How to Start Forex Trading in Nepal

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The post How to Start Forex Trading in Nepal by Dan Schmidt appeared first on Benzinga. Visit Benzinga to get more great content like this.

Are you interested in forex trading in Nepal? With the potential for significant returns, many individuals are eager to get started but may not know where to begin.

Forex trading, also known as foreign exchange trading, is the buying and selling of currencies on the foreign exchange market. It has become increasingly popular in Nepal due to its accessibility and potential for financial growth.

If you are interested in starting forex trading in Nepal, it’s essential to understand the basics and have a solid strategy in place. This article will guide you through the necessary steps to kickstart your forex trading journey in Nepal.

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Disclosure
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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6 Steps to Get Started with Forex in Nepal

Follow these steps to get started with trading forex in Nepal.

1. Get Connected to the Internet

Online forex brokers have not only made currency trading affordable and available to just about everyone, but they also allow trades to be made from anywhere you have an internet connection. Advanced forex trading no longer requires lightning-fast connection speeds or expensive computer technology. If you have a laptop or a smartphone, you can get started trading forex. If you have a laptop or a smartphone, you can get started with a forex trading platform.

2. Find a Forex Broker That Accepts Clients in Nepal

According to SEBON, it’s legal to trade forex in Nepal, so citizens will have a variety of forex brokers to choose from. Select a broker that fits your needs — consider your trading style, how many trades you’ll be making each month, which currency pairs you want to trade and how much leverage you want access to.

3. Open Your Account

Before you open an account with a trading platform, you’ll need to send the broker some personal information and choose the type of account you want to trade in. Forex trading requires leverage since exchange rate moves are measured in fractions of 1 pip and many brokers offer different options on spreads and market access. It is important to get educated about how leverage works in forex as it can greatly amplify losses without the right understanding.

4. Fund Your Account

Funding your account while based in Nepal might be the most difficult part of the operation since brokers accepting Nepalese rupees are few and far between. Thankfully, many brokers do accept Indian rupees or digital currencies like Bitcoin which aren’t tied to a sovereign nation. Some brokers will have minimums for new accounts — make sure you have enough to meet this requirement if you’re exchanging Nepalese rupees for Indian ones.

5. Pick a Forex Trading Platform

Forex traders often have their pick of the broker’s proprietary trading platform or a 3rd-party powerhouse like MetaTrader or NinjaTrader. One of the best features of 3rd-party platforms is the advanced features traders can deploy. With MetaTrader and NinjaTrader, you can program automated trading systems to trade the forex markets while you sleep or pick up groceries.

6. Execute Your First Trade

Once your account is activated and funded, you can begin trading. Most brokers offer a demo account, and you’d be wise to take advantage of that if you’re new to currency trading. While many of the same strategies for trading other asset classes apply to forex, it’s still a good idea to practice first.

Compare Nepal Forex Brokers

Finding a suitable forex broker and trading platform for use in Nepal takes some research. Here’s a list of our favorite online forex trading brokers available to Nepalese citizens.

FOREX.com

get started

securely through FOREX.com’s
website

More Details
Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% to 77.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account
Account Minimum
$100
Pairs Offered
80+
1 Minute Review

FOREX.com is a highly trusted global broker for forex and CFD traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for traders searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels.

FOREX.com is regulated by Commodity Futures Trading Commission (CFTC) and member of the National Futures Association (NFA) in the U.S. They also are regulated by the Financial Conduct Authority (FCA) in the UK among other regulators including CIRO, ASIC and more.

Best For

  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Up to 30:1 leverage
  • Access to 80+ FX pairs and 80+ technical indicators
  • Trade to your full capability with the mobile app with quality execution with one-swipe trading, advanced TradingView charting and analysis tools, real-time trade & order alerts and full account management features
  • Exclusive trading tools including Trading Central, TradingView, Smart Signals and Performance Analytics
  • EUR/USD spread as little as 0.0 and low commissions
  • 30 indicators for technical analysis, nine timeframes and graphical objects such as Line Studies and Shapes on MT4
  • Various tradable asset classes including forex, shares CFDs, crypto CFDs, commodities and indices
Cons
  • No negative balance protection
  • $15 per month inactivity fee after no trading activity for 12 months

Tickmill

Get started

securely through Tickmill’s
website

More Details
Account Minimum
N/A
Pairs Offered
N/A
1 Minute Review

Tickmill is an award-winning, multi-regulated investment firm offering trading in a plethora of asset classes including, CFDs in forex, precious metals, indices, stocks, commodities, cryptocurrencies and bonds.

Apart from offering various platforms, Tickmill caters to traders of all levels by providing competitive pricing, leverage up to 1:500 depending on the entity and client classification, dedicated support, exclusive market analysis and a wide array of trading tools and education.  This low-spread broker offers fast execution, several payment methods and no restrictions on trading strategies such as hedging or scalping.

Futures and Options are offered with Direct Market Access across multiple globally regulated Futures exchanges including CME, CBOT, NYMEX, COMEX, EUREX, ICE Futures Europe and more. Real Futures include Stocks, Indices, Forex, Metals, Cryptos and Energies like the Micro E-Mini S&P 500, Micro E-Mini Nasdaq 100 and Micro Bitcoin Futures.

Future and Options are offered with probably the lowest fees and transparent commission structures in the industry, ultra-low latency, and seamless trading solutions for high volume trading with reliable, flawless order routing underpinned by advanced technologies.

Tickmill has become a trusted market-leading broker because of its commitment to seeking regulations in several jurisdictions. Traders have access to forex, stocks, commodities, cryptocurrency and bond markets as well as Futures and Options.

Free educational content and advanced tools are available for novice and experienced traders to help them enhance their trading strategies and achieve their trading goals.

The 20+ awards received are a testament to Tickmill’s commitment to providing optimal trading conditions for retail and institutional clients. Besides offering low spreads and fast execution, Tickmill ensures no trading restrictions, access to CFDs and occasionally runs campaigns (under Tickmill Ltd) to reward traders for their loyalty and activities.

Best For

  • Forex, stocks, commodities, precious metals, bonds and crypto with competitive conditions
  • Futures & Options trading with probably the lowest fees in the industry
  • Retail and institutional clients
  • Traders seeking various platforms and accounts
  • Beginners wanting free trading tools and educational material
  • Traders incorporating advanced tools and algorithm systems
Pros
  • Strongly regulated broker
  • Swap-free accounts available
  • Enables access to various markets and asset classes
  • Fast execution speed in milliseconds
  • Crypto trading available 24/7 with 0 Commissions, 0 Swaps
  • Deposits and withdrawals in BTC, ETH and USDT
  • Free educational content
  • Negative balance protection
  • Mobile app available for account management
  • User-friendly client area
  • Free demo accounts
Cons
  • Live chat is unavailable on weekends

Axi

get started

securely through Axi’s
website

More Details
Disclosure: Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.
Account Minimum
N/A
Pairs Offered
N/A
1 Minute Review

Founded in 2007, AxiCorp has grown from a two-person startup to an industry-leading online trading company, trusted by thousands of traders worldwide. 

Axi is a fully digital and user-friendly global award-winning broker offering CFD trading on the popular MetaTrader4 (MT4) platform. It provides clients with extensive trading education for different levels and experiences, as well as smart automated trading solutions that include PAMM accounts and a Copy Trading app. On the Axi blog, you can access free market news, trading guides, price prediction articles and other useful resources that can help you build your trading skills and understand the markets better. 

Talented Axi traders who wish to become professionals can receive funding through the Axi Select capital allocation programme. 

You can open a Live trading account at Axi with a minimum deposit of $500. Axi also offers a free demo account that allows you to hone your skills and trade risk-free with $50,000 USD in virtual currency. 

Best For

  • Derivatives traders who use MT4
  • Copy Trading
  • Automated trading
  • Traders looking for funding
Pros
  • Competitive spreads with fast execution speed
  • Copy trading to learn from professional traders
  • Autochartist integration and advanced analytics driven by AI and ML
  • Trading Central and user-friendly MetaTrader 4 platform
  • Economic calendar with country and category filters for news of economic affairs and economic indicators from across the globe
  • Axi Select capital allocation program offering funding up to $1 million USD
  • No deposit or withdrawal fees
Cons
  • Doesn’t accept U.S. traders
  • Web trading platform could use some work
  • $10 per month after 12 months of inactivity

BlackBull Markets

Get started

securely through BlackBull Markets’s
website

More Details
Account Minimum
N/A
Pairs Offered
N/A
1 Minute Review

BlackBull Markets is a multiple award-winning New Zealand-based forex and contract for difference (CFD) broker with over 26,000 tradable instruments, including equities, cryptocurrencies, indices and commodities. CFD trading lets you profit from rising and falling markets by entering into contracts with a broker to exchange the difference in an asset’s value between the opening and closing of the trade.

It prides itself on precision and speed, employing Electronic Communication Network (ECN) execution on multiple platforms such as MT4/MT5. ECN brokers match buy and sell orders electronically without intervention, resulting in lightning-fast execution and tighter spreads. BlackBull Markets delivers on the three core requirements for trading success in an ECN environment: deep liquidity, institution-level pricing and high leverage. 

The broker is fully regulated by the New Zealand Financial Markets Authority (FMA) and Seychelles Financial Services Authority (FSA) and offers negative balance protection. Account setup is fast and hassle-free, and traders are assigned dedicated managers.

BlackBull Markets has solidified its reputation as a trusted and reliable broker. Its exceptional trading conditions make it the top choice for thousands of traders worldwide, and this is reflected in its multiple awards, including “Best Global FX Broker 2022” by Forex Expo and “Best in Class Offering of Investment 2023” by ForexBroker.com. 

Best For

  • Multi-asset beginner and experienced traders seeking a reputable multi-asset broker with outstanding trading conditions, including flexible market access, competitive spread, deep liquidity, institution-level pricing and advanced charting platforms
  • Beginner CFD and forex traders looking for an innovative brokerage with a hassle-free account setup, beginner-friendly trading platform, excellent educational resources, dedicated account manager, 24/7 support and a demo account
  • Copy traders can also benefit from BlackBull CopyTrader, an innovative and award-winning copy trading platform that lets you copy the trades of elite fund managers with a track record of success
  • Pattern-day traders, scalpers and high-frequency traders looking to optimize trading performance by capitalizing on the fast execution speed and precision offered by ECN brokers
  • Long-term buy-and-hold investors looking to participate in global equity markets for wealth-building through BlackBull Invest
Pros
  • A comprehensive range of tradable instruments across diverse asset classes, including CFDs on stocks, forex, commodity and cryptocurrencies
  • Transparent, affordable and competitive pricing — $0 minimum deposit, industry-leading spread and high leverage, especially on major forex pairs
  • Multiple trading technologies, including MT4/MT5 (#1 platform for CFD trading), TradingView (#1 for charting), the highly innovative cTrader and two intuitive in-house platforms — BlackBull CopyTrader and BlackBull Trade
  • Deep liquidity, ultra-fast and precise trade execution, with free Virtual Private Service (VPS) hosting to ensure uninterrupted market access
  • Excellent educational or learning resources for beginners and seasoned traders, including over 3,000 video tutorials, webinars and podcast
  • Licensed and regulated by the New Zealand FMA) and Seychelles FSA and offers negative balance protection
  • Dedicated accounts manager, round-the-clock customer support and a free and readily accessible 30-day demo account for practicing trading strategies
Cons
  • Unavailable in the U.S. and Canada
  • Does not offer bonds and exchange-traded funds (ETFs)

Pepperstone

Get started

securely through Pepperstone’s
website

More Details
Disclosure: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Account Minimum
AUD$200 or equivalent
Pairs Offered
60+
1 Minute Review

Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders. 

Pepperstone offers traders access to over 100 forex pairs, over 1,200 CFDs for index funds and stocks and 20 cryptocurrencies. Leverage options with Pepperstone are 1:400 max for retail traders depending on the jurisdiction and Max Pro accounts are 1:500. Pepperstone also stands out for its integration with TradingView, along with various advanced trading tools like algorithmic trading, Autochartist, API trading and more.

Best For

  • International traders interested in trading CFDs from foreign markets and currencies
  • Traders who are already familiar with the MetaTrader, cTrader and TradingView platforms
  • Traders who are looking for leverage when trading cryptocurrencies
Pros
  • Trade in 100 foreign currencies and more than 1,200 CFDs
  • Leverage available for both forex and cryptocurrency trading
  • Comprehensive webinar training
  • Trusted by traders across 183 countries
  • Low trading fees
  • Spreads as low as 0.0 pips with deep liquidity and no requotes
  • Growing selection of tradable markets
  • TradingView integration
Cons
  • Not available to U.S. traders
  • No interactive courses
  • Basic MetaTrader platform

Nepal Forex Trading Strategies

Forex trading involves analyzing currency pairs on a foreign exchange trading platform to make financial decisions.

Many of the same trading strategies used for stocks can be used for currencies, but it’s important to understand the differences in asset classes. Currencies can be volatile, like when the British pound declined vs other major currencies after England voted to leave the European Union. But for the most part, currency moves won’t be this sharp and you’ll need an experienced eye to catch trends. Here are a few forex trading strategies to familiarize yourself with:

  • Trend trading
  • Momentum trading
  • Range trading

Forex trading can bring in great rewards, but leverage also carries a lot of risks. Many forex brokers allow leverage up to 500:1, meaning 1 dollar can control a position worth 500 times as much. Currency moves might not look as drastic compared to stocks, but it’s still easy to go bust when applying this much leverage.

When trading forex, always have a plan and use a strategy you’re comfortable with when real money is on the line. If you aren’t comfortable yet, use your demo account to practice until you find a method that works for you. The forex market is open 5 p.m. Sunday EST to 5 p.m. Friday EST — they aren’t going anywhere while you get up to speed.

Forex Trading Example in Nepal

Let’s say you’re looking at how different countries have handled the coronavirus pandemic and you’ve noticed how much better Japan has done at containing the outbreak compared to Great Britain. You think different economic forces in Britain will push down the value of the pound while the Japanese yen will rise.

Forex Trading Example in Nepal

In this specific trade, you’d want to buy yen and short British pounds. So you’d search your forex broker for the GBP/JPY currency pair and short it. When you short GBP/JPY, you’re predicting a rise in the value of JPY in comparison to GBP. If you thought pounds would rise and yen would fall, you’d buy the GBP/JPY currency pair.

Understanding Forex Trading in Nepal

The Federal Democratic Republic of Nepal is a tiny South Asian nation tucked between eastern China and northern India. While relatively small in size, Nepal is the 43rd most populated country in the world and features some of the globe’s most memorable landmarks, including Mount Everest. In fact, thanks to the massive Himalayan mountain range, Nepal is home to 13 of the world’s 20 tallest mountains. 

But while Nepal may have some of the planet’s most majestic scenery, it doesn’t have much in the way of a financial footprint. Nepal is a nation that has had long battles amongst competing government factions and was ruled as a monarchy as recently as 2008. But democracy has been expanding in Nepal and the Constitution of Nepal was instituted in 2015, making the country a republic and opening up the avenues of commerce. 

Forex trading is allowed in Nepal and all trading of currencies (and other asset classes) is regulated by the Securities Board of Nepal, or SEBON. The Nepalese rupee is directly linked to the Indian rupee. India and Nepal have a pegged exchange rate on their currencies, which has been in place since 1993. One Indian rupee is worth 1.6 Nepali rupees under this exchange rate policy.

Forex Terminology

Forex traders have their own unique terminology. Make sure you understand the following list of terms before embarking on a forex trading career.

  • Pip: Acronym for percentage in point. This is the smallest measured unit of movement in a currency pair’s exchange rate.
  • Lot size: Similar to stock trading, the lot size refers to the standardized trading amount. In forex, 1 lot is usually 100,000 base currency units.
  • Orders: An order is simply the instructions you give your broker when executing a trade. For example, a market buy order means buy a currency pair at any exchange rate while a limit order means only buy when a certain exchange rate is reached.
  • Calls: In options trading, a call is purchased when the buyer wants the ability (but not the obligation) to buy a certain currency pair at a certain exchange rate on a certain date. Using options in forex trading may increase risk due to the amount of leverage you’re adding to an already leveraged trade.

Nepal’s Growing Economy Could Bring More Forex Trading Activity

Nepal only recently became a true democracy, but its private sector is growing while more and more Nepalese citizens are moving out of poverty. When a population makes economic gains, their take-home pay increases and some of that pay inevitably winds up in capital markets. And since forex trading is already regulated by SEBON, residents can trade with peace of mind knowing that brokers and dealers must follow the law.

Frequently Asked Questions

Q

Is forex taxed in Nepal?

1
Is forex taxed in Nepal?
asked
A
1

Yes, forex trading is taxed in Nepal.

Answer Link

answered
Q

Which broker is best in Nepal for forex?

1
Which broker is best in Nepal for forex?
asked
A
1

Some of the top forex brokers in Nepal are FOREX.com and Tickmill.

Answer Link

answered
Q

Is forex trading illegal in Nepal?

1
Is forex trading illegal in Nepal?
asked
A
1

Yes, forex trading is  legal in Nepal, yet under the oversight of the Nepal Rastra Bank, which imposes regulations and limitations. Traders are obligated to comply with these legal parameters, executing their transactions exclusively through regulated brokers. Any involvement in unlawful forex trading carries grave repercussions, potentially resulting in both financial losses and legal ramifications.

Answer Link

answered
Q

Which trading app is legal in Nepal?

1
Which trading app is legal in Nepal?
asked
A
1

Prominent platforms favored by Nepal traders include MetaTrader 4, MetaTrader 5, cTrader and NinjaTrader.

Answer Link

answered

The post How to Start Forex Trading in Nepal by Dan Schmidt appeared first on Benzinga. Visit Benzinga to get more great content like this.