FOREX (Foreign Exchange) Trading in Nepal

Foreign Exchange (Forex) is the trading between two currencies. For example, exchanging euro with the dollar. This type of transaction is done on the foreign exchange market. So, Forex is the exchange of currency on the foreign exchange market for various reasons like commerce, trading, or tourism.

According to the report, the daily trading volume of forex traded reached $6.6 trillion in April 2019. Although FOREX is legal in Nepal it is not popular as compared to the commodity and the stock market. So, to boost FOREX in Nepal SEBON should play the role of guardian to spread awareness about FOREX across Nepal.

FOREX in Nepal

It is totally legal in Nepal and it’s supervised by the “Securities Board of Nepal” (SEBON) under the securities Act 2063. Every day trillions of transactions are made in the foreign exchange market. In Nepal, it’s not that popular but it can be a good income source for everyone.

To do the Forex Trading we need to have a mobile/laptop with internet access, a good forex broker, and the best strategy. Furthermore, So to start Forex you need to have capital, a forex broker, device with a stable connection. Nepalese residents can choose a good broker from anywhere. XTB online trading, City index, IC Markets, CMC Markets, Plus 500 are a couple of brokers who operates Forex trading.

Learning how to trade Forex requires lots of practice, best accomplished in a demo account and with an initially small deposit of amount. Broker is necessary to operate the trading in the foreign exchange market.

Profit in FOREX

There is no international broker physical presence in Nepal, and there are not many brokers who accept Nepalese currencies as a deposit. Firstly, it’s better if you operate your demo account and learn strategies and policies to make a profit because out of 100%, only 28% can make the profit.

If you are starting forex with less than $100, it will be better to use those brokers who offer trading in nano lots such as FXTM or Exness.

There is a lot of forex training centers in Nepal that charge a huge amount. But, most of them are useless because there is a lot of training stuff on the internet for free. So, to train yourself you need to give time and practice in the demo version as much as you can.

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 foreign exchange trading centers of New York and London. Nepal is 4 hours and 45 minutes ahead of GMT and almost every day of the year compare to London. This means that the best time to trade Forex in Nepal is late noon which is between 4.45 pm to 8.45 pm because at this time there will be high volatility of currencies.

Conclusion

When you enter into the real market you need to do Technical and Fundamental analysis. Technical Analysis gives you knowledge about the best time to buy and sell your currencies. It helps you to read the chart closely and indicate the sign to enter or exit the market.

However, Fundamental analysis is about which one is to buy. Through fundamental analysis, you can compare the currencies with the country’s economy, politics, and other external factors. To do the fundamental analysis you need to update with news and information.

FAQs on FOREX Trading in Nepal