EN
Should you consider investing in BDRs or directly in US stocks, through an American broker-dealer? What is the difference?
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.*
* Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.
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.
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!
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.
You can deposit just $100 to start. We accept deposits via wire transfers, TED, Remessa Online and other methods.
With Passfolio, you can convert your local currency to dollars and trade 3,800+ 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.
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!
.png)
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.
You can deposit just $100 to start. We accept deposits via wire transfers, TED, RemessaOnline and other methods.
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.
Is Passfolio secure? Is Passfolio worth it? Check out what our users are saying about us!*
Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.
Please see the terms of our referral program.
Please see our fractional shares disclosure.
Please read important legal disclosures that apply to your relationship with Passfolio.
Investing involves risk, including possible loss of principal.
Passfolio Securities LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
Passfolio is the brand name of Panchain, Inc. Passfolio Securities LLC and Passfolio Financial LLC are fully-owned subsidiaries of Panchain, Inc.
Online trading has inherent risk due to system response, execution price, speed, liquidity, market data and access times that may vary due to market conditions, system performance, market volatility, size and type of order and other factors. An investor should understand these and additional risks before trading.
Content, news, research, tools, market data and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The information provided should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results.
All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Consider the investment objectives, risks, charges, and expenses of a fund before investing. Contact us for a prospectus containing this information.
Please remember that diversification is not an investment strategy without risk, and in certain circumstances, it may not fit your investment objectives. Past performance is no guarantee of future results.
Certain services (“Services”) offered through our mobile app are offered only in jurisdictions where it is legal to do so. The availability of the Services over the Internet is not a solicitation for or offering of the Services to any person in any jurisdiction where such solicitation or offering is illegal. We reserve the right to limit the availability of the Services to any person, geographic area, or jurisdiction, at any time and in our sole discretion. We make no representation that the Services are appropriate or available for use in locations outside of United States, or that accessing our mobile app is legally permitted in countries or territories where the Services may be illegal. If you access the Services from other locations, you do so at your own risk and are responsible for compliance with local laws. In particular, we are not authorized by the Brazilian Securities and Exchange Commission (CVM) to offer securities distribution services to investors who reside, are domiciled or incorporated in the Federative Republic of Brazil. The Services are not specifically directed to investors who reside, are domiciled or incorporated in the Federative Republic of Brazil and should not be understood as an offer of services directed to such investors.
According to CVM's Legal Opinion No. 33, dated September 30, 2005, Passfolio contracted RB Capital Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. ("RB Investimentos"), a Brazilian securities distributor duly authorized by the Central Bank of Brazil and the CVM, through which RB Investimentos makes Passfolio's services available to investors resident, domiciled or incorporated in the Federative Republic of Brazil. The services provided by RB Investimentos should not be understood as an offering of securities directed to such investors. Although RB Investimentos has been hired to provide Passfolio's services, Passfolio offers its services exclusively in the United States and under the rules and regulations applicable in that country. As these services are investments made directly in the United States through Passfolio, they are not registered with or subject to the supervision of the CVM or any other Brazilian regulatory agency, so the investor must have knowledge of the language and local regulation. Investors resident, domiciled or incorporated in the Federative Republic of Brazil who have become or will become clients of Passfolio through RB Investimentos may contact the following e-mail addresses: suporte@passfolio.us / contato@rbinvestimentos.com
Investors should consider the investment objectives, risks, and charges and expenses of an Exchange Traded Fund ("ETF") carefully before investing. Before investing in any ETF, you should consider its investment objective, risks, charges and expenses. Contact us at support@passfolio.us for a prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange-traded products are not designed for buy and hold investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.
Be sure to consider your own financial situation, perform thorough research, and consult with a qualified tax professional before making any investment decisions concerning REITs. Investments in REITs and other real estate securities are subject to similar risks as direct investments in real estate. The real estate industry is particularly sensitive to economic downturns.
Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment.
Securities products are: Not FDIC insured · Not bank guaranteed · May lose value
Market data refreshed at least every 15 minutes unless otherwise indicated. Market data provided by Polygon.
FINRA BrokerCheck reports for Passfolio Securities LLC are available at https://www.finra.org/brokercheck.
Trademarks and logos are the property of their respective owners and do not represent endorsements of any kind. Unless otherwise noted, Passfolio Securities, LLC and its affiliates are not partners, affiliates, or licensees of these companies.
Passfolio Securities, LLC
Member FINRA/SIPC
V.07 02/17/2020
