Best FOREX Brokers in Brazil 2024

Best FOREX Brokers in Brazil in 2024

Top Tips for Choosing the Best FOREX brokers in Brazil

• The broker must be regulated by a top-tier regulator, this could be a local broker or an international broker
• The broker must have a competitive fee schedule
• The broker must offer an extensive array of financial assets to trade
• The broker must have a responsive customer service team
• The broker should have a detailed research and educational offering

Best FOREX Brokers in Brazil in 2024

With so many choices out there, it's tough to select the right broker. It's a good thing we've done the work for you. Here is a summary of each broker according to specific criteria, along with their pros and cons

• ICM Capital -91.10: Best Deposit and Withdrawal Broker

• Tradeview - 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

• XTB - 85.55: Best Customer Service Broker

• IG - 85.45: Best Regulations Broker plus Convenient Platform

• Saxo Bank - 80.09: Excellent Private Trading Platform

• CMC Markets - 80.07: More than 9,000 Assets

• ThinkMarkets - 80.05: Aimed at the Audience of Traders

What is FOREX and Why Do We Need a Broker to Trade?

The foreign exchange market is a decentralized marketplace where institutional and retail traders buy and sell global currencies. Currency trading is conducted electronically over the counter (OTC). This means that all transactions occur via computer networks between traders all over the world rather than on one centralized exchange. The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except for international holidays. It is the largest financial market in the world with some six trillion dollars changing hands daily. Many of the best FOREX brokers in Brazil play a key role in this marketplace by enabling you to buy and sell through a trading platform. Most trading platforms are accessible in web and mobile format. 

How to Open a Trading Account to Start Trading FOREX?

Opening a FOREX trading account is easy. Once you have chosen your preferred broker, you must start by filling out an application form as part of the ‘open account’ process. It is normal that you will be asked to provide some personal documents. These are usually your national identity documents and proof of address. This is part of Know Your Customer (KYC) regulations. Remember that some brokers have slightly different requirements than others.

Once your account has been approved, normally one to two days after you make the application, you will be able to fund your account by making the first deposit. After that, your trading journey can begin! 

How Much Should Beginners Trade With?

You don’t need much to get started. Some of the best FOREX brokers for beginners allow you to start trading with as little as $1. Naturally, you can't get very far with $1, even if you trade on margin. So, you need to capitalize your account with at least some money that will allow you to place trades. The amount is really up to you. However, it is recommended that you start by placing small trades to get to grips with the practice of trading as well as becoming familiar with your broker’s website before you move on to placing trades with more money.

How to Start Learning About FOREX Trading

A trading website like en.Arincen.com is a great place to start. We have a large list of curated articles that can give you all the information you need on common FOREX trading terms like pips, spreads, leverage, and support and resistance. We have also taken the time to prepare detailed articles on important topics such as FOREX trading strategies. Additionally, once on our website, you will find helpful video courses that cover the basics of FOREX trading. With this range of knowledge, you will be well on your way to starting life as a trader.
Remember also that your broker will normally have developed a detailed education and research repository themselves. That is also a good place to bolster your FOREX knowledge, with the extra benefit that your broker’s information will be slanted toward their own platform and resources, which makes it doubly useful.

Can You Trade Without Prior Experience?

How Do I Choose the Best FOREX Broker in Brazil?

Brazil has a large open economy that is developed, market-oriented, and dependent on international trade. It is the largest economy in South America. This country of roughly 215 million people has a diverse economy, with agriculture, tourism, and manufacturing being some of the major industries.
The country is known for its high-quality agricultural products, with iron ore, soybeans, sugar, and petroleum being major exports. It also has a well-developed tourism industry, with many visitors attracted to its vibrant beaches and excellent weather.
The Brazilian market is closely regulated, thanks to the Central Bank of Brazil. A FOREX transaction can only be executed if the company is licensed by the Central Bank because the Central Bank of Brazil is responsible for all of the regulatory oversight in the region.  Furthermore, the trader will have to be a resident of Brazil and have a Brazilian bank account with their deposits available in the local currency.

Regulation and Licensing

FOREX brokers who offer their services to Brazilian citizens must be regulated by the Securities and Exchange Commission of Brazil (CVM) as we as the Brazilian Central Bank. Regulated brokers must follow common best practices, such as keeping their operating funds separate from client funds and complying with strict leverage rules.

It is always a good sign if your broker is active in other countries and has been regulated by other tier-1 bodies like the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC), which are two of the best regulators in the world.

The regulators that oversee FOREX trading also regulate other financial assets, such as crypto, commodities, and indices. If you want to learn more about some of the best-regarded regulators, read our article on regulation here. Remember that you do not have to use a broker with international regulation if your local broker is regulated by the CVM.

To verify the credibility of your broker, consider these steps:

• Inquire if they have the proper license to handle FOREX

• Ensure they're registered with a top-tier regulator, or at the very least, the local one for your region

• Determine if your broker is enrolled in a compensation scheme

• Regularly review your statements to ensure accuracy

It's essential to adhere to all relevant guidelines, not just the ones highlighted here, including those set by broker-associated organizations.

Leverage

Depending on the regulator under which your broker works, you will encounter different policies relative to leverage. Key regulators have implemented specific rules to limit the leverage offered to retail traders as a means of consumer protection. Remember, even if your broker is not regulated by these international brokers, as long as they are regulated by a competent local regulator, that’s a good enough start.

Here are selected leverage rules according to some key regulators:
CVM Brazil:
Between 50:1 and 100:1 for FOREX traders, which is significantly higher than the leverage provided in the equities and futures markets.

FCA UK: 

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major indices

Australian Securities and Investments Commission (ASIC) Australia:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major indices

Swiss Financial Market Supervisory Authority (FINMA) Switzerland:

FINMA has not set specific leverage limits like the FCA or ASIC. However, Swiss brokers must adhere to rigorous capital and risk management requirements, ensuring they don't offer excessively high leverage that could endanger their solvency or their clients' funds.

It's important to note that these regulations primarily apply to retail clients. Professional or institutional clients may have access to different leverage levels based on the regulatory environment and the broker's policies. As you can see, responsible regulators closely monitor leverage levels. However, you can still use the regulator in your country, even if it is not under a tier-one regulator.

Stop Out

A stop out is when your broker executes a stop-loss order, which happens when a trade reaches a user-defined trigger point, leading to the automatic or manual closure of the position to protect your capital. This is an unwanted situation. It basically means the broker is trying to stop you from losing more of your money, and theirs. Here are some of the most common levels:

Stop out of 0%: 

Your broker won't close any of your positions, even if your margin level reaches rock bottom. This is because some brokers allow you to end up in the red, which means you might owe them money if your trades keep losing.

Stop out of 50%: 

Once your equity dwindles to half of your used margin, the stop-out alarm goes off. Your broker steps in and starts closing your trades, beginning with those least profitable. This continues until your margin level bounces back above the stop-out level.

Stop out of 100%: 

When your margin level hits 100%, your broker takes the drastic step of automatically closing all your open positions. In some setups where the broker separates margin-call and stop-out levels, the margin call happens at 100% and the stop out at 50%. If your margin level plunges to 50%, your trading platform springs into action with a stop out, closing your trade at the market price.

Keep in mind that the specific percentage and the order in which positions get closed can vary from broker to broker. So, traders must know their broker's stop-out policy. It's worth noting that while stop-out measures are designed to shield traders from going into the red, they can also result in substantial losses, especially in volatile markets where positions are swiftly closed automatically, especially if the market suddenly reverses post-stop out. That's why you should always employ protective strategies like setting stop-loss orders and avoiding excessive leverage.

Commissions and Fees

Trading fees are not always easy to monitor. Be sure to check how these fees compare with other brokers:

Spreads: In FOREX trading, a spread is the difference between the price at which a trader can buy (ask) and the price at which they can sell (bid) a currency pair. The spread can be categorized into two main types: fixed and variable.

Fixed Spreads: As the name suggests, fixed spreads remain constant regardless of market conditions. They don't change during the day and are generally set by the broker. Fixed spreads are preferred by some traders because they provide predictability, especially during times of high market volatility.

Variable Spreads: These spreads fluctuate based on market conditions. During times of low liquidity or high volatility, variable spreads can widen. However, during times of high liquidity and normal market conditions, the spreads can be very narrow. This type of spread is a direct reflection of market supply and demand.

Why do they differ?

The main reason they differ is due to their reaction to market conditions. Fixed spreads don't react to the market, giving traders a consistent spread cost. On the other hand, variable spreads can offer lower costs during normal market conditions but can widen and become more expensive during volatile times.

Example of Good vs. Worse Spreads for EUR/USD:

A good spread for the EUR/USD currency pair might be around 1.4 pips. This means that if the bid price is 1.1000, the ask price would be 1.10014.

A worse spread could be significantly higher, let's say 3.0 pips or more. In this scenario, if the bid price is 1.1000, the ask price would be 1.1003.

Traders always prefer narrower spreads because the cost of entering and exiting a trade is lower. However, it's essential to consider other factors, like the broker's reliability, platform features, and overall trading conditions when choosing between brokers offering different spreads. This article explains more about this important concept.

Commission: This is nothing more than the service charge that brokers require for carrying out transactions on behalf of their clients.

Rollover fees: When you leave a trade open overnight, the broker normally charges a rollover fee for the facility of holding your trade open for that period. This is because they assume the risk of the market changing adversely.

Withdrawal and Deposit Fees: Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.

Subscription or Inactivity Fees: Certain platforms have monthly charges or fees for inactive accounts. Ensure you're aware of these potential costs.

Tradable Assets and Instruments

• FOREX

• Commodities

• CFDs

• Equities or Stocks

• Indices

• Cryptocurrencies

• Bonds

• Options and Futures

Payments, Deposits, and Withdrawals in Brazil

FOREX Trading Customer Service

Ask Other Traders on Our Network

Arincen has gone to extensive lengths to create an enabling environment of networks, where traders of all backgrounds can take part in a vibrant trading space. After all, Arincen’s goal is to simplify the world of trading. Our Website provides an unrivalled slate of tools, like our market-leading signals, rolling news, and a thriving community where traders of all levels of experience can learn and profit from each other.

What Trading Platforms, Tools and Features Should a Broker Offer?

When choosing a trading platform, you should consider a range of features that cater to both novice and seasoned traders. Here are some elements to keep in mind:

• Technical analysis tools: The platform should have robust technical indicators to help traders make informed decisions.

• Customization and user interface: Traders should be able to adapt the platform according to their preferences, allowing them to set up their trading environment precisely how they want. We find that the products from the MetaTrader suite, especially MT4, offer excellent features for this purpose.

• Platform accessibility: A top-notch trading platform should offer flexibility in terms of access, whether it's web-based or a downloadable application.

• Risk-management tools: Trading inherently comes with risks, and a high-quality platform should provide instruments that allow traders to set stop-losses, take-profits, and other crucial order types.

• Performance and reliability: Beginner traders especially need a platform that operates seamlessly with minimal downtimes or glitches. This ensures a smooth trading journey, allowing them to focus on market movements rather than technical hiccups.

• Learning and educational resources: The best brokers will offer platforms that are not only intuitive but also come with tutorials, guides, and responsive customer support to assist traders in navigating any challenges they might face.

To choose the perfect trading platform, here’s some advice:

• Determine your trading style and needs.

• Research different platforms and compare their features.

• Test the platforms with a demo account to see which one suits you best.

• Choose a platform that offers the features you need and is user-friendly.

• Ensure that the platform is reliable and has a good reputation in the industry.

Remember that the trading platform you choose can have a significant impact on your trading success, so it's important to choose wisely.

Which Brazilian FOREX Broker Has the Best Platform?

Many FOREX traders around the world have become used to MetaTrader’s strong and dependable MT4 platform, which is well-liked with good cause. However, if you are interested in trying something new that pushes the boundaries of what we accept as possible with a trading platform, you may consider a proprietary platform. In this case, we would encourage you to try Saxo Bank for its advanced trading features and high-performance tools with extensive market analysis.

Which Brazilian FOREX Broker Charges the Lowest Fees?

Our research shows that ICM’s ECN account offers the lowest fees for entry-level and elite traders alike. Be sure to contact them if fees are a dealbreaker for you.

Which is the Best FOREX Broker in Brazil for the Most CFDs?

Which is the Best FOREX Broker for the Most Assets?

Which Brazilian FOREX Broker is Best for Professionals?

FOREX Trading Scams and How to Avoid Them

The CVM has issued several warnings about retail online trading scams in the past. This is the role of all regulators around the world, including major regulators like the FCA, ASIC, and CySEC, to mention a few. These entities all provide general guidance to the public on how to avoid investment scams. This ensures that the average investor is well protected from scam activity. However, you still need to conduct your own due diligence as well. If an offer seems too good to be true, it normally is.

The Dos and Don’ts of FOREX Brokers

1. The FOREX brokerage firm cannot recommend a buy or sell;
2. The FOREX brokerage firm must not provide price or market expectations (rise/fall);  
3. The FOREX firm cannot control your financial dealings (deposit/withdrawal);
4. The FOREX brokerage firm should not “manage” your portfolio under any circumstance;
5. The FOREX brokerage firm cannot grant a client a bonus unless clear terms are guiding it beforehand;
6. The brokerage firm must not use bank accounts not under its name; and
7. FOREX brokerage firms cannot have or offer the service of account managers.

Who is Arincen and What Do We Do?

Conclusion

Arincen’s Review Methodology

The expert team at Arincen collected more than 120 pieces of data covering more than 100 licensed FOREX companies. Data collection was done in three ways:

1.  Companies’ websites.

2.  Other websites that have ranked FOREX companies.

3. A survey questionnaire (referred to here as Survey “1”) was sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its relative weight. These include licensing, deposits and withdrawals, number of assets, etc.     

Afterwards, we validated the data by:

1.  Registering with FOREX companies as a secret shopper and/or as Arincen.

2.  Survey number “2,” in which we asked these companies’ customers for important feedback and experience.

The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including considering different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc.

To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%.  To learn more about how we came up with the evaluation, please click here.