Forex trading in Nepal has become easier to get involved in over recent years, which have mostly seen strong economic growth and the increasing availability of fast internet.
Best Nepal Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | FMA, FSA | ASIC, CySEC, FCA, SCB |
Year Established | 2011 | 2005 | 2006 | 2014 | 2009 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP, No Dealing Desk | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 0.9 pips | 1.3 pips | 1.0 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips | 2.0 pips | 1.2 pips |
Average Trading Cost Gold | $0.18 | $0.16 | $0.29 | $0.90 | $0.12 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Trading View |
Islamic Account | |||||
Negative Balance Protection | |||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Nepalese Forex traders can learn here how to get started trading Forex, the correct approach to learning how to trade and deciding upon a profitable trading strategy for use, and which Forex brokers are most suitable.
FXTM
In Summary Best all-around broker with high floating leverage and fast executionI rank FXTM among the best Forex brokers in Nepal for algorithmic traders and scalpers due to its trading infrastructure, excellent order execution, and VPS hosting. The FXTM Advantage account features raw spreads from 0.0 pips for a commission between $0.80 and $4.00 per 1.0 standard round lot. The superb FXTM price improvement technology decreases trading fees by an average of $3.00 per lot.
This well-regulated Forex broker specializes in frontier and emerging markets, offering beginners six MT4 plugins plus the MT4 Pivot Point Strategy plugin. FXTM also provides actionable trading signals and research by its in-house research team.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets upgrades MT4/MT5 with 12 plugins, Trading Central and Autochartist, but traders can also use cTrader. FP Markets offers competitive commission-based trading fees with raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot. It also maintains a balanced asset selection, including cryptocurrencies and ETFs.
Copy traders can use the proprietary FP Markets solution, embedded copy trading services in MT4/MT5/cTrader, the well-known Myfxbook Autotrade service, or fee-based Signal Start. Therefore, I rank FP Markets among the best Forex brokers in Nepal for copy traders. VPS hosting ensures low latency 24/5 Forex trading.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade features its proprietary WebTrader and mobile app AvaTradeGO with Trading Central. It also has specialized alternatives, Ava Option and Ava Social, besides MT4/MT5 for algorithmic trading, placing AvaTrade among the best Forex brokers in Nepal for trading platform choices. Beginners benefit from the MT4 Guardian Angel plugin and the fee-based Ava Protect insurance policy protecting against trading losses.
The well-balanced asset selection includes cryptocurrencies, options, and ETFs, while VPS hosting ensures 24/5 low-latency Forex trading. AvaTrade Social, DupliTrade, and embedded MT4/MT5 services cater to copy traders. The high-paying affiliate program has 145,000 registered partners with $300,000,000+ commission payouts.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets provides market-leading diversification via 26,000+ assets, including 200+ currency pairs. It also features superb data feeds from 66+ third-party providers and deep liquidity pools. Traders also get API trading and VPS hosting for 24/5 low-latency Forex trading. Therefore, I rank BlackBull Markets among the best Forex brokers in Nepal for portfolio diversification and demanding trading strategies.
Besides MT4/MT5, traders can use cTrader and the proprietary mobile app BlackBull Trader. The in-house BlackBull Markets copy trading service, ZuluTrade, and Myfxbook Autotrade allow copy traders to diversify. BlackBull Markets also connects social traders to TradingView with 50M+ peers.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Eightcap
In Summary Competitive pricing + excellent daily videosI rate Eightcap among the best Forex brokers in Nepal for demanding traders due to its cutting-edge tools. Capitalise AI for MT4 allows algorithmic trading in a code-free environment, setting Eightcap apart from most competitors. MT5 traders get the FlashTrader plugin, cryptocurrency traders benefit from Crypto Crusher, and the AI-powered economic calendar assists news traders.
Eightcap offers VPS hosting for 24/5 low-latency Forex trading and connects social traders with 50M+ peers at TradingView. Copy traders can rely on the embedded MT4/MT5 services, and the well-balanced asset selection supports most trading strategies with deep liquidity pools and fast order execution.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
Is Forex Trading Legal in Nepal?
Forex trading is perfectly legal in Nepal and is supervised by the Securities Board of Nepal (“SEBON”) under the Securities Act 2063, which was published on January 14th, 2007. An amendment regarding directives, bylaws, merchant banker guidelines and associated laws related to the securities market was submitted to parliament in September 2019 with the intent of modernizing the law. Forex trading is completely legal, as long as traders remain compliant with local tax laws, which include a capital gains tax on Forex profits.
How to Start Online Forex Trading in Nepal?
The challenging fiscal situation of most households makes trading Forex in Nepal more appealing, as it requires relatively low capital and other resources to get started. A computer or mobile device, trading capital, and a stable internet connection are required.
Trading Equipment & Infrastructure
Given the vast availability of affordable mobile devices, most Nepalese Forex traders are likely to opt for mobile trading. Internet access and excellent coverage, per TKP data, over 95% of the population is within range of a mobile tower, allowing traders to manage their portfolios free of outages. Nepal had electricity issues in the past but is on a path towards full energy independence due to renewable energy sources. Over 99% of urban Nepalese have an energy connection, and nearly 20% retrieve it from solar panels.
Forex Brokers & Trading Strategies
Some successful traders open accounts at more than one broker, which reduces overall risk and may allow for more effective trading of different asset classes at different brokers. New traders must not rush the selection process and perform proper due diligence once it is understood how to choose a Forex broker.
At the core of each successful Forex trader is at least one trading strategy which works well and suits the trader’s personality, ability, and level of understanding of Forex. There is no universal approach that is suitable for everyone. Learning how to trade Forex requires practice, best accomplished in a demo account and the with an initially small deposit of real funds. Forex trading without an effective strategy is simply gambling with the odds against you.
Finding, building, and fine-tuning profitable trading strategies for beginners is worth a considerable investment of time and effort. Profitable traders also need to cultivate the correct psychological approach to trading as most people find it very difficult to stick to their trading plan when the inevitable tougher trading times arrive. While mastering a strong psychological approach to trading does not guarantee profit, it is very hard to make money without having the psychological strength to keep calm when losing trades happen, as they happen to all traders, even profitable ones.
Choosing a Forex / CFD Broker in Nepal
There are no international Forex / CFD broker with a physical presence in Nepal, and there are no such brokers anywhere in the world currently accepting deposits in Nepalese Rupees. This means that effectively, anyone in Nepal looking for a broker has a very wide variety of choice, as there are very few Forex / CFD brokers who place any restrictions on accepting a new client resident in Nepal, and there are no unique geographical issues driving choice of best broker.
One issue many Nepalese resident Forex traders may need to consider is that there are some brokers offering a better service to traders depositing relatively small amounts of money, and many Nepalese traders will be in this category. If you are, be assured that it is possible to start trading Forex successfully with a deposit as low as $100, especially if you use a broker that offers trading in nano-lots such as Exness.
While it may be tempting to select a broker based upon how close it is to Nepal, most good brokers have customer support open 24 hours every weekday. However, language may be more of an issue, and good language support may be found most easily in Forex brokers which have offices in Mauritius.
It is recommended to proceed carefully in choosing the right Forex / CFD broker for you.
Online Forex Training in Nepal
At the time of this article, over 128 Forex training courses were advertised in Nepal for online forex trading in Nepal. While some offers may be genuine, most represent an unnecessary capital drain, and will exist primarily to exploiting new traders. Everything you need to know about trading Forex and CFDs can be acquired completely free of charge on the internet. The money you might spend on a Forex training course will almost certainly be better spent elsewhere. Thanks to demo accounts, and the fact that accounts can now be opened with very small deposits of real money, there are relatively painless ways to learn by doing, too.
Forex training centers or other courses may seem attractive and logical investments, but they are extremely likely to leave you dissatisfied with what you would get in return for your investment.
Best Time to Trade Forex in Nepal
A key factor in Forex trading in any country is the position of that country’s time zone and how it relates to the key Forex trading centers of London and New York.
Nepal is 4 hours and 45 minutes ahead of London on almost every day of the year. As it is well established that intraday trading (day trading) is best done at times of relatively high volatility, you should consider that peak Forex volatility tends to happen from Noon to 4pm London time. This means that the best time for online Forex trading in Nepal is in the late afternoons and evenings after work or education, as these times correspond to the period between 4:45pm and 8:45pm at local time in Nepal.
Forex Regulations in Nepal
While the Nepal Rastra Bank and the Ministry of Finance regulate the domestic financial sector, including Nepalese Rupee transactions, Nepal does not actively regulate online Forex trading. There are no restrictions on Nepalese-resident traders from opening Forex accounts with offshore brokers, like the ones I provided in my best Forex brokers in Nepal listing, which all accept Forex traders resident in Nepal.
Final Thoughts
- Forex trading will continue to become more popular in Nepal as GDP grows and disposable incomes rise.
- Forex trading is legal in Nepal and can represent an opportunity to profit if done correctly and responsibly.
- Nepalese residents have a wide choice of Forex / CFD brokers to use but might face account currency issues as deposits in Nepalese Rupees are not accepted. However, it is possible to find brokers allowing deposits in the Indian Rupee, which has a pegged exchange rate to the Nepalese Rupee.
- Forex training services are available in Nepal but are all very likely to be a waste of money.
- Nepal is in a well-positioned time zone for Forex traders, as the peak hours of the Forex market fall in the early evening local time.
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