Want to know how to buy and sell stocks in the Philippine stock market? Let me share the ways on how to invest in the philippine stock market, a guide for Filipino investors! PSE: Philippine Stock Exchange topics at InvestmentTotal.com. Planning to buy stocks in the Philippine stock market? Dreaming to become a stockholder of Jollibee Food Corporation, SM, BDO, Ayala Land Inc, PLDT, BPI, Meralco, San Miguel, Aboitiz Equity Ventures and other giant companies in the Philippines? Here’s the guide on how to buy, sell or trade stocks in the Philippine stock exchange.
Before we proceed to the guide, let us tackle first, the difference between stocks, stockbroker, market, exchange and other financial investment terms that you should know before investing. As the old saying goes, “the more you know, the more money you can make”. That statement is true but depends on what things you are willing to learn, is it “money” matters such as stocks investing or “non-sense” matters such as “tsismis”.
You aren’t helping the Philippine government if you keep on talking about “pork barrel”, poverty issue, political issue, traffic issue and unemployment rate issue. Keep on thinking positively about our leaders, think about this, what would happen if there is no leader governing us? The entire country will fall down, even the Philippine stock market will get crash. Our leaders has a very important roles, there still beauty inside their hearts and minds.
How to Buy and Sell Stocks in the Philippine Stock Market?
If you are investing in the Philippine stock market, means you are helping the Philippine government. How? The corporations needs capital for expansions, when they expanded, they provide jobs, they generate sales and another great taxes for Philippine government to build school buildings, road, hospitals and maintain its orderliness. That’s the beauty of investing in the stock market. Well motivated? Not really? Well, just continue reading this topic.
This article is only for people who are interested to buy stocks in the Philippine stock exchange. So, let’s begin and start sharing our knowledge about this topic.
What is a stock?
In the dictionary; “The New Lexicon Webster’s Encyclopedic Dictionary of the English Language”, the term “stock” means “an accumulation of goods for future use”, or “shares of capital or their certificates of ownership”.
The owners of a corporation (example JFC Jollibee Food Corporation) are called stockholders, however, a corporation is having an existence separate and distinct from that of its owners because of “legal entity”.
Your rights as Stockholder
You have the rights to vote for directors, to receive dividends (share in profits) and the right in the distribution of asset if the corporation is being liquidated.
Governmental Agency with the Legal Power
The security and exchange commission or SEC has a close supervision for all large, publicly owned corporations.
What is a Stock Broker and Stock Exchange?
A stockbroker is someone or a company who deals in stocks and shares in the Philippine Stock Exchange, PSE is a place where stocks are being bought and sold. Example of stockbroker in the Philippines is COL Financial Group, Inc.
Also Read: How to Open a COL Financial Account
Other List of Online Stock Broker in the Philippines
Aside from COL Financial, the following are other listed stockbroker in the Philippines (with address, customer service hotline and official website)
Stock Broker Company Address Customer Service Website
AB Capital Securities, Inc. Units 1401-1403, 14th Floor Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Metro Manila 1226 Philippines (632) 898-7555 www.abcapitalsecurities.com.ph
Abacus Securities Corporation 2904-A East Tower, Philippine Stock Exchange Center, Exchange Road, Ortigas Center, Pasig City, 1600 (632) 634-2109 www.abacusonline.com.ph
Accord Capital Equities Corporation G/F Unit EC-05B East Tower Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City 1605 Philippines +63 (2) 588 1900 www.philstocks.ph
Angping & Associates Securities, Inc. 20/F The Peak, 107 L.P. Leviste St. Salcedo Village, Makati City Metro Manila 1225 (02) 848-2915 www.angpingonline.com
BPI Securities Corporation See BPI Address 816-9189 | 816-9724 | 845-5617 www.bpitrade.com
First Metro Securities Brokerage Corporation 18th floor PSBank Centre, 777 Paseo de Roxas Ave. corner Sedeño St., Makati City 1226 859-0600 to 02 www.firstmetrosec.com.ph
Wealth Securities, Inc. 21,F PSE CENTER, EXCHANGE RD., ORTIGAS CENTER,PASIG METRO MANILA 6345038 to 42 www.wealthsec.net
RCBC Securities, Inc. 21st flr., RCBC Plaza Tower 2,6819 Ayala Avenue, Makati City, Philippines 0727 (+632) 894-9000 local 1681 www.rcbcsec.com
F. Yap Securities, Inc. 17/F Lepanto Bldg., 8747 Paseo de Roxas,Makati City 1226 Philippines (632) 544-2284 www.2tradeasia.com
COL Financial Group, Inc. 2401B East Tower, Philippine Stock Exchange Centre, Exchange Rd. Ortigas Center, Pasig City 1605 Philippines (632) 6-515-888 www.colfinancial.com
If you have any questions, please call their customer service or visit their official website.
Differences between Stock Exchange and Stock Market
Stock exchange is a place where stocks are being bought and sold, while stock market is a place where stocks are available (market place).
List of companies in the Philippines listed in PSE (Philippine Stock Exchange)
For further information, I wrote the companies/corporations listed in the Philippine Stock Exchange. I only wrote the “blue chips”. Blue chip stocks can be found to the upper half of top 1,000 list in the PSE, they reach globally, and operating for more than 20 years in their respective industries. Example of blue chips are PLDT (TEL), SM (SM), Ayala Corporation (AC), Bank of the Philippine Islands (BPI), Banco de Oro (BDO), Metrobank (MBT) etc. See some other list with stock ticker and symbol;
Company Name Ticker/Symbol
Ayala Corporation AC
Aboitiz Equity Ventures, Inc. AEV
Alliance Global Group, Inc. AGI
Ayala Land, Inc. ALI
Aboitiz Power Corporation AP
BDO Unibank, Inc. BDO
Bloomberry Resorts Corporation BLOOM
Bank of the Philippine Islands BPI
DMCI Holdings, Inc. DMCI
Energy Development Corporation EDC
First Gen Corporation FGEN
Globe Telecom, Inc. GTI
GT Capital Holdings, Inc. GTCAP
Int’l Container Terminal Services, Inc. ICT
Jollibee Foods Corporation JFC
JG Summit Holdings, Inc. JGS
LT Group, Inc. LTG
Metropolitan Bank and Trust Company MBT
Megaworld Corporation MEG
Manila Electric Company MER
Metro Pacific Investments Corporation MPI
Petron Corporation PCOR
Philex Mining Corporation PX
Robinson Land Corporation RLC
Semirara Mining and Power Corporation SCC
SM Investments Corporation SM
San Miguel Corporation SMC
SM Prime Holdings, Inc. SMPH
Phil. Long Distance Telephone Co. TEL
Universal Robina Corporation URC
How to Invest Money in the Philippine Stock Market?
Make money through capital gains and dividends. Investing in the stock market requires knowledge and skills, to make money in the stock market are through capital gains and dividends. Capital gains when you buy stock in low price and sell in high price, while dividend earnings are company profits distributed to its stockholder.
Advantage of Investing in the Stock Market
Nowadays, Filipinos are informed about stock market investing. The influential book of Bro. Bo Sanchez (I call him brother because he is a missionary and honest in his mission) “My Maid Invest in the Stock market”, caught the attentions of many Filipinos, now let us share some thoughts about the advantages and not the disadvantages of investing in the stock market;
Advantages: I may say stock market today is the money game of the rich investor. You can make a fortune in the stock market , become a multi-millionaire even investing a small amount of money every month or the famous strategy “cost averaging” of course for other currency just replace “peso”, such as dollar cost averaging, euro cost averaging, etc. Since we are in the Philippines, we use “peso cost averaging”.
Small Amount of Investment Capital
It simply means, it required only a small amount (investment capital) to invest in the stock market for as low as P5,000 you can open a stock broker account and for as low as P1,000 you can buy and sell a stock.
Capital Gains and Dividends
As we have mentioned earlier in this post, make money through capital gains and dividends.
Becoming a Stockholder
Be a stockholder of a corporation that is offering products or services you are using. Example, do you love to eat fried chicken (ChickenJoy) and hamburger Yum, Jolli Spaghetti? Buy Jollibee Food Corporation, stock (JFC), do you love to park your money in the bank? Then try to be a stockholder of that bank.
Maximize the Growth of your Investment
Although, investing in the stock market is risky, it will also let your money work for you over time, grow your money. In investing, risk is always proportionate to return. High risk, high return. If you invest millions expect to make millions. If you want to expect millions with low investment capital for your monthly investment (cost averaging method), patience and discipline is required.
Stocks are Easily Converted into Cash
A stock is a liquid asset investment, you can easily sell your stock and convert it to cash, unlike real estate properties, it is hard to sell a house and lot.
Now you know the advantages and benefits of investing in the stock market. Let’s talk about the difference between trading and investing, do you want to be a trader or stock market investor?
Difference Between a Trader and an Investor
A trader buy stocks today and sell the stock after few minutes, or after an hour, the chances are the trader will make money fast but also lose money easily. An investor will buy stocks today and wait for the stock to increase its price, and investor will never lose money, an investor will become rich surely. Read further about stock market investing strategies.
Things to Know Before Buying a Stock
That there is a tax, do not be afraid of taxes, if you are afraid of taxes, chances are you will never become rich. The more taxes you are paying means the more money you are investing, the more money you are investing, the more profits you can make. Aside from that, you are paying more tax, means you are helping more Filipinos in the Philippines. School buildings, public hospitals, national roads are built because of your taxes.
Attend seminars conducted by financial experts in stock market like Mr. Marvin Germo for analysis and fundamentals or attend the seminars conducted at COL Financial Philippines.
Things to Do Before Investing Money in the Philippine Stock Market
Before investing in the stock market, make sure you have prepared the important things such as life insurance, cash reserve or emergency funds, a plan or goal in investing. Which stock broker services should you use, which company stocks should you buy, when should you sell the stocks, and when to stop investing in the stock market and start investing in the low risk investment such as bonds and time deposits.
You should also know your risk profile, do you really need to invest in the stock market. It is true that is easy to invest, but not all people can succeed in investing in the stock market. Stock market investing is not suitable for all people especially if you are afraid in taking risk because you are old enough to recover from losses of capital.
Profits are Not Guaranteed and Losing of Capital is Possible
There are many successful investors in the stock market, however, be informed that these people has guts to take high risk and wait patiently. If you have that kind of guts and attitude, you can succeed. You can learn different techniques online, but, it is advisable to attend seminars or hire a stock expert/coach and financial planner.
Other Questions About Investing Money in the Philippine Stock Market?
Which stocks to buy or the most recommended? Some experts says “blue chips stocks” are the best buy stocks. Some stock broker company, is recommending on which stock to buy by writing their list in their investment guide.
How much capital required to start investing in the stock market?
For as low as P5,000 you can open a stock broker account and start buying your first stock. And for as low as P1,000 you can buy stock. Example, a stock price is P88 per share but need to buy 10 (board lot) therefore, you only need P880 for that stock.
Which stock broker is the best?
In the Philippines, there are many stock brokers, they are all best, just choose one. Personally, I have COL Financial account.
What are the necessary documents to open a stock broker account?
Government IDs such as SSS ID, GSIS, PRC, Postal, Voter’s ID, Driver’s License and proof of address such as billing statements like water bills, electricity bills, telephone and internet bills. Aside from these documents, you need to download the investment account form online and other forms available in the websites of your chosen stock broker. A marriage certificate and a birth certificate is also required if you are opening a joint account or for your child’s “in-trust-for account”.
Is it safe to buy and sell stocks online?
Yes it is safe, just make sure you landed to the official website. Be careful on “clone websites’, email phishing. To make it easy, just bookmark or saved the official website URL in your desktop.
I am using mobile phone, is there mobile apps available?
Yes, mostly stockbroker are having their mobile app. In my own experience, I already bought stocks, view my stock portfolio, check my stock equity using my android/smart phone. Lately, COL Financial announced its mobile app.
How to buy, sell and trade in the Philippine stock market?
First choose a stock broker, open an account with them, fund your account and start buying your stocks. For COL Financial accountholder, I made a tutorial related to these topics.
Opening Guide: 5 Steps to Open a COL Financial Account
Advice for the First Time Filipino Investors
I am repeating this statement from time to time. “Attend seminars, study how stock market works”. Or talk to anyone who is already making millions in the Philippine stock market. Ask stock experts regarding with this matter.
Let me Share What I know?
Invest in the stock market using cost averaging. Invest small amount of money regularly. If you are a COL Financial user, then, just look at the investment guide, look the stock price. Buy the stock if it is under “buy below price” and sell when it reach the fair value.
In the book “My Maid Invest in the Stock Market”, Bro. Bo Sanchez, taught the readers to invest small amount of money per month regularly within 20 years or more. Invest in “blue chips” stocks or giant companies, invest in many giant companies and buy when the price is in the “buy below price” and sell the stock when it reached the “target selling price”.
Instant Stock Investing Tips
Not just investing on stocks, actually the following group of people in Facebook are sharing their ideas from personal finance, insurance, emergency funds, investing, mutual funds topics, UITF and other financial topics. Be a member of these Facebook group and ask, our “kababayan”and most of them are “registered financial planner”, they will be glad to answer all your questions.
OFW Usapang Piso Forum on Facebook: https://www.facebook.com/groups/OFWusapangpiso/
The Global Filipino Investor: https://www.facebook.com/groups/theglobalfilipinoinvestors/
Angat Pilipinas https://www.facebook.com/groups/angatpilipinas4studentfinancialliteracy/
Phil. Stock Market Discussion: https://www.facebook.com/groups/pse.discussion/
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Investing Quote for Today:
Investing is the best way to make your money work for you even when you’re not working. Investments can help you gain not just prosperity but also financial freedom – David King on You Can Be Rich, Published 2002