To access different financial instruments, it is necessary to do so through a service provider platform called a broker. Today there are a large number of brokers in the Latin American market, so knowing how to choose one can be difficult with so much to choose from.
Within the wide range of brokers that exist, we can find those that focus on the Latin American market. That is why here we will tell you which are the best Trading platforms in Latin America. We will tell you everything you need to know about these operators so that you have the best investment experience.
✨Top 5 best broker in Latin America✨
- Annual cost 0.
- Leverage 1:30.
- No hidden fees.
- Tight spreads.
- Sponsor of Atlético de Madrid.
- No hidden costs.
- Best Social Trading Broker.
- Functions to be copied to other Traders.
- 49 currency pairs.
- Annual cost 0.
- STP broker.
- No minimum deposit.
- XStation platform.
- Annual cost 0.
- 16 platforms.
- Forex signals.
✨ Why is there no broker in Latin America? ✨
The reason why there is no broker in Latin America is that there are no regulatory bodies that guarantee the operability and security of users on their platforms.
✨And the regulatory bodies in Latin America? ✨
Of all the countries that make up Latin America, only two countries have proper regulatory bodies. The British Virgin Islands and Belize are the only ones that have these agencies: the British Virgin Islands Financial Services Commission and the International Financial Services Commission.
Although these countries are known to allow the operation of fraudulent brokers or scanners, because they are tax havens, these countries are the few that operate in this way.. The procedures are merely bureaucratic, since they are used only as a regulatory and representative nature for broker operators.
✨ How is it in the rest of the countries? ✨
Furthermore, In Chile we can find that although there is a regulatory body, the Superintendency of Securities and Insurance, the legal and financial figures change. CFD's outside of legal compliance, since they are not considered as securities. These brokers only regulate stocks, ETFS, and funds.
In Mexico, the body in charge of regulating is the National Banking and Securities Commission, which is in charge of taking care of the world of finance and investments. Of course, trading in Mexico is considered a private contract between two parties in which the CNBV does not get involved in case of losses.
Argentina has a totally different regulation, since the broker operation is not allowed here as it is not allowed. In order to operate in Argentina you must open a bank account in Uruguay, even with bitcoins.
In the case of Colombia, here are two CFD regulatory bodies which are in charge of regulating the broker. These bodies are the Financial Superintendence of Companies (SFS) and the Securities Market Self-regulator (AMV). In this way, it is guaranteed that clients or Traders are covered for greater security.
✨ How to invest from Latin America? ✨
- Hire a broker in the Virgin Islands or Belize: This is one of the options that you can choose if you want to work with a 100% Latin American broker, but that We do not recommend because both countries are tax havens and the regulations are very lax.
- Regulated broker that authorizes Latino Traders: If what you are looking for is security, then you should look for an international broker that is regulated, but that also allows operation in Latin American countries. Ideally, check the regulations and terms and conditions to see if it is possible to operate from your country.
- Broker with limited features: In the same way, you can find broker that allows the operation in Latin America, but with limited functions. A perfect example are those that allow you to trade, but in cash, with stocks, ETF's and other types of instruments. These brokers are usually a little more limited or scarce.
- American Broker: Finally, You can operate through a broker in the United States which has a geographical location close to Latin America which allows the operation with these markets. You must take into account that the process in this type of broker is more complex than in others due to the procedures.
✨How to open an account in these brokers? ✨
The process of opening an account with a broker depends on your location or country of residence. For example, in brokers in Australia and Europe (the process is the same), you must register, add your data, send your official identification and your domiciliary proof.
Both your official identification and your domiciliary proof are required by law in accordance with international regulations. You must verify which documents are required or allowed as these may vary according to each country, especially as far as proof of address is concerned.
In the case of the United States broker, you must carry out a similar process, although the required documentation is different. Here they will ask for your social security number and, if you are a resident, your visa or residence card. They will also request information for paying taxes.
For both cases, if you are a foreign citizen, you will be asked for other information to be able to register.. For example, for brokers in the United States, if you are a foreigner, the process will be much more cumbersome and complicated, with more complex procedures because by law, you must pay taxes.
✨Is it convenient to operate in a Latin American broker? ✨
Although there are very few 100% Latin American brokers, in reality there are options to operate from the Latin market easily. The options that we mentioned before are a good way to start trading without having to complicate yourself with foreign platforms.
The best reason why it is convenient to operate in a Latin American broker is that you will be able to find support in your language, as well as access to local markets. Thus, the investment process is much simpler, since you will be able to enter a market that you know. There are even brokers that offer access to global markets.
Financial analyst and economist with a master's degree in finance.