Binary Trading in Nepal | Legality, Brokers & Tutorial

There’s no formal explicit regulation for binary options trading in Nepal. A binary option is a type of derivative where there are only two outcomes: either you gain the specified payout rate or lose entirely your invested amount. Note that the payout rate is up to 95%, depending on the binary broker and specific asset, for each correct prediction.

Is Binary Options Trading Legal in Nepal?

Yes, binary options trading is legal in Nepal. While there are no local brokers or platforms, you can trade various binary options — including those based on crypto, stocks, indices, forex pairs, and commodities — through international platforms that operate in the country.

How is Binary Options Trading Regulated in Nepal?

Binary options trading in Nepal exists in a legal gray area and remains unregulated. There are currently no explicit regulations prohibiting it, but there is also no regulatory framework specifically covering binary options trading, even by the Securities Board of Nepal (SEBON), which oversees all the securities-related activities in the country, including binary options trading.

What are the best Binary Trading brokers and Platforms in Nepal? 

These are the Top 3 Binary Options Brokers that are legal in Nepal:

1. Pocket Option

Best for: Both Beginner and Experienced Traders

Overview: Starting in 2017 in Saint Vincent and the Grenadines, Pocket Option is known for its low $5 minimum deposit and intuitive trading platform, accessible on both PC and mobile devices (iOS and Android). This makes it the winner in our comparison of the best Binary Options Brokers for traders in Nepal. The platform also features a wide range of technical tools and educational resources, making it an excellent choice for traders of all experience levels, from beginners to advanced.

Is Pocket Option legal in Nepal?

Yes, Pocket Option can be used in Nepal for binary options trading. That said, it is not explicitly banned by the Securities Board of Nepal (SEBON). However, Pocket Option remains unregulated in Nepal.

Key Facts Table:

Feature	Pocket Option
Deposit Requirement	At least $5 (or its equivalent in NPR)
Minimum Trade	As low as $1 (or its equivalent in NPR) per trade
Minimum Withdrawal	At least $20  (or its equivalent in NPR) per request
Payout Rate	23% to 92%, depending on the asset
Support Channels	Email, Platform Chat, Phone, Contact Form, Telegram, and Social Media

2. Quotex

Best for: Both Experienced and Advanced Traders

Overview: Starting in 2019 in Saint Kitts and Nevis, Quotex is known for offering some of the highest payout ratios and top-tier free trading signals in the binary options market. It also provides a broad selection of technical analysis tools, making it an excellent choice for experienced traders seeking to conduct advanced trade analysis and strategies.

Is Quotex legal in Nepal?

Yes, like Pocket Option, Quotex is available in Nepal to trade binary options. That said, while it is also not explicitly banned by either the country’s SEBON, Quotex is likewise not formally regulated.

Key Facts Table:

Feature	Quotex
Deposit Requirement	At least $10 (or its equivalent in NPR)
Minimum Trade	As low as $1 (or its equivalent in NPR) per trade
Minimum Withdrawal	At least $10 (or its equivalent in NPR) per request
Payout Rate	20% to 93% depending on the asset
Support Channels	Email, Phone, Contact Form, Ticket,  Telegram, and Social Media

3. Binarium

Best for: Beginner/Inexperienced Traders

Overview: Starting in 2012 in Belize, Binarium is noteworthy for its low $5 minimum deposit and withdrawal, along with its straightforward and easy-to-use interface, making it perfect for beginners with little to no trading experience in the financial markets. In addition, its trading platform, available on both PC and Android devices, is extremely user-friendly and designed for effortless navigation, even for novices.

Is Binarium legal in Nepal?

Yes, Binarium follows Quotex and Pocket Option as one of the brokers that can be reliably accessed in Nepal. SEBON has also not specifically banned Binarium. That said, note that Binarium is also unregulated in the country.

Key Facts Table:

Feature	Binarium
Deposit Requirement	At least $5 (or its equivalent in NPR)
Minimum Trade	As low as $1 (or its equivalent in NPR) per trade
Minimum Withdrawal	At least $5 (or its equivalent in NPR) per request
Payout Rate	10% to 85% depending on the asset
Support Channels	Platform Chat, Email, Phone, Contact Form, Social Media, Help Center

How to Trade Binary Options in Nepal:

The following are the 5 simple steps to start trading binary options in Nepal:

• Pick a legal Binary Options platform in Nepal
• Sign up for a trading account
• Start with a demo account
• Deposit money and start live trading
• Fund withdrawal

Step 1: Choose a legal binary options broker or platform

First of all, you would have to choose a broker that offers binary options trading in Nepal. To help with your selection process, we recommend the above three brokers that stand out with their unique value propositions.

Step 2: Sign up for an account

The next step is to set up or sign up for a broker account. For example, here’s the process of creating an account with Binarium in Nepal:

First, go to Binarium’s official website at www.binarium.com. On the homepage, click the “Sign Up” button located at the top right corner to proceed.

You will then be prompted to register using your email address, or simply link your Google or Facebook account to sign up. After this straightforward process, you will be directed to your newly created trading account with Binarium.

Step 3: Start with demo trading

The third step is to use your broker’s demo account to practice trading. This is crucial for beginners to gain a solid understanding of how binary options work. In addition, even seasoned traders can benefit from trying out the platform’s features and tools. For example, here’s how to access the demo account on Binarium:

After logging in to your newly created account, you will see the broker’s default screen. From here, click the “Start Real” button on the top right corner and choose the “Demo Account” option to switch to Binarium’s demo mode.

Once you see your demo account balance in the top right corner, you have successfully switched to Binarium’s demo trading mode, and all future trades will now be executed in demo mode.

Step 4: Deposit money and start live trading

Once you’re comfortable with your progress on the demo account, you can move on to live trading. To start, the first step is to fund your broker account. Here is a guide to the deposit process and available payment options for using Binarium in Nepal:

On Binarium’s platform, select the “Deposit” button located at the top right-most corner to be directed to the deposit screen.

As displayed above, there are ten deposit methods available in Nepal. Three are electronic payment options: Skrill, FKWallet, and VouWallet, while the remaining seven are supported cryptocurrencies, including Tether, TRX, Bitcoin, Litecoin, Ethereum, Ripple, and USD Coin.

Step 5: Fund Withdrawal

The final step is to withdraw your funds — whether it’s your initial capital or profits — from the broker’s platform. Here’s how to do it in Binarium:

On Binarium’s platform, click on your profile icon located at the top right corner to open a dropdown menu. Then, select the “Withdrawal” option to initiate your withdrawal request.

Can I trade Binary Options via a mobile app in Nepal? 

Yes, in Nepal, you can conveniently trade binary options using mobile app platforms of Pocket Option (available on both iOS and Android), Quotex (only available on Android), and Binarium (only available on Android). 

How do traders in Nepal make money in binary options trading?

Simply put, Nepalese traders can make money through binary options by correctly predicting the price direction of a specific binary option. What sets binary options apart from traditional markets like stocks and forex, however, is the fixed payout per trade. When the trade goes in your favor, the most you can earn is about 90% to 95% of your invested amount, depending on the particular binary option and broker.

That said, when the trade goes against your favor, you lose the entire amount you risked for that trade. Hence, this tilts the risk to reward to always provide a negative expectancy unless you have a trading edge to compensate for this unfavorable set up.

When’s the best time to trade Binary Options if you’re in Nepal?

Overall, the best periods to trade binary options when both volume and volatility are at their highest. This typically occurs during the first hours after the US market opens as well as during major sessions overlap. Thus, depending on the asset class the binary options are based on, here are the local Nepal Time (NPT) equivalents:

Binary Options Asset Class	Best Time to Trade (in NPT)
Forex Pairs	6:15 PM – 10:15 PM NPT
Stocks and Indices	7:45 PM – 10:15 PM NPT
Commodities (Gold and Oil)	6:15 PM – 10:15 PM NPT

How much money do I need to start trading binary options in Nepal?

Although the minimum deposit requirement differs by broker, most platforms available in Nepal only require $5 to $10 (or the equivalent in NPR). For instance, with our recommended brokers, you can begin trading binary options with just $5 on Binarium and Pocket Option, while Quotex requires a $10 deposit to start live trading.

Can I open multiple binary options accounts with different brokers in Nepal?

Yes, you can open accounts with several different binary options brokers in Nepal. Note, however, that most brokers do not allow more than one account with the same provider. Hence, if you wish to have more than one trading account, you must sign up with different brokers.

For example, you can open an account with Binarium and another with Quotex, but having more than one account with the same broker (e.g., two or more accounts in Binarium or Quotex) is prohibited and may lead to permanent account suspension.

Do binary options brokers offer local language support for Nepal?

No, due to Nepal’s smaller market size compared to other regions, top brokers like Binarium, Pocket Option, and Quotex do not provide support for the Nepali language. In addition, there are no local brokers in Nepal offering binary options trading. As a result, traders in Nepal must use the platforms in English, which is the default language.

What are the deposit and withdrawal methods for binary traders in Nepal?

Deposit and withdrawal methods can differ widely depending on the broker you select. However, the following are the most common payment options in Nepal, categorized as follows:

Bank Cards

• MasterCard (not available on Binarium)
• Visa (not available on Binarium)

E-payments

• Skrill
• FKWallet
• VouWallet 

Cryptocurrencies

• Bitcoin (BTC)
• Ethereum (ETH)
• USD Coin (USDC)
• USD Tether (USDT)
• Litecoin (LTC)

Can I use cryptocurrency to trade binary options in Nepal?

Yes, cryptocurrencies are widely accepted as a payment option in Nepal. Brokers like Quotex, Pocket Option, and Binarium support a variety of digital currencies, including Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT).

Does Nepal tax binary options trading income?

In Nepal, income from securities trading, including those from binary options trading, is subject to the country’s short-term capital gains tax (defined as “profits from sale of financial securities held for less than a year”) of 7.5%.

What are the secure alternatives for binary options trading in Nepal?

Given the lack of regulation around binary options trading in Nepal, it poses significant risks for Nepali traders who lack legal recourse. Hence, if you prefer safer choices, we recommend trading SEBON-regulated asset classes, like stocks and bonds. Unfortunately, there are no regulated brokers in Nepal that offer retail trading in forex and commodities.

Note: In stocks, you trade shares of publicly-listed companies. Meanwhile, in bonds, you trade either government or corporate debts.

Here are SEBON-regulated brokers where you can trade these assets:

• Aasutosh
• ABC Securities
• Agrawal Securities
• Bhrikuti
• CBIL

How safe is Binary Options trading in Nepal?

Your safety while trading binary options in Nepal is closely tied to the broker you use. Binarium, Pocket Option, and Quotex are three well-established platforms we highly recommend, and with them, the risks are minimal due to their solid reputation in the industry. In comparison, many lesser-known brokers operate without regulatory oversight, putting your investments in a vulnerable spot.

Conclusion: Binary Trading is legal in Nepal

Overall, binary options trading is legal in Nepal. As a relatively small market for binary options — especially compared to much bigger markets such as India, Indonesia, and the Philippines — choosing a binary options broker that offers excellent trading support for the country is essential. Thus, we highly recommend opening an account with one of the three brokers we’ve discussed: Binarium, Quotex, or Pocket Option.