Ecn Forex Brokers Sri Lanka

Ecn forex brokers sri lanka

Contents

Even though that is unlikely for you to say that the Forex trading in Sri Lanka is blooming, that is actually the exact state of affairs.

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Of course, the financial market of the country is not strong, neither is its local currency (LKR). But the Forex market keeps evolving and growing each day.

A guide on how to choose the best Sri Lankan Forex brokers

Thus, the Sri Lanka Forex Association (SLFA) was established in 1983 to promote the innovation and development of the financial market and attracting human resources to it.

And what is more important, the government tries its best to make Forex trading in Sri Lanka legal.

Ecn forex brokers sri lanka

Thus, every brokerage that is eager to start its operations on the territory of the country, is obliged to first undergo the evaluation of CBSL – Central Bank of Sri Lanka.

Foreign currency, in turn, falls under the trusting gaze of the Exchange Control Department (ECD) which is tasked with regulating everything connected to foreign currency exchange within Sri Lanka.

Thus, that would be fair to state that Forex trading in Sri Lanka is almost fully transparent and trustworthy.

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When we say almost, we mean that, of course, there still are some brokers that are trying to operate without regulations and later turned out that those were simply scams. We will definitely highlight the topic in more details later in the article.

 

As one of the potential Forex traders in Sri Lanka, you might claim that Sri Lankan brokers have a good relationship with India and will allow you to deposit in Rupees.

However, you will be surprised because nearly every broker is confined to allowing deposits of only the major currencies and Sri Lankan Rupees (LKR). However, you can still withdraw your profits in USD, EUR, AUD, and GBP, so when it comes to strong and popular currencies you are covered.

Ecn forex brokers sri lanka

Also please consider the fact that if you decide to exchange the sum you withdraw to LKR, it will cost you a small fee.

You won’t have to worry about customer support, however, because all the good brokers have a 24-hour service for their customers.

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But still, you shall consider trading only with the reliable Forex brokers Sri Lanka which you might find in the list below.

Check out the best stock brokers in Sri Lanka

AxiTrader

Regulation

FCA, ASIC, DFSA

Open AccountRead Review

XM Group

Regulation

CySEC, FCA, ASIC

Trading platform

MT4, MT5, WebTrader

Open AccountRead Review

IQ Option

Trading platform

WebTrader

Open AccountRead Review

MultibankFX

Regulation

ASIC, BaFin, FMA, CNMV, FSC, CIMA, RAK

Open AccountRead Review

HotForex

Regulation

FCA, SV, FSCA, DFSA, FSA

Trading platform

MT4, MT5

Open AccountRead Review

OctaFX

Trading platform

cTrader, MT4, MT5

Open AccountRead Review

Forex.com

Open AccountRead Review

Plus500

Open AccountRead Review

Trading 212

Minimum deposit

100 GBP/EUR,150 USD

Trading platform

Trading 212

Open AccountRead Review

AMarkets

Trading platform

MT4, MT5, WebTrader

Open AccountRead Review

Z.Com Trade

Open AccountRead Review

Trading.com

Trading platform

WebTrader

Open AccountRead Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Between 74-89% of the retail investor, accounts lose money when trading CFDs.

Best Forex Brokers In Sri Lanka 2019: Globally Trusted Brokers‎

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The ECD has approved more than 50 brokers in Sri Lanka that can offer you services in Forex trading, however, we both know that approval is not equivalent to quality.

Many brokers have offshore bases and operate within Sri Lanka remotely.

Ecn forex brokers sri lanka

In the list above you can check Forex brokers in Sri Lanka that have been already checked by financial institutions.

Financial regulations in Sri Lanks and how they operate

Back in 1949, the Monetary Law Act set the Central Bank operations which proclaimed the establishment of the monetary system in Sri Lanka. That is when the Forex in Sri Lanka became a thing and since then everything started evolving quite fast.

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That financial institution has a wide range of duties and responsibilities like:

  • The management of public debt
  • The management of Foreign Exchange
  • Management of the currency
  • Implementation of monetary policies for the country
  • Maintenance of financial stability

Therefore, it was decided to establish an Exchange Control Department that will regulate the foreign exchange matters only.

The department was established as a result of the Exchange Control Act No. 24 in 1953.

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That was done in order for Forex trading Sri Lanka to reach the level of other Forex giants on the market. Moreover, in 2017, the Foreign Exchange Act was introduced.

Forex brokers in Sri Lanka and their detailed reviews

That meant that yet another regulatory body appeared that is responsible for the control of foreign exchange transactions flow.

Notably, under that act, there were three groups of individuals/institutions created that were officially permitted to deal with Forex operations in Sri Lanka.

Those are:

  • Authorized Dealers
  • Restricted Dealers
  • Dealers for a Specific Purpose

The first group consists of banks mainly, either private or public ones. The second group represents the bodies that were officially prohibited by the CBSL from carrying out any financial operations.

And, finally, the last group includes those individuals/organizations that were appointed by the central bank to deal in foreign exchange for specific purposes subject to terms and conditions.

 

So, you need to understand when it comes to Forex regulation, Sri Lanka has an impressive hierarchical structure of governmental bodies that are responsible for dealing with such.

Is Forex trading legal in Sri Lanka?

And what are the restrictions?

If you are wondering ‘How to start Forex trading in Sri Lanka’, then you may first need to understand its structure and certain regulations that are coming in power when someone is trying to establish brokerage in Sri Lanka.

As that might become a tricky thing to do there.

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The government of the country made sure that Forex trading would be as transparent as possible. In order to do that, it is of utmost importance not to let the scammers and fraudulent brokerages to start their operations on the market.

Thus, Sri Lanka Forex brokers need to obtain the license from the ECD.

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But to do that, they need to meet an extensive list of requirements.

If you want to operate freely in the Sri Lankan Forex market, then you will be needing a document called “Certificate of Authorization”. This document can only be obtained from the Director of Domestic Operations of CBSL. Brokers that have already started doing business and haven’t acquired the “Certificate of Authorization” will automatically be classified as illegal and restricted to operate on the financial market.