The number of Filipinos investing and trading in the Philippine Stock Market is growing year after year. It seems that many are becoming aware of this investment medium to possibly grow their wealth and to beat inflation.
How about you? Do you also want to open an investing / trading account to participate in the Philippine Stock Exchange?
There are over 300 companies listed in PSE available for the public to invest in. One of the possible ways to buy shares of these companies is through stockbrokers.
According to the official website of PSE as of 2020, there are a total of 130 plus stock brokers in which are active trading participants in the Philippines. What I am going to share with you here are just some of the online stock brokers that I am familiar with or have used to buy shares of local companies.
What are Stock Brokers?
Stockbrokers are simply defined as a licensed professional or registered firm that performs the buying and selling of stocks /shares on behalf of their respective clients. The clients can be a trader, investor and also an investment company.
In return, stockbrokers receive compensation in a form of commission for the transactions that they have done.
5 Online Stock Brokers in the Philippines
Here is the list of online brokers in the Philippines so you can start investing in the stock market. These brokers require you to register for an account with them.
You also need to send the photocopy of your valid IDs, TIN number and need to send them the minimum starting amount.
Stock Broker Name: AAA SOUTHEAST EQUITIES, INCORPORATED
- Office Address: Ayala Tower One and Exchange, Unit 1511, Ayala Avenue corner Paseo de Roxas Makati City
- Contact Details: (02) 84-03-29-27 / Email: firstname.lastname@example.org
- Website: https://aaa-equities.com.ph/
- Minimum cost to open an account: P20,000
- Platform Availability: Desktop/Website, Smartphone, and Tablet App
- Requirements to open an account: properly filled out a registration form, and 2 valid IDs including but not limited to your Philippine passport, driver’s license, SSS ID, and valid Philhealth ID.
AAA Equities is currently the first and only stockbroker in the Philippines that offers conditional orders.
This means you can set your buy and sell triggers and their platform is the one that will execute it for you. When the triggers are hit, you can buy on breakouts and cut your losses automatically. You can trade anytime, anywhere, even when you are not in front of your computer.
Broker Name: 2TradeAsia
- Office Address: 17th Floor Lepanto building 8747 Paseo de Roxas Makati, 1226 Philippines
- Contact Details: (+632) 8856-7680 / Email: email@example.com
- Website: www.2tradeasia.com
- Starting investment to open an account: P25,000
- Platform Availability: Desktop/Website, and Mobile App
- Requirements to open an account: Properly filled out online application form, print and sign your application form, photocopy of two valid IDs showing your photo and signature. Send all your requirements to their office address.
2TradeAsia was launched in September 2000. They are a licensed stockbroker that has been part of the Securities and Exchange Commission (SEC) since May 2000.
2TradeAsia is recognized by the Board of Investments as the first online trading site that offers services such as integration of trading, portfolio management, and financial planning back in 2001.
Broker Name: COL FINANCIAL formerly CitisecOnline
- Office Address: 2403B East Tower, Philippine Stock Exchange Center, Exchange Road, Ortigas Center, Pasig City 1605 Philippines
- Contact Details: +632 86515888 / Email: firstname.lastname@example.org
- Website: www.colfinancial.com
- Minimum investment to open an account: P1,000 for starter account, P25000 for plus account, and P1,000,000 for a premium account.
- Platform Availability: Desktop / Website
- Requirements to open an account: Properly filled-out forms, 1 photocopy of Philippine government issued valid ID.
COL Financial formerly known as CitisecOnline is the leading online stock broker based in the Philippines. It is established in 1999 by Edward Lee. Currently, it is serving more than 200,000 customers comprising of individuals based in the Philippines and foreign citizens.
COL Financial has this Easy Investment Program (EIP) that helps retail investors maximize returns and minimize risk through Peso-cost-averaging. They also offer a free stock market seminars at their various offices in the Philippines.
Broker Name: Timson Securities, Inc. (TIMSON TRADE)
- Office Address: Suite 3310 Robinsons Equitable TowerADB Avenue Ortigas, Pasig City 1605 Philippines
- Contact Details: (+632) 8 633 0344 / (+632) 8 631 0876 / Email: email@example.com
- Website: https://timson.com.ph
- Minimum cost to open an account: P 100,000.00
- Platform Availability: Desktop
- Requirements to open an account: Properly filled out Customer Account Information Form (CAIF), print it and sign. Photocopies of 2 valid government IDs for Filipino citizens. Photocopy of proof of billing such as your credit card bill, bank statements, and utility bills.
Timson Securities Inc. is one of the leading stock brokerage firms in the Philippines. The company was incorporated in May 2013. It caters to retail and institutional investors based in the Philippines, and abroad. If you want to be familiar with their trading platform, you can open a 5-day trial account.
Broker Name: Philstocks Financial Inc.
- Office Address: G/F Unit EC-05B East Tower Philippine Stock Exchange Center Exchange Road, Ortigas Center, Pasig City Philippines 1605
- Contact Details: (+632) 8588-1900 / Email: firstname.lastname@example.org
- Website: www.philstocks.ph
- Minimum cost to open an account: P5000.00
- Platform Availability: Desktop and Mobile
- Requirements to open an account: To register for an account you can visit https://registration.philstocks.ph/ fill up the necessary information. Then follow the instruction thereafter. You also need to provide 2 valid primary IDs or 1 primary ID and 2 secondary IDs. Bring or send all the requirements at the Philstocks head office in Pasig City or branch office in ETY Building in Binondo Manila.
PhilStocks formerly known as Accord Capital Equities Corporation was established in 2001. Their aim is to provide precise and top quality trading experience utilizing state of the art technology and offering a high quality of service and customer support. Their headquarters is in Pasig city and they also have a branch office in Binondo, Manila.
Why Invest in the Stock Market
There are pros and cons to investing in stocks. Allow me to share with you some of the reasons that I have known.
Advantage of investing in the stock market
1. Can Potentially Grow your Wealth
If done correctly, the Stock market can be a medium to grow your wealth. You can do stock trading for the short term, investing in the long term, and periodically earn dividends from stable companies.
2. Become part-owner of Publicly Listed Companies
For a small amount, You can become part-owner of your preferred companies in the Philippines. You can buy shares of Jollibee, Meralco, manila water, Ayala land, and a lot more. In the Philippines, for as low as 1000 pesos you can start buying shares of local based companies.
3. You can do diversification of your investment easily
With the stock market, It is possible to spread your eggs in different baskets. You can buy stocks of companies from different sectors. It can be stocks of power companies, real estate, food, oil and gas, utilities, and infrastructure. It is really up to you on where you want to put your hard-earned money.
4. You can beat inflation by investing in stocks
Unlike leaving your money in the bank which incurs penalties and low-interest rates. The small gains, while stored in the bank, are just eaten by inflation averaging from 3 to 5 percent year after year.
This just means that every year, your savings are losing its buying power. Investing in stocks can beat inflation if done and timed correctly and if you were able to pick the right stocks to invest in.
5. The stocks are Easy to sell
With the current technology, you can now sell your shares online through your online stockbroker. You can do it in less than a day. Unlike with real estates where it will really take a long time to find the preferred buyer at the right price.
Disadvantages of investing in stocks
1. The Most Volatile Compared to Other Investment Medium
This medium is the most volatile among other investments. While it is true that you can grow your wealth in a much shorter period of time utilizing it, you can also lose money if for some reason that company you chose to invest has poor performance or has made bad future decisions. The wrong decision can affect their earnings making the stakeholders dissatisfied. As a result, the stocks can go down in value due to the massive sell down of shares.
2. Takes time to learn about Stocks
You need to study the fundamentals of the company you want to invest in. Or if you decide to become a short term trader, you have to get familiar with the technicals of the charts. Or you can study both fundamentals and technicals. It is up to you. The bottom line is you need to spend time to study the stocks you want to acquire.
3. Stock value is Affected by global issues
There are many factors that can affect the value of stocks. According to wallstreet.com the value of stocks is affected by interest rates, economy, news, and a lot more. These factors can trigger panic and eventually sell down. This is related to pros #3. Since buying and selling are done online, everyone can sell their stocks easily when a piece of bad news gets into their heads.
You can weigh the pros and cons. After that, if you still decide to participate in the stock market, then open an account with your online stockbroker of choice.
Frequently Asked Questions
How much Funds Do I Need to Start Investing in the Stock Market?
You can start investing in the stock market in the Philippines with just 1000 pesos through COL Financial’s Easy Investment Program (EIP). In general, the minimum balance depends on your chosen stockbroker. There are stock brokerage firms that require starting balance ranging from PHP 5000.00 to as high as Php 100,000.00 before you can open an investing or trading account with them.
How much is the Stock Broker Fees and Charges in the Philippines?
The broker’s commission fee is around .25% of the gross trade amount. However, there is a minimum charge of Php 20.00 per transaction, or whichever is higher.
Aside from the commission, there are other fees and charges when buying and selling stocks through a brokerage firm. The fees include value added tax (VAT), Philippine stock exchange transaction fees, Securities clearing corporation of the Philippines Fee, and Sales tax.
The fees usually are computed based on the gross trade amount of the transaction, and the number of shares.
If you want to transfer your current stockholdings to another stockbroker. The cost would be Php 75.00 per stock name/company regardless of the quantity of the shares.
Can I buy Stocks in the Philippines without a broker?
You need to open an account from a PSE accredited brokerage firm before you can start investing/trading in the stock market.
You can buy stocks the traditional way, which is by giving phone calls or written instructions to assigned licensed stockbroker of your chosen brokerage firm. You can also buy directly online using your electronic trading account.
How many Stockbrokers are there in the Philippines?
Based on the directory of PSE, there are 130 registered stockbrokers in the Philippines, 33 of which offers an online trading platform. These firms cater to investors/traders classified as retail, institutional, and foreign.
There you have it. I hope this helps guys!