Brazil Forex Trading Brokers

July 3, 2013 7:22 am

BrazilList with the most reputable Brazilian Forex brokers reviewd by BinaryTRibune. The Brazil Forex market is one of the strangest Forex markets worldwide. It is very limited, so there aren’t many people who trade there.

One of the main reasons for this is the Central Bank of Brazil and the regulations which it has set for Forex trading in Brazil. The only organizations licensed to execute Forex trading transactions in Brazil are licensed agents and commercial banks.

Other institutions can also perform some sorts of transactions, but usually they are very limited. For example, organizations such as credit societies, investment and financing organizations, savings banks, Forex or securities societies, stock dealer societies and even tourism agencies are authorized to carry out specific trading transactions.

Forex Brokers in Brazil

All Forex transactions that are executed in the Brazil Forex market must be registered with the Central Bank of Brazil. This is the regulatory body that monitors all transactions and controls the flow of incoming and outgoing transactions. Every trade is executed with a foreign exchange contract that is saved in the Sisbacen system used by the Brazilian bank. Residents of Brazil who own a Forex trading account with Brazilian currency can participate in the Forex market, but those who own an account with a foreign currency, can only participate in specific cases.

The Brazil foreign exchange market has been very unstable in recent years and it recently underwent several transformations that aimed to make it simpler and more accessible. Prior to February 2005, residents of Brazil could only execute the transactions allowed y the Brazilian Central Bank. The bank also tracked all transactions individually, so Brazilian traders had absolutely no freedom. Thanks to the new policies and regulations which were introduced in 2005, the Brazil Forex market is now a more welcoming place.

One of the biggest changes introduced in 2005 was the CMN Resolution 3265. According to it, Forex trading agents no longer have to negotiate with the Central Bank of Brazil before executing a trade. This rule applies for absolutely all foreign exchange transactions, so brokers and traders aren’t as limited as they were before these changes. At the moment, the only thing you need to participate in the Brazil Forex market is to be a legal resident of the country.

This is definitely one of the most under-developed foreign exchange markets, but the Brazilian government is on the right track, and it won’t be long before Brazil’s Forex market flourishes.

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