How to Buy Securities in the Philippines
Investing in stocks is one of the right investments you can ever have if you have the know-how and discipline in managing it.
Stocks are portions of ownership of a public company. The stocks are being exchanged in a stock market or generally known as stock exchange.
But, as a private individual we cannot immediately buy or sell holdings in a stock market. You need to have a stock broker who will purchase or sell stocks in place of of you. A stockbroker has complete obligation to trade your stocks in a stock exchange. Your part will be to select the number of allotments and the price you want for a certain stock.
For starters and first-timer in stock investment, you can acquire information how to invest in holdings by carrying out the instructions below. This is my encounter and learning when I learned and invested in stocks.
1. Pick a good and reputable stock broker
Stock broker is a firm that will be your agent in purchasing and selling stocks in the stock exchange. Commonly, there are two types of stock broker, traditional and online stock broker.
I think online stock broker is the preferred choice in choosing a stock broker. An online stock broker has an authentic website and platform for stock trading. You will log in to your account utilizing your user name and password and then you can connect to your online stock account. Some of the topmost trusted online brokers in the Philippines are Citiseconline, BPI Trade, 2TradeAsia and Metrobank.
2. Provide requirements
The requirements will be 2 valid ID and certification of billing. You only need to give the photocopy of each documentsbut you need to present the original copy when sought out.
3. Mail your application papers and requirements or visit the stockbroker’s office
If you are away from the Philippines or faraway from Metro Manila , you can send by mail your application papers and requirements to your stockbroker’s location. 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 validation of stock trading account, you can now put money to your account by depositing money to it through direct invest or bills payment online. For Citiseconline, the minimum initial deposit is P25,000.
5. Start to buy advantageous stocks
Since you are beginner, just pick those stocks that are actively traded and constituted in PSE Index. Pick stocks that gives good dividends and strong companies.
6. Purchase and hold
After acquiring the stocks you chose, hold it for in due time maybe one month until you can gain 10% or more once you sell it.
Buying Philippine stocks is a beneficial investment for your money if you are patient and willing to learn. Keep in mind that you will only lose money when you sell the stock you are possessing. So be certain not to sell the stock when you are going to fail to keep the money you placed in stocks.
To read more details on stocks, you must visit Financial Management blog. FM blog focuses on banking such as on how to apply a BPI Express Online account, saving, investing and earn money online.
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