CVM Resolution 598/2018 prohibits offering binary options contracts in Brazil. The CVM continues to enforce it.
What the rules actually say
Brazil is simultaneously the single largest source of binary options traffic worldwide and a market where the product is prohibited. The CVM classifies binary options as closer to betting than to securities, and on 13 November 2025 it suspended 24 digital platforms offering crypto, forex, derivatives and binary options without authorisation, under threat of daily fines. Separately, B3 is introducing prediction-style derivatives — structured as binary options on the US dollar, the Ibovespa and bitcoin — but access is restricted to professional investors holding more than R$10 million in financial investments.
The supervising authority is the Comissão de Valores Mobiliários (CVM).
What it means if you already have an account
A prohibition does not retroactively unwind an account you already opened, and it does not by itself make your balance recoverable. The order of operations that actually helps: request the withdrawal in writing, preserve every reply, check your card issuer's chargeback window, and file with whichever regulator licensed the entity named on your client agreement — which is frequently not the entity whose brand is on the website.
Legal alternatives in Brazil
CVM-registered intermediaries and B3-listed derivatives. The B3 launch is the first regulated route to this payoff structure in Brazil.
Why the bans happened
Three of the world's largest retail markets prohibited binary options for retail clients within three years of each other — the EU in 2018, the UK in 2019 and Australia in 2021 — and the reasoning was consistent across all three. Regulators found that a large majority of retail accounts lost money, that the short expiry structure made the product indistinguishable from betting, and that the broker was typically the direct counterparty to the client's position.
Frequently asked questions
Are binary options legal in Brazil?
CVM Resolution 598/2018 prohibits offering binary options contracts in Brazil. The CVM continues to enforce it.
Am I breaking the law as an individual trader?
In most prohibition regimes the measure binds the provider, not the client: an authorised firm may not offer you the product, but you are not committing an offence by holding an account. The practical consequence is different and worse — an unauthorised counterparty means no complaints procedure and no compensation scheme.
I already have an open account. What now?
Request a withdrawal in writing and keep the correspondence. If you funded by card, ask your bank about a chargeback — time limits apply and they are shorter than most people expect. If the operator held a licence anywhere, file with that regulator. Treat any unsolicited offer to recover your funds for an upfront fee as a second fraud.
What can I trade in Brazil instead?
CVM-registered intermediaries and B3-listed derivatives. The B3 launch is the first regulated route to this payoff structure in Brazil.
How do I check whether a provider is licensed?
Search the Comissão de Valores Mobiliários register directly rather than trusting a licence number printed in a website footer. Confirm the exact legal entity name on your client agreement matches the register entry — groups often run a licensed entity for one product and an offshore entity for another.
Risk warning: binary options are high-risk speculative instruments and most retail accounts lose money. Nothing on this page is investment advice or a recommendation to trade.
This page describes the regulatory position as we understand it and is not legal advice. Verify against the CVM directly before acting.