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 Trading Brokers Apps and Platforms Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, 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, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| 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 copy traders and signal providers. Traders benefit from a high quality price improvement technology, which lowers trading fees by an average of $3.00 per round lot. Besides the MT4/MT5 trading platforms, including their respective mobile apps, FXTM presents its user-friendly mobile app FXTM Trader. Copy traders may use embedded MT4/MT5 copy trading services or FXTM Invest, the in-house FXTM copy trading services.
FXTM offers a balanced asset selection of liquid trading instruments, including a good choice of currency pairs. Signal providers can deploy algorithmic trading solutions with 24/5 low-latency trading via VPS hosting.
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 offers traders a well-balanced asset selection, including cryptocurrencies, ETFs, and bonds. For a reasonable $100 minimum deposit, traders get competitive trading fees featuring raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot. FP Markets also maintains excellent payment processor choices, including cryptocurrencies. Therefore, I rank FP Markets among the best Forex brokers in Nepal.
Copy traders and signal providers can trust the embedded copy trading services in the MT4, MT5, and cTrader trading platforms. Alternatively, they can use the in-house FP Markets Copy Trading, fee-based Signal Start, and Myfxbook Autotrade.
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 spreadsI rate AvaTrade among the best Forex brokers in Nepal for beginners. Besides its excellent educational content, AvaTrade offers the MT4 Guardian Angel plugin and the fee-based Ava Protect insurance policy protecting against trading losses. Traders also benefit from a well-balanced asset selection, including options, ETFs, and cryptocurrencies. Another benefit is the high-paying partnership program with 70,000+ registered partners from 150+ countries and $250,000,000+ commission payouts.
AvaTrade has MT4/MT5, its proprietary WebTrader, and the mobile app AvaTradeGO, which embedded Trading Central services. Ava Option and Ava Social, two specialized platforms, and DupliTrade, another copy trading provider, are also available.
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 ranks highly on my listing covering the best Forex brokers in Nepal, as it is one of the most competitive, accessible Forex brokers with superb copy trading services. Besides the MT4/MT5 trading platforms, upgraded via Autochartist, which supports algorithmic and copy trading, Black Bull Markets developed its in-house BlackBull Markets CopyTrader. Third-party copy trading leaders ZuluTrade and Myfxbook Autotrade are equally available.
Social traders can connect their BlackBull Markets accounts to TradingView, where 50M+ peers share and discuss trading ideas. BlackBull Invest supports physical equity trading, allowing investors to create unleveraged long-term portfolios with competitive commissions.
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 consider Eightcap among the best Forex brokers in Nepal, as it offers Capitalise AI, enabling algorithmic trading in a code-free MT4 environment. It lowers the entry bar for algorithmic trading, a vital tool for profitable Forex traders. Therefore, most brokers cannot compete with Eightcap. Traders also benefit from commission-based trading fees with spreads from 0.0 pips for a commission of $7.00 per 1.0 round lot.
MT5 traders get the FlashTrader plugin, and Eightcap supports news traders with its AI-powered economic calendar. The well-balanced asset selection of liquid trading instruments includes 100+ cryptocurrency CFDs. Eightcap also connects to TradingView.
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?
While my research found conflicting reports, the ones with less credibility focusing solely on SEO written by marketing individuals claim that Forex trading is legal. The ones with more credibility, including discussions among Forex traders, claim it is illegal right now. The primary issue is that the Nepal Rastra Bank, the central bank of Nepal, has strict currency controls that prevent Nepalese residents from sending capital out of the country. Therefore, illegal may be the wrong word, but impossible would fit, as those currency controls make it impossible for Forex traders in Nepal to fund an offshore Forex brokerage account.
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.
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 brokers with a physical presence in Nepal, and no brokers anywhere in the world are currently accepting deposits in Nepalese Rupees. Therefore, no unique geographical issues drive the choice of the best broker. One issue many Nepalese resident Forex traders may need to consider is that some brokers offer a better service to traders depositing relatively small amounts of money, and many Nepalese traders will be in this category.
Forex traders have various requirements and preferences, but the best Forex brokers feature similar core aspects to ensure a safe and competitive trading environment.
All competitive Forex brokers should offer the following:
1. Regulations & Licensing - Nepalese Forex traders should only consider Forex brokers with a clean regulatory track record spanning 10+ years, but not all regulators allow a competitive trading environment. Forex brokers with regulation by the FMA (New Zealand), FSCA (South Africa), the FSA (Seychelles), the BVIFSA (British Virgin Islands), the FSC (Mauritius), the IFSC (Belize), the DFSA (Dubai), and the CIMA (Cayman Islands) offer an excellent choice of regulatory security, trustworthiness, and competitiveness. Nepalese Forex traders should always avoid unregulated brokers.
2. Spreads & Fees - Trading fees directly impact trading strategies and profitability. Forex traders should favor commission-based pricing environments with raw spreads between 0.0 and 0.01 pips on major currency pairs for a commission below $7.00 per 1.0 standard round lot with a volume-based rebate program. Forex traders who prefer a commission-free alternative should ensure minimum spreads of 0.7 pips or less. Swap rates on leveraged overnight positions must be within a reasonable range and include positive ones if applicable.
3. Leverage - The best Forex brokers offer 1:500 leverage on major currency pairs with negative balance protection to ensure traders cannot lose more than their deposit. They also assist in risk management with automatic stop-out levels. Despite popular belief, trading with smaller leverage does not decrease risk but lowers the portfolio competitiveness. Risk management manages the risk profile, and Forex traders should learn the relationship between leverage and risk management, as well as lot sizes and risk management, before using leverage.
4. Trading Platform - While the trading platform choice depends on the individual preferences and requirements of Forex traders, MT4, supporting algorithmic and copy trading with a user-friendly mobile app, remains the best choice for most Forex traders. It features 25,000+ EAs, plugins, and custom indicators and integrates with high-quality third-party trading solutions like Capitalise AI for code-free algorithmic trading, Trading Central, and Autochartist. It also remains the leading algorithmic trading platform, as algorithms account for 80%+ of daily Forex trading volumes. MT5 and cTrader are reasonable alternatives.
5. Deposits & Withdrawals - Nepalese Forex traders should look for no internal transaction fees and low minimum requirements with cryptocurrency deposits and withdrawals, given existing currency controls imposed by the Nepal Rastra Bank, the central bank of Nepal.
6. Account Types - With only a few exceptions, commission-based account types offer lower trading fees versus commission-free alternatives. Many Forex brokers have simplified their account types and offer one to three options.
7. Demo Account - Traders should ensure their Forex brokers offer customizable demo accounts without expiration, as they are necessary for beginners and seasoned traders. While beginners can test the trading environment and incorporate educational lessons, seasoned traders rely on demo accounts to test and tweak strategies, algorithmic traders to bug-fix and test solutions, and copy traders to evaluate signal providers.
8. Scams - Regrettably, scams are often present within the Forex industry, especially in frontier and emerging Forex markets. Nepalese resident Forex traders can easily avoid scams by avoiding unregulated Forex brokers, using common sense, and ignoring social media posts, groups, and channels where signal providers promise outsized returns with fake live portfolio screenshots that show linear portfolio growth.
9. Local Considerations - Finding a broker that offers customer support in Nepali outside of Nepal, home to 92 securities brokers but no Forex brokers, is impossible. Most Nepalese understand Hindi, and many Nepalese also understand English, which eliminates the language barrier. The Nepalese Rupee is unavailable for trading, given strict currency controls, and Nepalese traders who wish to trade Nepalese securities must open accounts with licensed security brokers in Nepal. Education in Hindi and English is widely available online, for free, and via paid-for courses. Nepalese beginners should avoid paid-for education, as everything they require is available for free.
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.
Risk Warnings
Forex trading involves risks, and before traders open accounts with Forex brokers, they should understand the risks to assess if Forex trading is appropriate for them. The first step is to avoid unregulated Forex brokers despite their attractive offers and promotions.
Legit Forex brokers will never call traders and offer trading assistance, and Forex brokers who insist on calling or cold call traders raise a tremendous red flag. I have outlined the core risks of Forex trading in Nepal and how traders can mitigate or eliminate them.
Risks of Forex Trading in Nepal
- A fundamental misunderstanding of Forex trading, its requirements, and possibilities amid the lack of quality education, despite its availability, mitigated by in-depth education.
- Wrong trading mentalities due to disrespect of Forex trading as a high-skilled profession, mitigated by in-depth education.
- A false sense of accomplishment among beginners who rely on demo accounts as an educational tool, as they lack exposure to trading psychology, mitigated by learning how to trade in a micro account with small deposits.
- Insufficient trading capital and unrealistic trading expectations can lead to overtrading, frustration, and inefficient trading, mitigated by creating a deposit plan consisting of an initial deposit followed by smaller, monthly add-ons.
- Avoidable leveraged trading losses resulting from a lack of adequate risk management, mitigated by understanding the relationship between leverage and risk management and the impact of lot size on risk management.
- Uncompetitive trading circumstances from manual trading as 80%+ of Forex transactions are algorithmic, mitigated by coding the trading strategy that was developed by the trader or using third-party tools like Capitalise AI.
- A lack of in-depth education traps beginners in scams and fraud, mitigated by in-depth education before considering opening an account.
- Sub-standard trading conditions due to inadequate hardware, no quiet place to trade, or using mobile apps for Forex trading rather than Forex copying, mitigating by evaluating existing trading conditions and upgrading them were necessary.
- Promotions of unrealistic trading performances by questionable Forex brokers and affiliates, mitigated by ignoring social media.
How to Avoid Scams in Nepal?
Online trading revolutionized the retail financial market and continues to evolve positively in most areas, but it also invites scams.
Here are my tips on avoiding Forex scams:
- In-depth education will help you understand markets, realize what they represent, and spot scams.
- Avoid unregulated brokers, no matter how good their offer sounds.
- Legit brokers never call traders, while scam brokers call under the guise of helping beginners trade, which is a red flag.
- Never trust social media, where scammers use groups, forums, channels, and direct messaging showing fake live portfolio screenshots with linear portfolio growth or high success rates with the occasional loss with outsized returns.
- Avoid third-party trading bots, as they fail long-term but enrich the sellers.
- Paid-for educational courses, mentors, and trading coaches are usually failed traders who recover losses by selling useless products and services.
- Ignore anything that promises quick profits from small deposits with no knowledge needed.
- Consider that professional Forex traders average less than 12% annual profits consistently with few exceptions.
- The majority of successful Forex traders never share their strategies, use copy trading, or offer private lessons.
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.
