Top 8 Stockbrokers in Brazil

Top 8 Stockbrokers in Brazil

Top 8 Stockbrokers in Brazil

There are many stockbrokers in Brazil to choose from. Selecting the right one depends on many factors, including how you want to trade and which assets you would like to trade in.

What Is a Stockbroker?

A stockbroker is someone who acts as the middle person between you and the stock market.

They trade assets, such as stocks and shares, on your behalf and look after your portfolio of investments.

Advances in technology have meant that the world of stockbroking has moved on from the more traditional way of doing things.

Nowadays, stockbrokers work with clients in different ways:

  • Discretionary stockbroker – Takes full responsibility for their clients’ investments. They are managing the investment decisions, as well as making trades.
  • Advisory stockbroker – Shares their knowledge and expertise to advise clients on the best investment decisions. Clients have the responsibility for making the final decision. Once authorized, the stockbroker will then execute their decision.
  • Execution-only stockbroker – Do not offer advice or manage a client's investment portfolio. They buy and sell trades on the stock market only – i.e. execute their clients’ investment decisions.

What Are the Different Types of Stockbrokers?

If you decide to work with a stockbroker, it is vital to understand the different types.

It’s also important to consider:

There are three main types of stockbrokers that individuals and organizations can work with.

Full-Service Stockbroker

A full-service stockbroker provides a comprehensive brokerage service to their clients. They take full ownership of a client's investment portfolio, researching, giving guidance to clients, managing their clients’ investment portfolio and executing the trades.

This type of brokerage will keep the client regularly informed of how their investment portfolio is performing.

Discount Broker

A discount broker is a brokerage service that executes trades on their clients’ behalf. This type of broker service does not offer any advice, planning or research on investment decisions or portfolios.

Online Broker

Online broker services enable investors to manage and execute trades themselves. Online brokerages often include research, planning and educational tools as part of the service.

These services mean that new and experienced investors can learn more about markets, types of trades and trading strategies.

How Do Stockbrokers Make Money?

Stockbrokers make money in different ways, depending on the type of brokerage service offered.

Some will take a commission on the investments made. Others charge fees based on the type of asset or the amount traded.

How Are Stockbrokers Regulated in Brazil?

The Brazilian stock exchange is regulated by the Securities and Exchange Commission of Brazil (Comissao de Valores Mobiliarios, or CVM). The CVM is responsible for the legal and transparent trading on the Brazilian stock market.

One of the most popular assets to trade on the Brazilian stock market is foreign exchange (forex).

It is recommended that the CVM authorizes Brazilian forex brokers to trade, although this is not a requirement. If you are looking to work with a reputable CVM-approved stockbroker, or if you want to check that a particular broker is CVM-authorized, it is advisable to contact the CVM.

The Brazilian Central Bank (BCB) also has responsibility for supervising and licensing forex brokerage services in Brazil. Under the BCB, all forex brokers need to be licensed by the BCB to trade forex in Brazil.

Tier 1 Authorities

Some investors choose to work with an international brokerage regulated under tier 1 authorities.

There are many benefits of choosing a broker regulated under a tier authority. Tier 1 brokers are deemed trustworthy, as they have to adhere to strict rules and procedures as governed by tier 1 authorities.

Some or all of the investor's assets are also protected should the brokerage go bankrupt. In addition, the investor's funds are segregated, so the broker has the funds to pay an investor should they wish to withdraw their funds.

Tier 1 regulated brokers also abide by strict trade rules governing trades and anti-money laundering rules.

Key Considerations Before Choosing a Stockbroker in Brazil

To select the right stockbroker for your needs, you should consider different factors:

Know What You Need

Different stockbrokers offer different assets to trade in.

Know which assets you want to trade in and which funds you have available to trade. Think about the sort of broker service you want – whether you want someone to take full ownership of your investments, or whether you are happy to learn about investing strategies so you can manage your investments.

If you are an experienced investor, looking at the additional functionality, research capabilities and tools from a brokerage is also something to consider.

Listen to Other Investors

Once you have established what you need from a brokerage firm, it is always advisable to speak to other investors to get their views.

Knowing the reputations of the brokers who offer the services you need and those to avoid means you can be confident in your choice.

Make Sure Your Stockbroker Is Regulated

Work with a trustworthy stockbroker that is regulated. Tier 1 regulated stockbrokers are governed by strict trading rules, so you can have confidence in how your assets are traded.

Ensure Your Broker Has Adequate Security

Many online brokers offer additional layers of security, such as two-factor authentication, providing extra protection for your brokerage account, investments and funds.

Check Your Broker Offers Segregated Funds

Reputable brokers offer segregated funds. That is, the brokerage keeps an investor's funds separate from those of the broker. Your funds are protected should the broker go bankrupt.

Find Out Which Assets They Have for Trading

Stockbrokers trade in different assets – for example, some trade in forex, others trade in contracts for difference (CFDs).

Know which assets you want to trade in so that you pick a stockbroker who offers trading services in these assets.

Know the Trading Fees

Trading fees and commissions charged vary by stockbroker. Some brokers also charge account opening fees, withdrawal fees and currency conversion fees.

Knowing what fees your broker service charges means that you can manage these additional charges on your account or broker services.

It can also allow you to pick an affordable broker for your requirements.

Know Which Trading Platform You Want to Use and Why

There are a variety of different trading platforms available to investors who want to manage trades themselves.

Determine what you are looking for from a broker platform according to the level of investment experience you have and your short- and long-term investment goals.

Know Which Tools Your Trading Platform Offers

Each trading platform offers investors a variety of different tools and functionality. It’s worth considering:

  • How good are the analytical tools? For example, does the platform offer charting tools?
  • For less experienced investors, does the trading platform offer social copy trading?
  • Does the trading platform come with educational resources, such as investment strategies for specific assets?
  • Is there specific mobile functionality included?

Knowing what you want from a trading platform will help you determine which tools you need from it.

How Good Is the Customer Service?

Customer support is useful in a trading platform. Not all stockbrokers offer this facility, and opening hours can vary from platform to platform.

Before choosing a trading platform, it is worthwhile to find out:

  • Whether customer service is offered by the trading platform
  • Operating hours of customer service
  • How to contact them (email or phone)
  • The response time
  • Is there a dedicated technical support helpline?
Top 8 Stockbrokers in Brazil
Top 8 Stockbrokers in Brazil

The 8 Best Stockbrokers in Brazil

We've compiled a list of some of the best stockbrokers in Brazil.

This list is based on some key factors to consider when choosing a stockbroker.

When picking a stockbroker to work with, it is advisable to research as many stockbrokers as possible and consider your investment goals thoroughly.

1. eToro

Best for: Social copy trading and commission-free trading on stocks
Commission: Commission-free for stocks; low forex and CFD fees
Minimum deposit: Varies by country, from $50 to $10,000
Withdrawal fees: $5
Tradable assets: Stocks, exchange traded funds (ETFs), forex, CFDs, cryptocurrencies
Number of stocks: Variable

eToro is a well-known, easy-to-use trading platform suitable for both beginner and more experienced traders.

The platform is regulated in tier 1 countries, making it trustworthy to use for CFD and forex trading.

While eToro's trading fees are low, the platform's non-trading fees are considered high.

A benefit of eToro is its social copy trading functionality, through which investors can copy the trades of other investors. This is beneficial for the less experienced investor or those who don't have lots of time to spend researching trading and investment strategies.

Visit eToro

2. XTB

Best for: CFD and forex trading
Commission: Variable by asset
Minimum deposit: $0
Withdrawal fees: $0
Tradable assets: Stocks, forex, indices commodities, ETFs, cryptocurrencies
Number of stocks: 1,700

XTB is a tier 1 regulated broker platform founded in 2002. Offering mobile, web and desktop versions, it provides comprehensive charting tools and is well known for its 24/7 customer support.

A benefit of XTB is the educational and research tools offered, along with a news feed, which is suitable for all investors.

Visit XTB

3. City Index

Best for: CFD and forex trading
Commission: Varies according to the trading market
Minimum deposit: $100
Withdrawal fees: $0
Tradable assets: Cryptocurrency, CFDs, forex

City Index is a tier 1 regulated broker in three countries.

The platform is a well-known broker service for financial spread betting, CFD and forex trading.

It offers a wide range of research tools, a customizable view and a news feed on the latest market news.

Visit City Index

4. Interactive Brokers

Best for: Experienced investors
Commission: Varies by trade type and the amount traded
Minimum deposit: $100
Withdrawal fees: $0
Tradable assets: Stocks, bonds, options, futures, forex, mutual funds
Number of stocks: 23,000

Interactive Brokers has a wide range of assets that can be traded across multiple global markets.

The platform is offered as a Lite version, with no commission charged on US-listed equity trades.

The Pro version has many research and charting tools, a mobile version and two-factor authentication.

Visit Interactive Brokers

5. IG Group

Best for: Forex trading
Commission: Varies according to asset type
Minimum deposit: $250
Withdrawal fees: $0
Tradable assets: Forex, CFDs, cryptocurrencies

IG is a tier-1 regulated broker in six countries. The IG group offers many types of trading platforms, along with various charting tools and watch lists.

Additional functionality includes:

  • Research tools
  • Educational resources
  • Mobile trading
  • Social copy trading

Visit IG Group

6. Saxo Bank

Best for: Experienced traders
Commission: Variable by asset traded
Minimum deposit: $500
Withdrawal fees: $0
Tradable assets: Commodities, indices, shares, futures, forex, bonds, options, CFDs
Number of stocks: More than 19,000

Saxo Bank is a tier 1 regulated brokerage in the UK.

The platform offers many features geared towards experienced investors. These include advanced research facilities, a customizable desktop view and advanced workspace options, where six screens can be used to view trading activity.

There is limited customer service functionality and the platform isn't open to US clients.

Visit Saxo Bank

7. FP Markets

Best for: Spread betting
Commission: Varies according to asset traded
Minimum deposit: $100
Withdrawal fees: $0
Tradable assets: Cryptocurrency, CFDs, forex, stocks (Australian market)

Founded in 2005, FP Markets is an Australian-regulated broker service.

The platform is available as a mobile, web or desktop trading platform and offers social copy trading.

Platforms are available in many different languages. It is worth noting that traders can't use the platform in certain countries, including the US, Belgium and Japan.

Visit FP Markets

8. FxPro

Best for: Forex trading
Commission: Variable according to asset
Minimum deposit: $100
Withdrawal fees: $0
Tradable assets: Cryptocurrency, CFDs, forex

FxPro is a tier 1 regulated online broker platform. It offers social copy trading, beginner and experienced trader educational tools and a news feed.

Various trading tools are also included in the different versions of the platform, such as algorithmic trading and trading calculators.

Visit FxPro

Final Thoughts

With many stockbrokers to choose from, each with its pros and cons, choosing the right one can seem daunting.

Thinking about what you want from a stockbroker, the funds you have to invest, what you want to invest in and what type of service you want can help to narrow down your choices.

Doing your research and due diligence means that you will choose a reputable stockbroker that meets your short- and long-term investment needs.

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.


Read This Next

You might also be interested in these other WikiJob articles:

Or explore the Trading / Forex sections.