Table of content
Brazil is definitely an interesting country to review when it comes to the specifics of the local Forex trading market. The largest country in South and Latin America, this country has a territory of over 8.5 million square meters, and its population exceeds 211 million people.
There are many things traditionally associated with Brazil, including the fiery carnival, football, and some of the world’s most picturesque sights. It is, therefore, unsurprising that millions of people come from all over the world to pay a visit to this truly magnificent country.
However, the tourism industry aside, what does Brazil’s economy have to offer? Well, clearly a lot, since it is both the largest economy in the region and the world’s ninth-largest, as well as the eight largest purchasers in the international arena.
When it comes to trading Forex in Brazil, one will note that it, too, has gone a long way until becoming what it is right now. It was originally illegal to trade Forex in the country, however, it is no longer the case today.
Our guide will explore the best Brazilian Forex brokers in 2024, assess the state of the national economy, discuss the payment methods and the trading software available to the Brazilian traders and examine the efficiency of the local regulatory environment. We recommend that you read our guide until the end, as the information presented here will be useful to both beginners and experienced traders alike.
A full list of best Forex brokers in Brazil
Every trader, whether experienced or not, is usually dreading to make this particular choice. Not only the stakes are pretty high and the cost of making a mistake can be the loss of your funds, but also the very process is extremely time-consuming and demands a lot of careful consideration and assessment of the best options available.
Our team of experts decided to lend a helping hand in navigating the Brazilian Forex market, which is especially complex due to the fact that it is still at a developing stage. We have called upon all the knowledge, skills, and extensive expertise that we possess, and spent hours upon hours reviewing all the Forex trading brokers available in Brazil.
The result of our hard work can be found below, as we have created a full list of the top regulated Forex brokers in Brazil, and completed the list with all the relevant information that the trader might need – such as the success rates of the brokerages, the specific tools of trading that they provide and the information about the license that they possess.
Licensing and regulation in Brazil
As mentioned above, trading Forex has only been made legal recently in Brazil – it was not until 2005 that the FX brokers could operate freely in the country. It is, therefore, unsurprising that the country still has a long way to go until it establishes an efficient regulatory mechanism that works best in both facilitating the market growth, and in reinforcing customer protection.
When it comes to the main regulatory bodies responsible for overseeing the smooth functioning of the local FX market – there are several. The main entity that is issuing licenses to the local brokerages in the Central Bank of Brazil, the general oversight of the financial markets falls under the scope of the Ministry of Economy and the capital markets are managed by the Securities and Exchange Commission – an independent body established in 1976.
It has to be noted that there is no legal requirement for the Brazilian brokers to obtain a license from the Central Bank, however, they must register their operations with the Information System of Central Bank of Brazil.
With such a high number of brokerages without an official license, we, nevertheless, suggest you choose the ones that do possess one. Among the top Forex brokers in Brazil, you will find both those physically based in the country and locally licensed, as well as international brokerages licensed by other regulatory entities.
Your safe bet is either one of those, as the local license means that your government is more likely to step in on your behalf, while a license from a reputable body, such as the Cyprus-based CySEC or the UK-based FCA is a guarantee of the brokers’ reputability and trustworthiness.
Payment methods and trading software available in Brazil
There is a variety of payment methods that the Brazilian traders can use for their respective trading sessions. The types of payment range from the E-wallets to debit and credit cards, although one should keep in mind that the online payment system is largely controlled by a handful of the local banks.
Nevertheless, there are many alternatives available to those seeking to utilize online payments, including PayPal, Neteller, and Skrill, as well as the Portuguese-owned MecadoPago, which has recently signed a partnership agreement with PayPal and became available even with the brokerages that only offer the PayPal option.
One other thing that the trader in Brazil should keep in mind when it comes to the payment methods is that in case one chooses to carry out a foreign purchase, an additional tax of 6.38 % will be charged, which is the biggest reason why many choose to trade with the local brokers.
When it comes to the trading software, there too, one can see a vast variety of alternatives. Most of the best Brazilian Forex brokers are operating with popular software, such as MetaTrader4, MetaTrader5, cTrader, and other, similarity well-known ones.
If you consider yourself a beginner in Forex trading, we highly recommend that you search for a brokerage that operates on MT4 or MT5. This software created by the Russian experts has proven to be extremely efficient and has soon been adopted by the majority of brokers across the world. The MT4 is its original version, while the MT5 is the enhanced software, which is in no way less reputable than the original.
Using MT4 or MT5 offers a lot of confidence to amateur traders. With such extreme popularity, it is very easy to find some comprehensive guides and tutorials on how to use it properly, and the software, in general, is pretty straight-forward and user-friendly.
The overview of Brazil’s national economy
As mentioned earlier, Brazil can definitely be listed among the world’s major economic players. The country’s GDP reaches 1.893 trillion USD and the economy is built up of diverse, yet strong-developed sectors.
Brazil has long established itself on the global commodities market, as it is one of the largest producers of coffee, tobacco, cotton, and various fruit. Moreover, the country is mining iron ore, gold, nickel, and some precious stones, such as topaz, emerald, agate, and many others.
The industrial sector is also very developed in Brazil – it accounts for over 30% of the country’s GDP and ranges from computers and aircraft equipment to electrical equipment and textiles. One can, therefore, easily see just how full of opportunities the national economy is.
The country’s national currency is the Brazilian real coded as BRL, and every Forex trading broker in Brazil, whether licensed or not, is obliged to offer it as an option for the payment method. The BRL is usually traded in a pair with the AUD, USD, or EUR, however, it is up to you whether you want to explore it in other currency pairs.
Provision of bonuses and promotions
Bonuses and promotions are available in Brazil, which is definitely some great news for the trades who actively seek them when choosing a brokerage to join.
Offering bonuses to their respective traders is one of the most efficient tools of promotions, that the brokers can use to both expand and sustain the existing customer base. There are two main types of bonuses that the brokerage can offer – welcome and refill bonuses. The former are usually gifted to the traders who have just joined a brokerage, while the latter are issued periodically to the returning clients.
If you are superficially looking for such tokens to boost your trading sessions, we suggest that you carefully research the list of top Forex brokers in Brazil, and choose the one that does offer them.
Getting started in the Brazilian Forex market – Is it easy?
It is, indeed, true that getting started with Forex trading in Brazil, like in many other countries, won’t cost you a dime. What we mean by that, in specific, is that you will not be charged for signing up with a certain broker, however, you will be required to make the first deposit to access trading. Various regulated Forex brokers in Brazil have different requirements for the minimum deposit that should be installed, which is why you should always do your due research and find the brokerage that suits your needs best.
In terms of the legal requirements, anyone aged 18 or older can get into the FX market. The only other standards that trader should be seeking to meet are those put forward by the broker of their choosing. Having completed that, one will be able to start trading in no time.
So, should one explore the Forex market in Brazil?
If you are seriously considering getting into Forex trading in Brazil, there are several things that you have to remember. First of all, one should keep in mind that the Brazilian FX market is still relatively young, and, thus, the regulatory environment there is yet to establish its strong standing.
Having said that, we should reinstate that this notion is in no way a synonym of the Forex trading in Brazil being unsafe altogether. What we are trying to say is that you have to be extra careful and attentive to detail, and, when choosing the best Forex broker in Brazil, you should always check for the license that it currently possesses.
Regulatory environment aside, one can easily see just how developed and diverse the Brazilian national economy is. If you are a Brazilian trader, we do recommend that you take advantage of what your country’s FX market has to offer.
