How to Open an International Brokerage Account to Buy Brazilian Stocks (2025 Guide)

Introduction: Why U.S. Investors Are Eyeing Brazil

Brazil is Latin America’s largest economy and home to companies like Petrobras, Vale, Itaú Unibanco, and Ambev. With high dividend yields, exposure to commodities, and a growing consumer market, Brazilian assets offer diversification and strong return potential for U.S. investors. But how do you actually buy Brazilian stocks if you live in the U.S.?

This guide explains the practical steps to open an international brokerage account, compare options, and manage risks — everything you need to start investing in Brazil from abroad.

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Key Takeaways

• U.S. investors can access Brazilian assets through ADRs, ETFs, and direct B3 (São Paulo Stock Exchange) trading.

• The right brokerage is crucial: look for global brokers with Brazilian market access and strong FX support.

• Tax and currency considerations matter; you need to understand withholding tax and exchange rate risks.

• The process involves KYC documentation, international transfers, and compliance with both U.S. and Brazilian regulations.

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Why It Matters for U.S. Investors

Brazil provides exposure to commodities (oil, iron ore, agriculture), high-yield banks, and infrastructure firms. With the Fed and Brazil’s Central Bank often at different points in the rate cycle, Brazil can act as a hedge and a yield enhancer in global portfolios. To benefit fully, U.S. investors should consider opening an account that allows direct access to B3-listed stocks, which often trade at a discount compared to ADRs.

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Step 1: Decide Your Access Route

U.S. investors have three main options to buy Brazilian equities:

1. ADRs (American Depositary Receipts): Trade Brazilian stocks like Petrobras (PBR), Vale (VALE), or Itaú (ITUB) on U.S. exchanges. Easiest but limited to large caps.

2. Brazil-focused ETFs: Funds like iShares MSCI Brazil ETF (EWZ) or Global X MSCI SuperDividend EAFE ETF (EFAS with Brazil exposure) offer diversification.

3. Direct purchase on B3: Through an international brokerage that connects directly to Brazil’s exchange for full access to mid- and small-caps, REITs (FIIs), and IPOs.

Opening an international brokerage account is essential for the third route.

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Step 2: Choose the Right International Broker

Not all brokers provide access to B3. Key players that do include:

• Interactive Brokers (IBKR): Global access to over 150 markets, including Brazil. Allows trading in BRL (Brazilian real).

• Charles Schwab Global Account: Supports international markets but may require specific arrangements for Brazil.

• Avenue Securities: A U.S.-based broker specialized in connecting foreign investors with Brazilian assets (and vice versa).

• XP Investimentos International: Brazil’s largest brokerage offering accounts for foreigners.

What to look for:

• Access to Brazilian equities and FIIs.

• Competitive FX spreads and international wire capabilities.

• Compliance with U.S. and Brazilian regulations.

• Strong customer support for international investors.

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Step 3: Complete KYC and Compliance Documentation

International brokers require:

• Passport or U.S. government-issued ID.

• Proof of address (utility bill or bank statement).

• Tax documents (W-9 for U.S. citizens; brokers handle FATCA compliance).

• Bank account details for funding.

Some brokers may ask for additional anti-money-laundering (AML) checks.

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Step 4: Fund Your Account and Convert Currency

• Deposit USD via wire transfer or ACH (if supported).

• Convert USD to BRL through the broker or via a partner bank.

• Compare fees: spreads can vary between 0.2% and 1% of the transaction amount.

Pro tip: Time your FX conversions strategically; BRL/USD volatility can affect returns.

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Step 5: Start Trading Brazilian Stocks and FIIs

Once funded:

• Search by Brazilian ticker (e.g., PETR4.SA for Petrobras preferred shares).

• Consider starting with blue-chip dividend stocks like Itaú (ITUB4) or FIIs like KNRI11.

• Use limit orders to avoid price slippage due to currency moves.

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Comparisons: ADRs vs. ETFs vs. Direct B3 Access

Method	Pros	Cons
ADRs	Simple, no FX needed	Limited selection, less yield
Brazil ETFs	Diversification, U.S.-listed	Management fees, no FIIs
Direct B3	Full access, FIIs, all sectors	Requires FX, tax compliance

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Tax Considerations & Key Risks

• Withholding tax: Brazil withholds 15% on dividends paid to foreigners; U.S. investors can offset some of this via the foreign tax credit.

• Capital gains tax: Varies; consult a cross-border tax advisor.

• FX risk: BRL can be volatile; hedge if necessary.

• Political/economic risk: Brazil’s market can swing with politics and commodity prices.

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Step-by-Step Checklist

1. Pick your broker (IBKR, Schwab Global, XP, Avenue).

2. Submit ID, proof of address, and tax forms.

3. Fund account and convert to BRL if needed.

4. Decide your strategy: ADRs, ETFs, or direct stocks/FIIs.

5. Track taxes and hedge FX risk if appropriate.

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FAQ

Can U.S. investors directly open accounts in Brazil?
Yes, through brokers like XP International or Avenue, but KYC and tax compliance apply.

Are Brazilian FIIs available in the U.S.?
Not directly; you need B3 access or Brazil-focused ETFs.

Do I pay taxes in both Brazil and the U.S.?
Dividends are taxed in Brazil (15%), but foreign tax credits help avoid double taxation.

What’s the minimum deposit?
Depends on the broker; IBKR often has no minimum, XP and Avenue vary.

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Conclusion: Bottom Line

Opening an international brokerage account unlocks Brazil’s full investment potential. From high-yield banks to real estate FIIs, U.S. investors can diversify globally and capture opportunities beyond U.S. borders. With the right broker and proper tax planning, Brazil can become a powerful part of your portfolio.

Stay tuned to CNGWealth for more in-depth guides on investing in Brazil.