Friday, April 18, 2014

Online Stock Trading

Previously, the stock market was only for the rich. At this time, things have changed. You can be an online broker yourself with a minimum amount of P5,000 or no amount of initial capital, as long as you have a bank account. You don’t have to invest directly into the stock market.

Before placing a single peso in the stock market, it is essential to have a broker, who is the one responsible to facilitate the buying and selling of shares. If you prefer an online broker, the minimum amount to invest ranges from zero to P25,000. When you open an account with a broker, none of the money that you put in will go to the broker. The entire amount that you placed into your account will be made available for you to invest. Brokers only earn by commission and that only happens when you buy and sell a stock.

Opening an account with a broker allows you to buy stock. When you buy a stock there is another minimum amount that you must take into consideration. This is called a board lot, which is the minimum multiple of shares required for you to buy a stock.  If you buy a Jollibee, you would need to buy its shares in multiples of 10. You cannot buy eight shares nor can you buy 14 or 29 shares of Jollibee. You can only buy 10, 20, 30, 40 shares, and so on and so forth.

There are many advantages to investing online. Here are just a few of the benefits of managing your fund portfolio through an online broker:

·  Control. You don’t have to rely on your broker. You do the research and initiate trades.

·  Access to information. The internet provides you with previously unavailable information on financial products and services.

·  Convenience. The internet gives you the ability to access your financial information from anywhere at any time.

·   Efficiency. The Web gives you a platform for managing all of your finances.

·  Low cost. Because of heated competition among online brokers, you’ll enjoy commission rates that have gone through the floor.

To get you started, here is a list of the online brokers, among others:

AB Capital Securities, Inc.

Head Office: 
Units 1401-1403, 14th Floor Tower One &
Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Metro Manila 1226

Broker's Commission: 0.25% based on the total gross value of the shares purchased or a minimum of Php20.00 
Initial Capital: At least P10,000 

Accord Capital Equities Corporation

Head Office:  
G/F Unit EC-05B East Tower
Philippine Stock Exchange Center
Exchange Road, Ortigas Center
Pasig City 1605

Broker’s Commission: (selling or buying securities) is at 0.25% of the gross trade amount, or Php20 for minimum volume traded, whichever is higher. 
Initial Capital: For as low as P5,000 

BPI Securities Corporation

Head Office: 
8th Floor, BPI Bldg., Ayala Avenue corner Paseo de Roxas, Makati City, Philippines 1226 
Broker’s Commission: 0.25% on the gross value or a minimum commission of Php20.00 
Initial Capital:  no minimum investment required to open a BPI Trade account 

CitiSecurities, Inc.

Head Office: 
401B East Tower, Philippine Stock Exchange Centre, Exchange Rd. Ortigas Center, Pasig City 1605 Philippines 
Broker’s Commission: .25% of the Gross Trade Amount 
Initial Capital:  COL Starter: P5,000 and COL Plus: P25,000 

F. Yap Securities, Inc.

Head Office: 
17/F Lepanto Bldg., 8747 Paseo de Roxas,
Makati City 1226 Philippines

Broker’s Commission: 1/4 of 1% on gross value or Php 20.00 whichever is higher 
Initial Capital: P25,000 

First Metro Securities Brokerage Corporation

Head Office: 
18th floor PSBank Centre, 777 Paseo de Roxas Ave. corner SedeƱo St., Makati City 1226. 
Broker’s Commission: 0.25% of the gross value or Php 20 per trade whichever is higher. 
Initial Capital: For clients with a Metrobank Direct account, there is no minimum amount required to open an online trading account. For clients with no Metrobank Account, initial deposit of at least P 25,000.00 is required. 

RCBC Securities, Inc.

Head Office: 
21st Floor, RCBC Tower 2, 6819 Ayala Avenue, Makati City 
Broker’s Commission: For every transaction, 1/4 of 1% of the gross amount, or a minimum of P45 
Initial Capital: An initial deposit of P10,000 is required to open an online account. 

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