Stock Exchange (B3): What It Is, How It Works, and How to Invest Safely

The B3 Stock Exchange: What It Is, How It Works, and How to Invest Safely

The B3 Stock Exchange is the main market for trading financial assets in Brazil and represents one of the key pillars of the national economy. With the growing popularity of investments, especially among Brazilians who once kept their money in savings accounts, understanding how B3 operates is essential for those looking to diversify and seek higher returns.

In this article, you will discover what B3 is, how it works, the types of assets traded, investment tips, risks involved, and interesting facts every investor should know.

📌 What is B3?

B3 (Brasil, Bolsa, Balcão) is Brazil’s official stock exchange. It was formed in 2017 through the merger of BM&FBovespa (the former São Paulo Stock Exchange) and Cetip, a company responsible for registering fixed-income assets and derivatives.

B3 is not only a place where stocks are bought and sold. It also operates:

• Stock market

• Private fixed income

• Derivatives

• Commodities

• Over-the-counter market

• Cryptoassets (via funds and ETFs)

Headquartered in São Paulo, B3 is considered one of the largest stock exchanges in the world by market value.

📊 How B3 Works

B3 is a digital platform that connects investors to companies, banks, and the government through the buying and selling of assets. All transactions are made electronically and go through systems for settlement, custody, and registration, ensuring security and transparency.

The exchange operates Monday to Friday, with the following main hours:

• Pre-opening: 9:45 AM to 10:00 AM

• Regular trading: 10:00 AM to 5:55 PM

• Aftermarket: 6:30 PM to 7:30 PM (on business days)

🧾 What is Traded on B3?

On B3, you can invest in different types of assets:

📈 Stocks
Shares represent part of the capital of listed companies. When you buy a stock, you become a shareholder of the company.
Popular examples: Petrobras (PETR4), Vale (VALE3), Itaú (ITUB4), Magazine Luiza (MGLU3).

💰 Real Estate Investment Funds (FIIs)
These allow you to invest in real estate without directly purchasing properties. Investors receive rental income in the form of dividends.

🔁 ETFs (Exchange-Traded Funds)
Funds that replicate the performance of indices like IBOVESPA, S&P 500, or the Cryptoasset Index.

💼 BDRs (Brazilian Depositary Receipts)
These allow you to invest in foreign companies like Apple, Google, and Amazon, without leaving B3.

📜 Government Bonds (via Tesouro Direto)
Though traded in partnership with the National Treasury, they are integrated into B3’s infrastructure.

🔧 Derivatives
Contracts for the future buying and selling of assets like the dollar, live cattle, soybeans, coffee, etc.

📚 Interesting Facts About B3

• The first stock exchange in Brazil was founded in 1890 in Rio de Janeiro.

• B3 is one of the five most technologically advanced stock exchanges in the world, capable of handling more than 10 million orders per second.

• Over 6 million Brazilians have active accounts with brokers linked to B3 (as of 2024).

• The Ibovespa index, the main indicator of the exchange, includes the most traded and liquid stocks.

💡 Tips for Investing Safely on B3

1. Study Before You Invest
   Understand the basics of stocks, dividends, volatility, and fundamental or technical analysis.

2. Choose a Good Broker
   Brokers like NuInvest, XP, Clear, Rico, and Modal offer access to B3. Compare fees, platforms, and support.

3. Define Your Investor Profile
   Are you conservative, moderate, or aggressive? This defines which assets suit your risk appetite.

4. Diversify Your Portfolio
   Never put all your eggs in one basket. Mix stocks, REITs, fixed income, and even BDRs.

5. Use the Long Term to Your Advantage
   The market is volatile in the short term, but historically rewarding in the long run.

6. Take Advantage of Home Broker and Apps
   Today, anyone can invest with a few clicks. Apps like Kinvo, Real Valor, and Trademap help you track everything.

⚠️ Risks of Investing on B3

Investing in variable income requires awareness of risks. Here are the main ones:

• Price volatility: Stocks go up and down all the time.

• Liquidity risk: Some assets may be difficult to sell.

• Credit risk: Especially in private fixed income and REITs.

• Political and economic risk: Changes in politics, interest rates, and inflation affect the market.

💡 Bonus Tip: Start small and gain confidence. Simulators and virtual portfolios are great for practice.

🔍 Key Indices on B3

• Ibovespa (IBOV): Brazil’s main stock market index.

• IFIX: The index for real estate investment funds.

• IBrX-50: The 50 most traded stocks on the exchange.

• Corporate Sustainability Index (ISE): Includes companies with good environmental, social, and governance (ESG) practices.

🔎 Examples of Popular Strategies

📈 Buy and Hold
Buy shares of good companies and hold them for years. Ideal for those focused on wealth growth and dividends.

📉 Swing Trade
Buying and selling with a focus on the short or medium term, based on chart and technical analysis.

🔄 Day Trade
Buying and selling within the same day. High risk, recommended only for experienced investors.

🧠 The New B3 Investor Profile

• Average age: 33 years

• Growth of female investors: +55% in 2 years

• High presence of young people (18-25 years) entering through apps

📊 Recent Data from B3 (2024)

• Number of registered CPFs: Over 6.4 million

• Average daily trading volume: R$ 34 billion

• Listed companies: Around 430

• Available REITs: Over 400

• ETFs and BDRs: Growth above 60% per year

📈 Advantages of Investing on the Exchange

• High return potential

• Possibility to receive dividends

• Participation in company growth

• Portfolio diversification

• Protection against inflation (depending on assets)

❌ Disadvantages and Cautions

• Risk of capital loss

• Requires constant study

• Subject to external and internal crises

• Influenced by emotional factors (like fear and greed)

✅ Conclusion

B3 is the heart of Brazil’s financial market and offers a wide variety of options for those looking to invest with intelligence and a long-term vision. Understanding how the exchange works, the available assets, and being mindful of the risks are essential steps to becoming a successful investor.

With easy access, educational content available online, and increasingly lower fees, investing in the stock exchange has never been more accessible than it is now. But remember: investing requires patience, discipline, and continuous learning.