How to Start Online Buying and Selling of Stocks in the Philippine Stock Market



Chart Made By Coins by worradmu

Many Filipinos have no idea how to invest or trade in the Philippine stock market.  A lot are interested but they simply do not know where to start.  Many think the process is complicated, but it’s not.  It could be in the past when internet wasn’t born yet, but now with the appearance of online stock brokerage firms, it has become as simple as opening a bank account.  Anyone, can do it whenever and where ever there's internet access.  Stay at home moms can buy stocks at the comfort of their homes and OFWs can participate wherever they are in world.  You can invest long term in your favourite stock and watch your money grow.  How cool is that?  Also, now buying and selling stocks is not only accessible to the rich because it doesn’t require that much money as before.  The truth is, anyone with as small as Php5,000 can become a shareholder or stockholder of a company listed in the Philippine Stock Exchange (PSE).  All you have to do is follow these 3 simple steps.

1.   Find and select a Philippine online stock broker.

There are several online stock brokerage firms in the country and you can search them through Google.  The familiar ones are CitisecOnline Stock Brokers (www.citiseconline.com), First Metro Securities Brokerage Corp.(www.firstmetrosec.com.ph) and BPI Securities Corporation (www.bpitrade.com).  For the complete list click here.

Check their websites and from there you’ll get an idea basically everything you need to know about the firm, their service, their charges and how their online platform works and looks like.  You can also call or email them for any additional information you need.

I use CitisecOnline and so far I’m satisfied with it.  Firstmetrosec I’ve heard is very reliable too.

2.   Open an online stock broker account.

Once you have decided which online stock broker to use, you’re now ready to open an account.  The application process is generally the same for most of them.  You simply have to fill up the forms available in their website, print and fill out, and together with other requirements such as copies of valid Ids and bank statements, send all the documents through courier to the broker’s office address. When your application is approved, they will send you a confirmation e-mail which would also contain your account number, username and password.

For the detailed steps, specific requirements and additional information, visit the website of the online stock broker of your choice by clicking on its link above and follow their online account application process. 

3.   Fund the account.

The last step is to fund your new account.  Your account must have funds to enable you to start buying stocks.  You can do this by either depositing the fund over-the –counter in you bank or transfer it online through your bank’s internet banking service.  Every broker has a minimum amount requirement though in opening an account so make sure you are aware of this.  For CitisecOnline, their EIP account or starter account requires a minimum of Php5,000 deposit and Php25,000 for regular trading accounts.

For those who have no time to personally go to the bank and make deposit, it’s best to learn and start using your bank’s online internet banking service.  It would be a lot more convenient.

After your initial fund have been received and/or cleared which can take around 1 to 3 days depending on your bank’s clearing time, you can already start buying stocks.

It’s that simple.  Good luck in buying your first stock! ^_ ^