DriveWealth Partners with Sproutfi to Meet the Needs of Latin Americans Accessing the US Stock Market

Integrated financial fintech DriveWealth has partnered with investment platform Sproutfi to enable companies to serve Latin Americans looking to invest in financial markets in the United States.

With the new partnership, accounts opened by Latin Americans through Sproutfi will be held at DriveWealth, which specializes in fractional stock trading technology.

The overarching goal is to make investing in US markets more accessible to Latin Americans in a region where local markets and currencies are frequently subject to pronounced financial volatility.

The outward investment trend has increased in large Latin American countries, where currency volatility has pushed domestic investors towards country risk diversification options. The growing demand for global assets has led to an increase in providers offering access to foreign stocks.

Access for $1

On Sproutfi, local investors can access US markets with as little as $1. The company leverages DriveWealth’s split trading technology which allows clients to trade in amounts smaller than a full share of a company, making investments more widely accessible.

“The partnership gives investors the technology they need to invest in fractional US stocks,” DriveWealth said in a press release.

The company noted that investing in US markets was once an “isolating experience” for Latin Americans.

Admittedly, the penetration of local investment products was already low in most countries, especially as they invested abroad. Research shows that more than 50% of US households have some level of investment in the US stock market, while in the case of some Latin American countries that number can easily drop well below 10%.

“Investing was seen as reserved for wealthy individuals with a deep understanding of the markets,” the company said. “While 46% of the population in Latin America does not have access to financial services, technology promotes financial inclusion in many ways.”

Access to 6,000 US securities and ETFs

Latin Americans will now have access to over 6,000 US stocks and ETFs through the current partnership, making investing in US markets affordable and accessible. Additionally, it will also help investors with little or no financial literacy experience, as many new investors are turning to social media to learn more about the markets.

Robert S.Cortright.

“We believe in the power of learning by doing here,” said Bob Cortright, founder and CEO of DriveWealth. The two companies “make it easy for communities to learn how to invest by removing traditional barriers that previously held them back,” he added.

“Through this partnership, all investors in Latin America can easily access the technology they need to create long-term wealth together with their friends, family members and online communities,” said Ruben Guerrero, co-founder and CEO of Sproutfi.

Founded in February 2021, Sproutfi is an investment firm operating throughout Latin America that allows investors to invest in US stocks and ETFs through its US affiliate broker Northbound Securities, with no minimum value required for the account or commission.

It also functions as a social network through which clients receive financial education content and share investment ideas.

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