Pocket Option: Buying American Stocks

15 min to read

14 April 2025

15 min to read

Buying American Stocks: How to Invest in the US Market from Brazil

Introduction: Investing in the US stock market can be a great diversification opportunity for Brazilians. In this full article, we will cover everything from the fundamentals to advanced strategies for buying US stocks, taking into account the characteristics of the Brazilian investor and how Pocket Option can be your ally in this journey.

The growing Brazilian interest in buying American stocks

Between 2021 and 2024, the number of Brazilians who decided to buy American stocks increased by 420%, according to data from B3 and the Brazilian Securities and Exchange Commission (CVM). This explosion of interest is not casual: while the Ibovespa showed significant volatility, the S&P 500 grew approximately 64% in the last three years, offering not only consistent returns but also exposure to the largest global companies, geographic diversification, and protection against Brazilian economic instability. With digital platforms like Pocket Option, this process has become more accessible than ever, allowing investments starting from just US$10.

For Brazilian investors, buying American stocks means participating in the growth of tech giants like Apple (AAPL), which appreciated 192% in the last five years, Microsoft (MSFT) with 228%, Amazon (AMZN) with 156%, and Alphabet/Google (GOOGL) with 161% — companies without direct equivalents on B3. Additionally, the S&P 500 index delivered an average annual return of 10.2% over the past 30 years, significantly outperforming the Brazilian CDI in real terms when adjusted for inflation.

Before starting your journey to buy American stocks, it’s essential to understand three critical aspects specific to Brazilians: differentiated taxation (with progressive rates from 15% to 22.5%), currency exposure (which can amplify gains or losses by up to 30% annually), and regulatory issues such as mandatory reporting to the Central Bank for amounts above US$100,000.

Legal and tax aspects for Brazilians who want to invest in American stocks

The 2023 Tax Reform brought significant changes for Brazilians investing abroad, including the possibility of updating the calculation base of assets until December 2023 with a reduced rate of 8%. When buying American stocks as a Brazilian tax resident, you need to understand three layers of taxation: capital gains tax, dividend tax, and possible additional fees specific to each broker.

Aspect	Brazil	United States
Capital gains tax	15% (up to R$5 million), 17.5% (up to R$10 million), 20% (up to R$30 million) and 22.5% (above R$30 million)	No withholding for non-resident investors
Dividend tax	Exempt for individuals	30% withheld at source (reduced to 15% with properly completed W-8BEN form)
Mandatory declaration	Annual Income Tax Return (code 3.31 for stocks)	Brazilian Capital Abroad Declaration (CBE) quarterly (above US$100 million) or annual (above US$100 thousand)
Exemption limit	R$ 35,000.00 monthly in sales (approx. US$6,500)	Not applicable

Practical example: If you invested R$10,000 in Apple stocks in January 2023 (equivalent to US$2,000 at that time) and sold for R$15,000 in January 2024, you would have a capital gain of R$5,000. On this amount, a 15% tax (R$750) will be charged, which must be paid via DARF by the last business day of the month following the sale. Pocket Option provides detailed reports that facilitate this calculation, including currency conversion at the correct dates, significantly simplifying this bureaucratic step.

Income tax declaration for American investments

The declaration of investments abroad follows specific rules which, if not observed, can generate fines of up to 3% of the undeclared value. When buying American stocks, you should register these positions in the “Assets and Rights” form using the specific code 3.31 (Stocks). The value to be declared must be converted to reais using the PTAX dollar exchange rate (reference exchange rate calculated by the Central Bank) of December 31 of the base year.

The Brazilian Capital Abroad Declaration (CBE) has two distinct deadlines: quarterly for those who have more than US$100 million (delivery by the 5th day of the second month after the quarter) and annual for those who have above US$100 thousand (delivery usually between February 15 and April 5). Non-compliance can result in fines ranging from R$2,500 to R$250,000, depending on the undeclared value and the delay.

How to buy American stocks: step by step for the Brazilian investor

The process to buy American stocks involves five practical steps that a Brazilian investor needs to follow. Pocket Option simplifies this process with a fully Portuguese interface and 24/7 local support, eliminating the main entry barriers faced by Brazilians.

Step	Detailed description	Estimated time
1. Broker selection	Select a broker regulated by the SEC or FINRA with Portuguese support, such as Pocket Option (regulated by the SEC since 2015)	1-2 days for research
2. Account opening	Provide passport or RNE, proof of residence from the last 90 days, and a selfie with document	15-30 minutes for registration, 1-2 business days for approval
3. Fund remittance	Transfer via PIX to specialized fintechs like Remessa Online, Wise, or directly via international credit card on Pocket Option	Instantaneous (card) to 1 business day (transfer)
4. Stock selection	Use screening tools that filter stocks by sector, capitalization, dividends, or growth	Varies according to your strategy (from minutes to days)
5. Order execution	Choose between market order (immediate execution at current price) or limit order (execution only at the determined price)	Seconds (market) to days (limit)

A significant advantage when buying American stocks via Pocket Option is the possibility of acquiring fractional shares, allowing investments starting from US$1. This feature democratizes access to companies like Berkshire Hathaway (BRK.A), whose shares cost more than US$450,000 each, or Amazon, which trades above US$3,000 per share. With just R$500, a Brazilian can create a diversified portfolio including fractions of 10 different large companies.

Platforms and brokers for investing in American stocks

Choosing the right broker can significantly impact your results when buying American stocks. A careful comparison of costs, services, and available tools is essential to maximize the potential of your investments.

International brokers with presence in Brazil, such as Pocket Option, which offers 24/7 support in Portuguese, fees starting from US$0.50 per operation, and localized educational materials
Brazilian brokers with international partners, which simplify the declaration but charge average exchange spreads of 2% and monthly custody fees of US$1-3
Traditional American brokers, with a wide range of products including options and futures, but requiring English proficiency and larger minimum values
Brazilian fintechs and digital banks that recently started offering limited access to the American market, usually with a smaller variety of assets but familiar interface

Pocket Option stands out in this competitive scenario with its platform optimized for mobile devices, which allows buying American stocks in just three clicks. Its native app for Android and iOS offers real-time price alerts, notifications about dividends and corporate events, and exclusive educational resources such as weekly webinars in Portuguese specific to the Brazilian market.

Diversification strategies when buying American stocks

International diversification is not just a recommended practice, but a strategic necessity for Brazilian investors. Brazil represents only 2.4% of global GDP and less than 1% of the world capital market, severely limiting the possibilities for those who invest exclusively in the domestic market. By buying American stocks, you access markets that represent more than 40% of global capitalization.

Strategy	Practical implementation	Recommended allocation
Sector diversification	Invest in technology (AAPL, MSFT), health (JNJ, UNH), consumer (PG, KO), energy (XOM, CVX), and finance (JPM, BAC)	15-20% per sector, without exceeding 30% in a single sector
Geographic diversification	American companies with global revenue: McDonald’s (70% international), Coca-Cola (70% international), P&G (55% international)	50-60% USA, 20-30% developed markets, 10-20% emerging
Size diversification	Large caps (VOO), mid caps (IJH), and small caps (IJR) via specific ETFs	60-70% large caps, 20-25% mid caps, 5-10% small caps for moderate profile
Style diversification	Combine value (VTV, BRK.B, JPM) and growth (VUG, MSFT, AMZN)	40-50% value, 40-50% growth, adjusting according to economic cycle

An efficient strategy for beginning Brazilians is the core-satellite approach: 70-80% of the portfolio in low-cost ETFs like VOO (Vanguard S&P 500, 0.03% fee) or VTI (Vanguard Total Market, 0.03% fee), complemented by 20-30% in individual stocks or sector ETFs of your specific interest. This approach, implementable with just US$300 on Pocket Option, provides immediate diversification with room for targeted bets.

American multinationals like Procter & Gamble (55% revenue outside the US), Coca-Cola (70% international), and McDonald’s (more than 60% of revenues from international markets) offer indirect global exposure. These companies often have significant operations in Brazil, as demonstrated by P&G with more than 4,000 employees in Brazilian territory and four local factories, allowing you to benefit from global growth while maintaining a connection to the local economy.

How to invest in American stocks: fundamental analysis versus technical analysis

To make informed decisions when buying American stocks, it’s essential to master analytical techniques adapted to the peculiarities of the North American market. While in Brazil the focus often falls on dividends and the Selic rate, in the US revenue growth and operating margin usually receive greater weight.

Fundamental analysis in the American market

Fundamental analysis in the American market requires understanding specific metrics and practices that differ significantly from the Brazilian market. Instead of the typical Brazilian investor’s focus on dividends, the American market often prioritizes growth and share buybacks.

P/E Ratio: While the Ibovespa average oscillates between 8-12, American technology sectors frequently trade with P/E between 25-35
PEG Ratio: Divides P/E by expected annual growth, with values below 1 indicating potential undervaluation (example: GOOG with P/E 25 and growth of 25% would have PEG 1.0)
EV/EBITDA: Particularly relevant for comparing companies in capital-intensive sectors such as telecommunications and utilities
ROE: Minimum target of 15% for quality companies, with sector leaders frequently exceeding 20% (Apple: 43%, Microsoft: 39%)

Official SEC forms contain critical information that doesn’t appear in superficial analyses. Form 10-K (annual report) and Form 10-Q (quarterly report) include essential sections such as “Risk Factors” (detailed specific risks) and “Management’s Discussion and Analysis” (MD&A), where executives explain performance beyond the numbers. In the “Related Party Transactions” section, you can identify potential conflicts of interest that would affect your decisions when buying American stocks.

Indicator	Practical example (Apple – AAPL)	Sector comparison
P/E (Price/Earnings)	28.5x (April/2024) vs historical average of 17.8x from the last 10 years	Above the hardware technology sector average of 22.4x
Dividend Yield	0.5% vs 10-year treasuries at 4.6%	Below the S&P 500 average (1.5%) but complemented by share buybacks
Debt-to-Equity	1.8x after recent debt issuances for buybacks	Acceptable considering cash position of US$162 billion
Free Cash Flow	US$97 billion (FY2023), growth of 36% in the last 5 years	Absolute leader in cash generation, surpassing 99% of S&P 500 companies

Pocket Option provides exclusive fundamental analysis tools that include automated sector comparisons, insider trading alerts (executive purchases and sales), and earnings calendar with historical price reaction, tools rarely available in Portuguese on other platforms.

The impact of exchange rates when buying American stocks

A determining factor in the final profitability of Brazilians investing in the US is the exchange rate variation, which historically presents volatility above 20% per year. Between 2018 and 2023, the dollar oscillated between R$3.65 and R$5.90, creating both opportunities and risks for those who decided to buy American stocks.

An illustrative case: an investor who invested R$50,000 (US$10,000 at R$5.00) in Microsoft stocks in January 2022 saw their stocks appreciate 15% in dollars until January 2023. However, in the same period, the dollar depreciated 8% against the real. Result: their gain in reais was only 5.8% ((1.15 × 0.92) – 1), significantly below the CDI for the period (13.75%). This demonstrates how exchange rate variation can transform a good investment in dollars into a mediocre result when converted to reais.

Real scenario (2022-2023)	Stock performance	Exchange rate variation	Result in reais
Microsoft (2022)	-28.7%	Dollar -5.3%	-32.5%
Apple (2021)	+34.7%	Dollar +7.2%	+44.4%
Amazon (2020)	+76.3%	Dollar +28.9%	+127.2%
Netflix (2022)	-51.1%	Dollar -5.3%	-53.7%

To mitigate exchange risk, the regular contribution strategy (dollar cost averaging) is particularly effective for Brazilians. Investing US$500 monthly for 24 months between 2020-2022, when the dollar oscillated between R$4.87 and R$5.87, an investor would have obtained an average price of R$5.23, significantly better than trying to “hit the bottom” of the dollar. Pocket Option offers the automated scheduled contribution functionality (AutoInvest), which implements this strategy without the need for manual intervention.

Another effective approach is partial hedging through ETFs inverse to the dollar, such as PBARE11 on B3, which appreciates when the dollar falls against the real. Protecting 30-50% of currency exposure during periods of real strengthening can preserve significant gains. Pocket Option provides customizable currency alerts that notify when the dollar reaches predefined levels, assisting in executing this strategy.

How to buy American company stocks through funds and ETFs

For Brazilians who prefer simplicity or start with smaller amounts, investing indirectly through funds or ETFs offers significant advantages in terms of diversification and practicality. A single contribution of R$1,000 already allows exposure to hundreds or thousands of companies simultaneously.

In Brazil, BDRs (Brazilian Depositary Receipts) democratized access to the American market since 2019, when the CVM allowed their acquisition by retail investors. Today, more than 800 BDRs are traded on B3, representing both individual companies and complete ETFs.

ETFs listed in Brazil: IVVB11 (replicates the S&P 500, fee of 0.23% p.a.), SPXI11 (S&P 500 with currency protection, fee of 0.35% p.a.), NASD11 (replicates the Nasdaq-100, fee of 0.35% p.a.)
Investment funds: BB Ações Índice Dow Jones Investimento no Exterior (fee of 1% p.a.), Itaú Global Dinâmico RF LP (fee of 0.8% p.a.)
BDRs of individual companies: AAPL34 (Apple), MSFT34 (Microsoft), AMZO34 (Amazon), GOGL34 (Google)
American ETFs via Pocket Option: VOO (Vanguard S&P 500, fee of 0.03%), QQQ (Nasdaq-100, fee of 0.2%), VTI (total American market, fee of 0.03%)

Alternative	Specific advantages	Total annual costs (R$10,000)
ETF BDRs	Trading in reais, fiscal simplicity, minimum investment of ~R$40	R$230-350 (management fees + B3 custody)
Brazilian ETFs	Liquidity on B3, simplified division for income tax	R$250-400 (management fees + embedded exchange spread)
International stock funds	Professional active management, applications starting from R$100	R$800-2,500 (management fee + performance)
American ETFs via Pocket Option	Ultra-low fees, superior liquidity, more than 2,000 options	R$30-150 (management fee + remittance cost)

Pocket Option stands out by offering access to 2,317 American ETFs, covering virtually any imaginable strategy: from highly specific sector ETFs (such as FINX – Global X FinTech ETF) to innovative thematic strategies (such as MCHI – iShares MSCI China ETF) and factor-based approaches (such as QUAL – iShares MSCI USA Quality Factor ETF). This breadth allows building a personalized portfolio that would be impossible to replicate exclusively with instruments available on B3.

The future of investment in American stocks for Brazilians

The interest of Brazilians in buying American stocks should continue its upward trajectory, driven by structural factors such as global financial integration and the growing sophistication of the Brazilian investor. ANBIMA data show that Brazilian investments abroad jumped from R$38 billion in 2018 to more than R$84 billion in 2023, a growth of 121% in just five years.

The continuous reduction of operational costs represents an irreversible trend. In 2018, the average cost for international remittances was 3-4% of the value sent, with brokers charging US$10-20 per operation. Today, Pocket Option and competitors offer operations starting from US$0.50 and transfers with costs below 1%, democratizing access to the American market for Brazilians with different wealth profiles.

We also see an accelerated integration between the Brazilian and American financial ecosystems. The number of BDRs listed on B3 jumped from less than 100 in 2019 to more than 800 in 2023. Simultaneously, platforms such as Pocket Option evolved from simple execution tools to complete ecosystems with data analysis, educational materials in Portuguese, and tax planning tools specific to the Brazilian context.

Financial education about international investments is another transformative force. The volume of Google searches for terms like “how to buy American stocks” grew 320% between 2020 and 2023, reflecting the growing interest of Brazilians. Pocket Option contributes to this educational ecosystem with more than 200 annual webinars in Portuguese, as well as structured courses specific to each level of experience, from beginners to advanced investors.

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Conclusion: The path for those who want to buy American stocks

Buying American stocks represents not only an opportunity for diversification but a strategic necessity for Brazilian investors seeking to protect their assets against the historical local economic volatility. With the real having devalued 38% against the dollar in the last decade and the S&P 500 consistently outperforming the Ibovespa in terms of risk-adjusted return, international exposure is no longer optional but has become fundamental.

The process of investing in the American market requires specific knowledge about international taxation (CBE and IR declaration), impact of exchange rate variation (which can significantly amplify or reduce your gains), and adequate selection of brokers and assets aligned with your objectives. However, the potential benefits – access to innovative sectors such as artificial intelligence, advanced biotechnology, and clean energy, as well as protection against local instabilities – justify this additional effort.

Your success in buying American stocks will depend on three critical factors: discipline to maintain a consistent strategy even during periods of volatility (such as the 34% drop in March 2020, followed by full recovery in just 5 months); intelligent management of currency risk (ideally with regular contributions that dilute the average acquisition price of the dollar); and adequate diversification (avoiding excessive concentration in sectors or individual companies, however promising they may seem).

Pocket Option offers not only the technological infrastructure necessary to access the American market but a complete ecosystem specially designed for the Brazilian investor: from simplified fund remittance (with direct integration with Pix) to tax planning tools and educational materials contextualized to our reality. If you haven’t yet started your international journey, now is the ideal time to take this fundamental step towards building a truly resilient and diversified patrimony.

FAQ

Is it legal for Brazilians to buy American stocks?

Yes, it is completely legal for Brazilians to invest in American stocks. There are no legal restrictions preventing Brazilian citizens from owning assets abroad. The important thing is to correctly declare these investments on your Income Tax and, when applicable, on the Brazilian Central Bank's Declaration of Brazilian Capital Abroad (CBE).

How much money do I need to start investing in American stocks?

With modern platforms like Pocket Option that offer the possibility of buying fractional shares, it's possible to start with relatively low amounts, such as US$100 or less. Some brokers don't require a minimum investment, allowing you to start your international portfolio with whatever amount you have available.

How does taxation work for dividends from American stocks?

Dividends from American stocks received by Brazilians are subject to a 30% withholding tax at source, which can be reduced to 15% by filling out the W-8BEN form. In Brazil, these dividends must be declared as tax-exempt income on your Income Tax return, since taxation has already occurred at the source.

Is it better to invest directly in the US or use BDRs on B3?

It depends on your goals and available funds. BDRs are simpler in operational and tax terms, as they are traded in reais on B3. Direct investment offers a greater variety of assets, generally lower costs, and access to full dividends. For larger amounts and investors seeking a complete portfolio, investing directly through platforms like Pocket Option tends to be more advantageous.

How can I protect myself from exchange rate fluctuations when investing in American stocks?

There are several strategies to mitigate currency risk: make regular contributions to dilute the average purchase price of the dollar; use derivatives as currency hedging (dollar futures contracts); invest in companies that already have revenue in dollars; or maintain an emergency reserve in foreign currency. Pocket Option offers tools that help monitor your currency exposure and make more informed decisions.