How to Invest in Philippine Stocks

by Gily Tenorio on October 25, 2010

in Stocks

Investing in stocks is one of the best investments you can ever have if you have the know-how and discipline in managing it.

Stocks are shares of ownership of a public company. The stocks are being traded in a stock market or commonly known as stock exchange.

However, as a private individual we cannot directly buy or sell stocks in a stock exchange. You need to have a stock broker who will buy or sell stocks instead of you. A stockbroker has all the responsibility to trade your stocks in a stock exchange. Your part will be to assign the number of shares and the price you want for a certain stock.

For beginners and first-timer in stock investing, you can learn how to invest in stocks by doing the guidelines below. This is my experience and learning when I opened and invested in stocks.

1.        Choose a reliable and reputable stock broker

Stock broker is a company that will be your representative in buying and selling stocks in the stock market. Generally, there are two kinds of stock broker, traditional and online stock broker.

I think online stock broker is the best choice in choosing a stock broker. An online stock broker has a genuine website and platform for stock trading. You will log in to your account using your user name and password and then you can access your online stock account. Some of the most trusted online brokers in the Philippines are Citiseconline, BPI Trade, 2TradeAsia and Metrobank.

2.       Prepare requirements

The requirements will be 2 valid ID and proof of billing. You only need to pass the photocopy of each but you need to present the original copy when requested.

3.        Mail your application forms and requirements or visit the stockbroker’s office

If you are outside the Philippines or very far from Metro Manila , you can mail your application forms and requirements to your stockbroker’s address. If you want to be sure that your mail will be received by your recipient, you can use DHL, LBC or Air21.

4.        Transfer initial deposit for your account

After your approval of stock trading account, you can now put money to your account by depositing money to it through direct deposit or bills payment online. For Citiseconline, the minimum initial deposit is P25,000.

5.        Start to buy profitable stocks

Since you are beginner, just choose those stocks that are actively traded and included in PSE Index. Choose stocks that gives good dividends and strong companies.

6.        Buy and hold

After buying the stocks you chose, hold it for sometime maybe one month until you can gain 10% or more once you sell it.

Investing in Philippine stocks is a good investment for your money if you are patient and willing to learn. Remember that you will only loose money when you sell the stock you are holding. So be sure not to sell the stock when you are going to lose the money you invested.

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{ 14 comments… read them below or add one }

precy March 25, 2013 at 22:34

What if the stockholder dies? Will there be a document to support that the shares is transferrable to a family member? This is a morbid question but it happens.

Reply

Gil March 27, 2013 at 03:46

Hi Precy,

The money from stock account will be given to the beneficiary. It is same as bank account.

Reply

louisa November 10, 2012 at 13:23

Any recommendation of stockbroker to a first timer please that knows what best to start with, and can give detailed informations? Thank you

Reply

Gil November 13, 2012 at 11:39

Hi Louisa,

You can see the list of stockbrokers here: http://learnfinancialeducation.com/list-of-online-stock-brokers-in-the-philippines/
I used Citiseconline. Others used BPI Trade and MetroSec.

Reply

Clyde Anonymous February 22, 2012 at 08:02

stocks are not only from public corporations they’re also from private corps. it’s just so happen that the stocks that are available to the public are the ones from public corps.

Reply

Leslymodelo2011 December 19, 2011 at 08:24

hello..im interested to invest in UITF (bank trust fund?, dont know much)..most of my co-employees have investment in UITF..could you possibly make an article about UITF? tnx…leslie

Reply

learnfe December 22, 2011 at 03:23

Hi,

You can check this article I posted before: http://learnfinancialeducation.com/category/uitf/

Reply

Joy_gangsca September 16, 2011 at 06:53

hi i just downloaded the demo acount, but i dont know how to work on this.. i am intersted to invest in a stock market.. i am from bacolod, how can i deal somebody that connected from ur company personaly???

Reply

Bernard August 2, 2011 at 08:41

Aside from good dividends, what are the other tips in choosing a company to invest with?

Reply

Anonymous August 6, 2011 at 03:06

Hi Bernard,

The company should have no or little debt, a popular brand and have a good management.

Reply

Bernard August 15, 2011 at 08:19

Hi,

Thanks for your reply. I’ve been reading also Gil’s mutual funds and I’m interested also to invest in this type. Can you pls. advise which type of investment (stocks or mutual funds) which is more likely to give you high returns considering the same amount invested per month for 5 yrs? I’m talking about COL EIP and FAMI’s Save and Learn MF. Appreciate for your advise.

Reply

emmanuel ordonia July 13, 2011 at 19:32

im far from the phil. right now, i dont have any idea bout this but i want to join and make business, the thing is what shall i do?

Reply

Cyril June 20, 2011 at 16:51

This is good, can u recomend me a reputable stock broker..I need Born Again Christian Please,tnx!. God Blessed.. is it Good to invest in Sta.lucia Realty & DEvt.? u can call me at 09289821555

Reply

Alxe Choo May 16, 2011 at 09:34

Contact my phone: +1703-3897276
in Paranaque City, Philippine

Reply

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