open a trading account with a broker
Only licensed stockbrokers can place orders on NEPSE. You register with one broker and get a login to the Trade Management System (TMS), the website where you place buy and sell orders. Compare brokers on their service and charges.
Step 5: Fund your trading account
You send money from your bank to your broker's account through the payment options that your broker supports, and it appears as a balance in TMS.
Step 6: Place a buy order
- Log in to TMS while the market is open (see NEPSE trading hours).
- Choose the company by its symbol, for example NABIL.
- Enter the quantity in kitta (units) and the price you are willing to pay.
- Confirm the order. It is matched when someone is willing to sell at your price.
Step 7: Settlement
After a trade, settlement takes a short time (T+2, meaning two business days, at the time of writing). The shares then appear in your Demat account.
What does it cost?
- Broker commission on each trade, which is a percentage that depends on the value.
- SEBON fee and DP charges, which are small.
- Capital gains tax on profits when you sell. The rate depends on how long you held the shares and on the current law.
Costs add up when you trade often, so include them when you judge whether a trade worked.
Practise before you pay
You can learn how orders, prices and profit and loss work without opening any of these accounts. Open a free practice account and trade with virtual money first.
For education only. Not investment advice. Check the current rules with NEPSE, SEBON, CDSC and your broker.