A beginner’s guide to best Forex brokers in Nepal

The Federal Democratic Republic of Nepal is located in South Asia, with most of the country occupying the Himalayan region, while the others partially located at the Indo-Gangetic Plain. Nepal is a landlocked country, which borders Bangladesh, India, and Tibet.

With a total area reaching 147, 516 square kilometers and a population of over 30 million people, Nepal is the world’s 93rd largest country by the size of the territory and 49th largest by population.  Moreover, the country is one of the most ethnically diverse in the region, with over 16 ethnic groups residing in Nepal according to recent estimates.

The economy of Nepal is primarily agrarian, with a large portion of the population engaged in agriculture. In addition, Nepal’s main exported goods include paper products, medicinal herbs, ready-made garments, handicrafts, leather, pulses, and carpers. Nepal is classified as a developing country, and its gross domestic product has been gradually growing over the past several years. As the economy expands and financial trading becomes more accessible worldwide, more and more Nepalese are participating in trading financial assets.

Since the Nepalese FX market is still relatively new, you might find it hard to find the best local Forex brokers. The reason for that is the fact that the market is not yet properly regulated, and, if not approached with enough caution, might cause you to fall victim to a fraud scheme disguised as a legitimate Forex broker. Our list of top brokers will help you find a trustworthy international broker that offers great trading conditions for Nepalese traders.

Top Forex brokers list that accept traders from Nepal

Finding a good Forex and CFD (Contracts for Difference) broker can be challenging due to a variety of factors. There are lots of things to consider during the selection process, for instance: leverage, regulatory compliance, spreads, commissions, trading accounts, and platforms. In addition, there are so many brokers out there, it’s really difficult to find the best one. We have evaluated lots of Forex and CFD brokers and picked the best ones that are accepting traders from Nepal. You can read detailed reviews on each by clicking on the broker’s icon or by pressing the “READ REVIEW” button.

Forex trading regulations in Nepal

Financial trading, including Forex trading in Nepal, is authorized and regulated by the Nepal Rastra Bank (NRB), which is the central bank of Nepal. NRB is responsible for overseeing and licensing financial brokers within the country.

However, it should be mentioned that there are not many local brokers and the regulations and policies are not fully developed regarding Forex trading in Nepal. Which is why it’s better to open internationally regulated brokers. Global brokers that are licensed by reputable regulatory bodies can be fully trusted.

Becoming a trader in Nepal

There are very low barriers to entry when it comes to trading Forex and CFDs. The only legal requirement that you need to meet to register from Nepal is to be a resident of the country, have proof of ID, and proof of residency (utility bill, bank statement) documents, and be of legal age (18 or older).

Becoming a Forex trader in Nepal can be a challenging journey as you need to learn trading terminology, learn how to use trading platforms, build and upgrade trading strategies, learn trading psychology and have enough funds to deposit in your trading account. It should be mentioned that while many beginners think that trading is an easy way to make a lot of money, the opposite is true. However, successful traders are greatly rewarded. In addition, there are many trading career paths that you as a trader can take. You can become a retail trader, an institutional trader, educator and signal provider, or risk manager and financial analyst.

Should you trade Nepalese Rupee?

The national currency of Nepal is the Nepalese Rupee, coded as NPR. The NPR is issued and controlled by the country’s central bank – Nepal Rastra Bank. However, this currency is not very popular for trading purposes. There is a very limited list of brokers that offer this currency for trading. In addition, NPR is considered an exotic currency. And most traders avoid trading exotic pairs due to low liquidity. Low liquidity trading environment brings high spreads as difference between bid and ask price expands. It’s best to avoid trading NPR, especially if you are a beginner trader.

Most popular trading platforms in Nepal

While looking for a Forex broker to join, you will come across a variety of trading platforms to choose from. Some brokers prefer custom-made trading software, while others are offering some of the more popular alternatives, such as cTrader or MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

• MT4 is widely regarded as the industry standard when it comes to trading currency pairs, and is offered by the vast majority of brokers. The platform supports automated trading, supports hedging, and has a large library of ready-made indicators and Expert Advisors (EAs).
• MT5 is the successor of MT4, the platform offers enhanced features and expanded capabilities. MT5 is regarded as a multi-asset platform among trading community. Compared to MT4, MT5 offers more time frames, depth of market (DOM) functionality, and a built-in economic calendar.
• cTrader is an intuitive and easily customizable trading platform developed by Spotware Systems. It supports algorithmic trading, has modern looking design, offers multiple charting time frames, and offers the DOM functionality. cTrader is highly a highly popular platform among traders that prefer ECN (Electronic Communication Network) trading environment.

Regardless of what you will end up choosing, you should keep in mind that finding the best trading platform in Nepal can be one of the most important components of your future trading success, as it is the trading platform that will define both your exposure to various trading instruments, and the efficient and timely execution of your orders. Custom-made platforms are often not as reliable as professional software such as MT4, MT5 and cTrader.

Available payment options in Nepal

There is a variety of payment methods to choose from in Nepal. The most popular methods include: bank wire transfers, debit and credit card payments, mobile wallets (such as eSewa, Khalti, IME Pay, and Prabhu Pay), and e-Wallets. It should be mentioned that not all international brokers are accepting Nepalese mobile payment options. Make sure that your broker offer the funding method that you use in your country.

Pros and Cons of starting a trading journey in Nepal

Forex trading in Nepal, like any other form of trading, has its own set of pros and cons. Here are some key advantages and disadvantages of forex trading in Nepal to take into account:

Pros: 

• Nepalese national economy is not fully developed. And Forex trading can bring you an additional source of income that is not connected to what happens within the country.
• Forex markets are easily accessible, compared to other markets such as Stock markets, as registration process typically takes less than a day, and minimum initial deposit requirements are low.
• Forex market is flexible. Trading is available 24 hours a day, 5 days a week, during workdays.

Cons: 

• The local Forex market is not yet properly regulated, which is why it’s recommended to find an international broker.
• The country is still faced with poverty and many other economic challenges, and this might make it difficult to save money for trading.
• Financial trading is not an easy business. Traders need to manage their risks, manage their emotions, develop and upgrade trading strategies to remain profitable. Many traders that fail to do so, end up losing money.

Summary

Overall, we can conclude that the Nepalese Forex market is not fully developed. Regulations and practices are still in its infancy within the country. As a result, not many local brokers are available to choose from. Which is why we recommend that you open a trading account with an international broker. The top global brokers list, that we have included in this guide, will help you pick the best broker.

FAQs on the beginner’s guide to the best Forex brokers in Nepal