All About Binary Options in Sri Lanka.
Binary options trading in Sri Lanka, despite its technical illegality, has seen a surge in popularity over recent years. This form of trading, which involves predicting whether the price of an asset will rise or fall over a set period, has attracted many Sri Lankans due to its potential for high returns. However, the lack of local regulation means that traders often have to rely on offshore brokers, such as IQ Option, Quotex, and Pocket Option, which are popular choices among Sri Lankan traders.
These platforms offer a range of trading options and assets, as well as features like demo accounts for practice and customer support. Despite the potential for profit, it’s important to remember that binary options trading also carries significant risks, and traders should always proceed with caution.
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Pocket Option
I discovered Pocket Option, an advanced binary options broker, back in 2017, and I’ve been continually impressed by its unique all-in-one trading platform, a rarity in the industry. The platform is teeming with beneficial features, including copy traders, trading signals, bonuses, cashbacks, risk-free trades, and an achievement system.
My trading, depositing, and withdrawing activities earn me gems, which I can exchange in the ‘Market’ tab for additional risk-free trades, bonuses, and cashbacks, providing an added incentive for regular trading. Importantly, Pocket Option’s IFMRRC certification gives me peace of mind, ensuring that my deposits are completely safe and the quality of service is always maintained at the highest level.
If you’re in search of a professional binary options broker with a modern platform abundant in features, I can’t recommend Pocket Option enough. Over the years, it has become my go-to broker, and I’ve learned that it holds the same position for many others in countries around the globe.
Pros:
- User-friendly Interface: My experience with Pocket Option has been quite smooth. The platform is easy to navigate and it was simple to create an account and start trading.
- Variety of Trading Options: Pocket Option offers a wide range of trading instruments, including forex currency pairs, commodities, indices, and cryptocurrencies.
- Unique Features: The platform offers unique features like the ability to earn achievements as you trade, which can bring you up to $50,000 as you climb from Newbie to Guru. It also offers social trading, allowing you to review and copy the trades of other successful traders.
- Low Minimum Deposit: The minimum deposit is only $10, making it accessible for traders with a smaller budget.
- Responsive Customer Support: The platform offers responsive customer support, ensuring that help is always available when needed.
- Fast Withdrawals: Most withdrawals are processed within 24 hours, which is a great feature for traders who want to have access to their funds quickly.
Cons:
- Lack of Comprehensive Information: The website lacks much information for traders to get started. It would benefit from more market analysis, expert articles, or training.
- Limited Regulation: Pocket Option is not regulated by any major financial regulatory authority, which may be a concern for some traders.
- Potential for Loss: Trading involves the potential for profit as well as the risk of loss, which can be unpredictable due to the volatility of foreign exchange and commodities.
Note: Pocket Option is legal in Sri Lanka.
Quotex
Quotex, despite being the youngest broker on my list, established in 2020, has emerged as a strong competitor to Pocket Option. I’ve found a plethora of indicators and analytical tools on its platform, with the trading signals being the flagship function. According to the broker’s assurances, these signals achieve efficiency up to 87%.
My activity on the platform is rewarded with achievements, encouraging me to break my own records and expand my knowledge. However, I do have to mention a significant disadvantage: the lack of any regulation. After reaching out to a Quotex representative, I was informed that the broker is currently in the process of applying for a certificate.
Nevertheless, if you’re seeking a minimalist binary options broker with effective trading signals and a robust trading platform, I would recommend considering Quotex.
Pros:
- Ease of Use: My experience with Quotex has been quite smooth. The platform is user-friendly and it was easy to create an account and start trading.
- Currency Options: I appreciated the ease of depositing in my own currency, which is a feature that stands out with Quotex.
- Variety of Assets: Quotex offers ultra-short-term binaries on hundreds of assets, providing a wide range of trading options.
- Bonuses: Quotex offers a 30% hike on the first deposit and a 40% deposit bonus, which can be a great incentive for traders.
- Low Minimum Deposit: The minimum deposit is only $10, making it accessible for traders with a smaller budget.
- Security Measures: Quotex has implemented strict security measures to protect traders’ funds and personal information, including SSL encryption and two-factor authentication.
- Fast Withdrawals: Most withdrawals are processed within 24 hours, which is a great feature for traders who want to have access to their funds quickly.
Cons:
- Lack of Copy Trading: Quotex could improve by offering copy trading, a feature that allows beginners to learn from more experienced traders.
- Trade History Interface: The trade history interface could use some improvements to enhance user experience.
- Limited Educational Content: Quotex does not provide comprehensive educational content, making it less suitable for beginners or inexperienced traders who need guidance and support to learn and improve their trading skills.
- Limited Regulation: Quotex is not regulated by any major financial regulatory authority, which may be a concern for some traders.
- Potential for Loss: Trading involves the potential for profit as well as the risk of loss, which can be unpredictable due to the volatility of foreign exchange and commodities.
Note: Quotex is legal in Sri Lanka.
IQcent
IQCent is a popular binary options broker that I’ve been using since its inception in 2017. At first glance, it bears many similarities to BinaryCent and RaceOption, but what sets it apart is the lower minimum deposit. I was able to start trading with just $20, making it an ideal platform for beginners like I was.
A notable downside, however, is the lack of regulation, as IQCent is based in the Marshall Islands and doesn’t require a certificate to operate legally. The platform provides basic tools for technical analysis, a function for copying traders, and even hosts tournaments, which I found enticing.
If you’re in search of a broker that requires a low initial deposit, offers rapid order execution, and maintains a transparent trading platform, I’d recommend considering IQCent.
Pros:
- Variety of Trading Options: IQCent offers a number of forex currency pairs, commodities, indices, binary options, and cryptocurrencies for personal investment and trading options.
- Copy Trading: The platform has a copy trading feature that allows you to learn from the experts and gain knowledge and experience.
- Low Minimum Deposit: The minimum deposit fee for IQCent is just $10, making it accessible for traders with a smaller budget.
- Demo Account: IQCent offers a demo account, which is a great tool for beginners to practice trading without risking real money.
- Customer Support: The platform offers 24/7 live video chat support, ensuring that help is always available when needed.
- Referral Program: IQCent has a referral program that allows existing clients to receive rewards for attracting new traders.
Cons:
- Lack of Regulation: IQCent is not regulated, which can be a concern for some traders due to the potential risks involved.
- Limited Educational Content: The platform’s educational content is not comprehensive, which can be a disadvantage for beginners who are looking to learn more about trading.
- Limited Stock Selection: The platform’s stock selection is limited, which can restrict trading options for users.
- Demo Account Restrictions: To qualify for a demo account, a trader has to first open a live account and fund it, which can be a barrier for those who want to try out the platform before investing.
- Potential for Loss: IQCent warns that trading involves the potential for profit as well as the risk of loss, which can be unpredictable due to the volatility of foreign exchange and commodities.
Note: IQcent is legal in Sri Lanka.
BinaryCent
I found BinaryCent, a binary options broker established in 2017, to be an interesting platform. This broker operates globally and even accepts US customers, which is a rarity. Interestingly, because it caters to hard-to-reach areas, it does offer somewhat inflated conditions. I was taken aback by the minimum deposit of $250, considering that competitors often require as little as $5.
However, as suggested by the broker’s name, you can start trading from as low as 10 cents. BinaryCent’s platform, while not the most modern, is lightweight and operates well even on less powerful devices, which I found convenient. What really caught my attention were the instant payouts that occur within an hour.
The investment conditions vary depending on your deposit amount. For instance, depositing over $1000 will earn you a 50% deposit bonus and three risk-free trades. If options like Pocket Option and Binarium don’t suit your needs, BinaryCent is a solid alternative worth considering.
Pros:
- Variety of Account Types: BinaryCent offers four types of real accounts, each differing in the minimum deposit amount and access to additional functions like web conferences, risk-free trades, personal account manager, and a Swiss payment card.
- Low Minimum Investment: The minimum investment in a transaction is just 10 cents, which is great for beginners or those with a smaller trading budget.
- Risk-Free Trades and Trading Contests: BinaryCent offers incentives like risk-free trades and trading contests, which can be particularly beneficial for Gold account holders.
- Customer Service: They prioritize customer service and strive to ensure a positive trading experience.
- Trading Over Weekends: BinaryCent allows trading over weekends, which can be a plus for those who want to trade outside of typical market hours.
- Guidance for New Traders: New traders have the opportunity to trade under the guidance of experienced traders, which can be a great learning tool.
Cons:
- Lack of Regulation: BinaryCent is not regulated, which can be a concern for some traders.
- Demo Account Restrictions: A demo account is only available after making the minimum deposit of $250, which can be a barrier for those who want to try out the platform before investing.
- Unregulated: BinaryCent is unregulated, which can be a concern for some traders due to the potential risks involved.
- Potential for Loss: BinaryCent warns that margin trading involves the potential for profit as well as the risk of loss, which can be unpredictable due to the volatility of foreign exchange and commodities.
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Note: BinryCent is legal in Sri Lanka.
RaceOption
“RaceOption, much like BinaryCent, struck me with its identical trading platform, distinguishable only by a different interface color. I found that this broker, too, lacks any regulations or certification, and requires a minimum deposit of $250.
While the returns on investments are a bit better than BinaryCent, they’re considerably lesser than Pocket Option. In terms of functionalities, RaceOption mirrored BinaryCent, offering the feature of copying traders and a tournament where the trader with the highest turnover wins. I attempted to verify if the same entity is behind both BinaryCent and RaceOption, but it was to no avail as each platform is under a different company’s banner.
From my understanding, platforms often utilize purchased templates, so it’s plausible that one broker is merely a clone of the other. This reflection doesn’t paint a good image for these companies, and in your shoes, I would opt for Pocket Option.
Pros:
- User-friendly interface: The platform is intuitive, making it easy to navigate and use.
- Variety of trading options: The platform offers a wide range of underlying assets to trade, including currency pairs, commodities, precious metals, and cryptocurrencies.
- Copy trading function: This feature allows beginners to mimic the trades of more experienced traders, which is a great learning tool.
- Fast deposit and withdrawal options: The platform provides quick and convenient deposit and withdrawal options.
- Good customer service: Multiple channels are available for contact, including a live chat option.
Cons:
- Lack of regulation: The broker is not regulated, which might be a concern for some traders.
- Limited trading tools: While the platform offers a variety of tools, it lacks certain ones like MetaTrader.
- Limited product selection: Compared to other brokers, RaceOption has a somewhat limited product selection.
- Can be overwhelming for beginners: Despite its generally user-friendly interface, the platform can be a bit complex for absolute beginners.
Note: RaceOption is legal in Sri Lanka.
Are binary options legal in Sri Lanka?
Binary options trading has gained popularity in various parts of the world, including Sri Lanka. However, it is important to note that binary options trading is considered illegal in Sri Lanka. The Central Bank of Sri Lanka, through the Exchange Controls Act, prohibits the trading of speculative assets, such as forex and binary options, with brokers located overseas.
The ban on binary options trading in Sri Lanka is primarily aimed at protecting individuals from potential financial risks associated with this form of trading. The Central Bank is concerned about the potential for fraud, lack of transparency, and the high level of risk involved in binary options trading.
Despite the ban, it is worth mentioning that the enforcement of this regulation appears to be ineffective. Many Sri Lankan traders are still engaging in binary options trading with offshore brokers. This is due to the fact that it is relatively easy for traders to access trading platforms online and open accounts with offshore brokers that accept clients from Sri Lanka.
It is important for individuals in Sri Lanka who are interested in trading to be aware of the risks involved in binary options trading. Binary options are a highly speculative form of trading where the trader predicts the outcome of a specific event within a predetermined timeframe. The trader either receives a fixed payout if the prediction is correct or loses the invested amount if the prediction is incorrect.
How to start trading binary options in Sri Lanka?
Starting to trade binary options in Sri Lanka involves several steps. Here’s a step-by-step guide:
Step 1: Understand the Legalities
Binary options trading in Sri Lanka is technically illegal according to the Central Bank of Sri Lanka. However, enforcement of this ban appears to be lax, as many Sri Lankan traders continue to trade binary options with offshore brokers. It’s important to note that the Central Bank of Sri Lanka and the Securities and Exchange Commission have not licensed any company to provide binary options products.
Step 2: Choose a Broker
Choosing the right broker is crucial to your success as a trader. You’ll want to select a broker that is regulated, offers local language options, and provides a seamless process for depositing and withdrawing funds. Some popular brokers among Sri Lankan traders include IQ Option, Quotex, and Pocket Option.
Step 3: Open a Demo Account
Before you start trading with real money, it’s recommended to practice in a demo trading account. This allows you to gain valuable trading experience in a no-risk environment.
Step 4: Understand the Trading Process
Binary traders in Sri Lanka can purchase options that predict whether the underlying price of an asset will go up or down over a set period of time. If the prediction is correct, the trade is considered “in the money,” and the trader is paid a set amount. If the prediction is incorrect, the trader does not receive any payout.
Step 5: Start Trading
Once you’ve practiced on a demo account and feel comfortable with the trading process, you can start trading with real money. The minimum deposit for trading binary options is typically low, often starting at just $10.
Step 6: Declare Your Profits
If you make a profit from binary options trading, you can declare this on your tax return. However, it’s important to consult with a tax professional to understand the specific tax implications.
Remember, while binary options trading can be profitable, it also comes with significant risks. Always trade responsibly and never invest more than you can afford to lose.
Conclusion
In conclusion, binary options trading in Sri Lanka presents both opportunities and challenges for investors. On one hand, it offers a flexible and accessible way to participate in the financial markets, allowing individuals to potentially profit from price movements of various assets. The ease of use and potential for high returns can be appealing to those looking for alternative investment options.
However, it is crucial for investors to exercise caution and conduct thorough research before engaging in binary options trading. The lack of regulation and the presence of fraudulent schemes in the industry pose significant risks. It is important for investors to understand the complexities of binary options trading, manage their risks effectively, and seek guidance from reputable sources. Ultimately, while binary options trading may hold promise, it is essential to approach it with a realistic understanding of the risks involved in order to make informed decisions.
What is the legal status of binary options trading in Sri Lanka?
Binary options trading in Sri Lanka is technically illegal according to the Exchange Controls Act, which controls how money can be remitted and received from abroad. This law has provisions which specifically prohibit the trading of speculative assets with brokers located overseas. However, the level of enforcement of this ban appears not to be stringent because many Sri Lankan traders are still trading binary options with offshore brokers.
Who regulates binary options trading in Sri Lanka?
The Securities and Exchange Commission of Sri Lanka (SEC) regulates the financial markets in Sri Lanka, including binary options trading. The SEC is responsible for supervising and regulating the securities market in Sri Lanka, ensuring that financial transactions are conducted in a fair and orderly manner.
How can I start trading binary options in Sri Lanka?
Despite the legal restrictions, many Sri Lankans are trading binary options with offshore brokers. To start trading, you need to register with a broker based outside of Sri Lanka. Some popular brokers among Sri Lankan traders include IQ Option, Quotex, and Pocket Option. Once registered, you can purchase options that predict whether the underlying price of an asset will go up or down over a set period of time. If your prediction is correct, the trade will be considered “in the money,” and you will be paid a set amount.
