The Bolsa Mexicana de Valores (BMV) is Mexico's main stock exchange. A second exchange, the Bolsa Institucional de Valores (BIVA), also lists shares and trades many of the same companies. The National Banking and Securities Commission (CNBV) supervises the market. Shares are priced in Mexican pesos (MXN), and the main benchmark is the S&P/BMV IPC.
This guide explains how a person buys Mexican shares, what is special about the market, and what to check before you commit money. It is general information and not advice on any share. Fees, taxes and rules change, so confirm the current position with an authorised broker.
How the market is organised
Listed companies include banks, telecoms, retailers, beverage and food groups, cement and mining firms, airports and holding companies. Many carry the suffix S.A.B. de C.V. in their name, which marks a listed public company. Shares are held electronically at Indeval, the central securities depository, so you do not receive paper certificates.
Mexico also has real-estate investment trusts called FIBRAs, which hold property and pay out most of their income, and a large number of exchange-traded funds. A separate system, the Sistema Internacional de Cotizaciones (SIC), lets Mexican investors buy shares and funds listed on foreign exchanges through a local broker.
Step 1: choose a broker
Individuals buy through a broker authorised by the CNBV. Options include the brokerage arms of banks, independent brokerage houses and online platforms. Compare these points:
- Authorisation. Check the firm on the CNBV's public registers.
- Costs. Commission is usually a percentage of the order with a minimum. Some platforms charge a monthly account fee instead.
- Access. Make sure the platform offers local shares, FIBRAs, funds, and the SIC list if you want foreign shares.
- Minimums. Some brokers set a minimum to open the account.
- Protection. Ask how client assets are kept apart from the firm's own.
Step 2: open and fund the account
Mexican residents need an official identity document, proof of address and a tax registration number (RFC). Foreign investors are usually asked for a passport and proof of address, and may face extra checks and a different set of tax documents. Ask for the full list before you send money. How to check a foreign broker is useful if you are considering an overseas platform instead.
Step 3: place an order
Use a limit order for shares that do not trade much. The large Mexican companies trade actively, but many smaller shares trade rarely, so look at the volume. Compare the price on the BMV and on BIVA if your broker routes to both, since a share can trade on each.
You can follow live and end-of-day prices, gainers and losers on Mexican stocks.
The peso and your return
The peso is one of the most traded emerging-market currencies, and it can swing sharply around global risk sentiment, US interest-rate news and political events. For an investor whose home currency is not the peso, the result combines the share's change and the exchange-rate move. Mexican companies that earn in dollars, such as exporters and miners, can benefit when the peso weakens, while companies that import can be hurt. See currency risk for foreign stocks.
What is distinctive about the market
- Close ties to the United States. Trade, remittances and investment link Mexico's economy with the US, so US news often moves Mexican shares.
- Concentration. A small number of large companies, including the telecom and retail leaders, make up a big share of the main index.
- Family and group control. Many companies are controlled by families or business groups, with limited free float. This can reduce trading.
- Two exchanges. Liquidity is split between the BMV and BIVA for some shares.
- Classification. Mexico is treated as an emerging market by most index providers. See emerging vs developed markets.
Costs and tax
Expect brokerage commission, exchange and depository charges and value-added tax on certain fees. Mexico taxes dividends and capital gains, with rules that differ for residents and for foreign investors, and the intermediary often withholds tax. Rates and exemptions change, so ask a qualified adviser. See tax on foreign stock gains.
A worked example
You buy 500 shares at 120 pesos, an order of 60,000. If costs are 0.4 percent, or 240, you pay 60,240. If the price rises to 132, your shares are worth 66,000, a gain of 5,760 before selling costs and tax. If it falls to 108, they are worth 54,000, a loss of 6,240 including the purchase cost. For a foreign holder, the peso's move against your currency would add to or subtract from that result. The numbers are an illustration, not a forecast.
Checklist before you invest
- Confirm the broker is authorised by the CNBV.
- Decide between local shares, FIBRAs, funds or the SIC list.
- Check volume and use limit orders for thin shares.
- Read the latest report and note any controlling shareholder.
- Consider the peso exposure and the cost of conversion.
- Ask an adviser how dividends and gains are taxed for you.
This guide is for general information, not financial advice. See the disclaimer.