FOREX Trading In Sri Lanka
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Although Commercials Banks in Sri Lanka engaging FOREX trading for many years it is relatively new thing for ordinary citizens in Sri Lanka. This is mainly due to low Internet usage of the country. In other Asian Countries like India, Pakistan, Malaysia and Indonesia are experiencing huge growth in FOREX Traders.
In Sri Lanka, there were lots of investment scams in recent years. Golden Key and Sakvithi scams were the biggest scams reported in the Financial sector history of Sri Lanka. Lack of knowledge in available Investment options leads to fall in to investment scams. But fortunately more and more people are started to invest in Colombo Stock Exchange as a new investment option.
How to Start Forex Trading?
First thing you should do before start forex trading is learn about it. But how? There are lots of free sites available to teach you FOREX Trading for free. I recommend you babypips.com as a most trusted place to learn FOREX.
Then open a practice account (Free Forex Demo Account) with a beginner friendly FOREX Broker like eToro or AVAFX. It will cost you nothing to open a Demo Account. Then practice your skills as much as you want with real time trading environment but with virtual money.
After you are confident about your skills you can open real FOREX Trading account with your most preferred FORX Broker.
How to fund your real Forex Trading Account?
There are several ways to fund your FOREX account but if you are living in Sri Lanka I recommend you to open moneybookers account to carryout funding and withdrawal transactions with your Broker. You can use your credit card directly to fund your account but if you do this your broker will ask you to send a copy of both sides of your card when you request a withdrawal.
In the long run you will find the FOREX strategy that suitable to you. Good Luck with your new FOREX journey.
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Samantha, I don't think you can find retail forex trading institution here in Sri Lanka if someone know about any forex trading centre in Sri Lanka please post it here.
You have to choose an online forex broker. First try with a Demo Account while learning at http://www.babypips.com/school/
Good Luck!
You are correct Chamilj. Babypipps is the best place to learn basic things in Forex Trading.
2 years ago I started forex trading without knowing anything about it. Then I lost my initial deposit within few min...
Then I stopped trading and learned it from Babypipps. Now I am trading forex successfully.
It is not matter where you live. It may be Sri Lanka, India UK or USA any one can trade forex if you have the knowledge how to do it.
@Sameera,
Glad to know that you are trading FOREX successfully. Learning applies to all events of our lives.
Can anyone drive a car without prior learning?
Nice little intro about trading forex. I am glad to find out that your country is progressing in terms of financial investments.
Hi fibo777,
My country's (Sri Lanka) capital account still not fully opened. But financial system is developing very fast. Colombo Stock Market is doing extremely well. But FOREX trading is new thing here in Sri Lanka.
Thanks for the comment.
Hi I am from Kalutara Sri Lanka and trading forex with eToro since Dec 2009. You can earn good amount of money with forex if you do it correctly not as gambling.
You are correct Suren, Forex is not a get rich quick method and not a kind of gambling too. You will find your trading strategy with your experience in long run.
dear friends
i like to open an account in froex
i want some details
Hi gane visit http://bestonlineforexbroker.net/ there are lots of information there.
I suggest you to open demo accounts with both AVAFX & EToro. It will cost you nothing. Then practice your skills as much as you want until you are confident with your forex trading skills.
Wish you good luck!
Thank you for the honest information about the scams you said occurred. God Bless You.
Hi stars439,
Thanks for the comment. Of course there lots of Forex scams out there. We should try avoid them by educating others.
Take care. God Bless You!
A good place to research about SCAM brokers. http://www.forexpeacearmy.com/
A Place to find out about news releases
And some advise for new traders, never trade more than 5% of your capitol. If you deal with Forex like gambling, eventually you will loose all.
Good Luck
Hi G K. Thanks for your valuable contribution.
thank for sharing
Im did forex in last 6 month with Lite broker.but im not satisfied that broker.soooo i like to joing with new broker.can you help me open new account
This is very good information, Chamil. Do you earn any from google adsense? Does it really work in Sri Lanka?
@ magodis,
Yes it works perfectly here in Sri Lanka. I am getting monthly cheque from Google.
@ Dillhan,
Open demo account with Etoro.
Thank you Chamil, But still my PIN no was not received And searched and found that there has been many instances where SL, India bangla loses the accounts due to this.
is there any other mean for this?
Thanks
Plz Can u tell is Lite Broker Good Or Bad?
@ Dilhan,
I don't have account with Lite Forex but according to the available information on Internet Lite Forex has both positive and negative reviews. You can read these reviews at Forex Peace Army and Babypipps forums.
what is the amount of brokerage?
@ Sarath,
FOREX Brokers do not take brokerage fees. Their largest source of income is spread.The difference between the Bid and Ask rates. You will notice it if you trade forex with a demo account. To open a demo account you don't have to deposit any money.
@ Dilhan,
Try ETORO Copy trader. Just follow few top performing forex traders at etoro then start coping their trades in real time.
It is very easy and enjoyable.
plan for 5 years. try maximam 6 dollar profit for 1000$ balance, then it is not risky. when balance 2000$ go for 12$ profit daily and like wise...... after 5 years time you can easily earn 2000$ dollar per day depending on your balance. I did that
@ ramesh,
Thank you for sharing your own Forex trading experience.
Thanks for this hub and the tip about babypips. I bookmarked the page for later. I'm planning to study forex trading in the new year.
Thanks! I am learning @ babypips. Opened DEMO account with etoro.
Dear Chamilj,
Do you have any experience with etoro? is it real
Hi enikanga,
Yes etoro is real.
I withdrew my money to NETELLER account. But remember they allow withdrawal only to the same source you funded it. If paypal allow send only in your country (Like here in Sri Lanka) don't use Paypal to fund your etoro account. Use NETELLER or Moneybookers.
Hi
Thanks for your voluble information, I'm sri lankan.
that means we cannot receive money through paypal.
if you can pleas send your contact no (mobile)to my email.
dissanayaka85@gmail.com ,
One of my friend who works in Central Bank told me retail frorex trading is illegal in Sri Lanka. Even you do that there are limitation you to withdraw money as exchange control act limits the foreign currency in/out flow.
Correct me if I'm wrong.
@ shanaka,
First time funding can be done with a Credit Card but if you use international debit card (Master or Visa)issued by NETELLER or Payoneer for future forex transactions local authorities will never be able to trace it. You can withdraw your earnings from local ATMs without any problem :)
Thank you for the reply. Do NETELLER issue debit cards to Sri Lankans. Do they have an office here? Tell me how to have a their debit card.
@ shanaka,
NETELLER do not have office here in Sri Lanka. But you can open an account online with them I am using their service for more than 2 years without any problem. Their security is max. You can learn more about NETELLER by visiting below blog.
Dear Chamil
I went through the Babypip.com and it is actually fantastique and very comprehensive. However, according to their recommendation you must be ready to invest at least USD 50,000.- in order to earn a decent return. What is your experience in this? I am very keen to get into this trade, but I would not certainly invest USD 50K in here. Please let us know how you started
Thanks, gehan
Hi gehan ,
I started with etoro without any knowledge in Forex so I lost my initial deposit of $ 500 within 3 to 4 days. Then I decided to learn and practice more. I practised with several demo accounts with different brokers for more than one year. Recently I opened MT4 account with FXCM with $ 2K.
Yes $ 50 K is too high for most of us. They are (Bayby Pips) telling this because with 50 K you can do trading with low leverage. Trading with low leverage means low risk. But with my experience with $ 2k you can earn decent profit.
But don't do it if you are not an experienced trader. Initially trade with brokers that offer live account with small deposits. After you comfortable with your skills go for $ 2K account with MT4 broker like FXCM UK or Alpari UK. You can use EA s (Forex Robots) and 3rd party signal providers with them if you wish to automate your trading.
I am going to explain this automation in one of my blog in details but it will take more time. Currently I am testing one signal provider.
Remember, do not invest money in forex that you can’t afford to loose. Never invest borrowed money.
Dear Chamilj,
Please send me good broker to my mail.alexandra.ponti@yahoo.com,Thanks
Hello there,
Can you tel a bank that I can connect to my paypal in sri lanka. I dont want to withdraw the money . I can use it online buying.
CAn I use my seylan bank visa debit card??
@ bushraismail.
I don't think Debit Card issued by Sri Lankan Banks work with Internet transactions. You have to use Sampath Web card or a Credit card from any bank.
i will try for the sampath web card then...thank you. Do you think i will get what i hav earned so far?? coz i dont hav the card till now.
Thank you for your kind reply.
bushraismail you want to receive money to your Paypal account? It is not possible. Paypal accounts are send only for Sri Lankans.
But Moneybookers (SKRILL) and Payza (Alertpay) are support both send and receive money for Sri Lankans.
the thing is ayye i dont know anything about the two things that u stated above. i know that paypal is worldwide so i thought of buying something online for all my earnings. I dont want to do that but i have no choice...
Alertpay is famous and accepted worlwide??
PLs let me read about it and return to you ..thank you so much for the help.
@ bushraismail
First please tell me what is the earnings you are talking about? Is it Forex earnings?
Any how you can't receive money to Sri Lankan Paypal accounts.
Yes you can buy online if you add your credit card to your Paypal account. There is no other option for Sri Lankans to fund their Paypal accounts.
My earnings are from odesk and hubpages. I understand that I cant recieve money but I can buy online right?
I cant use the alertpay etc. because hubpages only allows paypal.
In short I have earnings in hp and odesk..wat are the ways that I can get a payout?
I dont have forex earnings.
Thank you for your reply.
@ bushraismail
No you can't do it. To buy anything you have to get those funds to your Paypal account so it is not possible.
If you have friend or relative living in a Paypal fully supported country (Send & Receive) ask them to create an account for you.
But they have to connect their card to the account. I will think about it.
For now my only choice is to buy something online ..thank you for the hundredth time.
Samantha 13 months ago
Hi I am from Sri Lanka. Is there any place (Institution) trade Forex in Sri Lanka? or do we have to use online Forex Broker?
I am thinking to start trading forex but couldn't start it yet.