Top 8 Stock Brokers in Mexico
If you want to make your money work harder for you by investing in stocks, forex, commodities, or any other trading market, the first step is to identify a reliable stockbroker in your country.
A stockbroker purchases and sells stocks, forex, and other investment assets on behalf of their customers in return for a commission fee.
They act as an intermediary between the trading markets and the investor.
A stockbroker can provide a comprehensive management service for your investment portfolio that can make choices on your behalf, advise you on how to manage your own trading transactions, or simply conduct your instructed transactions without offering advice.
Generally, stockbrokers will be financially regulated in one or multiple countries.
What Are the Different Types of Stock Brokers?
The sort of stockbroker you select will be determined by the services you desire.
Do you want your portfolio to be completely handled by your stockbroker?
Do you want investment guidance, or do you want total control over your trading transactions?
Full-service brokers offer a complete and wide-ranging portfolio management service, including:
- Investment research and advice
- Carrying out trading transactions on your behalf
- Portfolio analysis and building
- Tax advice
- General wealth management
You may well be assigned a personal stockbroker to manage your portfolio.
Full-service brokers are the most expensive of the three types; however, for that extra cost, you will generally benefit from access to an extensive research team.
Advantages: You can hand over your portfolio and know it will be completely managed on your behalf, so you do not have to spend time on research (unless you want to) and transactions.
Disadvantages: This service is the most expensive, and you do not have the same level of control as more limited service providers.
The service offered by a discount broker will be less costly than that of a full-service broker but also less extensive.
A discount broker will carry out trading transactions on your behalf but will not offer financial advice.
Advantages: This service is less expensive than a full-service broker and leaves you in control of your portfolio.
Disadvantages: You have to do all the research yourself as a discount broker offers no financial advice.
Online Stock Brokers
Online stock brokers offer you direct access to their trading platform. Although they are often used by new traders, they are most suitable if you already have a level of trading experience.
This type of stockbroker generally offers research and educational resources; however, this will vary from an online broker to broker.
Advantages: Less costly than a full-service broker, using an online stock broker service puts you in control.
Disadvantages: Research and educational resources are available; however, there is no personalized advisory service.
How Do Stock Brokers Make Money?
Whichever type of stockbroker you trade through, they will make their money from the commission and fees you pay for their service, leverage and interest earned on uninvested client funds.
Are Stock Brokers in Mexico Regulated?
To trade on the Mexican stock exchanges, a stockbroker must be authorized by Mexico’s National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, or CNBV).
However, it is always recommended that you use a stockbroker who has tier-1 regulation, for example, FCA (Financial Conduct Authority) and ASIC (Australian Securities and Investment Commission).
Key Considerations Before You Choose a Stockbroker in Mexico
Any financial endeavor carries a level of risk, and when it comes to trading, one of those risks is the stockbroker you use.
So how do you find not only a trustworthy stockbroker but one that serves your purposes?
Know What You Need
Before you look around at available stockbrokers, the first step is to decide what you need from them. For example:
- Do you want a full-service that will take the entire process off your hands but offer plenty of research and advice?
- Are you confident enough in your own trading knowledge and research skills to make all the trading decisions yourself? Or do you simply need a broker to make the transactions for you without offering advice?
- Would you like to carry out transactions online, but also have access to easily available research and education resources?
- Do you want one-to-one advice and personalized service?
- What can you afford to spend in trading and fees?
- What volume of trading do you want to carry out?
All of these considerations will inform the type of stockbroker you choose.
Listen To Other Investors
Which stockbrokers do other investors recommend and which have a less favorable or even bad reputation with traders?
Find a wide range of stockbroker reviews to get a genuine picture of a stock broker’s performance, and bear in mind that traders vary in what they need from a stockbroker.
Try to find reviews from traders who are similar to you.
Make Sure Your Stock Broker Is Regulated
One important factor to check for any stockbroker you are considering is their level of regulation.
It is always recommended that you use a stockbroker who has tier-1 regulation and also multiple regulations.
In Mexico, the stockbroker must be authorized by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, or CNBV).
A stock broker’s website should make it clear whom they are regulated by.
Do You Want to Deposit and Withdraw in Mexican Peso?
Check whether the stockbroker of your choice will allow you to deposit into and withdraw from your trading account in Mexican pesos.
Make Sure the Broker Keeps Client Funds Separate For Safety
Does the stockbroker keep customer money in a separate account from their own business funds?
Separating client funds in this way adds an extra level of security and transparency.
Find Out What Assets They Trade
There is no sense in working with a stockbroker who does not trade the assets you are interested in, whether that is forex, commodities or shares.
Before you consider a stockbroker, find out whether they trade the assets of your choice.
Know the Trading and Non Trading Fees
Stockbrokers make their money from a variety of fees, both related to trading transactions and also non-trading factors such as withdrawal fees.
Before you decide to trade through a stockbroker, you must be fully aware of exactly what fees you will be expected to pay.
Some stockbrokers charge a flat-feet to their trading clients, while others take a percentage fee.
Some have a maximum commission charge, while others set no such limit.
What non-trading or administrative fees do they charge? For example, will you be charged an inactivity fee if you do not trade for any period?
Know What Trading Platform You Want To Use and Why
A trading platform is a piece of software that can be accessed online or downloaded, which allows trading transactions, monitoring and reporting.
What trading platform does the stockbroker provide, and what type of access does it offer you to that platform?
What type of analysis tools does the platform have?
How customizable is it, and does it suit your level of expertise?
Do you have free access to the platform, or does it come at a cost?
Does It Have Social Copy Trading?
Social copy trading is increasingly popular among traders.
Copy trading is the method of replicating the transactions of more experienced traders.
You buy what they buy and sell when they sell.
Social copy trading combines this with using the trading community and research and educational resources to increase your level of trading knowledge.
If you are interested in social copy trading, find a stockbroker who offers copy trading, research and educational resources, and a community of traders that you can interact with.
For more information, read What Is Social Copy Trading?
How Good Are the Analytical Tools?
In trading, technical analysis informs your future investments by indicating what assets to buy or sell.
The level to which you personally use technical analysis tools will vary depending on how much control you want to hand over to your stockbroker.
However, if you want to use their trading platform yourself, a good level of suitable analytical tools is important.
Are you able to interrogate the platform with a variety of indicators such as volume and moving averages? Is it easy to apply a filter and change views and charts?
Do the available analytical tools suit your needs?
How Good Are the Educational Resources?
If you want to learn about trading rather than simply handing over control, your stockbroker should be one of the first places you go to find educational resources.
Their learning materials might include:
What Is Their Customer Service Like?
Whether you use a full-service broker, a discount broker, or an online broker, the quality of customer service should still be high.
However, the details of that customer service may vary between brokers.
What do you need?
- 24/7 coverage, or would 24 hours Monday to Friday suffice?
- Customer service in Spanish?
- Contact by telephone, or are you happy with email or live chat?
Make sure the customer service provided suits your requirements.
The 8 Best Stock Brokers in Mexico
Now that you know about the different types of stockbrokers and the key factors to consider before choosing one, here are the eight best stock brokers to use in Mexico.
This list is not exhaustive, and you should always check that a stockbroker is regulated and suitable for your needs before you hand over any money.
Best for: Learning through social copy trading
Trading fees: Free stock and ETF trading. Otherwise, low trading fees
Minimum deposit: $200 or equivalent
Assets traded: Stocks, cryptocurrency, commodities, forex, ETFs, indices, CFDs
eToro is regulated by the FCA, CySEC and ASIC. It provides a service suitable for both new and more experienced traders.
It offers a good range of technical analysis tools, a 'News' and 'Analysis' news feed that posts several articles each day, a 'Daily Market Review' and daily trading news emails.
eToro’s educational offering includes its financial markets guides, video tutorials, podcasts, a social trading resource and its 'Trading School', which offers online and classroom-based courses.
Customer service can be contacted via live chat and a web-based ticketing system that responds by email.
Customer service is not available on the weekend; however, the response rate is generally fast, relevant and well-informed.
Best for: Institutional investors and experienced active traders
Trading fees: Low trading fees for the basic account. High trading fees for the Pro version. ETFs are available with no trading fees
Minimum deposit: Varies between accounts, ranging from 0 for a cash account to $110,000 for a portfolio margin account
Assets traded: Stocks, commodities, forex, ETFs, bonds, CFDs
Interactive Brokers is regulated by the FCA, US SEC and CFTC. Research resources include technical analysis tools, a newsfeed and a ‘Traders Calendar’.
It provides educational resources and courses via IBKR Campus, including Traders Academy, IBKR webinars, Traders Insight, IBKR Quant blog and Student Trading Lab.
There are also educational videos and a trading glossary.
Interactive Brokers offers a 24/5 customer service through telephone (with a callback feature), live chat or an AI-bot which points you to the relevant FAQ. Customer service is not available on a weekend.
3. Saxo Bank
Best for: Traders with an advanced level of knowledge
Trading fees: Generally low to average fees, although high fees for bonds, options and futures
Minimum deposit: Varies greatly depending on the country. For example, £500 in the UK but €2,000 in France. The minimum deposit increases with more advanced accounts
Assets traded: stocks, commodities, forex, ETFs, bonds, CFDs
Saxo Bank is regulated by the FCA, FSA, the Swiss Federal Banking Commission and several other regulatory bodies globally.
Saxo Bank offers a good range of technical analysis tools and interactive charts.
Its research resources are a high standard, including its real-time newsfeed, access to commentary by trading experts, market reports and trading idea generators.
Their educational resources include courses, video guides, events and webinars.
Saxo Bank customer service is 24/5 via email or telephone.
Best for: Traders who want to keep their costs low
Trading fees: Low forex fees but high stock CFD fees
Minimum deposit: 0
Assets traded: forex, stock CFDs, commodity CFDs, ETF CFDs, indices CFDs, cryptocurrencies
XTB is a forex and CFD stockbroker regulated by the FCA, CySEC, KNF, CNMV and IFSC.
XTB’s research offering is not as extensive as many of its competitors, including analytical tools accessed through its platform, Market Newsfeed, forex price tables and a market calendar.
Its ‘Learn to Trade’ section includes courses for all levels of trading experience through the 'Trading Academy', live webinars and articles.
For European clients, customer service is available 24/5, with no weekend cover. However, if you live outside Europe, customer service cover is 24/7. Contact can be made by telephone or email.
5. City Index
Best for: New and mid-level traders interested in forex and CFDs
Trading fees: Low forex fees but high CFD fees
Minimum deposit: 0
Assets traded: forex, stock CFDs, commodity CFDs, bond CFDs, ETF CFDs, indices CFDs, cryptocurrencies
City Index is a forex and CFD broker. It is regulated by the FCA, ASIC and MAS.
City Index has quite a generous research offering in their 'News' and 'Market Analysis' section, including the latest research, market insights, economic calendar, trading ideas and alerts.
Educational resources are suitable for all levels of experience and include videos, webinars, and articles in the extensive training section of their website.
City Index offers a 24/5 telephone-based customer service.
Best for: Forex traders
Trading fees: Low forex fees but high CFD financing fees
Minimum deposit: 0
Assets traded: forex CFDs, indices CFDs, commodity CFDs, cryptocurrency CFDs
Pepperstone is an Australian CFD broker with a focus on forex. It does not provide the chance to trade in any physical assets, only via CFD. It is regulated by the FCA, BaFin, CySEC, ASIC, DFSA, SCB and CMA.
In addition to their platform analytical tools and indicators, Pepperstone provides in-house research material and resources from third-party suppliers, including daily articles, in-house videos, weekly webinars, economic calendar, AutoChartist software, Smart Trader Tools and Delkos risk management tools.
Educational resources are focused on forex rather than CFDs and include articles, trading guides, webinars, MetaTrader 4 course, forex trading course and educational videos.
Pepperstone provides 24/5 customer service through telephone, email or live chat.
To find out more, read our Pepperstone Review.
7. FP Markets
Best for: Forex and CFD traders familiar with MetaTrader and IRESS
Trading fees: Generally low trading fees except for Stock CFD fees which are high
Minimum deposit: $100 for forex, or from $1,000 for CFDs
Assets traded: Forex, stock CFDs, commodity CFDs, bond CFDs, ETF CFDs, indices CFDs, cryptocurrencies
FP Markets is a forex and CFD broker, regulated by ASIC and CySEC. They also offer a social copy trading service.
Research and education resources are accessed via the FP Markets Traders Hub.
It includes technical and fundamental analysis resources such as the Daily Report, Market Insights, and Forex News and articles on a variety of trading topics.
Educational resources include articles and eBooks.
FP Markets offers 24/7 customer service by telephone, email or live chat.
8. IC Markets
Best for: Forex and CFD traders
Trading fees: Low trading fees but high CFD financing fees
Minimum deposit: $200
Assets traded: Forex, stock CFDs, commodity CFDs, bond CFDs, ETF CFDs, indices CFDs, cryptocurrencies
Regulated by the FSA, CySEC, and ASIC, IC Markets is an Australian forex and CFD broker.
Its research offering includes its Market Analysis blog, forex calculator and glossary, and an economic calendar, in addition to the technical analysis tools available from its trading platform.
Educational resources include articles, tutorial videos and webinars.
The IC Markets customer service is 24/7 and available by email, telephone and live chat.
As a client in Mexico, there is a wide range of stockbrokers available to you. Before you begin your search, however, it is always recommended that you consider your specific needs. For example:
- How much trading do you want to carry out personally? Would you rather simply instruct a broker to carry out your transactions for you?
- What do you want to trade in? Are you interested in forex, for instance, or commodities?
- Do you want your stockbroker to provide financial advice and research, and educational resources?
- How much money do you have to invest?
- How well is your money protected in their hands?
When considering a stockbroker, check their level of regulation, their reputation within the trading community, and whether they hold client funds separately from their own.
Ultimately, your choice of a stockbroker will come down to what is the best fit for you.
WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.