Trading Regulations in Latin America

Understand the regulatory landscape for forex and CFD trading across Latin America

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Brazil

Risk Level: Medium
Regulatory Level: Moderate
Trading Allowed

Regulatory Authority

Comissão de Valores Mobiliários (CVM)

Established: 1976

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Regulatory Status

Semi-regulated

Trading Laws & Regulations

Trading foreign exchange in Brazil is primarily governed by Resolution No. 3,568/2008 issued by the National Monetary Council and regulated by the Central Bank of Brazil. The CVM Instruction 612 (February 2020) regulates the professional intermediation of transactions in the forex market, allowing brokers to offer contracts for difference (CFDs) and forex derivatives with some restrictions.

Regulatory Details

Forex trading in Brazil falls under the oversight of the CVM (Securities and Exchange Commission). While Forex itself is legal, only authorized brokers can offer these services to Brazilian residents. Many foreign brokers operate in Brazil, but only those registered with CVM are fully compliant with local regulations. In 2020, the CVM issued regulations allowing Brazilian brokers to offer CFDs and forex products, provided they meet specific requirements.

Latest Developments

The Central Bank of Brazil has been working on modernizing forex regulations through its 'New Foreign Exchange Market' framework, aiming to simplify processes and increase competition. In 2023, discussions about potentially increasing regulatory oversight of international brokers serving Brazilian clients have intensified, with possible new registration requirements expected in the coming years.

Important Disclaimer

The regulatory information provided is for general guidance only and may change over time. It is not legal advice. Always consult with a qualified legal professional before making financial decisions, and verify current regulations with the appropriate authorities in your country.