Frederick Potter 
Itaú started blocking CFD deposits last January and the dominos fell fast. Bradesco followed in March. Santander in May. By December, Brazilian traders couldn’t fund international trading accounts through any major bank. Banks claim they’re protecting customers from fraud, but really, they’re protecting themselves from liability when customers lose everything and blame the bank for allowing transfers. Nobody believes the consumer protection excuse, but banks control the pipes.
Traders discovered the blocks randomly when transfers failed without explanation. Error messages saying “Transaction not permitted” with no details. Bank apps rejecting payments to companies they transferred to yesterday. Phone support agents reading scripts about “security measures” while refusing to process manual transfers. The walls went up overnight without warning. Online CFD trading became impossible for traders who only had accounts at major banks.
Digital banks scooped up the blocked customers at first, thinking they’d found a goldmine. That didn’t last long though. Regulatory pressure hit them just as hard, and these supposedly innovative platforms buckled faster than anyone expected. Now even the digital options make life difficult with their annoying extra verification steps, dramatic warning screens, and mandatory waiting periods before any money moves.
Nubank kept the door open longer than most traditional banks, which gave traders a brief window of hope. But they still threw up roadblocks everywhere possible. Inter and C6 Bank process some transfers now, but traders know the axe is coming. Nobody’s betting on these banks staying friendly much longer. The digital banks talk a big game about wanting younger customers, but when push comes to shove, they’re just as scared of the regulators as everyone else. They’re playing both sides until forced to choose.
Workarounds emerged immediately because Brazilian traders don’t give up easily. Traders opened multiple bank accounts with smaller institutions that don’t block transfers yet. Payment processors that disguise CFD deposits as other services. Cryptocurrency bridges that convert reais to stablecoins to dollars to trading accounts. Each workaround adds costs and complexity. Traders pay 5% in various fees just to deposit money banks should transfer directly.
Banks blocking CFD deposits didn’t stop Brazilians from losing money to scams. Scammers pivoted quicker than anyone in the legitimate space could keep up. These operators switch merchant codes like changing clothes, set up dummy companies with boring names like “Administrative Services Ltd,” and run payments through completely unrelated businesses. Someone thinks they’re funding their trading account with “International Financial Group” when the money actually flows through a pet supply company in Uruguay before landing in some offshore account. Meanwhile, banks slam the door on legitimate brokers while these fraudsters slip through every crack.
The Central Bank of Brazil maintains radio silence about banks blocking perfectly legal international transfers. There’s no official rule forcing these restrictions. Banks just decided on their own to play judge and jury without any regulatory backing. They created this mess themselves and now act like they’re following orders that don’t exist. The whole system protects nobody except the banks’ own liability concerns while actual criminals keep finding new ways around every barrier. They coordinate informally to avoid competition over who allows CFD deposits. The cartel behavior would trigger antitrust investigation if Brazilian authorities cared about retail traders. They don’t. Banks protect their interests while regulators look away.
On Twitter, screenshots of blocked transfers and angry customers closing accounts flood the platform. Facebook groups organize campaigns to switch banks. Nothing changes. Banks calculated that upset CFD traders matter less than potential fraud liability. They’d rather lose young customers than face lawsuits from trading losses. The math favors blocking even if it destroys customer relationships.
International brokers also figured out the method of beating the system using Brazilian payment companies that are hard to block by the banks. These local processors hardly look suspicious to the banking systems, but silently transfer funds abroad without raising any red flags.
Some processors spotted easy money in all this chaos. They take what appears like normal payments to banks and silently forward the cash overseas to brokers. Banks see regular transactions and don’t ask questions. Banks assume it’s regular business, so the money moves without any hassle. They keep squeaky clean records with banks while serving as conduits for trading platforms. The whole operation flies under the radar because banks only see routine domestic payments, not funds heading to offshore brokers. They maintain clean banking relationships while acting as middlemen for trading platforms. Banks see regular domestic transactions instead of funds flowing to international brokers, so everyone gets their money while staying off the radar. They maintain clean banking relationships while acting as middlemen for online CFD trading platforms. Banks are hardly in a position of making a distinction between local reality transactions and cash designated to foreign dealers as a remittance. Everybody is getting their own way without being scrutinized by the regulations. These partnerships cost brokers percentage points in fees passed to traders through wider spreads. Brazilian traders pay for their banks’ blocking policies through worse trading conditions. The friction makes profitable trading even harder.
Class action lawsuits against banks started appearing but won’t succeed. Banks hide behind terms of service that let them refuse any transaction they consider risky. Courts consistently back financial institutions over regular customers in these disputes.
Lawyers still take on these hopeless cases because desperate traders are paying upfront fees anyway. Everyone knows the legal challenges will fail, but people throw money at attorneys when they can’t access their funds. The system treats banking restrictions as reasonable business decisions rather than barriers to legitimate commerce. The legal system protects banks’ right to control customer money however they choose. When banks choose that their money cannot leave Brazil, the Brazilian traders will find little to no recourse.
The truth is banks hate CFD trading because it removes deposits from their system. Every real sent to international brokers is money banks can’t lend or invest. Online CFD trading threatens their business model of keeping Brazilian savings captive. The fraud protection excuse covers their real motivation. Banks want Brazilians investing in their own expensive products, not seeking better opportunities internationally. The blocks will continue expanding until trading CFDs from Brazil becomes practically impossible. Banks already won this war, even if most traders haven’t accepted defeat yet.