There are several reasons why companies that work with FOREX and CFD’s are looking for allies to help them overcome the language barrier in LATAM, in order to better adapt to these markets and, of course, increase profitability.
The first and most obvious reason is that many of these companies come from places where languages other than those that predominate in Latin America are spoken, which are Spanish and Portuguese. Let’s see more details.
The name of Latin America is due to languages that are derived from Latin and are spoken in the region: mostly Spanish and Portuguese; to a lesser extent French, in French Guiana, Haiti and other Caribbean islands, such as Guadeloupe and Martinique.
Now, this denomination has always been discussed. It is said that it was born from the pretension of France to become present in the region. Some suggest, therefore, that it should be called Ibero-America, which would be more appropriate because it refers to the languages of the Iberian Peninsula, that is, of Spain and Portugal.
But, others prefer the term Latin America and the Caribbean to be used, so as not to exclude English-speaking islands or continental countries, such as Jamaica, Belize and many more.
Now, as for the number of people, the most spoken languages of Latin America are, as mentioned: Spanish with 400 million speakers in 14 countries; Portuguese, with more than 200 million, mainly in Brazil. There are also indigenous languages, such as Quechua and Guarani (8 and 5 million speakers, respectively).
Spanish is more diverse, since each country has its own particular uses and twists, being called the same thing in different ways, according to the place. For example, in Spanish, beans can be frijoles, habichuelas, porotos or caraotas; or the bananas are cambur in Venezuela, and guineo both in Colombia and in the Caribbean islands.
Due to these circumstances described above, for foreign companies of brokers, who work with FOREX and CFD’s and who want to open operations in the region, it is strategic to look for allies to help them overcome the language barrier in LATAM.
On the one hand, common financial jargon is not always translated in other words, it is not usually translated. This is evidenced in terms such as swap, scalping, carry trade, margin call, stop loss, one cancels the other (OCO), spike, take-profit, and over-the-counter.
All of these are frequently used in these markets in their original Anglo-Saxon form, often without translation. And even if they were translated, part of the meaning of them should be supplemented by an explanation on the broker’s website, made in the language of the recipient or local investor, which would be Spanish or Portuguese.
Even, it would be necessary to consider the dialect turns or sociolinguistic variations, that is, the particular way each country has of calling things, as noted. To cite an example of the real estate market, in Chile it is said to buy in green or in white, before the permit or the start of construction; while in the Dominican Republic, it is said to buy in project or in drawing.
On the other hand, there is also the issue of legal jargon, referring to or related to contracts and agreements signed by the parties (broker and investor). In this order of ideas, it is not only about knowing the language, but also about knowing the laws of each country in the region; which, of course, are in their respective official languages.
Apart from the language advantage, there are other reasons why it is a good idea for a broker to have a local ally. The case of laws has already been mentioned. It is appropriate to remember that, in the FOREX market, there are countries in LATAM that have restrictions and regulations, which are not the same as those that apply in the broker’s place of origin.
Additionally, an ally in the region provides the advantage of knowing a little better the way of being and thinking of the local investor, as to what motivates them or can attract them from a market. And this is not always the profit or profitability itself. In countries with high inflation, such as those in LATAM, the main concern is to protect income or wealth.
For those who have lived in a country where another language other than their own is spoken, the experience of meeting someone who speaks in their language can mean a feeling of being in a family.
This is, most likely, what a potential investor would experience when entering the website of a broker where they feel at home, and seems to understand their way of speaking and being. Part of the positive identification that can be produced is related to the use of the language itself.
So we have here a very important point for a broker to build trust. And trust, as is well known, is the fundamental basis of the decision that a potential investor would make about placing his/her money with this company, and not with another.