Forex Trading Sessions in Brazil

Classical Forex Trading Sessions

Even though the market is accessible around the clock, most investors only trade during regular business hours, after work, or even at night. Although many Brazilian small-time investors have used the Forex market to stabilize their financial portfolios, trading profits are only realized at certain times.

There are times of the day when the most liquid asset class, known as Forex, is consistently volatile, and there are times when it is more subdued. This brings us to the different Forex trading sessions.

Types Forex trading session

Forex trading sessions

These are the different types of Forex trading sessions:

Below is the volume of transactions during each Forex trading session:

Another crucial factor to consider is Forex session overlap. Overlapping trades appear to impact trade volumes as traders rush into the market to execute transactions simultaneously. Due to the significant increases in trading volumes, there is more liquidity, which leads to fewer slippages, more opportunities for orders to be filled, and lower spreads on currency pairs. Here are the different times when Forex sessions overlap.

Data showing the best days to trade Forex

The analyzed data indicated that Tuesday and Wednesday are the most consistent trading days, which helped us to give a more precise answer to the question of when it is best to trade Forex in Brazil. Regarding price movement and liquidity, Thursday and Friday are the busiest days.

The key economic statistics that are released on Monday directly affect trading. When there is not much of it, the day is not active; however, when there is, liquidity and activity rise to levels resembling Tuesday and Wednesday.

According to the research, Thursday and Friday are the most liquid and volatile days of the week to trade in Brazil. Let's look at the time zones in Brazil.

Time Zones in Brazil

The time zone commonly referred to as BRT, or UTC-03:00, is thought to be the official time zone for Brazil. Moreover, UTC-03:00 is the official time zone for 22 of the 27 Brazilian states.

The time zone is adjusted for daylight saving time and is the same as Argentina, Chile, and Uruguay. When Brazil observes daylight saving time, the clock is advanced by one hour, changing Brazil's official time from UTC-03:00 to UTC-02:00.The states that use UTC-04:00 and UTC-05:00 to the Brazil Official Time are now one hour apart from each other as a result of the move of the Brazil Official Time.

While daylight saving time is not observed in all Brazilian states, each state has its own set of business hours. Additionally, this time zone has an impact on national Forex trading.

What is the Best Time to Trade Forex in Brazil?

Firstly, you can trade the Forex market 24 hours a day, with trading taking place from 5 p.m. EST on Sunday to 4 p.m. EST on Friday. Again, Brazil's regular trading hours are from 10 a.m. to 5 p.m. Brasilia Time, and during daylight saving time, they are from 11 a.m. to 6 p.m. Brazil observes daylight saving time at 2:00 a.m. GMT, typically from October to March.

Because currency markets don't close very often, you can benefit from opportunities for international trading every day except weekends. Trading is profitable when the market is most active, though not all times of the day are equally advantageous. And this ought to be the case whenever more than one of the four markets is open at once. The overlapping of two trading sessions means there will be more significant fluctuations in currency pairs. But when's the best time to trade Forex in Brazil?

Best Time for Forex Day Trading in Brazil

Day traders can enjoy trading during times of high liquidity (i.e., Tuesday through Thursday). This can be the best time to trade Forex in Brazil. Despite Monday afternoons seeing an increase in trading volume, Tuesday is the earliest that the Forex market reaches its peak liquidity.

The Brazilian foreign exchange market is open for business from 9:00 a.m. to 5:00 p.m. (local time), Monday through Friday. Additionally, due to the high trading volume, the time period between the U.S. and London markets (8 a.m. to noon EST) offers the best trading opportunities.

Daily traders need to be aware of the events or times that will work in their favor on the Forex market. For example, trading during Forex liquidity indicates that a trader can sell and buy a currency pair without impacting the exchange rate.

Any changes in liquidity have an effect on price and market volatility. As a result, the market becomes less erratic, though prices fluctuate less. Trading during times of high liquidity also reduces the possibility of slippage, speeds up order fulfillment, and narrows bid-offer spreads.

Best Forex Pairs to Trade in Brazil Trading Sessions

While Forex traders may operate in a variety of currency pairs, traders from Brazil might be interested in trading the USD/BRL Forex currency pair.

The most volatile Forex market conditions are created when Sydney/Tokyo, Tokyo/London and London/New York overlap. And this time of market volatility might be a great time to buy or sell currencies pairing the U.S. dollar.

What is the best time to trade Brazilian real to Dollar BRL/USD?

You can trade currency pairs, including USD/BRL, around the clock. But it is best to trade when Forex trading is most busy, usually between 08:00-12:00 ET. This might not be definite, which is because the best time to trade the Brazilian real to the US dollar (BRL/USD) depends on several factors. These include market liquidity, volatility, and economic news releases.

Let’s consider the best times to trade Forex (BRL/USD) in Brazil:

Best Forex Pairs to Trade in Brazil Trading Sessions

The most volatile conditions for the Forex market are during the Sydney and Tokyo, Tokyo and London, and London and New York overlaps. And this overlap, which increases Forex market volatility, might be a great time to buy or sell the following currency pairs.

Note:

Brazilian Forex day traders' trading hours vary according to the currency pairs they are trading and the market sessions they favor. The last significant session of the day is the New York Session, which begins at noon GMT (or 9:00 AM Brasilia Time) and ends at 9:00 PM GMT (or 6:00 PM Brasilia Time). The trading volume rises during the London session, which is known for having high liquidity and is frequently the busiest when it overlaps with the New York session.

What is the best time to trade Brazilian BRL/USD?

According to experts, the best time to trade currency pairs is when the market is most active, which is considered the best time to trade BRL/USD. Although you can trade BRL/USD at any time, the best time to trade Forex (BRL/USD) in Brazil is during any of the periods stated below.

Time to Pause Forex Trading in Brazil

While you strive to know the best time to trade Forex in Brazil, learning when to avoid trades is crucial. You must have read in the first section of this article that the best times to trade Forex in Brazil are during times of high liquidity. However, the worst times to trade Forex in Brazil and other countries across the globe are:

Note:

When you are preoccupied and unable to monitor the trades, you may also need to pause any trading activities. Also, refrain from keeping open positions if you are ill, embarking on a journey, or attending events. Keep up with current events, economic indicators, and market trends domestically and abroad. The information gathered can help you know the best time to trade Forex in Brazil.

Best Forex Brokers in Brazil

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50, $100 (for UK clients)

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

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2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

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