To buy or sell stocks, bonds, futures, options or other securities, you need to place an order through a third party that can transact business with the exchange where the security is traded. The primary option would be to find a broker, investment advisor or exchange member that is authorized to place trades on a South American exchange.
A stock broker or commodity broker could be local to where the exchange is located, outside of the country where the exchange is located or it could even be an online trading platform. Dependent upon where you want to invest, it may be challenging to understand your trading options so it is helpful to utilize a broker listing resource to know what your best options may be.
Our broker listing resource is country specific to where the exchange is located. There are brokers, investment advisors and trading platform options for South American exchanges in Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Uruguay and Venezuela.
To learn more about which brokers have the ability to trade in each country, click on a country link above to begin your search.
The political and economic situation in South America has been trending in a more favorable direction than in the past. Leadership changes have supported the need to tighten budgets, reduce inflation, deregulate the economy and introduce reforms so that countries can function better. This has led to a general political shift that is a more market-friendly environment in Argentina, Peru, Brazil and Uruguay.
Some central banks in the region are taking advantage of softer inflationary pressures this year. Brazil, Colombia and Peru decided to cut their benchmark rates in July 2017 to support their countries’ economic recoveries. Inflation and fiscal deficits are falling. As interest rates continue to drop, the local currency will strengthen and economic growth will improve.
When looking at general market valuations, South America is priced attractively as compared to the United States. In early 2017, when the S&P 500 was trading at 25 times earnings, South America was trading at 14.3 times earnings. Individually, Colombia was trading at 11.9 times earnings, Peru was 12.3 times earnings and Brazil was 13.2 times earnings.
A renewed interest in base metals and other commodities will be a catalyst for growth in Peru, Brazil and Chile. In addition, changing demographics, strong manufacturing and technical advancements will help to fuel the momentum.
Chile is a market-oriented economy with a high level of foreign trade, a reputation for strong financial institutions and a sound economic policy, which has helped to support the strongest sovereign bond rating in South America. Commodities make up approximately 60% of total exports, of which copper alone provides 20% of government revenue. Chile is the world’s largest producer of copper.
With a gross domestic product (GDP) of $1.8 trillion, Brazil has the largest GDP in South America and 9th largest in the world. Brazil has been a challenging place for investors over the years because its economy is highly sensitive to commodity price fluctuations. When commodity prices are strong or improving, it can be an excellent time to invest in leading commodity producers as they rebound sharply in an improving market environment.