Investing abroad from Latin America: a guide
How to buy foreign stocks and ETFs from Mexico, Colombia, Chile, Peru, Brazil or Argentina: the main routes, costs, taxes and currency risk.
Oct 30, 2026 · 5 min read
A few years ago, buying an S&P 500 ETF from Bogotá, Lima or Santiago was complicated and expensive. Today there are several routes, and they keep getting cheaper. But choosing the right one matters: commissions, exchange rates and taxes can eat a big part of your return if you don't look at them carefully.
This guide is general and educational. Rules vary by country and change over time: before investing, confirm the details with your broker and, if you have tax questions, with an accountant in your country.
Why invest abroad
Before the how, the why. Latin American stock markets are small: together they make up around 1% of the world stock market, and they're concentrated in a few sectors, like banks, commodities and energy. Investing only in your country means depending on one economy and one currency. We explain it in detail in internationally diversified portfolio.
The most common routes
1. Local markets that list foreign assets
Several countries let you buy foreign stocks and ETFs on the local exchange, in local currency, through a local broker:
- Mexico: the International Quotation System (SIC) lists hundreds of foreign stocks and ETFs.
- Colombia: the Colombian Global Market lets you buy foreign securities on the Colombian Stock Exchange.
- Argentina: CEDEARs are certificates that represent foreign stocks and ETFs and trade in pesos.
- Brazil: BDRs play a similar role on the São Paulo exchange.
- Chile and Peru: their exchanges also have markets for foreign securities, though the offering tends to be more limited.
Pros: you use a broker in your country, in your currency, under local tax rules you know better. Cons: the offering is smaller, some instruments have little liquidity and the bid-ask spread can be high.
2. International brokers
Many US and European brokers accept Latin American clients. You open the account online, transfer dollars and buy directly on the New York, London or Frankfurt exchanges.
Pros: access to thousands of stocks and ETFs, low commissions and plenty of liquidity. Cons: you have to send money abroad (at a cost), report the account in your country and deal with taxes in two countries.
Before choosing one, check that it's regulated by its country's authority (for example, the SEC and FINRA in the United States) and that it offers client asset protection.
3. Local funds that invest abroad
Mutual funds, voluntary pension funds and some apps in your country offer funds that invest abroad. They're the easiest option, but they usually charge higher management fees and give you less control over what you buy.
The costs to watch
| Cost | What it is | How to reduce it |
|---|---|---|
| Trading commission | What the broker charges to buy or sell | Compare brokers; trade less often |
| Exchange rate | The margin when converting your currency to dollars | Ask for the exact rate, not just the fee |
| Transfer | The cost of sending money abroad | Send larger amounts, less often |
| ETF expenses | The fund's annual fee (expense ratio) | Prefer broad, cheap ETFs |
| Spread | Gap between the buy and sell price | Avoid thinly traded instruments |
| Custody | Periodic fee to keep the account | Read the fine print |
A cost that looks small becomes large over time. Paying 1% more per year for 20 years can take almost a fifth of the portfolio's final value.
Taxes: what's worth knowing
Without going into each country's details, three points apply almost everywhere:
- Your country taxes what you earn abroad. In most Latin American countries, residents are taxed on worldwide income. Foreign gains and dividends usually have to be reported.
- The United States withholds tax on dividends. If you invest in US stocks or ETFs as a non-resident, 30% of dividends is usually withheld, or less if your country has a tax treaty with the US. That's why brokers ask for the W-8BEN form.
- US estate tax. For non-residents, US assets above a relatively low amount may be subject to this tax. It's one of the reasons some investors prefer Ireland-domiciled ETFs (UCITS), which trade in London or Amsterdam.
These points have exceptions and nuances. If you'll invest significant amounts, a consultation with a specialist is worth it.
Currency risk
When you invest in dollars or euros, your result also depends on what your currency does. If the peso devalues, your dollar investments are worth more in pesos; if it strengthens, they're worth less. For many Latin Americans this is a protection: in local crises the currency usually falls and dollar assets compensate. We explain it in currency risk.
The optimizer calculates everything in your currency (Mexican, Colombian, Chilean or Argentine pesos, soles, reais, dollars or euros), so currency risk is already included in the result.
A simple plan to get started
- Define how much and what for. Money you won't need for several years.
- Pick the route. If you prefer simplicity, the local market for foreign assets. If you prefer more choice and lower costs, a regulated international broker.
- Start with a few broad ETFs. For example, one global stock ETF and one bond ETF. You can explore ideas in the "Global diversified" example.
- Check costs and the exchange rate before every trade.
- Keep your records for your tax return.
Frequently asked questions
Is it legal to invest abroad from Latin America? Generally yes, but each country has rules on sending money abroad and reporting investments. Check yours, especially in Argentina, where currency controls change often.
What's the cheapest way to buy an S&P 500 ETF? It depends on your country and the amount. Compare the trading commission, the exchange rate you're given and the ETF's annual fee. The exchange rate often costs more than the visible commission.
What happens to my investments if the broker goes bust? At a regulated broker, your stocks and ETFs are held in your name and kept separate from the broker's own assets. In the US there is also a protection scheme for clients of registered brokers. Always check the registration before opening an account.
In short
Investing outside Latin America has never been easier, but the route you choose changes the costs, the taxes and what's available. Compare commissions and exchange rates, prefer broad, cheap ETFs, and don't forget to report. International diversification is worth it, but only if the fine print doesn't eat it.
Sources and further reading
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Disclaimer: Educational and simulation tool. It is not investment advice or a personalized recommendation. Past performance does not guarantee future results.