Have you been dreading using online trading system? Well here we have, Online Trading Simplified!

The online trading was made available for general investors from Mangsir 23, 2075. It's been almost a week and based on the observation so far, we've come to know that it hasn't gained much popularity especially because of some confusion regarding how it works. Addressing the same, we’ve come up with the following article that will walk you step-by-step through the entire process and will assist you in using the new NEPSE Online Trading System.

Step 1

The first thing to consider is are you already in secondary market or starting just now?

If you have been trading in NEPSE already then all you need to do is visit your broker's office and sign an agreement.

However, if you are new then there are currently 50 licensed brokers in Nepal. You can choose from among them based on your convenience and personal judgment. After making your choice, first of all you will have to fill up a KYC form along with following documents:

Citizenship certificate (original and one photocopied)

Passport size photos

The after filling up the KYC, you will have to sign an agreement paper. The agreement is between you (the client) and the broker. The agreement is provided by NEPSE as shown below:

 Step 2

After signing the contract, you'll have to deposit a margin amount at the broker's account. The amount can be deposited either in cash or as cheque. The margin represents the sum of money that you will be using/investing in the secondary market.

Step 3

Once you make your deposit, the broker will provide you a transaction limit* on the basis of the margin.

*The limit can be equivalent to amount you deposit or higher. However, directives hasn't been passed yet for this provision. So no conclusive statements can be made yet.

Step 4

Once that is done, the broker sends your client code and BOID details to NEPSE for further processing.

Step 5

The NEPSE will collect all your necessary information from the broker and then integrate it in the system. After integration, a client URL will be automatically generated and the NEPSE will inform the broker.

Step 6

Finally, your broker will provide you URL, username and password that you can use to login in the Online Trading System.

Step 7

Once you login yourself, you can begin to place your buy or sell orders and execute it yourself. No phone calls, all on your own.

Step 8

Once you spend your margin or reach the limit given by the broker, you can you can contact the broker office and deposit again based on your discretion and need.

If you want to know more than, NEPSE has also produced a user manual that thoroughly shows you how to use NEPSE online trading system.

 Simple! isn't it?

Nepal's capital market is still very small and the volume of transaction hasn't picked up the pace yet. If we look closely, the large portfolio holders are above the age of 50 and majority of them still find it difficult to use tech-based systems. Some still like to take print outs before making a buying or selling decision.

On the other side of the road, are the youngsters like me who are receptive to tech-based innovations but alas! very few resource to utilize. So unless and until a balance is established, it is hard to expect drastic change in the market situation.

Like they say, "Time is the greatest healer" we have to give time for this equilibrium to be achieved. As the generations pass down, the user acceptability will increase and so will the user-friendly-ness of the online trading system.

The era of online trading system has just begun and it's true that it is far from perfect. But we can persuade NEPSE to work on it tirelessly by continuously reminding them and giving them feedback on how the system can be made better.

Small investor or big, it doesn't matter. Whether you buy 10 units or 1000 units, it doesn't matter. If you register today and start using the system, overtime it is bound to stick.