Author: Rob Sammut
Binary Options Guru
Rob Sammut

Binary Options Trading Brazil

Brazil Brokers

If you're looking to trade binary options, Brazil has become increasingly popular, more so since sanctions on foreign trading were lifted in 2006. Whilst it grows in popularity questions are raised as to its legality, safety and legitimacy. Primarily you want to ensure that your money is safe and check if there are any problems trading in Brazil.

Whilst binary trading has become more widely recognised and regulated across the world there are still different laws for different countries. Europe is seemingly leading the way with licensing and regulation and some of the world's most popular brokers are licensed by CySEC. Brazil doesn't have a similar licencing program, so CySEC is the next best thing.

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Our website offers reviews of many of the world's top brokers including those that operate in Brazil. We review and vet every broker fully ensuring that we bring you a choice of legitimate, regulated, licensed and respectable brokers that will enhance your trading experience.

In this guide we took a closer look at binary options trading in Brazil, we will cover:

  • If binary options trading in Brazil is considered a legal form of trading
  • What the fees or taxes that you should be aware of as a online trader
  • How to choose the best binary options broker that suits your needs

Our Top Recommended Websites Updated: December 2018

Your capital may be at risk
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

Local Broker Benefits

The laws and regulations surrounding binary options trading in Brazil are very apparent. First off all we should mention that there are no local brokers in Brazil. This is because whilst it is not illegal to trade with offshore financial companies it is prohibited by Brazilian law for brokers within Brazil to offer financial instruments like Forex and binary options. So, if you are looking for a broker that is native to Brazil you can stop.

If you do find a local broker, they are operating illegally and therefore your money is at risk. This leaves you with no option but to find a foreign broker. This won't be hard and you will be spoilt for choice. There are some very reputable, highly regulated and well-established brokers around the world, largely based in Europe and licensed by CySEC, that have raised the bar when it comes to offering everything the trader could want:

Account Types And Payouts

If you are new to trading then you will be looking for a standard account that offers what you need. For those with more experience you will probably be looking at one of the more premium accounts. Choose wisely and make sure you look at the payouts offered as well.

Welcome Bonuses And Deals

Do you want to be able to try before you buy? In that case you will need a no deposit bonus which will allow you to execute the first few trades without risking your own funds. If you are not new to trading then make sure you maximise the deposit bonus opportunities.

Customer Help And Support

If you are using a foreign trader, you want to ensure that you are able to get hold of someone that speaks your language. Many brokers now offer multi-lingual support and an extensive choice of phone numbers for various countries.

Education Advice And Tools

For those looking to improve their trading skills, it is important to have lots of useful educational tools like videos, account managers, articles on different types of trading and of course the demo account. Used wisely you can benefit hugely from the information.

The trick is to find the one that best suits what you are looking for and that is where we come in. Our job is to bring you the best binary options to suit your needs. For many the choice of broker largely depends on whether their money will be safe and how easy it is to use the platform. For others, they like to be able to "try before they buy" with a demo account. All of these plus more are important considerations for the first-time trader.

Websites You Should Avoid

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1.2 Blacklisted
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1.0 Blacklisted

Legal And Regulation

Until 2006 it was considered illegal to trade offshore in Brazil. In 2006 however this all changed and the laws were relaxed allowing you to trade with foreign companies, this included binary options brokers. In today's world the rules surrounding foreign trading don't remain very strict if you are investing low amounts, as most traders are, so you don't have too much to be concerned with.

The stiffer regulations arise when high transaction investors are withdrawing money from off shore accounts. It is advised therefore not to transfer the money to financial havens where there are no tax laws.

It is important to consider that most credit cards place a block on international transactions therefore using a credit card to deposit to an international broker may be an issue. The blocking of most credit cards for international use is, of course, to prevent fraud. This makes it harder for you to deposit funds but there are alternatives that can be used. Many Brazilians are successfully trading with foreign brokers and making a good second or even main income from it.

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Trader Broker Asset Profit
Your capital may be at risk
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

Paying Taxes And Fees

Brazilians are taxed on up to 27.5% of their income. You should be aware yourself of which of the three main tax brackets that you fall into and how you pay your taxes. It is important that if this is your sole or additional income that you keep accurate records of your transactions. Whilst you will pay a tax on profits you will be able to offset any losses so that you aren't paying too much tax.

If you are new to trading and yet to start keep a record monthly. The Brazilian tax year starts on January 1st and ends on December 31st so keep a monthly record of transactions. Many binary options brokers will be able to show you a history of your transactions which you may need to provide as proof.

For investors who are investing larger amounts of money there will be stiffer regulations and you will need to be able to prove all of your transactions. Also make sure you are aware of any penalties surrounding false declarations and transferring money to tax havens. The penalties for getting caught will be far more than any profits you might make.

When it comes to other fees most of them are deducted before any winnings are deposited to your account but you may want to be aware of any withdrawal fees, currency conversion fees or credit card fees that you may be subject to. These will be minimal but should be considered.

How we Recommend Brokers

With a lack of binary options brokers that are local to Brazil you may feel a little wary about investing your money with foreign brokers. We can assure you that there are some very good, reputable, safe brokers to invest with that will make your trading experience both enjoyable and free from worry.

First of all, you need to consider what you want from your broker. It may be that you just want the most reputable, regulated one that you can find and aren't too fussed with all the bells and whistles. Some of you may be looking for a no deposit demo account so that you can practise trading without spending any of your own money to begin with. We examine all the aspects of trading to ensure that you can make the right choice including:

  • Licensing, regulation and the reputation of the broker
  • Account types, depositing and payouts
  • The assets and trade types available
  • What mobile trading experience the broker offers
  • Welcome bonuses, incentives and promotions including tournaments
  • Minimum deposit and minimum trade requirements
  • Demo accounts and the criteria for using them
  • Customer support response times and resolution

Whatever your criteria when choosing a binary trading broker, you can rest assured that the recommendations we make are only the best. Many of the brokers that we recommend are licensed by CySEC which is the world's largest binary options regulator. A CySEC license is seen as the best in the business. We vet and rate every broker and only put our name to those that we can comfortably recommend. When you choose a broker that is recommended by us you can be sure that you are in safe hands.

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Frequently Asked Questions

Brazil FAQ

Is binary trading in Brazil legal and safe?

It is legal to trade in Brazil but there are laws which prohibit those based in Brazil offering financial tools like Forex or binary options. It is not illegal to trade though it just means that you have to find a foreign broker to trade with. As this is a widely known fact many foreign brokers accept Brazilian traders. In terms of safety this is down to the broker that you choose. If you choose a reliable broker then yes it is safe.

Do I need to pay taxes on my trading profits?

Every country has its own tax laws and it is down to you as an individual to make yourself aware of these. There are 3 tax brackets in Brazil and individuals are charged up to 27.5% of their income. If binary options is an additional income or even your main income you will need to ensure that you keep accurate trading records and declare profit as required.

Can I test brokers before trading with real money?

Many foreign brokers, especially those licensed in Europe offer many incentives to traders like yourself to entice them to trade with them. Once of these incentives is a demo account. Now some insist on a deposit as a commitment before they give you access to their demo account whilst others let you practise trading with them before you commit any funds.

Is it easy to make deposits and withdrawals?

It is not as easy in Brazil as it may be in other countries. First of all most credit cards are blocked to any international trading activity. This is to prevent fraud. This hasn't stopped many Brazilians like yourself trading with foreign brokers. You may need to use an alternative method to a credit card but the good news is that many brokers accept various forms of payment. In terms of withdrawal you will need to verify your identity first.

Can I trade using my mobile or tablet device?

If you want to be able to trade whilst you are on the move then you will need to choose a broker that offers a good user experience. Many brokers have evolved as technology has advanced and they offer not only a responsive mobile site but also apps for both Android and iOS. Our recommendations take into account many factors including a broker's mobile offering so you can check out the best solution for you.

Your capital may be at risk
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

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