6 minute read
Is JustMarkets Legal in Brazil? A Comprehensive Review
from JustMarkets
by Exness_India
Yes, JustMarkets is not legally authorized to operate in Brazil under the regulation of the Comissão de Valores Mobiliários (CVM), Brazil’s Securities and Exchange Commission. Although Brazilian residents can technically access the JustMarkets platform online, doing so involves significant legal and financial risks due to the lack of local authorization. In this article, we’ll explore exactly what that means, what the legal implications are, and whether it’s safe—or wise—for Brazilian traders to use JustMarkets.
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Understanding JustMarkets and Its Global Presence
JustMarkets is an international online forex and CFD broker that provides trading services in currency pairs, indices, stocks, commodities, and cryptocurrencies. The company operates under the legal entity Just Global Markets Ltd., which is registered and regulated by the Financial Services Authority (FSA) of Seychelles.
While Seychelles is an offshore jurisdiction that allows brokers to operate globally with lighter restrictions, its regulatory framework is not considered robust by most developed nations, including Brazil. This becomes especially relevant in countries where financial markets are tightly controlled, like Brazil.
Brazil’s Strict Financial Market Regulation
Brazil has a well-defined regulatory structure for financial institutions. The Comissão de Valores Mobiliários (CVM) is the primary regulatory body responsible for overseeing the securities market, including brokers offering forex and CFD services.
Under CVM Instruction 505 and Instruction 621, only companies authorized by CVM can offer securities and derivatives trading services to Brazilian residents. These rules are designed to protect retail investors from fraud, ensure market stability, and enforce standards of transparency and accountability.
JustMarkets does not hold any license from CVM. This means that while they may advertise and accept clients from Brazil, they do so without any formal approval or oversight from the Brazilian regulator.
Is It Illegal to Trade with JustMarkets in Brazil?
This is where things get nuanced.
It is not illegal for Brazilian residents to access foreign brokerages on their own initiative. Brazilian traders can technically open accounts with JustMarkets and trade online. However, the broker itself cannot actively solicit or promote its services in Brazil without authorization from CVM.
If JustMarkets were found to be marketing directly to Brazilians—via paid ads, Portuguese-language content, local partnerships, or seminars—it could be subject to investigation and penalties by CVM. In fact, CVM has previously issued warnings and sanctions against unregulated brokers targeting Brazilian clients.
For traders, the key legal risk is not criminal liability, but the lack of protection. If a dispute arises, Brazilian courts may not be able to enforce any financial remedy. Since JustMarkets is not registered in Brazil, investors have no local recourse for complaints or recovery of lost funds due to malpractice or insolvency.
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CVM Warnings Against Offshore Brokers
CVM has an active track record of issuing public notices against unregulated brokers. The regulator often publishes official “Alerta ao Mercado” (Market Alerts) to inform the public about unauthorized companies offering financial services in Brazil.
Although JustMarkets has not been explicitly named in such alerts as of the time of writing, similar offshore brokers operating under comparable structures—regulated only by jurisdictions like Belize, Seychelles, or St. Vincent—have been blacklisted in the past.
This shows that CVM closely monitors such activity and may at any time restrict access to foreign domains or take legal action, especially if evidence of direct solicitation in Brazil surfaces.
Risks of Trading with JustMarkets from Brazil
Even though it may seem convenient to trade with JustMarkets, there are significant risks involved for Brazilian residents:
No Investor ProtectionBrazil offers strong investor protection laws under CVM. By choosing an offshore broker like JustMarkets, traders waive all those rights, including the right to dispute resolution or protection from broker defaults.
Unregulated EnvironmentWhile JustMarkets is regulated by Seychelles FSA, that regulation is minimal. There’s limited capital adequacy requirements, no compensation fund, and weak enforcement mechanisms.
Language Barriers and Jurisdiction IssuesAny legal issue would need to be resolved under Seychellois law, in a foreign language, with unfamiliar legal procedures. Brazilian traders would find it extremely difficult to assert their rights or file claims against the broker.
Possibility of Account Freezes or RestrictionsIf CVM decides to ban or block JustMarkets’ domain or payment channels, Brazilian traders could lose access to their accounts or face delays in withdrawals.
Risk of Misleading PromotionsOffshore brokers often use misleading promotions, bonuses, and leverage offers to attract clients. These may violate Brazilian regulations and lead to unexpected financial exposure.
Why CVM Approval Matters
CVM authorization is more than just a formality—it’s a guarantee that the broker adheres to local standards of security, transparency, and accountability. It also ensures that the broker is subject to Brazilian law, which means that local investors are protected under the country’s legal and financial systems.
A CVM-regulated broker must:
Maintain client funds in segregated accounts
Submit regular audits
Employ licensed professionals
Provide a clear dispute resolution process
Offer investor education and risk disclosures
None of these are mandatory under Seychelles regulation, and therefore JustMarkets is not held to the same standards.
Alternatives for Brazilian Traders
If you’re based in Brazil and looking to trade forex or CFDs legally, your best option is to use a broker that is either:
Authorized by CVM
Registered in a jurisdiction with a cooperation agreement with Brazil, such as the European Union or the United States.
Some globally reputable brokers—such as those regulated by CySEC (Cyprus) or FCA (UK)—may not be CVM-authorized but are generally considered safer due to stricter regulations and transparency.
Always check whether a broker:
Has a strong regulatory background
Offers investor protection
Uses secure and transparent trading platforms
Provides clear risk disclosures
Is not the subject of regulatory warnings
The Bottom Line
No, JustMarkets is not legal in Brazil in the sense that it is not regulated or authorized by the Comissão de Valores Mobiliários (CVM). While Brazilian residents can technically access the platform and open accounts, they do so at their own risk, without any legal protection or guarantee of fairness.
The Brazilian government does not criminalize individuals for trading with offshore brokers. However, such activity leaves traders fully exposed to the risks of fraud, mismanagement, or broker insolvency—without recourse through Brazilian legal systems.
If you're serious about online trading in Brazil, it's highly advisable to seek brokers that operate under CVM's supervision or come from jurisdictions with strong regulatory reputations. This will ensure your investments are safeguarded and that your rights as a trader are upheld.
Always do your due diligence, check the regulator’s website, and avoid unregulated platforms like JustMarkets when trading from Brazil. It may seem like a shortcut, but in the long run, regulatory oversight is your best protection.
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