CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Brazil’s primary stock market, the Brasil Bolsa Balcão S.A, has had a relatively short, but surprisingly convoluted existence. The exchange, often referred to as B3, was formed in March of 2017 after CETIP S.A. merged with the BM&FBOVESPA. The BM&FBOVESPA was created by a previous merger in 2008 between the Brazilian Mercantile and Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa) that had previously assimilated the Rio De Janeiro Stock Exchange or Bolsa de Valores do Rio de Janeiro (BVRJ) in 2002.
The B3 is located in Sao Paulo, Brazil, but also has offices in Rio de Janeiro, London and Shanghai, is the largest stock exchange in Latin America by market capitalisation. It is also the 18th largest stock exchange globally by its market cap of about $520.29 billion in 2019.
In addition to having a listing service for stocks, stock derivatives like futures, forwards and options, and Securities Deposit Certificates (UNITS), the B3 also offers trading in commodities of local importance, interest rates, various exchange rates and fixed income products. Furthermore, the exchange allows trading in Brazilian Depositary Receipts (BDRs) that consist of certificates of shares in foreign companies that are traded in Brazil.
The B3’s main benchmark stock index is the IBOVESPA that has been calculated since 1968 as the total return index made up of the market’s most representative companies by market capitalisation and volume traded. The IBRX 50, also known as the Brazil 50, consists of the 50 most traded stocks on the B3, while the IBRX includes the 100 most traded B3 listed stocks.
The Brazilian national currency is the Brazilian real (BRL) which is issued and managed by the Central Bank of Brazil, or Banco Central do Brazil (BCB). The real is further made up of 100 smaller units that are known as centavos.
The regulatory structure for the Brazilian financial sector is divided into four regulators under the umbrella of the National Monetary Council or Conselho Monetário Nacional (CMN). The Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários) regulates securities firms, the BCB performs prudential and financial institution supervision, the SUSEP regulates insurance firms and PREVIC regulates pensions.
Furthermore, within the Brazilian Ministry of Finance, the Committee for the Regulation and Supervision of Financial, Securities, Insurance and Complementary Pension (COREMEC) has an advisory role helping promote coordination among the aforementioned four regulators.
The CVM is the main securities sector regulator, being tasked with the legal mandates of promoting financial market development, efficiently functioning and transparent markets, and protecting investors by supervising and sanctioning market participants.
The BCB is also responsible for regulation requirements, licensing and overseeing forex broker activities in Brazil, so only brokers licensed by the central bank are permitted to offer forex trading services in Brazil. Currency trading regulations were notably relaxed in 2005 after the passage of CMN Resolution 3265 that was subsequently modified by CMN Resolution 3568 in 2008.
Traders based in Brazil can usually open accounts with leading international forex brokers that offer services to Brazilian clients. Many even have websites translated into the Portuguese language, although few online forex brokers are based in Brazil itself.
When shopping around for an online broker to use for contract for difference (CFD) or forex trading, it could be more convenient to find one that will accept deposits from clients in Brazilian reals. This is something to enquire about prior to opening an account. Additionally, having a broker regulated by the BCB will usually be preferable due to the obligations of the broker to maintain a local reputation with the Brazilian central bank. However, when foreign brokers seem the most attractive, it is crucial to remember that any acceptable broker needs to be subject to a regulated jurisdiction and hold a positive client reputation. Brokers should also keep their own funds separate from those of their clients to ensure that margin deposits are protected, as well as providing an acceptable range of services and tradable assets.
Also remember that the tradable asset classes available at online brokers can vary considerably among competitors. Note that while almost all online brokers provide some form of forex trading, not all will offer CFD trading that can be preferable since it allows brokers to offer more tradable assets.
For stock trading, the B3 aims to provide a fair and transparent market in a variety of asset classes, in addition to Brazilian stocks. Trades on the B3 exchange are generally executed in Brazilian reals. The B3 exchange uses the PUMA Trading System for transactions in listed securities. This feature-rich platform provides both transaction related operations and a world class risk management facility that allows users to trade safely.
Brazil’s top trading partners according to the World Bank are China, the United States and Argentina. Following those top three, Brazil also trades actively with the Netherlands, Germany, Japan and South Korea.
With a population of 212.3 million people, Brazil’s GDP was USD $2.054 trillion in 2017 as per the World Bank. Furthermore, Brazil’s GDP per capita income was 78 percent of the global average at $9812.27 in 2017.
According to World Bank rankings for doing business, Brazil’s highest ranking was related to obtaining electricity, holding the 40th position among the countries surveyed. Brazil also ranked 48th in both enforcing contracts and protecting minority investors.
Brazil has been a net exporter since 1959 and could potentially suffer from the current trade dispute between the United States and China due to both countries being amongst Brazil’s largest trading partners. Nevertheless, according to the World Bank, Brazil had an exceptionally low 12.7% ratio of its trade to GDP numbers in 2017, which would tend to mitigate any trade disruptions.
With respect to rankings, the World Bank ranked Brazil at 109th overall for ease of doing business in the country. Other areas that make Brazil a challenge to operate in include paying taxes, dealing with construction permits, starting a business and registering property, with low rankings of 184th, 175th, 140th and 137th respectively.
Businesses and traders could find Brazil a rather challenging place to operate. Fortunately, traders based in Brazil who want to trade various asset classes on margin should find many online brokers open to accepting them as clients.
When choosing among the available online brokers that will accept Brazilian clients, traders should make sure they have a decent range of asset classes and a full featured trading platform. Brokers should also have a good reputation with clients and strict oversight from a major regulator.
In general, any trader should aim to find a broker happy to deal with them that also provides a secure place to deposit money to use as margin. A trustworthy broker should also keep clients’ funds separate from its own in case they experience any financial difficulties.
Forex.com scored best in our review of the top brokers for brazil , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade EURUSD
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|USD/JPY Spread||0.90||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|