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How to Invest in Philippine Stock Market: Beginner’s Guide 2023

How do beginners buy stocks in the Philippines?

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Written By Robert Bagatsing

Chief Editor and Founder | Social Entrepreneur | Social Investor | Survived Strategic Marketing @ Harvard Business School | San Beda Grad | Proud Father to Lincoln Martin | Based in Manila, Dubai, Melbourne

October 27, 2022

Nowadays, investing in the stock market is becoming increasingly popular in the Philippines, and many investors are grabbing the opportunity to invest their money in such. There are over 200 companies that are open to investing and trading in the Philippine Stock Exchange (PSE). If you’re one of those Filipinos who would like to know how to invest in Philippine stock market, then this guide will be able to help you. Just follow the steps below, and the next thing you’ll know, you’re already investing.

The stock market is a great place to invest your money. The market is always growing, and there are many different ways to make money. You can invest in stocks, bonds, mutual funds, and more. The market is also very safe and regulated by the government.

The Philippine stock market is one of the best-performing in Southeast Asia. Despite the global financial challenges brought by the pandemic, EU war, and inflation, the Philippine Stock Exchange index (PSEi) remained steady over the past year (or even the past 5 years). The PSEi is expected to continue its decent upward trend in 2023, making it an attractive investment destination for foreign investors.

How much money do you need to invest in stocks Philippines?
How to Invest in Philippine Stock Market: 2023 Beginner’s Guide

How to Invest in Philippine Stock Market?

The Philippine Stock Market is a great place to invest your money. With a high potential for growth, the stock market is a wise investment choice for those looking to make their money work for them. The stock market can be a volatile place, but with proper research and guidance, it can yield high returns. Investing in the Philippine stock market is a smart way to grow your money.

The Philippine stock market offers a wide variety of investment opportunities. If you want to grab this opportunity, Filipinos and foreign nationals must learn how to invest in Philippine stock market the right way. Here are 4 simple steps:

Step 1: Choose a stock broker

The first step in learning how to invest Philippine Stock Market is to look for a stock market broker or stockbroker. Why is a broker needed? Well, simply because you cannot invest in the PSE if you don’t have one. A broker serves as the middleman between you and the publicly traded company you are planning to invest in. In particular, they will be the one to facilitate your transactions.

The following are stock brokers in the Philippines that are already well-known in this business:

  • AB Capital
  • COL Financial
  • BPI Securities Corporation
  • BDO Securities
  • Unicapital Securities, Inc.
  • ABACUS Securities (MyTrade)
  • UCPB Securities, Inc.
  • Yap Securities, Inc. (2TradeAsia)

Step 2: Create an account with your preferred broker

After you complete the first step, your next move will be to open an account with your preferred and trusted broker. You will use this account to buy and sell stocks or shares in Philippine companies.

Step 3: Fund your account

After setting up your own account, you will need to deposit the minimum initial amount to start investing. It can be done through a bank or through their online banking service via merchant payment. If you have chosen COL Financial as your broker, you can settle the payment via GCash.

Depending on your chosen stock broker, it may take a few days before your deposit appears in your account.

Step 4: Purchase your first stock

After financing your trading account, all that’s left for you to do is buy your first stock. It is important to note that companies in the Philippines have different costs per share and have a minimum amount of shares to be purchased. Some have a minimum of 100 shares, while others have 1000 minimum shares. So, make sure you have enough capital to buy those stocks or shares.

Long-term investments through stock market trading in the Philippines
How to Invest in Philippine Stock Market: 2023 Beginner’s Guide

Why invest in the Philippines?

There are many reasons to invest in the Philippines, including:

1. The Philippines has one of the fastest-growing economies in Asia. The country’s GDP is expected to grow by 6.5% in 2022, according to the Asian Development Bank.

2. The Philippines has a young and rapidly growing population. Over 60% of the population is under the age of 30 years old.

3. Robust economy. The Philippines has been one of the fastest-growing economies in Asia over the past few years. In fact, it is expected to be the 5th fastest-growing economy in the world this year! This makes it a very attractive destination for investors.

4. Favourable investment climate. The Philippine government is very supportive of foreign investment and has put in place a number of policies and incentives to attract investors. Additionally, English is widely spoken in the Philippines, which makes doing business here much easier for foreigners.

The Philippine Stock Exchange: an overview

The Philippine Stock Exchange is the national stock exchange of the Philippines. It is one of the oldest stock exchanges in Asia, having been established in 1927. The PSE is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation.

The PSE has two main indexes – the PSE Composite Index and the PSE All Shares Index. The Composite Index is made up of the 30 largest companies listed on the Exchange, while the All Shares Index comprises all stocks traded on the Exchange.

The Philippine Stock Exchange is a great place to invest for both short-term and long-term gains. With a wide variety of stocks to choose from, there is something for everyone on the PSE.

How can I buy share of stock in the Philippines?
How to Invest in Philippine Stock Market: 2023 Beginner’s Guide

The benefits of investing in the Philippine stock market

A lot of Filipinos are still not used to the idea of investing in the stock market. For some, the thought of putting their money into stocks and other securities is just too risky. They would rather keep their money in savings accounts or time deposits where it is safe. Others simply do not have enough knowledge about the stock market to invest confidently.

However, there are many benefits to investing in the Philippine stock market. For one thing, it is a great way to grow your money. The stock market has historically outperformed most other investment vehicles, such as bonds and real estate. Over the long term, stocks have averaged an annual return of around 10%. This means that your money has the potential to double every 7-8 years if you invest in stocks.

Another benefit of investing in stocks is that it gives you a chance to beat inflation.

Tips for investing in the Philippine stock market

Although the Philippine stock market has shown great potential for growth in recent years, many first-time investors are still hesitant to put their money in stocks.

If you’re thinking of investing in the Philippine stock market, here are a few tips to help you get started:

First, it’s important to understand that there is risk involved in any type of investment. However, with proper research and guidance, you can minimize your risks and maximize your chances of success.

Second, don’t put all your eggs in one basket. Diversify your portfolio by investing in different types of stocks, bonds, and other securities.

Third, be patient and don’t try to time the market. It’s impossible to predict when prices will go up or down, so it’s important to invest for the long term.

What is the best stock market to invest in Philippines?
How to Invest in Philippine Stock Market: 2023 Beginner’s Guide

What are the Best Philippine Stocks to Buy in 2023?

If you are a beginner and want to plan for a long-term investment, we recommend these stocks for 2023. The list is in alphabetical order.

  • Aboitiz Equity Venture (AEV)
  • Alliance Global (AGI)
  • Ayala Corporation (AC)
  • Ayala Land, Inc. (ALI)
  • BDO Unibank (BDO)
  • Bank of the Philippine Islands (BPI)
  • Converge (CNVRG)
  • GT Capital Holdings (GTCAP)
  • International Container Terminal Services, Inc. (ICT)
  • JG Summit (JGS)
  • Jollibee Foods Corporation (JFC)
  • Metro Pacific Investments (MPI)
  • Metrobank (MBT)
  • Puregold (PGOLD)
  • SM Investments Corp. (SM)
  • SM Prime Holdings (SMPH)
  • Universal Robina Corporation (URC)
Best Philippine Stocks to Buy Today for Long Term Investment
How to Invest in Philippine Stock Market: 2023 Beginner’s Guide

Takeaway: How to Invest in Philippine Stock Market 2023

In conclusion, investing in the Philippine stock market in 2023 can be a lucrative endeavor. With the right research and guidance, anyone can take advantage of the opportunities that will be present. The most important thing is to start early and to be patient. With time and patience, anyone can be a successful investor.

Investing in the Philippine stock market is a great way to make money. The first step is learning how to invest in the Philippine stock market. There are many different ways to do it, and there are many different investment opportunities available. With a little research, anyone can find a way to invest that suits their needs and their budget.

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