Knowing the ideal time to trade Forex in Brazil is crucial due to the market’s accessibility 24/7. Understanding the various trading sessions and Brazil’s specific Forex market hours is essential for Brazilian traders. Traders Union experts provide all the necessary information on the subject.
Time Zones in Brazil
Brazil observes four distinct time zones, all in UTC format:
The most commonly used time zone in Brazil is UTC-03:00, known as BRT, which is also the official time zone for 22 out of 27 Brazilian states. This time zone aligns with Argentina, Chile, and Uruguay when daylight saving time is not in effect.
During daylight saving time, Brazil’s official time shifts from UTC-03:00 to UTC-02:00, resulting in a one-hour difference between states that use UTC-04:00 and UTC-05:00. Although not all Brazilian states observe daylight saving time, each state follows its own business hours, which can impact national Forex trading.
Brazil’s best time to trade Forex
Forex trading is available 24 hours a day, starting at 5 p.m. EST on Sunday to 4 p.m. EST on Friday. In Brazil, regular trading hours are from 10am to 5pm (Brasilia Time), and during daylight saving time (October to March), they are from 11 a.m. to 6 p.m.
According to TU analysts, the best time for Forex day trading in Brazil is during high liquidity hours, specifically Tuesday through Thursday. The period between 8 a.m. to 12 p.m. EST (U.S. and London market overlap) offers the best trading opportunities for Brazilian traders.
The most volatile Forex market conditions occur during overlapping sessions, such as Sydney/Tokyo, Tokyo/London, and London/New York. During these times, trading the USD/BRL (BRL/USD) currency pair might be beneficial.
For trading BRL/USD, the best times are during overlapping sessions between the New York and London markets (12 p.m. to 4 p.m. GMT) and during significant economic news releases from both Brazil and the United States. Additionally, the local market hours of Brazil and the United States (10 a.m. to 5 p.m. Brasilia Time) offer favorable trading opportunities.
Time to pause Forex trading in Brazil
Knowing the optimal time to trade Forex in Brazil is essential, but it’s equally crucial to be aware of when to avoid trades. Experts at Traders Union determined the worst times to trade:
- Sunday night and early Monday morning
- During public holidays, significant news events, and periods of unusual price movement
- Asian sessions when liquidity is lower.
Best Forex Brokers in Brazil
Analysts at TU introduce two prominent Forex brokerages: RoboForex and Exness.
- RoboForex is a reputable brokerage founded in 2009, serving clients in 169 countries. With over 3.5 million users, it is recognized as a leading software developer and highly regarded by financial market experts. The company holds an international license (No. 000138/437) from FSC Belize.
- Exness, established in 2008, operates legally in 130+ countries, adhering to local laws. It holds licenses from various regulatory authorities and is a member of the Financial Commission, offering up to EUR 20,000 insurance coverage per client. Exness ranks high in Forex ratings, with a monthly trading turnover of $325.8 billion USD. The broker provides CFDs for cryptocurrencies, stocks, over 120 currency pairs, energy, and metals, offering favorable conditions such as low commissions and instant order execution and withdrawals. Various account options, including a demo account, cater to traders’ needs.
Understanding the best and worst times to trade Forex in Brazil is crucial for successful trading. Being aware of the different time zones in Brazil and the specific Forex market hours can greatly impact trading strategies. Traders Union experts have provided comprehensive information on the ideal times for Forex trading in Brazil, as well as the periods to avoid trading.