Beginners

How to invest on the Mongolian Stock Exchange — a beginner's guide

Metricon Research··11 min read

The Mongolian Stock Exchange (MSE) was founded in 1991 and today lists around 160 common-stock companies. This guide walks a first-time investor through every step of getting started on MSE — from opening a brokerage account to placing the first trade.

1. Why invest on MSE?

Bank-deposit rates (averaging 12.8% in April 2026) are barely above inflation (9.2%), so the real return is close to zero. By contrast, the MSE TOP-20 index has averaged 14–18% per year over the past five years. Equities are riskier, though — the market can fall and your capital is at risk.

Nominal vs real returns (2021–2026)
0%4%8%12%16%12.8%3.6%Bank depositavg rate Apr 202616%6.8%MSE TOP-205-year avg annualNominal returnReal return (after inflation)
Strip 9.2% inflation from a 12.8% bank yield and you're left with a 3.6% real return. The MSE TOP-20 averaged 16% over the same five years; net of inflation that's ~6.8% — roughly twice the deposit rate.
Tip: Set a 3–5 year investment goal. Without a long-term objective, define your risk tolerance and put a written investment plan in place first.

2. Who can trade on MSE?

  • Mongolian citizens — 18+ years old, with a national ID
  • Foreign residents — permanent residency card or an MN tax ID
  • Legal entities — company registration certificate from the State Registration Office

To trade, you need to be registered with the Mongolian Securities Depository (MSD) as an account holder — your broker handles this registration on your behalf.

3. How to open a brokerage account

Trading on MSE requires an account with a broker licensed by the Financial Regulatory Commission (FRC). There are 30+ active brokers today, including:

BrokerHighlights
StocklabOnline trading via the HiPay mini-app
Golomt CapitalBrokerage backed by Golomt Bank
TDB CapitalBrokerage backed by Trade and Development Bank

Account opening steps:

Five-step account opening process
1Sign upBroker app / branch2KYCID + address3ContractAccount + MSD4Activation1–3 business days5FundBank transfer
Most brokers now support online onboarding. You only need a national ID and proof of address.
  • Sign up at the broker's branch or in their digital app
  • KYC documents: national ID (both sides), signature, proof of address
  • Sign the contracts (brokerage account agreement + MSD agreement)
  • Account activation — 1–3 business days
  • Fund the account with your first deposit (bank transfer)

4. MSE trading hours

  • Monday–Friday: 10:00 – 13:00 (business days only)
  • Settlement: T+2 (two business days after the trade)
Weekly trading window
8:0010:0013:0017:00MonTueWedThuFriSatSunT+2 settlement
The green band marks the live 3-hour session. A buy filled Monday at 10:00 settles in your account on Wednesday (T+2).

No trading happens on public holidays or weekends. Metricon refreshes prices every 10 seconds during market hours.

5. What can you trade?

  • Common stock — equity ownership with dividend rights
  • Corporate bonds — lower risk than equity, fixed coupon
  • Asset-backed securities (ABS) — backed by a specific pool of assets
  • Mutual / investment funds — diversified baskets of stocks and bonds managed by a professional fund manager

6. Minimum investment

Technically, you can buy a single share on MSE — for example, Khan Bank (MSE:KHAN) trades around ₮1,300 today, so ₮1,300 is enough. Realistically, broker commissions (0.68–1%) make tiny trades inefficient:

  • Start small — ₮100,000–500,000 is a sensible test size
  • Diversify: spread across 5–10 different names
  • Never let any single stock exceed 20% of your portfolio
Diversification — spread risk across 10 stocks
10×10% eachNever let one stock exceed 20%
An equally weighted 10-stock portfolio. If one company tanks you only feel 10% of the hit. Never concentrate above 20% in a single name.

7. Tax

For Mongolian residents, MSE income is taxed as follows:

  • Dividends: 10% (withheld at source)
  • Capital gains: 10% on the sale price
Note: Tax law is occasionally amended by the parliament. Confirm the current rules with your broker or a licensed tax advisor before trading.

8. First steps with Metricon

Once your brokerage account is open, the hardest question is which stocks to buy? Metricon is the data platform that makes this part simple:

Four core Metricon tools
ScreenerP/E, ROE, RSI filtersSignalsBUY/SELL v6 FinalAnalysis77+ indicators / tickerPeersSector comparisons
Filter with Screener, time entries with Signals, dig deeper in Analysis, and benchmark against peers.
  • Screener— surface MSE-listed names by P/E < 10, RSI 30–70, ROE > 15% and other quantitative filters
  • Signals — BUY/SELL signals built on technical analysis
  • Analysis — 50+ indicators per ticker plus Value/Quality/Momentum/Dividend scores
  • Peers — side-by-side comparison with same-sector companies

9. Beginner mistakes to avoid

  • Don't trade on tips — "my friend bought it so I should too" is not a thesis
  • Skip day trading — MSE intraday volatility is low; flipping a position 5 times in a day rarely makes sense
  • Cheap ≠ good value — a ₮100 share isn't better than a ₮10,000 share. Use P/E, P/B and other ratios
  • Avoid margin and leverage early — for the first two years, invest only what you own

Bottom line

Investing on MSE offers tax-advantaged exposure with returns above bank deposits. It's a risky long-term game that demands research and patience. A reasonable first step: create a free Metricon account — explore the market with every metric we have at zero cost before you commit a tugrik.

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