| Updated: January 1, 2025- Jump to:
- Main features of the best Brazil Forex brokers
- Forex Brokers in Brazil Compared by Spread
- Account Types and Commissions
- Forex Legislation
- Financial Regulators
- Payment Methods
- Trading Software
- Mobile Trading
- FAQ
Our team of expert traders tested many regulated and trustworthy forex brokers that accept traders from Brazil and compiled a toplist with the best among them. Each broker operating in Brazil received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service and more.
Fusion Markets74-89% of retail's CFD accounts lose money- FP Markets73.85% of retail investor accounts lose money
- Global Prime74-89% of retail CFD accounts lose money
- Pepperstone75.5% of retail investor accounts lose money
- AxiThe vast majority of retail client accounts lose money
- XM Group72.82% of retail investor accounts lose money
Main features of the best Brazil Forex brokers
- Min Deposit$0Trading InstrumentsCommodities CFDs, Crypto CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDsTrading PlatformscTrader, DupliTrade, Fusion+ Copy Trading, MetaFX, MetaTrader 4, MetaTrader 5, TradingViewSpreadEUR/USD: AVG 0.93 pips
GBP/USD: AVG 1 pips
USDJPY: AVG 1.7 pipsLeverage1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account)Deposit MethodsDoku, Dragonpay, DuitNow, Ethereum, Fasapay, Interac, Jeton, Jetonbank, Litecoin, LuqaPay, Mastercard, AstroPay, Mifinity, NETELLER, OnlineNaira, PayID, PayPal, Bank Transfer, Perfect Money, Ripple, Skrill, STICPAY, Tether, USDT, VAPay, Bitcoin, Visa, VNPAY, XPay, ZotapayWithdrawal MethodsDragonpay, Ethereum, Interac, Jetonbank, Litecoin, Mastercard, AstroPay, Mifinity, NETELLER, PayPal, Bank Transfer, Ripple, Skrill, Tether, Bitcoin, Visa74-89% of retail's CFD accounts lose moneyBroker operating under licenses from ASIC, VFSC, and FSA. Brazilian traders can open different types of accounts with Fusion Markets and access markets like Forex, Indices, Metals, US Shares, Commodities, and Crypto. Conveniently enough, the broker supports multiple payment methods exclusively available in Brazil. Forex traders can choose from several popular trading platforms, including MT4, MT5, cTrader, WebTrader, and DupliTrade. Depending on their preferences, Brazilian traders can open Classic or ZERO accounts with the broker. The first type offers zero commissions on trades and low spreads starting at 0.9 pips. ZERO traders will enjoy lower spreads from 0.0 pips, with a small round-trip commission of $4.50 charged per trade.
- Min Deposit$50 (AU$100)Trading InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDsRegulatorsTrading PlatformscTrader, IRESS, TradingViewSpreadEUR/USD: AVG 1.2 pips
GBP/USD: AVG 1.4 pips
USDJPY: AVG 1.5 pipsLeverage1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account)Deposit MethodsCrypto, Dragonpay, Fasapay, Google Pay, Apple Pay, Mastercard, NETELLER, OnlineNaira, Pagsmile, PayPal, Bank Transfer, Perfect Money, Rapyd, Skrill, STICPAY, Virtual Pay, Visa, XPayWithdrawal MethodsMastercard, NETELLER, PayPal, PayTrust88, Bank Transfer, Skrill, Visa73.85% of retail investor accounts lose moneyReputable broker accepting clients from Brazil. Operations are authorized thanks to licenses from top-tier regulators like ASIC, FSA (Seychelles), and FSCA. Brazilian traders can speculate on the prices of various assets, including currency pairs, shares, commodities, ETFs, and other CFD products. Brazilian traders can explore the functions and trading tools of innovative platforms like MT4, MT5, cTrader, WebTrader, and more. Whichever platform traders choose, they will be able to open a Standard or Raw account and start trading with spreads as low as 0.0 pips (Raw) or 1 pip (Standard). Commissions are charged only on trades carried out through Raw accounts, with each side of a trade imposing a $3 commission.
- Min Deposit$0Trading InstrumentsCommodities CFDs, Forex CFDs, Indices CFDs, Metals CFDsSpreadEUR/USD: AVG 0.96 pips
GBP/USD: AVG 1.12 pips
USDJPY: AVG 1.47 pipsLeverage1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC)Deposit MethodsBPAY, Crypto, Dragonpay, Fasapay, Gate8, Interac, Jeton, Mastercard, AstroPay, Mifinity, NETELLER, Pagsmile, PayID, PayPal, Bank Transfer, Perfect Money, POLi, Skrill, Visa, VNPAY, XPayWithdrawal MethodsCrypto, Dragonpay, Interac, Jeton, Mastercard, AstroPay, NETELLER, PayPal, Bank Transfer, Perfect Money, Skrill, Visa74-89% of retail CFD accounts lose moneyYou can easily open an account with Global Prime if you are a resident of Brazil. Licensed by ASIC and VFSC, the broker caters to its global user base, with Brazilian traders having some payment options exclusively available in their country only. Thanks to the widely popular MT4 platform, members of the broker will gain access to tradable products like forex pairs, cryptocurrencies, indices, bond CFDs, and more. Reduced trading cost is achieved through zero commissions and low spreads starting at 0.9 pips on major currency pairs traded with Standard accounts. Raw Account holders will enjoy reduced spreads from 0.0 pips and a very small commission of $3.50 charged per one side of a trade (1 lot).
- Min Deposit$0Trading InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDsRegulatorsTrading PlatformsMetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary WebSpreadEUR/USD: AVG 1.1 pips
GBP/USD: AVG 1.3 pips
USDJPY: AVG 1.3 pipsLeverage1:500 (CySEC | Pro Account), 1:500 (SCB | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:200 (SCB | Retail Account)Deposit MethodsBPAY, Mastercard, NETELLER, PayPal, Bank Transfer, Skrill, VisaWithdrawal MethodsBPAY, Mastercard, NETELLER, PayPal, Bank Transfer, Skrill, Visa75.5% of retail investor accounts lose moneyLike many other trading enthusiasts from across the globe, Brazilian traders can also join Pepperstone and open either a Standard or Razor account with the broker. The brand’s operations are monitored by regulators like FCA, BaFin, CMA, DFSA, and ASIC. As for the trading platforms available to Brazilian traders, Pepperstone provides all popular options like MT4, MT5, and cTrader. Trading with a Standard account is extremely cost-effective, with spreads on major currency pairs starting at 1 pip and zero commissions being attached to trades. Meanwhile, Razor accounts will pay a $3 commission per side per lot traded but the spreads on forex pairs will start as low as 0.0 pips.
- Min Deposit$5Trading InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Forex Options, Index Options, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, Stock Options, US Stock OptionsRegulatorsACPR (France), CFTC (United States), CNMV (Spain), CONSOB (Italy), CySEC (Cyprus, # 120/10), DFSA (United Arab Emirates, # F003484), FIN-FSA (Finland), FSC (Virgin Islands, British, # 000261/397), AFM (Netherlands), IFSC (Belize, # 000261/4), KNF (Poland), MNB (Hungary), SFSA (Sweden), ASIC (Australia, # 443670), BaFin (Germany)Trading PlatformsMetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary WebSpreadEUR/USD: MIN 0.8 pips
GBP/USD: MIN 0.8 pips
USDJPY: MIN 0.9 pipsLeverage1:30 (CySEC | Retail Account), 1:1000 (IFSC | Retail Account)Deposit MethodsGoogle Pay, Apple Pay, Maestro, NETELLER, Bank Transfer, UnionPay, VisaWithdrawal MethodsMastercard, NETELLER, Bank Transfer, Skrill, UnionPay, Visa72.82% of retail investor accounts lose moneyProperly regulated broker accepting registrations from Brazil. Licensing authorities include CySEC, BaFin, CNMV, MNB, CONSOB, FIN – FSA, KNF, ACPR, FSA (Sweden), and AFM. Trading platforms like MT4, MT5, and the XM app enable trading with currency pairs, shares, commodities, precious metals, and plenty of other assets. Traders can choose from three account options, which include Standard, Ulta Low, and Shares. The first two are suitable for forex trading, offering low spreads (from 1.6 pips for Standard and 0.8 pips for Ultra Low) and zero commission charged per trade.
- Min Deposit$50Trading InstrumentsBond Futures, Bond Options, Bond Spread Betting, Bonds CFDs, Commodities CFDs, Commodity Futures, Commodity Options, Commodity Spread Betting, Crypto CFDs, Crypto Options, Crypto Spread Betting, Currency Futures, Energy CFDs, Energy Futures, Energy Options, Energy Spread Betting, ETF CFDs, ETF Options, ETF Spread Betting, Forex CFDs, Forex Options, Forex Spread Betting, Index Futures, Index Options, Index Spread Betting, Indices CFDs, Interest Rate Futures, Metal Futures, Metal Options, Metals CFDs, Metals Spread Betting, Share CFDs, Stock CFDs, Stock Options, Stock Spread Betting, US Stock CFDs, US Stock Options, US Stock Spread BettingRegulatorsTrading PlatformsL2 Dealer, MetaTrader 4, Proprietary Web, ProRealTime, TradingViewSpreadEUR/USD: AVG 1.04 pips
GBP/USD: AVG 1.4 pips
USDJPY: AVG 1.97 pipsLeverage1:222 (BaFin | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:200 (BMA | Retail Account), 1:30 (FCA | Retail Account)Deposit MethodsBPAY, Discover, Apple Pay, Mastercard, PayPal, Bank Transfer, Visa, Wire TransferWithdrawal MethodsDiscover, Mastercard, Bank Transfer, Visa70% of retail client accounts lose money when trading CFDs with this investment provider.Brazilian forex traders can experience smooth and top-notch trading experience at IG, which is a leading broker operation in multiple regions across the globe. Licenses from ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, and BMA (Bermuda) ensure access to global trading markets like Forex, Commodities, Indices, and more. Brazilian traders can trade forex pairs as CFDs, Vanilla options, barriers, and even participate in DMA (Direct Market Access) trading. CFD trades come with no commissions and low spreads of a minimum of 0.6 to 0.9 pips on major currency pairs.
- Min Deposit$100Trading InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, Crypto Options, Energy CFDs, ETF CFDs, Forex CFDs, Forex Options, Index Options, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, Stock Options, US Stock OptionsRegulatorsCySEC (Cyprus, # 347/17), ADGM (United Arab Emirates), FFAJ (Japan, # 1574), FSCA (South Africa, # 45984), FSRA (Canada, # 190018), IIROC (Canada), ISA (Israel, # 514666577), JFSA (Japan, # 1662), ASIC (Australia, # 406684), BVIFSC (Virgin Islands, British, # SIBA/L/13/1049), CBI (Ireland, # C53877)Trading PlatformsAvaOptions, DupliTrade, AvaSocial, MetaTrader 4, MetaTrader 5, AvaTadeGO, Proprietary Web, ZuluTradeSpreadEUR/USD: MIN 0.9 pips
GBP/USD: MIN 1.3 pips
USDJPY: MIN 1.3 pipsLeverage1:400 (Pro Account), 1:30 (Standard Account)Deposit MethodsMastercard, NETELLER, Bank Transfer, Skrill, Visa, WebMoneyWithdrawal MethodsMastercard, NETELLER, Bank Transfer, Skrill, Visa, WebMoney76% of retail investor accounts lose moneyIt is extremely easy to join AvaTrade, with traders residing in Brazil also having access to multiple products available on AvaTrade’s platforms. The broker has been licensed by strict regulatory bodies like SIC, FFAJ, CySEC, ISA, IIROC, ADGM / FSRA, CBI, BVIFSC, and FSCA. In addition to forex trading, clients of the broker can get exposure to markets like Stocks, Commodities, Indices, and more. The platforms that Brazilians may use for their trading sessions include MT4, MT5, WebTrader, and AvaOptions. Since all trading fees will be built into the spread, AvaTrade ensures low-cost trading with the spread on a major currency pair like EUR/USD starting at 0.9 pips.
- Min Deposit$250Trading InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, US Stock CFDsRegulatorsTrading PlatformsxStation 5SpreadEUR/USD: AVG 0.9 pips
GBP/USD: AVG 2.2 pips
USDJPY: AVG 1.4 pipsLeverage1:200 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (IFSC | Retail Account)Deposit MethodsEcommpay, Maestro, Mastercard, NETELLER, PayPal, Bank Transfer, PayU, Skrill, VisaWithdrawal MethodsMastercard, Bank Transfer, Skrill, Visa80% of retail investor accounts lose moneyTraders from Brazil can join XTB and choose either to register with its FINMA-regulated entity or access more tradable products through its FSC version. Nevertheless, traders will be able to enjoy smooth trading with fast executions, low trading fees, and various customer protection tools. XTB’s very own trading platform will grant Brazilian traders access to products like forex pairs, stocks, ETFs, indices, and commodities. Account types offer traders to choose the right option for their CFD or Stocks & ETF trading. Forex traders can enjoy cost-effective trading with XTB as spreads start at 0.5 pips and there is no commission charged on CFD orders.
- Min Deposit$100 ($1 for Invest MT5 Account)Trading InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, US Stock CFDsRegulatorsTrading PlatformsMetaTrader 4, MetaTrader 5, StereoTraderSpreadEUR/USD: AVG 0.1 pips
GBP/USD: AVG 0.6 pips
USDJPY: AVG 0.3 pipsLeverage1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:1000 (FSAS | Retail Account), 1:500 (FSCA | Retail Account), 1:100 (JSC | Retail Account)Deposit MethodsCrypto, iDEAL, Klarna, Mastercard, NETELLER, PayPal, Bank Transfer, Perfect Money, POLi, Skrill, VisaWithdrawal MethodsMastercard, NETELLER, PayPal, Bank Transfer, Perfect Money, Skrill, Visa73% of retail investor accounts lose moneyEnables easy registration process for Brazilian traders, allowing them to open Trade or Zero accounts on both MT4 and MT5. Conveniently, BRL is among the supported base currencies. The broker can reach global traders thanks to licenses from CySEC, ASIC, FCA, JSC, and FSCA. In addition to currency pairs, traders from Brazil may also trade commodities, indices, stocks, cryptocurrencies, and more. Minimum spreads of 0.0 pips on Zero accounts ensure a low cost of trading, with a small commission of $3 per side per lot traded charged on forex and metals trades. Trade.MT4 and Trade.MT5 will remove the commission charge but will adjust slightly the spreads, which will start from 1.2 pips on MT4 and 0.6 pips on MT5.
- Min Deposit$0Trading InstrumentsBond Futures, Bonds CFDs, Commodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Mutual Funds, Share CFDs, Stock OptionsRegulatorsTrading PlatformsProprietary Mobile, Proprietary WebSpreadEUR/USD: MIN 0.1 pips
GBP/USD: MIN 0.3 pips
USDJPY: MIN 0.5 pipsLeverage1:30 (ASIC | IBKR Lite), 1:30 (CBI | IBKR Lite), 1:30 (FCA | IBKR Lite), 1:25 (JFSA | IBKR Lite), 1:20 (MAS | IBKR Lite), 1:500 (Pro Account)Deposit MethodsBank Transfer, Check, ACHWithdrawal MethodsBank Transfer, Check, ACH55.68% of customer accounts are unprofitable (Q4 2024).Traders from Brazil are welcome to join Interactive Brokers and start trading numerous instruments on the IBKR proprietary platform. Major regulators like CIRO and CFTC are among the authorities monitoring the operations of the broker. Trades are available from any page of the broker’s platform, allowing access to spot currencies, stocks, bonds, ETFs, and other tradable assets. More than 100 currency pairs can be traded at an extremely competitive price, with commissions ranging between 0.08 and 0.20 bps times the trade size and a tight minimum spread of 0.1 pips.
Forex Brokers in Brazil Compared by Spread
| Broker | EUR/USD | USD/JPY | GBP/USD | USD/CHF | AUD/USD | EUR/GBP | USD/CAD |
|---|---|---|---|---|---|---|---|
| 1. Fusion Markets | AVG 0.93 pips | AVG 1.7 pips | AVG 1 pips | AVG 1.7 pips | AVG 0.91 pips | AVG 1.09 pips | AVG 0.99 pips |
| 2. FP Markets | AVG 1.2 pips | AVG 1.5 pips | AVG 1.4 pips | AVG 1.5 pips | AVG 1.3 pips | AVG 1.3 pips | AVG 1.4 pips |
| 3. Global Prime | AVG 0.96 pips | AVG 1.47 pips | AVG 1.12 pips | AVG 1.24 pips | AVG 0.98 pips | AVG 1.19 pips | AVG 1.16 pips |
| 4. Pepperstone | AVG 1.1 pips | AVG 1.3 pips | AVG 1.3 pips | AVG 1.3 pips | AVG 1.2 pips | AVG 1.2 pips | MIN 1.3 pips |
| 5. XM Group | MIN 0.8 pips | MIN 0.9 pips | MIN 0.8 pips | MIN 1.1 pips | MIN 1.6 pips | MIN 1.5 pips | MIN 1.3 pips |
| 6. IG | AVG 1.04 pips | AVG 1.97 pips | AVG 1.4 pips | AVG 1.99 pips | AVG 0.82 pips | AVG 1.4 pips | AVG 1.77 pips |
| 7. AvaTrade | MIN 0.9 pips | MIN 1.3 pips | MIN 1.3 pips | MIN 1.3 pips | MIN 1.1 pips | MIN 1.2 pips | MIN 1.8 pips |
| 8. XTB | AVG 0.9 pips | AVG 1.4 pips | AVG 2.2 pips | AVG 1.9 pips | AVG 1.3 pips | AVG 2.1 pips | AVG 1.8 pips |
| 9. Admirals | AVG 0.1 pips | AVG 0.3 pips | AVG 0.6 pips | AVG 0.6 pips | AVG 0.5 pips | AVG 0.6 pips | AVG 1.1 pips |
| 10. Interactive Brokers | MIN 0.1 pips | MIN 0.5 pips | MIN 0.3 pips | MIN 0.4 pips | MIN 0.2 pips | MIN 0.3 pips | MIN 0.4 pips |
Account Types and Commissions
| Broker | Min Deposit | Account Types | Commission per Lot | Trustpilot Rating |
|---|---|---|---|---|
| 1. Fusion Markets | $0 | MAM Account, Classic Account, Pro Account, Islamic Account, PAMM Account, Zero Account | $0 Classic Account, $4.50 round turn on Zero Account | 4.5 |
| 2. FP Markets | $50 (AU$100) | Demo Account, Standard Account, Raw Account, Pro Account, Islamic Account | $0 Standard Account; $6 round turn on Pro Account | 4.8 |
| 3. Global Prime | $0 | Demo Account, Standard Account, Raw Account, Pro Account, Islamic Account | $0 Standard Accounts; $7 round turn on Raw Accounts | 4.5 |
| 4. Pepperstone | $0 | Standard Account, Razor Account | $0 (Standard Account), $7 round-turn (Razor Account, TradingView, MT4, MT5), $6 round-turn (Razor Account, cTrader) | 4.5 |
| 5. XM Group | $5 | Ultra Low Micro Account, Ultra Low Standard Account, XM Zero Account | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | 3.2 |
| 6. IG | $50 | Demo Account, CFD Trading Account, Limited Risk Account, Options and Share Dealing Account, Spread Betting Account, Pro Account, Islamic Account | $0 | 3.9 |
| 7. AvaTrade | $100 | MAM Account, Spread Betting Account, Retail Account, Pro Account, Islamic Account, Options Account | $0 | 4.4 |
| 8. XTB | $250 | Demo Account, Standard Account, Pro Account, Islamic Account, Stock & ETF Investment Account | $0 | 3.7 |
| 9. Admirals | $100 ($1 for Invest MT5 Account) | Demo Account, Invest Account, Standard Account, Pro Account, Islamic Account, Zero Account | $3 per lot | 4 |
| 10. Interactive Brokers | $0 | IBKR Lite, Pro Account | From 0.08 to 0.20 bps x trade size | 2.9 |
Finding a good and reliable Forex broker in Brazil may be a daunting task for most traders due to the specific legal environment and the overall peculiar nature of the market. Until relatively recently, the South American country had strict controls that made trading on the equity markets practically impossible for retail traders. With its new stance, however, authorities are now allowing access to the largest stock exchanges in the world, as well as the highly popular, decentralized foreign exchange market.
The foreign exchange market (Forex) is extremely regulated in Brazil but Forex trading is becoming popular among local investors as the country is now heading to a more open and liberal regime. This is great news for all investors in the largest economy in South America, which is known for its rainforests, rich natural resources, and the amazing Rio Carnival. With its population of 209.3 million, Brazil is also the largest Portuguese-speaking country in the world. Brazil is among the largest agricultural producers and exporters in the world and with a nominal gross domestic product of over $2 trillion, its economy ranks 9th in the world.
Forex Legislation in Brazil
It is legal to trade on the foreign exchange market in Brazil but only a few online brokers are based in the country. To access the Forex markets, Brazilian traders need to find reliable online brokers – most of the leading international brokers accept Brazilian clients and provide Portuguese-language websites and customer support. It is also more convenient for working with a broker that accepts deposits in Brazil’s local currency, the real (BRL).
In fact, Brazilian-based traders are required to have a trading account in the BRL to access the Forex market. Those who have an account in a foreign currency are allowed to trade only in certain circumstances. Traders are advised to register with a broker licensed by the Central Bank of Brazil, or Banco Central do Brazil (BCB). However, there is no requirement for FX brokers to hold local BCB licenses.
Until 2005, traders in Brazil were allowed to execute trades only if they had been authorized by the Central Bank in advance. Each Forex contract was closely monitored by the BCB, which made this otherwise easy and instant type of trading extremely complex and cumbersome. Most traders were put off by the unfriendly environment and clumsy administration. However, in 2005, Forex trading regulations were relaxed in 2005 with the passing of CMN Resolution 3265, which was then modified by Resolution 3568 in 2008.
According to these amendments, legal entities and individuals are allowed to purchase and sell foreign currency and perform international transfers of any nature as long as they are in the Brazilian currency. Investors can trade Forex pairs without having to obtain prior authorization by the BCB. There is also no limitation to the amount that is traded if the counterparty in the contract is an agent authorized by the BCB.
There are certain regulations traders must comply with, however. First and foremost, each operation in the foreign exchange market is recorded in the Information System of Central Bank of Brazil (Sisbacen). In addition, most Forex operations can be freely canceled upon agreement between the parties. The BCB provides simplified forms for recording transactions of up to $3,000. Simplified and interbank operations, however, cannot be canceled, written off, amended or closed by early settlement. Several things are not allowed in Forex contracts, namely changing the identity of buyers and sellers, changing the value in BRL, the currency code and the foreign exchange rate.
Brazil’s Financial Regulators
The financial sector in Brazil is controlled and regulated by several authorities. One of them is the Banco Central do Brasil or the Central Bank of Brazil (BCB). This is the main monetary authority of the country and it is responsible for the Brazilian monetary policy. In addition, it is the authorizing institution in the country, although offshore online brokers are not required to have licenses from the BCB. The Ministry of Economy is also supervising the entire sector.
The main regulatory body for the capital markets in Brazil is the Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários or CVM). It was established in 1976 and is an independent agency under the Ministry of Economy. As the primary securities market authority in the country, CVM regulates all participants in the capital markets, including stock exchanges, public companies, financial intermediaries, and investors.
Through policy development and regulation, the CVM aims at guaranteeing that all trades are fair. It also makes sure that no price manipulation or insider trading occurs and that traders are protected against illegal practices, manipulation of the markets to create artificial conditions for supply or demand. The agency must ensure the efficient operation of the stock and OTC markets, as well as full compliance with the regulatory framework and all rules set by the National Monetary Council.
Forex Payment Methods in Brazil
Brazilian traders have access to some of the most popular payment options in the world, including credit cards and digital wallets. The country also has local payment services that allow Brazilians to pay easily online or in-store in BRL. However, the online payments market is relatively restricted by law and just a few local banks dominate it.
Consumers are charged an additional tax of 6.38% if they purchase goods or services from foreign websites. This is the so-called IOF tax and it applies to all international transactions. Not to mention the fact that Forex trading is allowed only to Brazilians with BRL accounts in local banks. For this reason, most traders here prefer using domestic payment options to international ones.
Of course, credit and debit cards by Visa, Mastercard, and American Express are available, although they are mostly issued by local banks and are in BRL. Interestingly, only 20% of Brazilians have access to international credit/debit cards. Various e-wallets can also be used in the country, including PayPal, ecoPayz, Skrill, and Neteller.
In addition, brokers that target Brazilian clients should offer MercadoPago, an online payment platform and e-wallet owned by the Argentine e-commerce company Mercado Libre. The e-wallet can be used by Argentine and Brazilian traders even at brokerage’s websites that only offer PayPal. This was made possible after PayPal and the Argentine company signed a partnership deal.
The leading payment method in the country, however, is Boleto Bancário, a push payment system created in 1993 by Brazilian fintech company PagBrasil. Boleto transactions account for approximately a quarter of all online payments in Brazil. It allows individuals to make online purchases and pay for them over the Internet, via online banking, or in cash at any bank branch, at ATMs, or authorized processors – these include more than 13,000 lottery agencies, pharmacies, and supermarkets.
Popular Trading Software in Brazil
When looking for a trusted Forex broker online, traders in Brazil should take into consideration the particular trading platforms offered by each brokerage firm. The best brokers on the market provide their clients with at least 2 or 3 different platforms, suitable to investors of varying levels of experience. Some brokers also offer proprietary software that was developed with specific types of trading or certain countries in mind.
What traders should look for is a platform that gives them access to the markets and instruments they wish to trade – whether this is Forex, CFDs (contracts for difference), futures, commodities, company stock, indices, etc. Good trading platforms also have user-friendly software, full compatibility with different devices and operating systems, as well as quick execution of orders. Less experienced investors should look for a trading platform that comes with a wide range of educational tools, copy trading functions, and demo accounts that allow no-risk trading. Some trading platforms also feature advanced analytic tools, high functioning charts, dozens of technical indicators, and many more.
Several types of trading software are well-known among traders and offered by the vast majority of online Forex and CFD brokers. One of them the MetaTrader 4, released in 2005 by MetaQuotes Software and designed specifically for Forex and futures trading. Although the platform is now 15 years old, it remains the most popular software solution for online retail foreign exchange speculative trade.
It is user-friendly, available in multiple languages, including Portuguese, and can be used on all devices, including PC, Mac, Android, and iOS. Moreover, MT4, as it is also known, is flexible and fully customizable, allowing traders to add or remove different technical indicators. The platform offers algorithmic trading, advanced technical analysis, web trading for those who do not want to download the software on their computer, and trading robots, also known as Expert advisors.
While MT4 is perfect for Forex and CFD trading, however, it has limited capabilities when it comes to full-time trading on stock exchanges. This is why some traders prefer the seemingly similar MetaTrader 5. Although it was developed by the same company and it does resemble MT4, MT5 is quite different as it focuses on trading with stocks. The trading terminal was released in 2010 to offer traders access to the largest stock exchanges around the world. Now, Brazilian traders can use it for trading equities, Forex, and indices, while taking advantage of advanced technical and fundamental analysis, multicurrency strategy tester, trading robots, social trading, and many more.
Other popular trading platforms include cTrader, TradingView, TradeStation, and Ninja Trader and each one of them comes with its strengths and limitations. To choose a platform, traders should start with a free, demo account and test its functionality and various features. Even better, they can use several platforms at once as long as they choose a reliable, experienced broker who offers good trading conditions such as low spreads, competitive fees, client fund protection, etc.
Mobile Trading in Brazil
Forex trading constantly changes, becoming more accessible and convenient than ever before. The development and recent surge of mobile technologies in the past decade have greatly contributed to this change in the trading experience. Traders now can access global markets, track their orders, get constant news updates on their mobile devices.
The flexibility and convenience of mobile trading have become extremely important in recent years – Forex markets are, after all, open 24 hours a day and although trade is normally closed for retail traders over the weekend, trading still takes place among central banks and other financial institutions. An increasing number of brokers now give their clients the option to trade on weekends even if a limited number of instruments and Forex pairs are usually available. And those traders who can instantly open their trading accounts from their phones have the advantage.
To be able to trade on the go, investors in Brazil should find a suitable Forex broker that offers mobile trading. Of course, they need to own a mobile device such as an iPhone, iPad, Android phone or tablet, or even less popular devices such as BlackBerry (finding trading apps for these phones, however, could be a challenge). For instant execution and effortless trading activity, users also need to make sure they have a strong and stable Wi-Fi connection. Then, they simply find the app on the website of the broker they have signed with or on Google Play and Apple’s App Store.
The vast majority of trading apps are free to download and install, with the installation process typically taking up to 2 or 3 minutes. In addition, some of the best apps give free and easy access to market news, price quotes, and charting. Traders should also opt for an application that has a user-friendly, intuitive interface, and performs really fast since quotes can change within seconds – the major currency pairs are highly volatile and vulnerable to economic news 24 hours a day.