BDRs x US stocks

Should you consider investing in BDRs or directly in US stocks, through an American broker-dealer? What is the difference?

Invest in BDRs or stocks from abroad?

In October 2020, the rules for investments in BDRs have changed. Previously, BDRs were only accessible by qualified investors, who had more than R$1 million invested, but now they can be acquired by any person in the market.

Now, you may be asking yourself: should I invest in BDRs or directly in stocks from abroad, through an American broker? What is the difference?

For the second alternative, Passfolio might be an option for you. Passfolio is a US broker-dealer that gives you access to the United States stock market with an easy and fast platform. With the Passfolio app, you can deposit via TED and invest in more than 3,800 stocks, ETFs and REITs from the American market, with no commission fees and starting with just $100.*

Open account

* Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.

Differences between BDRs and US stocks

There are some differences between investments in BDRs and US stocks:

Fractional market: through Passfolio, you can buy as little as $1 of any stock, because we allow fractional share investing (please see more info here). With BDRs, on the other hand, you have to use the standard share amount of 10 and, in some cases, the minimum investment required can be high.

Asset variety: currently, only around 500 BDRs are available. Through Passfolio, you have access to more than 3,800 stocks, ETFs and REITs from the American market.

Spread and liquidity: generally, the price of a BDR is higher than its price in the American market, when converted into dollars. This spread exists because of the amount charged by the banks that issue the BDR. Besides that, the American market generally has higher liquidity, so it’s more likely that the investor can buy or sell their assets for the desired price more quickly.

Dividends: a lot of BDRs charge up to 5% of the amount received in dividends. At Passfolio, you have access to dividend-paying stocks where no fee is charged by Passfolio on the dividends received. Keep in mind that not all stocks pay dividends and that other charges may apply.

Holidays: with BDRs, you have to follow holidays that don’t happen in the United States, so you may not be able to trade when the US stock market is opened.

How to start investing in US stocks

Create your Passfolio account

Click here to sign up for Passfolio today and create your account by sending us some basic information about you. It only takes 5 minutes!

1

Download the app

After signing up, download the Passfolio app on the App Store or Google Play. All your investments can be managed from the palm of your hand.

2

Add funds

You can deposit just $100 to start. We accept deposits via wire transfers, TED, Remessa Online and other methods.

3

Start investing

With Passfolio, you can convert your local currency to dollars and trade 3,800+ US stocks, ETFs and REITs, all with no commission fees*.

4

* Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.

How to start investing in US stocks

1

Create your account

Click here to sign up for Passfolio today and create your account by sending us some basic information about you. It only takes 5 minutes!

2

Download the app

After signing up, download the Passfolio app on the App Store or Google Play. All your investments can be managed from the palm of your hand.

3

Add funds

You can deposit just $100 to start. We accept deposits via wire transfers, TED, RemessaOnline and other methods.

4

Start investing

With Passfolio, you can convert your local currency to dollars and trade 3,000+ US stocks, ETFs and REITs, all with no commission fees*.

* Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.

What users are saying about Passfolio

Is Passfolio secure? Is Passfolio worth it? Check out what our users are saying about us!*

* The testimonials may not be representative of the experience of other clients and not indicative of future performance or success.