Local & Global Picks • Benzinga

For investors in Sri Lanka who want to participate in the Colombo Stock Exchange (CSE) or explore opportunities in global financial market, choosing the right brokerage firm is the first step. A capable broker provides access to trading, tools and support tailored to your investment goals and experience level. This guide simplifies the decision-making process by highlighting some of the best stock brokers serving Sri Lankan investors.  

Quick Look at the Best Stock Brokers in Sri Lanka

• Interactive Brokers – Best for Global Trading
• Plus500 – Best for Commission-Free CFD Trading 
• IG (tastytrade) – Best User-Friendly Platform 
• First Capital Securities – Best for Research
• John Keells Stock Brokers – Best for Customer Service

How We Chose the Best Stock Brokers in Sri Lanka

We chose platforms based on their cost for trading asset classes available in Sri Lanka, platform usability and account minimums. The quality and availability of customer service to provide support were key criteria. The presence and quality of educational content and support to new and experienced brokers in making decisions was also considered. 

5 Best Stock Brokers in Sri Lanka

Interactive Brokers – Best for Global Trading 

Interactive Brokers (IBKR) is a good choice for experienced Sri Lankan investors who want access to global financial markets with competitive commission rates and favorable pricing for high-volume trading. Although the platform is complex and doesn’t offer trading on the country’s Colombo Stock Exchange (CSE), IBKR provides multi-asset access for diversification beyond Sri Lanka.   

Key Features: 

• Fees: IBKR offers low commissions, charging $0.005 for each U.S. share traded and better pricing for large-volume traders. Its fee structure, including market data fees, can be complicated, but IBKR has eliminated the inactivity fee.

• Investment Access: IBKR provides global multi-asset access, including stocks, exchange-traded funds (ETFs), options, futures, bonds and forex across dozens of international exchanges in the U.S., Europe and Asia. Sri Lankan residents can open individual and institutional accounts, subject to central bank regulations for sending funds abroad. Trading in stocks listed on the CSE is not available.  

• Platform Experience: IBKR offers a professional-grade experience with real-time global news, screeners and advanced order types. Its complexity may be overwhelming for traders who are used to simpler local trading systems. The mobile app is high-quality and the Client Portal offers a more user-friendly interface for basic trades.  

• Tools/Education Highlights: IBKR provides educational resources, including webinars, how-to guides, simulated trading, an Education University section and daily market commentary to help Sri Lankan users learn about global markets and the platform. 

• Drawbacks: Trading in CSE stocks is not supported. The platform’s complexity can be a barrier for some users. IBKR does not have a physical office in Sri Lanka but provides regional support through email and chat. The platform does not support LKR, requiring funds in USD or other major currencies.

Who It’s Best For: Experienced Sri Lankan investors who prioritize low fees and access to global financial markets and are willing to navigate a complex trading platform. 

Plus500 – Best for Commission-Free CFD Trading

Plus500 is a leading broker for Sri Lankan traders interested in contract for difference (CFD) trading. It offers commission-free trading with a user-friendly platform and a low minimum deposit, allowing Sri Lankan investors to speculate on a variety of international markets. Plus500 provides CFDs, not ownership of the underlying assets. 

Key Features: 

• Fees: Plus500 operates on a bid/ask spread model and does not charge direct commissions on trades. A $10 monthly inactivity fee will be charged after three months of no trading activity. The minimum deposit to open an account is $100.

• Investment Access: Plus500 provides access to CFDs across multiple asset classes, including indices, forex, commodities, crypto, shares and stocks. This allows Sri Lankan traders to speculate on global price movements that might not be easily accessible with local brokers. With CFD trading, investors don’t own the underlying assets. 

• Platform Experience: Plus500’s platform is easy to use and features a simple web and mobile interface with quick onboarding.

• Tools/Education Highlights: Plus500 offers basic tutorials on CFD trading and risk warnings. While the platform is geared toward more experienced traders, it includes a free demo mode to help users learn by practicing without risking real money.

• Drawbacks: Plus500 offers CFD trading – not ownership of underlying assets. Local  LKR currency is not supported, so users must fund their accounts in USD or other major currencies through credit or debit cards or an e-wallet. 

Who It’s Best For: Sri Lankan traders who are comfortable with CFDs and want commission-free access to speculate on international markets through a user-friendly platform. 

IG (tastytrade) – Best User-Friendly Platform 

IG, recently rebranded to tastytrade in some regions, is popular in Sri Lanka because of its user-friendly platforms and educational resources, particularly for forex and CFD trading. It offers competitive spreads on forex and zero-commission stock CFDs, making it accessible for both new and experienced traders who want to engage in international markets. 

Key Features: 

• Fees: IG offers competitive spreads on forex and zero-commission stock CFDs. Small overnight fees may be charged for leveraged positions and an inactivity fee will be incurred after two years of no trading activity. The minimum deposit is around $200.

• Investment Access: IG provides access to a range of markets through CFDs or direct trading, including forex, indices, commodities, global shares and options. Sri Lankans primarily conduct CFD trading for ease of cross-border transactions. 

• Platform Experience: IG’s web and mobile platforms are designed to be intuitive and beginner-friendly. They include advanced charting capabilities for more experienced traders. 

• Tools/Education Highlights: IG offers robust educational resources, including IG Academy with courses for beginner, intermediate and advanced traders covering trading strategies and risk management. It also provides daily analysis, webinars and an active blog, making it attractive for Sri Lankans seeking systematic trading education.  

• Drawbacks: Its international customer support is available 24/5 by chat or phone, but it may not have Sri Lanka-specific service. 

Who It’s Best For: Sri Lankan traders of all levels who want a user-friendly platform with strong educational resources to learn about trading global markets, primarily through CFDs.

First Capital Securities – Best for Research

First Capital Securities provides access to the CSE with standard commission rates. Known for its high-quality customer service with dedicated brokers and comprehensive research reports, it caters to retail, institutional and high-net-worth investors.  

Key Features: 

• Fees: First Capital charges the standard rate for trading on the CSE – typically 0.64%, which includes the cost for brokers, CSE and CDS, for trades less than LKR 100 million. There are no monthly platform fees for stock trading, but separate fees may be incurred for First Capital’s wealth management services.

• Investment Access: First Capital provides access to stocks and corporate debt listed on the CSE. Foreign investors can also invest in the CSE through First Capital, subject to regulatory approvals. First Capital also offers unit trusts (mutual funds) and government securities through its fixed-income desk, which is separate from the stock trading platform. 

• Platform Experience: First Capital uses the CSE’s online trading system (Atrad) for clients, which is accessible through a web portal or mobile app. Atrad offers live market data, order placement and portfolio viewing. It doesn’t have the advanced features global platforms offer.

• Tools/Education Highlights: First Capital provides substantial research, including Daily Market Watch, economic reports and strategy reports. It also offers personalized guidance from brokers and daily market updates. It sometimes holds investor forums or webinars. New investors receive guidance on using the platform and basic stock investing principles.  

• Drawbacks: Online trading platform ATrad is functional but basic and not as advanced as many global platforms. Investment access is limited to the CSE and listed corporate debt.  

Who It’s Best For: Sri Lankan investors who want a reputable local broker with high-quality customer service, dedicated broker support and comprehensive research for trading on the CSE.  

John Keells Stock Brokers – Best for Customer Service

John Keells Stock Brokers (JKSB), the brokerage arm of the John Keells Holdings conglomerate and one of the oldest firms in Sri Lanka, is known for its in-depth research, high-quality customer service and established presence in the local market. It’s a strong choice for both retail and institutional investors who want to trade on the CSE.

Key Features: 

• Fees: JKSB adheres to the standard CSE commission structure, typically 0.64% for most trades. Slight discounts may be offered for institutional trades, but retail clients generally pay the standard fees. 

• Investment Access: JKSB focuses on Sri Lankan equities and equity-linked products listed on the CSE. It doesn’t deal directly in other asset classes, but clients can ask about other opportunities through the John Keells Holdings group. 

• Platform Experience: JKSB provides online trading through the DWIP platform, the CSE-provided system. It also offers a user-friendly and secure desktop Trader WorkStation and a mobile app. 

• Tools/Education Highlights: JKSB’s research includes daily market summaries and sector reports. It offers personalized service with designated brokers. It also has a research library and has published investor guides. JKSB occasionally hosts seminars and sends newsletters

• Drawbacks: Investment access is limited to Sri Lankan equities and equity-linked products on the CSE.  

Who It’s Best For: Sri Lankan investors who value in-depth market research, personalized customer service with dedicated brokers and a reputable firm with a long-standing presence in the local market for trading CSE-listed equities.

Choosing the Right Stockbroker in Sri Lanka

Choosing the right broker is a decision that can significantly impact your investment success. 

For those seeking global market access and low fees, Interactive Brokers stands out. Plus500 and IG (tastytrade) offer user-friendly platforms for commission-free CFD trading on international assets, with IG also providing robust educational resources. For investors focused on the CSE, First Capital excels in research while John Keells is known for its customer service. 

The best broker choice depends on your investment objectives. Consider whether your priority is international diversification, speculating on global markets or investing in Sri Lankan equities. By aligning your investing goals with the strength of each broker, you can choose the partner best suited to help you achieve your financial goals.

Frequently Asked Questions