FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post

Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Online Forex Trading in Sri Lanka

Online Forex Trading in Sri Lanka

+86
Gajaya
Miss-Sangeetha
Charith10
yogi11137
deli
forex4srilanka
ruwan326
nimantha80
TARGET
Neluka Karannagoda
Mubin Mustafa
Sha Jahan
gayanath1983
anton1979ss
sew
greedy007
SHARK aka TAH
gagamini
Jiggysaurus
Light of Hope
Lahiru
Mahawawtta
K.Haputantri
knockknobbler
lakshanraj
yes0
sahan8896
JustMy2Pips
memllok
arrowms
manjula28
traderathome
zenobia
snandasiri
Ashphoenix7
freebird
reez
Flashmark
Redbulls
malanp
stumpy
fxmpower
cseguide
yellow knife
STOCK SLAYER
LateTackle
dinusl
kordel
Aamiable
Tiger
dilshanusjp
gann
ABEST
lokuayya
laureina
yosh123
maalinda
rijayasooriya
day_lk
Paypal
Roboticfx
yasiru
jonny
Micropipz
bePositive
sriranga
thushanthalk
hunter
nkalansu
balapas
RealViewer
vithanage71
MarketSIRA
sajeethk
smallville
samueldaniel7
xhora
bettersrilanka
newbie
3mr
Meta Trader
mark
wallstreetguy
DK
swan03
reno
90 posters

Go to page : 1, 2, 3, 4, 5, 6, 7, 8  Next

Go down  Message [Page 1 of 8]

reno


Stock Trader
Four easy steps to start trading immediately:

Step 1: Open your free moneybookers.com account – all you require is an email address
Step 2: Upload funds to your moneybookers account via bank transfer, credit/debit card or cheque
Step 3: Create Your account with LiteForex, download trading terminal and install to your PC.
Step 4: Upload funds to your LiteForex account via moneybookers fast and easy and start trading.

https://secure.liteforex.org/en/profile/register?uid=820500026
https://www.moneybookers.com/onboard/en/register.pl?scid=main_consumer/app/?rid=894919

2Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Apr 12, 2011 8:14 pm

swan03


Vice President - Equity Analytics
Vice President - Equity Analytics
@reno wrote:Four easy steps to start trading immediately:

Step 1: Open your free moneybookers.com account – all you require is an email address
Step 2: Upload funds to your moneybookers account via bank transfer, credit/debit card or cheque
Step 3: Create Your account with LiteForex, download trading terminal and install to your PC.
Step 4: Upload funds to your LiteForex account via moneybookers fast and easy and start trading.

https://secure.liteforex.org/en/profile/register?uid=820500026
https://www.moneybookers.com/onboard/en/register.pl?scid=main_consumer/app/?rid=894919

What Forex can do with the CSE?

3Online Forex Trading in Sri Lanka Empty Just go to: Tue Apr 12, 2011 8:37 pm

reno


Stock Trader
http://www.liteforex.org?uid=820500026
You can start to trade with very small account of money $50 or $100
Ill answer to all your questions as I can

4Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Apr 12, 2011 9:47 pm

DK


Manager - Equity Analytics
Manager - Equity Analytics
Yes, you can start trading with a small amount and you can wipe out your entire investment unlike with stocks. Why are the links with your referral ID anyway?

5Online Forex Trading in Sri Lanka Empty Introduction to FOREX (Foreign Exchange) Tue Apr 12, 2011 10:09 pm

wallstreetguy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
I'm intrested in investing in the foreign exchange market in sri lanka.

how is this procedure done, ?

Smile

6Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Apr 12, 2011 11:05 pm

DK


Manager - Equity Analytics
Manager - Equity Analytics
Hi wsg
As far as I know there is no official forex market in Sri Lanka in the sense of trading. Trading on forex is limited to banks.

There are of course many international forex dealers who allow you to trade with them. Effectively they combine the order flow from retail traders and move it to larger markets. There are quite a few sites, the more reputed ones are fxcm.com and etoro.com. If you are investing, check and see how authentic they are. Sometime back when I got registered in one of these sites and did not complete the registration by paying up, they called in to ask if everything went ok with the registration and why I was reluctant to pay and get the registration finalised. As important as it makes you feel, I felt a bit fishy about this.

Also read about leveraging in forex. In forex you trade more than what you invest and therefore your gains and losses can be way above the investments. This means there is potential for your entire investment to be wiped out.

Do check with someone on the legality of forex trading. The direct answer from any bank/authority would be no given the fact that there are strict forex controls. However you will have to explain to them that you are not exactly bringing in dollars/euros/pounds from abroad but rather trading on a 'good' or an 'item' abroad. However when you are redeeming your money, you are bringing foreign currency in.

7Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Apr 13, 2011 12:03 am

mark

mark
Expert
Expert
EURO is performing well in these days.............. Very Happy

8Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Apr 13, 2011 1:24 am

Meta Trader

Meta Trader
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
before you do any thing stupid with your hard earned money just read this article

The Reserve Bank of India (RBI) warns against illegal forex trading on internet
Posted: Sun Apr 10 2011, 01:02 hrs Mumbai:

The Reserve Bank of India (RBI) has cautioned Indian investors and banks against illegal overseas foreign exchange trading through internet and electronic trading portals which offer “guaranteed high returns”.

“It has been observed that overseas foreign exchange trading has been introduced on a number of internet/electronic trading portals luring the residents with offers of guaranteed high returns based on such forex trading. The advertisements by these internet/online portals exhort people to trade in forex by way of paying the initial investment amount in Indian rupees,” the RBI said in a circular.

According to the RBI, some companies have reportedly engaged agents who personally contact people to undertake forex trading/ investment schemes and entice them with promises of disproportionate / exorbitant returns.

“Most of the forex trading through these portals are done on a margining basis with huge leverage or on an investment basis, where the returns are based on forex trading. The public is being asked to make the margin payments for such online forex trading transactions through credit cards/deposits in various accounts maintained with banks in India.”

“It is also observed that accounts are being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc,” the RBI said.

Banks are advised to exercise due caution and be extra vigilant in respect of such transactions, the RBI warned.

It is clarified that any person resident in India collecting and effectingremitting such payments directlyindirectly outside India would make himself/ herself liable to be proceeded against with for contravention of FEMA, 1999 besides being liable for violation of regulations relating to know your customer (KYC) norms and anti money laundering (AML) standards, it said.

The RBI clarified that “a person resident in India may enter into currency futures or currency options on a stock exchange recognized under section 4 of the Securities Contract (Regulation) Act, 1956, to hedge an exposure to risk or otherwise, subject to such terms and conditions as may be set forth in the directions issued by the RBI from time to time”.

A derivative transaction is only permitted based on the presence of an underlying price risk exposure for which purchase and/or sale of foreign exchange is permitted under FEMA, 1999.

Remittances under the Liberalised Remittance Scheme are allowed only in respect of permissible capital or current account transactions or a combination of both.

“All other transactions, which are otherwise not permissible under FEMA, 1999, including the transactions in the nature of remittance for margins or margin calls to overseas exchanges/overseas counterparty, are not allowed under the scheme,” the RBI said.

http://www.indianexpress.com/news/rbi-warns-against-illegal-forex-trading-on-internet/774148/0

9Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Apr 13, 2011 12:00 pm

3mr


Senior Equity Analytic
Senior Equity Analytic
Once, I created a practice account and tried. It's very risky as you may lose your entire investment. It's pure gambling as I feel.

I also have invested in gold and the return is very low compared to stocks. I feel I wasted my time and money investing in Gold. I sold all my gold and channeled all that money to the stock market. Gold does not do any productive work end of the day... Does not give you any dividend either.

investing in stocks and trading is much rewarding and safe. Forex is very risky.


by the way, Is Forex trading legal in our country ? Isn't this a from of some kind of money laundering ?

cheers
3mr

10Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Apr 13, 2011 3:14 pm

wallstreetguy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Theres always a risk in everyhitng, specially when its related to business, money. anything in life. we should know how to calculate them. Risks are what drive us.
anyways.

Gold is a good investment. But you see, you dont get dividends. Gold works when the stockmarket starts to crash at one point , the the value starts to appreciate, and vice versa. What goes up, in somepoint will come down. And it may be dead for months or years till its back on the track. Its influenced by the world markets. I feel its a good commodity. People who are afraid of risks, should eventually get a fixed deposit and be happy with it

Many have purchased gold as a hedge against inflation or as a reaction to a financial or political crisis. many also investing in gold for protection when a currency is devalued by a government.
gold is good, but you have to wait. Same with Oil. Oil is another valuable commodity.

Forex is illegal? I dont think so! Banks have that facility I assume

Whatever i mentioned here is according to my current knowledge, any valuable comments will be very useful

11Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Apr 13, 2011 3:32 pm

DK


Manager - Equity Analytics
Manager - Equity Analytics
Forex is illegal? I dont think so! Banks have that facility I assume
- Are you a bank?

12Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Apr 13, 2011 4:26 pm

wallstreetguy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Do i sound like one.? No.

and yes forex is not illegal in sri lanka according to my knowledge

13Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Thu Apr 14, 2011 2:01 am

newbie


Equity Analytic
Equity Analytic
i bet it is.... i may be wrong, but according to my knowledge, the exchange control dept. of the the CBSL is well aware of this and does not promote that.... and also there are a lot of scams on the internet.... i would opt to invest in equity over forex.... ; )

14Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Jun 29, 2011 12:27 am

bettersrilanka

bettersrilanka
Manager - Equity Analytics
Manager - Equity Analytics
I found a great place to know about this.read it in Sinhala...

http://forexinsinhala.blogspot.com/ - a great work

just study and decide.... do not put your money in trouble.
all in all cse is better..

http://lankafunpicture.blogspot.com

15Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Wed Jun 29, 2011 12:36 am

xhora

xhora
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
some sites provide free test accounts. I have never tried that because forex market is more complex and dynamic and the huge risks involve. unlike equity forex doesn't create wealth it just transfer it to someone else.

16Online Forex Trading in Sri Lanka Empty Online Forex Trading in Sri Lanka Sun Jul 24, 2011 4:34 pm

samueldaniel7


Manager - Equity Analytics
Manager - Equity Analytics
Hello guys,
Just a thought, is anyone doing forex trading, using the online brokers and is it legal here
as the market is going down forever and i find it technical analysis might work better in forex,
give me your thoughts, if its legal why dont we try with 100 USD, which is the minimum to start with

or is there anyone tried,

views please

http://samueldaniel7.blogspot.com

17Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Sun Jul 24, 2011 8:07 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
have u tried etoro?

U can visit http://www.etoro.com/ and register with a training account and do some trades ( training mode) to see your progress Wink. initially u'll be given $100 to start with.

18Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Sun Jul 24, 2011 11:15 pm

samueldaniel7


Manager - Equity Analytics
Manager - Equity Analytics
Thanks, i wish to know whether its legal and did anyone tried it and got money (without any issues with depositing / widrawing)
Thanks for the reply

http://samueldaniel7.blogspot.com

19Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Mon Jul 25, 2011 6:38 am

sajeethk


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Is it legalized in SL how we can sure will get our money when it required

20Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Mon Jul 25, 2011 6:55 am

MarketSIRA


Senior Equity Analytic
Senior Equity Analytic
@samueldaniel7 wrote:Hello guys,
Just a thought, is anyone doing forex trading, using the online brokers and is it legal here
as the market is going down forever and i find it technical analysis might work better in forex,
give me your thoughts, if its legal why dont we try with 100 USD, which is the minimum to start with

or is there anyone tried,

views please

Check out some forex trading scandals in Sri Lanka and some legal factors related to forex trading in Sri Lanka

Link: http://www.asiantribune.com/news/2010/11/12/sri-lanka-forex-scam%E2%80%99s-depositors-still-left-unpaid

Sri Lanka forex scam’s depositors still left unpaid

November 12, 2010
By J.A. Fernando in Colombo
Colombo, 12 November, (Asiantribune.com):
Nearly after 4 months of a reported bogus forex brokering firm’s closure of operation approximately 20 depositors are still being unpaid their deposits in Sri Lanka. “Still the money is there in the bank and it has to liquidated to be paid for our investors” said company’s former accountant who is now unemployed in the grounds of anonymity to Asian Tribune.

Two Hong Kong based Chinese individuals named Sam Shing T.P. (General Manager) and Mr. Lee (Finance Director) had said to be operating a Retail Forex Trading Broker firm in the name of Jackel Burnham Pacific (Pvt) Ltd. incorporated since 9th October 2009 in the heart of Sri Lanka’s Financial Capital Colombo at Level 12, Unit 01-03, West Tower, World Trade Centre, Echelon Square, Colombo 01, Sri Lanka.

Sri Lanka is a country which has put limits to forex trading and operations of retail forex trading brokers due to foreign exchange losses that could arise as a consequence of being exposed to higher risk involved in retail forex trading. Although, some licensed commercial banks are allowed by the regulators to provide retail forex trading for some high net worth individuals.

Forex Trading is the world’s biggest financial and capital market with an average daily turnover recorded to be US $ 3.2 trillion.

However according to sources the 12th floor of West Tower of the Colombo’s World Trade Centre is still inaccessible to visitors as the Jackel Burnham Office is sealed by the local police. The Chinese individuals said to have paid one year rental advance amounting to Rs.6 million to the office premises of Colombo’s West Twin Tower’s management at the inception of Jackel Burnham.

Later on 18th June 2010 both Hong Kong based individuals has disappeared from office taking Rs.30 million along with initial investment of the company out of the country. According to sources still a part of money is available in the company’s bank accounts which were maintained in two premier commercial banks in Colombo.

“They successfully ran the business accepting deposits amounting to US $ 3,000, US $ 6,000 and US $ 10,000 based on money market exchange rate with a counterfeited forex trading platform” said a former employee adding that the company was guaranteeing 60% return on investment (interest for deposits) for six months initially which later came down to 40% on May 2010.

“It is hard to believe how they were able to run the operations amidst being unnoticed by financial market regulators where the office of Securities and Exchange Commission of Sri Lanka is also located and even close to Criminal Investigations Department. Apart this company’s local team was headed by a 20 years old individual whose mother is working as the Human Resources Director of a reputed state owned subsidiary bank” said one victimized depositor of the forex scandal adding that the local police or neither criminal investigators has not been successful to trace the two Chinese men before who were resided at Capital Residencies at Dharmapala Mawatha in Colombo 07.

According to information available of the company profile Jackel Burnham Pacific (Pvt.) Limited was called to be a subsidiary of Jackel Brnham Northern Europe Groups Limited (founded in 1955 by Russel Davis, as Jackel Burnham (Copenhagen) Enterprise Ltd.) in Denmark that was authorised and regulated by the International Securities and Exchange Commission of the World.

The company was said to have 30 branches in United States, Peru, Brazil, Denmark, Switzerland, France, Greece, Germany apart from Sri Lanka which were later found out to be nonexistent. The company had been running a website titled http://www.jackelburnham.com, which is now stalled while the head office is said to be at Esthersroj 22C, 2.m.f., 2900 Hellerup, Denmark, 40464532, quoting a telephone number 004569960381 which later found out to be a bogus address although the telephone number had been working till 18th June.

Meanwhile in internet reports it says the on 12th September registration of the company’s official website www.jackelburnham .com registration service was provided by a company called SCICUBE LIMITED (Contact Number 00852.81143699,http://www.scicube.com)whilst the web administrator’s address of Jackel Burnham is said to be located at P.O. Box 97,Moergestel, null,5066 ZH, NL having the contact number 004536946676.

“Well, local authorities need to find out these kind of international fraudsters by at least digging them to their past records from cyberspace as these scammers are mostly involved in internet based enterprises” said another depositor adding that similar kind of financial scams that has happened in the country’s recent past has created a name to Sri Lanka as a land that any fraudster can runaway after committing any financial scam due to its local population’s enthusiasm on investing in higher interest earning financial products.

- Asian Tribune -


http://www.thebottomline.lk/2010/07/04/biz_feature.html

Sunday, July 4, 2010
Legitimacy of Forex trading in Sri Lanka

By Jithendra Antonio

For many and the common laymen the published foreign currency exchange rates in most of the national news broadcasts, national newspapers, commercial banks, authorised money changers are only important at the event they are travelling abroad to exchange local rupees to a desired foreign currency. Else an expatriate or a Sri Lankans working abroad at their return might be interested on foreign exchange rates to convert his earnings to local Rupees at the best rate offered in order get the best value for his money. There are also exporters and importers who are interested to get the best foreign exchange rate for a particular currency to maximise their revenues. However not even the poorest man in the world or even perhaps the richest entrepreneur in Sri Lanka or perhaps even the most professional banker or bank manager in a financial hub like in Colombo or the people categorised under the emerging middle class don’t know that foreign exchange rates are the most crucial information to create capital in an economic system. Only a small group of people among the world’s population know that there is a market called ‘FOREX’ and it is a key market place where you could create money to your portfolio in order to increase your earning potential and diversify your investments.

Have you ever thought of how commercial banks and largest financial corporations in our country and in the world offer us an interest rate to make us grow little by little in terms of financial strength? Can banks make such huge profits and investments from our public deposits and recoveries from borrowings? Well there is another unknown market place which is beyond our common laymen’s understanding where these banks and financial houses around the globe are making money while we are sleeping and while we are working hard to survive in an uncertain future.

That is the Market which is the ‘Biggest’ among all capital and financial markets and it is open usually 24 hours everyday except worldwide weekends operating round the clock in the globe. It is none other than the ‘Forex market’ where you get the news as it happen even before first and the fastest news service provider in our country-wide media broadcast news for us. ‘Forex Market’ completely operates based on financial, business, economic and disastrous news around the world and is very sensitive to know what is happening in this whole universe. Traders in Forex Market are news savvy and if they miss a news item it could make them lose thousands of money in small scale and millions and billions of money at large.

24/6 days open Forex market

The foreign exchange market — most often called the Forex market, or simply the FX market — is the most traded financial market in the world. Forex Market is a worldwide decentralised over-the-counter financial market for the trading of currencies. The primary purpose of the foreign exchange market is to assist international trade and investment, by allowing businesses to convert one currency to another currency. The Forex market is the crossroads for international capital, the intersection through which global commercial and investment flows have to move. International trade flows, such as when a Swiss electronics company purchases Japanese-made components, were the original basis for the development of the Forex markets.
Thanks to the Internet, tens of thousands of individual traders and investors all over the world are discovering the excitement and challenges of online trading in the Forex market. Yet in contrast to the stock market, the Forex market somehow remains more elusive and seemingly complicated to newcomers. Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most important, don’t invest money you can’t afford to lose.

The Forex market is open and active 24 hours a day from the start of business hours on Monday morning in the Asia-Pacific time zone straight through to the Friday close of business hours in New York. At any given moment, depending on the time zone, dozens of global financial centres — such as Sydney, Tokyo, or London — are open, and currency trading desks in those financial centres are active in the market. Currency trading doesn’t even stop for holidays when other financial markets, like stocks or futures exchanges, may be closed. Even though it’s a holiday in Japan, for example, Sydney, Singapore, and Hong Kong may still be open. It might be the Fourth of July in the United States, but if it’s a business day, Tokyo, London, Toronto, and other financial centres will still be trading currencies. About the only holiday in common around the world is New Year’s Day, and even that depends on what day of the week it falls on.
As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding market manipulation by central banks. According to the Bank for International Settlements average daily turnover in global foreign exchange markets is estimated at USD3.98 trillion, as of April 2007. USD3.21 trillion is accounted for in the world’s main financial markets.


Grounds of Forex trading in Sri Lanka

In Sri Lanka, apart from a few of the Licensed Commercial Banks and Multinational Banks there are only 10-15 large scale Individual Forex traders who are trading currency on 24/6 days in millions as per our sources. Then there are individual Forex traders who have opened currency trading accounts with Licensed Commercial Banks which is an exclusive product for exclusive clients, and such banks do the trading behalf of those individuals.
However, with their little knowledge on Forex market there is also a relatively small community of people who have lost thousands of money in rupees while they have also made profits amounting to perhaps millions through trading online from Licensed Retail Forex brokers abroad via internet.
“I entered to this Forex market when I was 16 years old from the money I earned developing software and web sites for international companies. All I knew was internet and Information Technology. But when I came to know about Forex trading on internet it inspired me to make money by investing all the moneys I earned” said one of the smallest and youngest Forex traders in Sri Lanka, Vinesh Gurusinghe.
He went on to say that he started with Rs.200,000 and almost lost about Rs.600,000 in the beginning with little knowledge on world economics. “Somehow I made money from Forex and then I found out the best way to minimise my risk after trading in world’s highest riskier market. It was none other than Colombo Stock Exchange. Now I am twenty years and I am living happily and surviving after diversifying from Forex trading to Sri Lanka’s equity investments at the beginning of this year. Finally I invested all my profit from Forex in Colombo Stock Exchange at a time when Colombo bourse was booming. I am living on Colombo Stock Exchange and diversifying my capital gains in other businesses such as exports and distribution of fast moving consumer goods.” Added Gurusinghe highlighting that he has brought in international capital worth of Rs.3 million indirectly (via Forex trading) to Colombo bourse and is happy to say that he is an investor of Sri Lanka’s Capital Markets. ‘Now I am no more into Forex’ he concluded.

Not favourable for everyone

Forex market is not favourable for everyone; if one wins there is also a trader who loses. “I was a banker and I invested my savings after leaving my position in a multinational bank and I was extremely happy since I doubled my money within one day when I entered to Forex trading.” said Johan Fernando. “As humans we are sometimes greedy to earn money fast. So after two days I lost all my money when Euro fell due to Greek debt crisis in early March 2010. I had three positions with Euro in currency pairs and I lost as I missed the chance to log in to my trading platform when one of my relations were hospitalised as I was staying at hospital where there was no access to internet. I still remember one thing; Funny thing was that while I was walking down the street I found a 10 Rupee note lying on the ground while I was losing 443 Pips overnight in my Forex trading platform’s account. It was like a shock to me but I didn’t get a heart attack like some people who invested in unregistered financial institutes did face when they lost money due to mismanagement of such companies. Because I lost money with doing trade on my own risk.” said Johan sharing his sentiments on trading at Forex market adding that a person cannot sleep during first five days of the week if he is Forex trading on his own.
However, The Bottom Line was unable to get the views of a Sri Lankan large scale Forex traders as such people in this country are cautious on popularising their trade secrets and tax policies in this country.

Offshore Forex

But on the other hand, we came across a stock brokering professional, Eranda Ranasinghe who is running a website to promote an offshore Forex trading platform titled ‘eToro’ in Sri Lanka and he has advertised from Forex profits that he is opening a new fixed deposit in Sri Lankan banks on every month in his web site before; titled www.antharjalaya.com which is now parked free for domain sale at www.godaddy.com. “I have been trading Forex for over a year now. I have written few articles about this in my blog and many Sri Lankans were able to make use of those information. Sri Lankans easily fall in to scams like Sakvithi, Gold Quest, Seagull because they are not aware of legitimate money making opportunities. This is an attempt to introduce you to the real international money making world. You can verify the legitimacy of Forex trading with any authority before start trading.” Says Eranda in the website www.startforextrading.org where he is earning commissions from ‘eToro’ when others come and click those advertisements in his website.
Currently there is a Sri Lanka Forex Association where there are four types of memberships offered only to the people who are currently engaged in foreign exchange and money market activities in banks. The association is run by dealers and chief dealers of treasury departments of Sri Lanka’s licensed commercial banks and is also a member Association Cambiste Internationale (ACI) which is now The Financial Markets Association, the worldwide association of wholesale financial market professionals, contributing to market development and market practice.
The main motivation why people go for Forex market is that because it could bring you higher capital gains by a single large trade volume. Although there are lots of registered Retail Forex Brokers around the world due to the strict financial and monetary policies in Sri Lanka there is no single regulated Retail Forex Broker in the country.
By law, according to the Controller of Exchange in Sri Lanka, the country has only allowed to a limited number of parties to enroll with foreign exchange activities.

Exchange Control Act

The Exchange Control Act regulates dealings in gold, foreign currency and securities in Sri Lanka. The Central Bank of Sri Lanka (CBSL), as the agent of the Government, is responsible for carrying out the provisions of the Act. The powers, duties or functions conferred on the Central Bank are exercised or performed by the Controller of Exchange, subject to the direction and control of the Governor of the Central Bank. Thus, according to the Exchange Control Act there are authorised dealers, money changers and other persons to accept foreign currency in the country.
They are the licensed commercial banks authorised by the Minister of Finance in terms of section 4 of the Exchange Control Act shall act as an authorised dealer in relation to gold or any foreign currency, authorised dealers to approve certain transactions on behalf of the Controller under the Exchange Control Act subject to conditions imposed by him. However, before approving any transactions, authorised dealers are required to satisfy themselves about the bona fides of the applicant and the genuineness of the transaction by verifying the necessary documents.
The Central Bank has also appointed money changers who are authorised to purchase foreign currency notes and exchange them for any other currency.But they are not authorised to sell foreign exchange for Sri Lankan Rupees. Further the Central Bank has permitted: hoteliers, travel agents, duty free shops, hospitals, agency post offices which are approved by the Post Master General, harbour traders approved by the Sri Lanka Ports Authority, persons engaged in the gem and jewellery trade which are approved by the National Gem and Jewellery Authority, other persons engaged in or connected with the tourist industry, to accept foreign currency for services rendered and goods supplied to tourists subject to the conditions in the permit.
By rules an authorised dealer in Sri Lanka could open and maintain in its domestic banking unit the following accounts in foreign currency as a service for people and corporate entities: Non Resident Foreign Currency accounts (NRFC), Resident Foreign Currency accounts (RFC), Resident Non Nationals’ Foreign Currency accounts (RNNFC), Exporters Foreign Currency Accounts (EFCA), Foreign Currency Accounts for hoteliers (HFCA) and Resident Guest Foreign Currency Accounts (RGFC).

Risky business

Apart from a few individuals who trade via online through Retail Forex Brokers around the world mostly paying by credit cards; In general, Sri Lanka operates more an offline Forex Market giving access to many who once in a while drop in at an authorised money changing jewellery shop or an authorise money changer to change their foreign currency notes to a higher rate of exchange or to exchange their Rupees at a lesser rate of exchange to another foreign currency or vice versa. Such people make profits on a relatively small or large amounts based on the volume of currencies they are exchanging.
Speaking on the grounds of allowing Retail Forex Brokers in Sri Lanka, Controller of Exchange, P.H.O. Chandrawansa said that so far the Central Bank of Sri Lanka and its Exchange Control Department has not allowed any Retail Forex Trading Broker to operate and carry out business in the country. “Foreign Exchange is a resource for the country, we cannot allow Retail Forex Trading Brokers to operate, because it is like gambling and it is the most risky business.” said Chandrawansa. When questioned about whether there is any possibility to a Retail Forex Broker to start operations with the approval of the Central Bank he said that it is unlikely to happen as there is a long procedure to start up such an operation according to the financial regulation practices in the country. “They could write to us about a proposal, but it has to be passed by the Board of Directors in order to consider” added Chandrawansa.
However, as a developing country which needs international capital and foreign funds, some say that Sri Lanka needs to form rules and regulations to bring up Retail Forex Brokers to enable Retail Forex Trading which in turn could indirectly create entrepreneurship opportunities and capital to develop the economy of the country and there could be also a higher risk factor as Forex and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking multiple independent advice if necessary.

21Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Jul 26, 2011 12:17 am

samueldaniel7


Manager - Equity Analytics
Manager - Equity Analytics
Thank you so much, very valuable information

http://samueldaniel7.blogspot.com

22Online Forex Trading in Sri Lanka Empty FOREX TRADING Tue Sep 20, 2011 5:01 pm

vithanage71


Equity Analytic
Equity Analytic
THESE DAYS LOT OF CLASSIFIED ADDS IN WEEKEND NEWS PAPERS REGARDING FOREX TRADING. ARE THERE ANY SUCCESSFUL FOREX TRADERS IN SRI LANKA ? OR IS IT A ANOTHER SCAM ? PLS EXPLAIN ABOUT FOREX TRADING .

23Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Sep 20, 2011 5:20 pm

RealViewer


Senior Equity Analytic
Senior Equity Analytic
@vithanage71 wrote:THESE DAYS LOT OF CLASSIFIED ADDS IN WEEKEND NEWS PAPERS REGARDING FOREX TRADING. ARE THERE ANY SUCCESSFUL FOREX TRADERS IN SRI LANKA ? OR IS IT A ANOTHER SCAM ? PLS EXPLAIN ABOUT FOREX TRADING .

I haven't go through those paper but I can give you some idea about global forex market.
There are well reputed companies who do forex trading via internet. (please google and find one that suits you). You can invest money in a forex account through a credit card. Then you can start trading with the account they provide. When it come to withdraw capital or profit there are several methods. you have check inwards remittance methods available with each broker. Account creation trading is very much simple. but not the profit taking part.

don't try to start forex without proper knowledge. You will loose all your money with in hours. Still you want to try out select a online broker and make DIMO account with them. Then you will realize the real picture.

24Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Sep 20, 2011 5:31 pm

balapas


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Do not try this out in as yet since this is not regulated in SL. There was an Indian affiliated company that did forex trading in Sri Lanka and office was at the East Tower WTC. This company vanished with the money. Only option you have is if you open an account with a foreign bank or finance house who does this. Googling and selecting a company should be done after checking their reviews, how long they have been in business etc. Most importantly you have to check how you can pay and get your money back as some companies do not accept SL credit cards and withdrawing to SL bank accounts/cards is sometimes difficult.

25Online Forex Trading in Sri Lanka Empty Re: Online Forex Trading in Sri Lanka Tue Sep 20, 2011 7:49 pm

nkalansu


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Forex trading is a high risk game. Not recommended for average investors. This is good for highly experience traders. Greater chance for huge losses for average investor. Please educate yourself on fundamental aspects of Forex Trading if you really want to enter this game.

Sponsored content


Back to top  Message [Page 1 of 8]

Go to page : 1, 2, 3, 4, 5, 6, 7, 8  Next

Permissions in this forum:
You cannot reply to topics in this forum