Real Estate Funds - Learn about the Main Types in the Market
BDRs, or Brazilian Depositary Receipts, are certificates that represent shares issued by foreign companies, but which are traded on the Brazilian financial market.
Investing in large US technology companies, such as Meta (owner of Facebook, Instagram and WhatsApp), attracts more and more Brazilians.
Fortunately, this is possible through BDRs (Brazilian Depositary Receipts), which represent foreign shares traded on the Brazilian stock exchange.
In this guide, we explain what BDRs are, how they work, the benefits and necessary precautions, as well as suggesting some reliable platforms to get started.
BDRs are certificates that represent shares in foreign companies, such as Meta, and are traded on B3, the Brazilian stock exchange.
When you purchase a Meta BDR, for example, you do not purchase the share directly in the US, but rather a receipt that is equivalent to a fraction or the full value of a share in the company, depending on the type of BDR.
The main advantages of investing in BDRs include the possibility of diversifying your portfolio with global companies, without needing to open an account with foreign brokerage firms, and the ease of purchasing directly through your brokerage firm in Brazil.
Plus, you also avoid international shipping and currency exchange costs.
It is worth remembering that the value of a BDR fluctuates according to the performance of Meta shares on the US stock exchange and the dollar exchange rate, so it is important to be aware of exposure to foreign currency.
Meta, with a strong presence in social media and technology, continues to grow and explore areas such as the metaverse and artificial intelligence.
This potential for innovation and growth attracts investors who wish to participate in this advancement, and BDRs facilitate access for Brazilian investors.
However, investing in BDRs also presents risks, such as exposure to the dollar and the technology sector itself, which can be volatile.
Before investing, it is crucial to understand Meta's behavior in the market and evaluate your investor profile.
Investing in Meta BDRs is simple, especially if you already have an account with a brokerage firm.
Below, we've detailed the process to help you take the first step:
If you don't already have a brokerage account, you need to open one.
Most Brazilian brokers offer access to BDRs.
Choose one that is regulated by the CVM and has good user reviews.
After opening the account, transfer the amount you want to invest.
Remember that the amount in reais will be converted according to the Meta BDR quote, which varies according to the dollar.
In your broker’s app or website, search for “Meta” or the code “M1TA34”.
This is the Meta BDR code on B3. Check the BDR value and confirm if it aligns with the amount you wish to invest.
After finding Meta's BDR, choose the quantity you want to buy and complete the transaction.
Remember that brokers may charge brokerage fees, so factor this into your investment calculation.
Once you have purchased the BDR, monitor Meta's performance on the American stock exchange and the dollar exchange rate, as this will affect the value of the BDRs in Brazil.
Investing in BDRs is a form of diversification, but it is important to take some precautions to protect your capital.
First, keep in mind that the price of the BDR may fluctuate depending on the price of the original share in the US and the variation of the dollar.
If the dollar rises, the value of your BDR may increase, but if it falls, the value tends to follow this fall.
Another important point is to consider the volatility of the company and the technology sector, which can present strong fluctuations.
Evaluate your investor profile: If you are more conservative, you may want to limit your exposure to the technology sector or invest only a small portion of your capital.
Also, always consider operating costs and taxation on earnings.
In the case of BDRs, the investor must be aware of income tax and annual declarations.
To invest in a practical way, many people prefer to use brokerage apps that offer good reviews and intuitive usability.
Below, we suggest some options to facilitate your access to Meta BDRs, with links to download apps and evaluations:
In conclusion, investing in Meta through BDRs is an excellent opportunity to diversify and have access to one of the largest technology companies in the world, directly through the Brazilian market.
Therefore, with the use of a Brazilian broker and easy-to-access applications, the process becomes simpler and more convenient.
