Many Nepalese wants to invest in abroad stock markets, and they might be wondering is there any way to do that.
We all know that Nepal has not a huge market share as compared to the international market, especially in the US.
So many people want to know that how to buy international shares from Nepal? Is it possible? If not, then why?
In this article, we are going to give every single answer that appears on your mind while thinking about investing in international markets from Nepal.
As far as we know, buying and investing in foreign countries from Nepal is not possible at this moment, but we’ll talk about why it’s not possible and what’s the reason behind it.
We don’t think you can do this easily, even though you can buy holding other country’s bank accounts.
We all know that Nepal has strong capital controls for the international market, like Nepal doesn’t have International Payment systems.
After a long time, now a lot of banks allow the $500 transaction per year for international payments, but we still don’t have the actual system to use the international payments for bigger transactions.
The basic rule of thumb is to buy international stocks, you have to be in a currency that is accepted for buying international stocks, which is difficult if you are living in Nepal.
There are popular currencies out there like Euro, USD, GBP, Yen, and Yuan. If you can make accounts using these currencies, then it is possible to invest in the international markets.
After that, you can set up a brokerage account with a firm that allows access to multiple exchanges which will allow you to buy shares but still, you can’t buy anything, like fidelity investments do take international accounts sadly not from Nepal.
You have to have access to offices which you can find in India and China which are nearer to Nepal.
We all want to buy international shares from big companies like Apple, Tesla, Adobe, Microsoft, Amazon, etc.
But sadly It is illegal to invest in foreign share market because of an old law which we have called, “Act restricting investment abroad” which was promulgated way back on 2021 BS (1964 AD).
There were some queries out there that country is going to cut this law someday but we don’t have any clue when it’s going to happen. let’s hope !!
As long as this law exists in the country no Nepali can invest abroad or buy any kind of shares except in cases where they receive a special exemption from Nepal Rastra Bank or the Government of Nepal for a specific purpose.
When we talk about the other things like travel and students, a certain amount of money/travel cheque is allowed but to invest in other country Govt not allowed to bring any money.
So, there no legal ways for Nepali citizens to invest in international share markets right now.
There is still debate ongoing in Nepal, After the controversy of Nepali leaks scandal of around 55 Nepalis having money in Swiss banks worth billions, but for now, it’s not possible to do any Invest in international share market from Nepal.
Check out the Restriction Investment Aboard law :
The main reason for this is, that the Nepali government wants to keep the dollars from flowing out of the country. We think this is a very anachronistic, ill-advised, law.
We all Nepalese should be allowed to invest and buy international shares from Nepal.
There was a recent case of Sagoon, which is registered in the United States, had previously claimed that it is safe and legal to invest with them.
However, It has declared illegal by SEBON(Securities Board of Nepal) to engage in advertising and other activities with the objective of raising investment in Nepal.
Is forex trading is legal in Nepal?
Forex exchanging is the way toward estimating on money costs to potentially make a profit. Monetary standards are exchanged sets, so by trading one money for another, a broker is theorizing on whether one cash will rise or fall in value against the other.
There is trading available, which you can do from Nepal, which called Forex Trading.
It is allowed in Nepal and all trading of currencies (and other asset classes) is regulated by the SEBON(Securities Board of Nepal).
Which broker is best for forex trading in Nepal?
- XTB is the best CFD broker in Nepal in 2021 – Low forex fees. Fast deposit and withdrawal. Easy account opening.
- City Index – Low fees for forex. Fast account opening. Diverse research tools.
- Spreadex – Low forex fees. Good web platform. Helpful customer service.
- ActivTrades – Low trading fees. Free deposit and withdrawal.
- Trading 212 – Real stocks and ETFs are commission-free.
What should I invest in Nepal?
Best Industries that you can invest in Nepal :
What is the most profitable business in Nepal?
- Digital Marketing
- Ecommerce
- Blogging
- Web Development
- Travel Agency
- YouTube Channel
- Graphic Design
- Videography
- Photography
- Business Consultant
- Real Estate
- Selling Online Courses
How can I earn money by sitting at home in Nepal?
FAQ About International Investing From Nepal :
Can Nepali invest in US stock market?
Many Nepali investors have a question on their mind if it is possible to buy US stocks being a non-US citizen. Well, from the US side, stocks and bonds are indeed regulated and you don't have to be a US citizen to invest in the US stock market.
But because of the Nepal Government law, you can't be allowed to do any kind of investments in foreign countries.
Can I buy Apple stocks from Nepal?
No, You can't buy Apple stocks from Nepal. Except for medical and educational purposes, Nepalese are prohibited from transferring money out of the country by Act Restricting Investment Abroad 1964 which states no one shall make any kind of investment and buy international shares from Nepal.
Can I buy Indian stocks from Nepal?
If you are a citizen of Nepal, Indian markets are open to investing directly in stocks from Nepal. But because of the “Act Restricting Investment Abroad, 2021 (1964)” No Nepali can invest abroad except in cases where they receive a special exemption from the Nepal government or Nepal Rastra Bank.
One way you can invest in Indian stocks from Nepal is by having an Indian bank account.
Disclaimer : The information provided is for general and educational purposes only. It is not intended as legal advice for your individual circumstances. Please consult a financial adviser to get the exact outcome.
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