The 5 best Forex Brokers and platforms in South America – Comparison and reviews
Table of Contents
Although the pandemic pushed several industries to a halt, it also opened others in many regions. One of these industries is the forex market which got much exposure during the pandemic. A good number of people are now exposed to forex trading. Although South American countries are not mainly known to be wealthy, the forex market is well traded in this region.
See the list of the best Forex Brokers in South America:
Forex Broker: | Review: | REgulation: | Spreads: | Assets: | Advantages: | Open account: |
|---|---|---|---|---|---|---|
1. Capital.com  | CySEC, FCA, ASIC | Starting 0.0 pips variable & no commissions | 6,000+ (70+ currency pairs) | + Best platform + TradingView charts + MT4 + Leverage up to 1:500 + Best education + Personal support | Live-account from $ 20(Risk warning: 78.1% of retail CFD accounts lose money) | |
2. BlackBull Markets  | FSPR, FSCL | Starting 0.0 pips & negotiable commission per 1 lot | 500+ (64+ currency pairs) | + ECN Broker + Deep pool execution + High liquidity + Best execution + Leverage 1:500 + MT4/MT5 | Live-account from $ 200(Risk warning: 78.1% of retail CFD accounts lose money) | |
3. RoboForex  | IFSC | Starting 0.0 pips & $ 4.0 commission per 1 lot traded | 9,000+ (50+ currency pairs) | + Huge variety + Micro accounts + Free bonus program + Leverage up to 1:2000 + ECN accounts + MT4/MT5/cTrader | Live-account from $ 10(Risk warning: 78.1% of retail CFD accounts lose money) | |
4. Pepperstone  | FCA, ASIC, DSFA, SCB | Starting 0.0 pips & $ 3.5 commission per 1 lot | 1,000+ (40+ currency pairs) | + Fast execution + Large FX Broker + Good service + MT4/MT5/cTrader + TradingView Charts | Live-account from $ 200(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs) | |
5. IQ Option  | CySEC | Starting 0.1 pips variable & no commission | 500+ (25+ currency pairs) | + Easy to use + Binary Trading + Support 24/7 + Min. Deposit 10$ + Lowest spreads on main trading hours | Live-account from $ 10(Risk warning: Your capital might be at risk.) |
(5 / 5)
(4.9 / 5)
(4.8 / 5)Different brokerage platforms give traders access to the forex market. This article will help you find the best and most reliable South American brokers.
Top 5 Forex Brokers and platforms in South America
Below is a review of the best 5 forex brokers in South America.
1. Capital.com
Capital.com is a reputable brokerage firm that started in 2016. They are available in almost every country. These countries include India, Germany, the United Kingdom, and South America.
The following forex regulatory bodies operate in South America:
- Australian Securities and Investments Commission;
- Financial Conduct Authority;
- National Bank of the Republic of Belarus; and
- Cyprus Securities and Exchange Commission.
They accept a minimum deposit of $20 or €20 which can be converted to a trader’s local currency. Forex traders can make deposits through wire or electronic transfers or bank cards.
Benefits of Capital.com
- An offering of trades on different assets in the forex market;
- Provision of the use of demo accounts and educational tools to make trading simple and easy;
- Trade is offered in 8 different languages: Spanish, Russian, Turkish, Aramaic, German, French, and English;
- Provision of access to other trading platforms.
Downsides of Capital.com
- Only one type of account exists on this platform; and
- There are no referral programs.
(Risk warning: 78.1% of retail CFD accounts lose money)
2. BlackBull Markets
Black Bull Markets is a well-known company that was created in 2014.
The following bodies regulate forex trading in South America.
- New Zealand Financial Markets Authority (FMA); and
- Financial Services Authority (FSA) of Seychelles.
The FMA has a regulatory license number of FSP403326, and the FSA doesn’t have a regulatory license number.
Pros of BlackBull Markets
- Provision of service to tens of thousands of traders from 180+ countries;
- Provision of access to the full Meta Trader suite, such as the MT4 platform, MT 5 platform, and Web Trader;
- There is no deposit fee; and
- Leverage being a likely profit booster is 1:500.
Cons of BlackBull Markets
- The withdrawal comes with a price tag; and
- A high minimum deposit of $200.
(Risk Warning: Your capital can be at risk)
3. Pepperstone
Pepperstone was set up in 2010 and is rated as one of the best forex brokers by professional traders. This is based on the trading experience, low fee structure, and customer levels.
This broker is regulated in two-tier -1 jurisdictions:
- The UK’s Financial Conduct Authority (FCA);
- Cyprus Securities and Exchange Commission (CSEC);
- Dubai Financial Services Authority (DFSA);
- Capital Markets Authority of Kenya (CMA);
- The Securities Commission of the Bahamas (SCB); and
- The Federal Financial Supervisory Authority (FFSA).
Benefits of Pepperstone
- Provision of access to MetaTrader4, MetaTrader4, cTrader, Tradingview, and Social Trading;
- Offering low spreads for Razor and tight spreads for Standard Accounts with no commissions;
- Acceptance of minimum deposit of zero dollars; and
- Excellent educational materials such as demo accounts, webinars, and access educational videos.
Drawbacks of Pepperstone
- Only CFDs are offered to the market;
- Only a one-month free trial is given to demo account users; and
- 24/5 Client assistance system.
(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)
4. RoboForex
It was created in 2009. The body that regulates forex activities in RoboForex is the International Financial Services Commission (IFSC). It has registration number 128.572.
The withdrawal options in RoboForex include:
- Neteller;
- Visa;
- AdvCash;
- QiWi wallet;
- UnionPay;
- Bank wire, and others.
Advantages of RoboForex
- CopyFX platform for copy trading is offered to forex traders;
- Access to different platforms for trading;
- 13 language support system;
- Provision of several terminals for successful trading. Some of these terminals include web traders. This platform is equally available on mobile devices and desktops. Another terminal is the stock trader, which offers the fastest financial charts and tools for market analysis;
- Over 8,000 users from 168 countries, including countries in South America, use RoboForex; and
- They offer the use of 6 different account types, including the demo account.
Disadvantages of RoboForex
- Restricted choice of forex trade instruments on most accounts; and
- Clients’ protection is very low.
(Risk Warning: Your capital can be at risk)
5. IQ Option
IQ Option is recognized as a reliable global online broker best known for its intuitive trading. The company was created in 2013 and has since become a reputable brokerage firm.. A good number of traders make use of this brokerage firm when trading the foreign exchange market.
Advantages of IQ Option
- Offers over 50 currency pairs for trading while providing access to other trading platforms
- Offers trading tools like the economic calendar, technical analysis, and historical quotes;
- Provision of volatility alerts, multi-chart layouts, and market updates
- Operates a 13 languages support system
- Low minimum deposit of $10, which can be converted to another country’s currency.
Disadvantages of IQ Option
- Limited assets to trade.
- Traders may experience some delays when making withdrawals
IQ Option provides various means for deposits and withdrawals. Some options available to traders include:
- Moneybookers,
- Skrill,
- Credit cards,
- Debit cards,
- WeMoney,
- CashU, and
- Bank transfers.
They offer the use of a demo account for traders to test trading. They are regulated by the Cyprus Security and Exchange Commission (CySEC).
(Risk warning: Your capital might be at risk.)
Financial regulations in South America
The forex market is still growing in South America. Brokers see the South American market as profitable for forex trading as it offers a vast clientele base.
Brokers in the South American markets face quite a number of challenges. This is because the South American market does not operate as an alliance or partnership.
It operates using diverse rules and opportunities. Many brokers who entered headfirst into the South American market with hopes of making it big are still on their way to achieving their desired success.
It is vital to gain more knowledge of the South American forex market. It takes a very long time for forex brokers to establish contacts in these regions and get good results.
The different economies of South America adhere to other compliance methods due to their different forex regulation policies. Although the market is still very shaky, there are still opportunities to make profits.
The first process for forex brokers to flourish in the forex market of South America is to establish firm contact and trust. This is one of the challenges new brokerage platforms face despite the availability of resources in these regions.
Establishing connections and earning trust can go a long way towards understanding the South American trade environment and how it works.
The South American population is estimated to be about 630 million. The forex market in this region is smaller in comparison to other areas.
This is because of the lack of internet access in these regions. The economy of South America is not highly developed. Therefore, the earnings of clients on the market are low compared to Europe.
Security for traders
The charges on trades are also relatively low compared to other economies. Clients in this region can use a broker with an Australian Securities and Investments Commission license.
This broker offers security to clients in these regions. This is because this continent is not dependent on the European Securities and Markets Authority’s policies.
Brokerage companies are working hand in hand with South American authorities to assist the forex market in following regulations. They are looking forward to regulating the South American market, which will be done like the European market, where forex trading is blooming.
Forex Trading is steadily attracting developing markets like the South American market. The aim is to groom the market until it starts blooming.
Is it legal to trade Forex in South America?
There were a number of restrictions for those who trade forex in the past. This made trading on the market nearly impossible.
However, the authorities in South America took a new stance recently to remove these restrictions. This new stance now permits traders to explore the foreign exchange market world.
South America is considered one country with the biggest economy in South America. It is also one country with the most unstable economy globally.
In 2015, the South American government in power did well, removing the restrictions. There are no restrictions on forex trading in South America presently.
The forex market is well regulated in Brazil. It is becoming prevalent among the locals as the Brazilian market gets more open and liberal; it is now legal to trade on the Brazilian market.
Foreign-regulated brokerage platforms are allowed to operate in Brazil. This is because there are no requirements for them to have local BCB licenses.
South America’s restrictions on the forex markets have significantly reduced. This has made it easier for traders to access the forex market.
The South American Tax Authority and The South American Central Bank still monitor forex brokers. They monitor the brokers that offer South American citizens access to the forex market.
One of the hindrances to economic stability in Chile is its political unrest.
The Chilean government has kept a tight restriction on the forex market due to the value of Chilean pesos. This country does not place any regulations on brokers. Therefore, traders should conduct proper research before investing with a broker.
Presently, it is legal to trade forex in Mexico. However, most local brokers focus more on equity than the forex market.
Citizens who wish to trade on the forex market can do so by using a foreign broker. This is permitted in the country, as no regulations guide foreign brokers in this country.
Forex trading in Costa Rica is 100% legal. Currencies are exchanged every day for businesses to get conducted.
Costa Rica offers a very stable economy. The agricultural and tourism sectors play a vital role in boosting their economy.
The General Superintendency of Financial Entities and the Central Bank of Costa Rica are the two bodies responsible for monitoring financial transactions.
The trading of financial instruments is legal in the Dominican Republic. However, it is considered unsafe due to the corruption index of this region.
Some brokers still offer their services to locals. This is because of the price value of the Dominican Peso coupled with the growing rate of tourism and agriculture.
(Risk warning: 78.1% of retail CFD accounts lose money)
How to trade Forex in South America
Below is a detailed guide on how to start trading forex in South Africa:
Open a Forex trading account
Large financial institutions or investment banks could only access the forex market in the past. Today, anybody can access the forex market from anywhere in the world. That is, as long as they have good access to the internet.
The use of mobile devices has made the forex market much more accessible. Traders prefer accessing the forex market from their mobile phones as technology develops daily.
Traders in South America are no exception to this. They can easily download the mobile application of their preferred broker. Most brokers offer access to other forex trading platforms through their platforms.
Start with a demo account or real account
A demo account is the best account for an amateur trader. Here, virtual funds are deposited, not real money. It is more like a training ground for them.
Amateur traders are discouraged from making real deposits, which can be very risky for them.
However, a real account is recommended for expert traders or amateur traders who have gone through training and forex education, have suitable tutors, and can now trade safely.
The minimum deposit for a real account depends on the forex platform you are dealing with.
Deposit money
Now that there are no more forex trading restrictions in South America, forex traders can trade freely. You can fund your account with various payment methods.
This includes the use of :
- Debit and credit cards;
- Local prepaid vouchers;
- Cards;
- Mercado Pago;
- Skrill;
- Neteller;
- EcoPayz; and
- Paypal.
Forex traders in Brazil have access to a variety of payment options. They can fund their accounts through digital wallets or credit cards.
South America’s forex traders can fund their forex accounts through digital payment systems or bank cards. Traders can fund their accounts through local payment methods accepted by the desired broker.
Chilean citizens can fund their accounts through digital wallets or credit cards. They also have local methods of payment that are restricted.
As a trader in Chile, you can fund your forex account using payment options such as Skrill, Neteller, ecoPayz, and PayPal.
Some brokers permit Mexican traders to fund their forex accounts using their local currency as the base currency.
This helps to avoid extra charges on conversion fees. Forex accounts are funded with local debit cards, which are more common than credit cards.
Although most Mexican citizens own bank accounts, online banking is still not very popular. Traders can fund their accounts by using PayPal, Neteller, and Skrill.
Costa Rican nationals can fund their forex accounts through digital wallets or credit cards. They can also fund their accounts through restricted local methods of restricted payments.
As a trader in Costa Rica, you can fund your live trading account using deposit options such as Skrill, Neteller, ecoPayz, and PayPal.
Forex traders in the Dominican Republic can fund their accounts through various means. They can fund their accounts through their local payment methods.
That is for brokers that accept these methods. Forex traders here can fund their accounts through transfers and bank cards.
Notice:
The payment methods are depending on your country of residence. Forex Brokers are offering all kinds of methods separately for each country.
Use analysis and techniques.
The analysis and techniques used in South America depend hugely on the regulations guiding forex trade and the forex broker selected.
However, there are three forex analysis methods used in South America. Namely:
- Technical;
- Fundamental; and
- Sentiment analyses.
The fundamental analysis uses data on a country’s economy, studies it profoundly, and then uses it to make decisions.
The technical analysis is based on predictions gotten through the price trend in the market.
The sentiment analysis is based on the perspectives and thoughts of the trader. There are usually few traders in this category. Based on mere opinions, the risk level is generally high, with no backup facts.
Make profits
Short Selling traders can make profits from the fall in the value of a currency by using short selling. Margin trading has to be used to do this. That is borrowing money to sell a currency and then repurchase it later.
CFDs.These are tools most brokers use to avoid specific regulations. Trading Contracts For Differences is trading a currency you don’t own.
It is a very high-risk trade, and traders can incur huge profits or losses if the trade goes according to the trader’s predictions.
Binary Options (Only for professional traders and outside EAA countries). Trading binaries is an excellent way to earn profits in the forex market. They do not pursue the price actions of a currency directly.
There is a potential opportunity for traders to make huge gains if they follow the right strategies in placing and executing the trade. Otherwise, there can also be huge losses.
(Risk warning: 78.1% of retail CFD accounts lose money)
Conclusion: The best Forex Brokers are available in South America
The trading market has been legalized in every region of South America, although it is not very popular there.
There are fewer competitions between South American brokers than brokers in Europe or Asia.
This exposure brought about the massive growth in the forex market in South America and its regions.
The forex market in South America is expected to grow more shortly. Although many critics believe this will be impossible, there is no denying that it is growing bigger every day.
It is vital to use only reliable forex brokers to invest in the forex market in this region. These brokers provide educational tools like the demo account, live educational videos, and tutorial videos.
1. Capital.com
2. BlackBull Markets
3. RoboForex
4. Pepperstone
5. IQ Option
FAQ – The most asked questions about Forex Broker South America :
What are the regulations of a South America Forex Broker?
Forex brokers who are NFA-registered are subject to several rules and criteria. The most significant ones are listed here.
1. Investment/Capital requirement: One of the most significant disparities between the US and other countries is the capital requirement. The NFA requires US-regulated brokers to maintain a reasonable capital of at least $20 million to support client positions without going bankrupt.
2. Leverage Restrictions: There aren’t as many high-leverage US Forex brokers as in other jurisdictions. Due to the possibility of increased profits, traders frequently search for brokers who provide high customer leverage.
3. Hedging is not allowed: Traders can employ a few tactics to get more successful outcomes when trading forex possibly. One of these is hedging, which lessens the possibility of suffering losses.
What is the least amount required for trading in South America?
A wide range of account types is available for South America licensed forex brokers to accommodate various traders. Depending on the account you select, there will be varying initial trading capital requirements. The smallest amount of trading capital is roughly $50.
How can I know the top forex broker in South America?
We list the few top forex brokers in South America for your ease.
Capital.com – It is the most trusted platform and is considered the best overall.
Forex.com is considered the best platform, confined only to South America.
Interactive Brokers – This platform is highly suited for professional traders.
RoboForex – It is an excellent platform that offers comprehensive services.
Last Updated on January 27, 2023 by Arkady Müller
