How to Choose a Stock Market Broker in the Philippines
Many people will be able to start investing even without a brokerage account. However, there is an advantage in getting a broker especially for those just starting off.
Choosing a broker can be just as important as choosing your stocks. The process isn’t too different either — it needs careful thought since brokers are very different.
First, you have to know exactly what type of broker you want. There are two — first are those who are known as “regular or traditional brokers”. They deal with their clients directly and most of their clients are big investors or those with big investment capital.
The second types are known as broker-resellers. They act as in-betweens for the client and an even larger reseller. They are also known as online stock brokers and they are very popular nowadays. Small, medium and even big investors prefer online stock brokers for their stock market investment.
There are also further types, such as full-service brokers and discount brokers. The former offer more services than the latter, though these usually have expensive payments. They are also generally more thorough and offer a more reliable advice.
The discount brokers, on the other hand, are best for younger investors. While not being able to offer advice specific to the client, they can always refer you to the brokerage account itself for the same service. And of course, there are brokers who offer their services exclusively online. They are perfect for those who travel and transact at odd hours of the day.
Finally, you will have to consider the fees being charged by your broker. There is a minimum amount needed to start the account, and there are also fees to make a withdrawal. Some brokers also have more complicated rules for fees than others, so it is important to research and compare.
Complete List of Stock Market Online Brokers
As of July 2017, there’s a total of 132 brokers or trading participants listed at the PSE Website. 25 of them are online brokers.
- AB Capital Securities, Inc.
- Abacus Securities Corporation
- AP Securities Incorporated
- BA Securities, Inc.
- BDO Nomura Securities, Inc.
- BPI Securities Corporation
- Coherco Securities, Inc.
- COL Financial Group, Inc.
- DA Market Securities, Inc.
- F. Yap Securities, Inc.
- First Metro Securities Brokerage Corporation
- HDI Securities, Inc.
- Investors Securities, Inc.
- Jaka Securities Corporation
- Lucky Securities, Inc.
- Maybank ATR Kim Eng Securities, Inc.
- Meridian Securities, Inc.
- Optimum Securities Corporation
- PhilStocks Financial Inc.
- RCBC Securities, Inc.
- Regina Capital Development Corporation
- Timson Securities, Inc.
- UCPB Securities, Inc.
- Unicapital Securities, Inc.
- Wealth Securities, Inc.
Tips when choosing your Online Stock Broker
Choosing your online broker is the first step when you finally decide to invest in the stock market. It is important that you know who your broker is and what exactly do they offer so that you know what to expect when you start investing or trading using their platform.
Here are some tips or questions that you should ask when choosing your online broker…
1. Does the online broker offer affordable minimum investment amount?
With some online stock brokers like COL Financial and PhilStocks, you can open an account with just Php 5,000. However, if you open an account with bank-based online trading platforms like BPI Trade and Metrobank’s First Metro Securities, there’s no minimum requirement if you have an existing account with these banks.
Take note though that you still need to fund your account in order to buy stocks.
2. Does the online broker provide research, tools, and other resources?
If you’re new to investing, choose the broker that offers seminars or research materials that you can easily access through their platform. This will help you in your stock market investing.
3. Does the online broker offer reasonable fees and charges?
There are fees involved in buying and selling stocks. Make sure to check the broker’s fees and charges and compare it with other brokers.
4. Does the online broker offer great customer service?
If something goes wrong with your account or with their platform while you’re performing a trade, you may end up calling or contacting your broker’s hotline. Do you think they offer great customer service? Are they willing to assist their clients in a timely manner? If yes, then they could be a good online broker.
5. Does the online broker have a good reputation or positive reviews?
You can do your own research about the online broker to know what their clients say about them and their services. No one is perfect, but try to choose the one that has more positive reviews so you won’t get into trouble when you finally sign up with them.
Read the Stock Market Series:
- Stock Market for Beginners: What it is and How it works
- How to Choose a Stock Market Broker in the Philippines
- How much should you invest in the Stock Market?
- Stock Market Strategies: How to Analyze and Value Stocks
- Stock Market Strategies: How to Maximize your Profits and Minimize your Losses
- 5 Possible Risks in Investing in the Stock Market
- What you need to know about the Philippine Stock Exchange