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Sri Lanka FX brokers ranked
Sri Lanka allows Forex trading and has authorities overseeing foreign exchange transactions and brokers within the country. The Securities and Exchange Commission of Sri Lanka (SEC) and the Department of Foreign Exchange (DFE) of the Central Bank regulate Sri Lanka Forex brokers. However, these regulators are not as strict as more established ones. They lack clear guidelines and limits on leverage for retail traders. This can raise the risk of overleveraged trading for beginners. Therefore, it's advisable for Sri Lankan FX traders to choose brokers regulated outside their home country. Here, we've compiled a list of the best Forex brokers in Sri Lanka to assist our readers. These brokers are well-regulated and offer high-quality services to local traders.
Forex trading profits aren't taxed in Sri Lanka, even though the capital gains tax is 10%. This tax applies only to income from sources other than trading, making Forex trading from Sri Lanka tax-free and appealing. Sri Lanka ranks 79th globally in total nominal GDP at $73 billion. However, its per capita GDP of $3,200 places it 132nd, highlighting wealth inequality. This motivates more people to trade financial markets for extra income. Trusted Forex brokers in Sri Lanka are additionally regulated by reputable global authorities, apart from the local SEC. Due to unclear compensation terms in case of broker insolvency by the SEC, top Forex brokers in Sri Lanka belong to investor compensation funds outside the country. While efforts to improve internet and electricity infrastructure are ongoing, rural areas still face challenges. This makes accessing global financial markets outside urban areas in Sri Lanka difficult.