SAO PAULO- Venture capital firm Kaszek Ventures is leading a 100 million reais ($18.55 million) funding round in Brazilian brokerage firm Ideal, both companies said on Monday.

Ideal will use the proceeds to expand its business into retail clients, as currently it offers services mainly to institutional investors.

As Brazil's benchmark interest rates are at a record low of 2%, as individuals are migrating their portfolio from government bonds to riskier assets seeking for higher returns.

This move has added million of clients to broker firms such as XP Inc and more recently led financial startup Nubank to acquire Advent Interntional LLC-backed broker Easynvest.

($1 = 5.3895 reais)

(Reporting by Aluisio Alves, editing by Louise Heavens) ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))