Inflation is the archenemy of savings. Although rising costs of commodities is inevitable, there is a way to fight inflation to protect your hard earned money and that is investing. The best place to invest your cash in the Philippines is in the Philippine Stock Market(PSE). If done right, you’ll be able to grow your money with much more interest gain that putting it to the bank.
Here’s the Step by Step Guide on How to Invest your Money in Philippine Stock Market:
- Find a Broker.
There are a number of brokers for PSE(Philippine Stock Exchange) available in the Philippines but the easiest broker to apply is the BDO Securities. In the BDO Securities all you need is to open a BDO Banking Account, so if you happen have an existing BDO account, you are Qualified to open an Account in BDO Securities online without submitting any additional documents. Just visit their BDO Securities website and sign up. Although this broker is easy to apply, the downside is there is a frequent downtime in their trading platform which is not recommended for Daily Traders. But if you are a long term investor, this should not be a problem.
What we recommend for a Broker is The First Metro Securities from Metrobank. Their platform is well-interfaced specially the ‘PRO’ version. If you want to open an account for this broker, it is recommended to Physically go to their offices which are located in most of the Major Cities.
Here are the list of the most common brokers for Philippine Stock Market:
- A & A Securities, Inc.
- AAA Equities, Inc.
- AB Capital Securities, Inc.
- Abacus Securities Corp. (MyTrade)
- Alpha Securities Corp. (AlphaSec)
- AP Securities, Inc.
- BA Securities, Inc.
- BDO Securities Corp.
- BPI Securities Corp. (BPITrade)
- China Bank Securities Corp. (Chinabank Sec)
- CohercoTrade
- COL Financial Group, Inc.
- DA Market Securities, Inc. (iTrade)
- Eagle Equities, Inc.
- Eastern Securities Development Corp.
- First Metro Securities Brokerage Corp. (First Metro Sec)
- Globalinks Securities & Stocks, Inc. (GTrade)
- HDI Securities, Inc.
- Investors Online
- JAKA Securities Corp.
- Lucky Securities, Inc.
- MaybankTrade
- MSiTrade
- Optimum Online
- Philstocks
- RCBC ezTrade
- Regina Capital Development Corp.
- Timson Trade
- Triton Securities Corp.
- UCPB My Stocks
- uTrade
- VC Trade
- WealthSec
- What are the Requirements?
-Tin Number
– Valid I.D.
-Bank account
- How Much is the initial money needed?
It depends on you broker but some broker accepts as low as 1,000 Pesos as initial funding. BDO Securities doesn’t even require initial money deposit as long as you have an existing BDO online banking account.
What we recommend for initial investment is at least P10,000.
- Finding the Right Stock to invest.
The hardest part in investing is finding the right stocks to invest. It needs at least the basic knowledge of Fundamental and Technical analysis in order to confidently secure your gains. Such Technical and fundamental analysis must be coupled with self discipline. You must practice self-restraint in order avoid traps in investing.
- How much gain is expected?
Sky is the limit for the gains in Stock market. Gains can go from 1% to more than 999% depending on the movement price of your stocks. But a healthy gain for a low risk investor is 5-15% per month on each of you stocks.
- How much loss expected?
You can loss upto 99% of your money. But this happens very rarely.
