How to Invest in Philippine Stock Market?
If you are a Filipino citizen, Overseas Filipino Workers (OFW), balikbayan and Filipinos who holds dual citizenship now is the time to invest in the stock market in the Philippines.
Why invest in the stock market?
If you happen to already read some of my previous post, it has it pros and cons like any type of investments. The most compelling reason why I invest in the stock market is because of its liquidity.
You can sell your investments during market hours with the just the click of your mouse. No middleman, No need to see your fund manager and don't even need to make an appointment with your bank.
But I have to warn my readers that I am an investor and will buy only dividend growth stocks for the long haul and not a trader (buy and sell) making a quick profit.
My goal is to live off its dividend income without touching the capital. I will only sell my investments when I retire or in extreme emergency.
Investing in Stock Market is not a get rich quick scheme
I have to also to remind everyone that investing in the stock market will not make you rich overnight. It takes a lot of patience, discipline and sticking to your fundamentals to achieve its benefits.
I already posted my fundamentals on my previous post. Kindly take time to read if you haven’t.
All you have to do is pay yourself first. Buy dividend stocks regularly and forget about it. You don’t even have to look at the market every single day. JUST BUY AND HOLD.
So, how to invest in Philippine stock market?
Summary of steps on how to start investing in the stock market:
- You need to a personal computer, tablet, smart phone and internet access.
- Open a checking or savings account in any of the Philippine big banks that able to fund your online brokerage.
- Choose an online brokerage where you can buy and sell your stocks.
- There are a few online brokers in the Philippines and for the purpose of simplicity I will only discuss two online brokers that I’ve been using and dealt with.
1.1 COL FINANCIAL. The most popular and trusted one in my opinion is COL Financial. It has already established its name in the market as the leading online broker for many years. Their research tools are better and extensive compared to other brokers.
I will not discuss in great detail on how to open an account with them but you can do so in your own time by watching tutorials on You Tube.
COL minimum account investment as follows:
Starter = P 5,000
Plus = P 25,000
Premium = P 1 million
1.2 BDO Nomura. One of the newer online brokers in the market which is offered by BDO. It is a lot easier to open an account with BDO Nomura especially if you already hold an account with them.
No more additional ID requirements unlike with opening an account with COL Financial. Normally your account is up and running in 2-3 days. No minimum investment to start and no minimum balance required in your account.
- Once you have received an acknowledgement that your account is already open then the next step is to fund your brokerage account from your link bank account.
- Once funds credited to your COL Financial or BDO Nomura account then you can start trading by buying shares of your chosen company.
- YOU'RE DONE. That is how easy it is to open an online brokerage account and start investing in Philippine stock market.
My Final Thoughts
The advancement of technology and in this information age, everyone has the capability to plan for their financial future comfortably by adding liquid investments to your portfolio.
In my humble opinion, understanding how to invest in the stock market for a long haul is one of the keys to financial independence.