Buying stocks from the Philippines in a few steps includes opening a share dealing account, depositing funds, researching and picking stocks, selecting the order type, activating the order, and buying company shares from a range of stock exchanges. This article helps traders in understanding how to buy stocks from Philippines. It is not free, but most brokers allow commission-free trading on stocks.
Buying stocks online offers the potential to earn dividends and increase the likelihood of getting the benefit of any surge in stock value, which is never promised. Investors should choose a broker with a variety of regulations to protect themselves from misuse and fraud.
There are multiple stock markets available globally for investors in Philippines to buy shares, and a broker such as eToro offers the stocks on exchanges from NYSE, NASDAQ, London, Hongkong, Frankfurt, Paris, Sydney, Zurich, Stockholm, Madrid, and Milan. Online trading platforms have enabled users to invest in the stock market without using a financial advisor. Traders can buy stocks online and on mobile devices using market-leading systems like MT4, MT5, and other proprietary platforms offered by online stock brokers. The price paid when an investor buys or sells stock may comprise two items: any fees levied by the brokerage handling the transaction and the cost associated with the stock. Usually, brokers like eToro do not charge any commission on stock trading.
Buying stocks online might look easy, but it involves risks just like any other investment type. Focusing on identifying stocks, especially blue chip, and penny stocks with great growth potential, might reduce these risks. But still, there is nothing promised when it comes to the stock market. Risk management techniques can always save a trader from unexpected events. Brokers are knowledgeable about stock markets and keep track of performance, but investors must exercise caution and research before deciding on any broker to buy shares from Philippines.
How to Buy Stocks from Philippines in a few Steps?
From the brokers’ table above, investors can freely choose the broker they think suits best to their trading plan. The following steps listed below are the steps needed to buy stocks from Philippines.
- Open a Share Dealing Account
- Deposit Funds
- Research and Pick your Stocks
- Select the Order Type
- Activate the Order and Buy your Stocks
What Markets can you Buy Stocks from in the Philippines?
Investors from Philippines can buy shares from a range of stock exchanges. They can buy stocks on eToro, which supports the stock exchanges from New York, London, Hongkong, Frankfurt, Paris, Sydney, Zurich, Stockholm, Madrid and Milan. If investors choose Capital.com as a broker, then they need to consider the fact that it does not offer real shares to invest in. It only allows CFD trading in shares/stocks.
There is an extensive list of stocks CFDs available for traders in Philippines at Capital.com from multiple stock exchanges worldwide, including the Australian Stock Exchange, the National Stock Exchange of Australia, the Brussels Stock Exchange, Euronext Paris, the Canadian Stock Exchange, TSX Alpha Exchange, Helsinki Stock Exchange, London Stock Exchange, Euronext Paris, Paris Stock Exchange, Frankfurt Stock Exchange, XETRA German Electronic Exchange, Hong Kong Stock Exchange, Euronext Dublin, Milan Stock Exchange, Tokyo Stock Exchange, Osaka Exchange, Euronext Amsterdam, Oslo Stock Exchange, Moscow Exchange, Singapore Exchange, Bolsa de Madrid, Nasdaq Stockholm, New York Stock Exchange, and NYSE American.
What are the Normal Fees of Buying Stocks from Philippines?
Buying stocks is not free. Every brokerage firm has its own fee structure. While it is different for every financial instrument, stocks are mostly traded commission free. For instance, Degiro doesn’t charge any commission on US stocks. However, it does apply handling fees of 1 € on every trade.
On eToro, no commission is charged on stocks, with no management fees and rollover fees. There is a currency conversion fee on non-USD withdrawals and deposits, and a $5 fee on all withdrawals.
Capital.com also costs nothing to open a trading account. There are no enrollment or opening costs. Traders won’t pay anything to keep their account open, even if they don’t trade on it for a time. The broker doesn’t charge any commission either. Furthermore, traders won’t pay a conversion fee if they trade on a market that uses a different currency than the one in their account. There are also no fees associated with depositing or withdrawing funds from the account. However, traders must pay the spread, which is the distinction between the ask and bid prices, on each deal they make. Additionally, traders will incur a charge to keep a deal open outside of market hours if they hold it overnight. Capital.com also enables traders to secure a position with the help of a guaranteed stop, and if it is activated, they will have to pay a small premium as well.
Pros and Cons of Buying Stocks from Philippines
Here are the pros and cons of buying stocks from Philippines.
- Dividends on Stocks
- Increase in value of stocks over time
- Low Commissions
- Easily Accessible through Online Brokers
- High Volatility
- Less Control over the value of stocks
- Profit is not Guaranteed
How to Choose the Broker I need to Buy Stocks from Philippines?
Among many factors that a trader needs to consider before buying stocks from Philippines, here are a few of them.
If traders buy shares from or trade with an unregulated broker, they are basically risking their entire investment. Traders cannot infer if the broker has the intention of fraud by just holding a meeting with the broker or reading reviews about it. So, it is essential to choose a broker with a variety of regulations in order to protect yourself from misuse and fraud. For instance, a broker such as eToro is under the jurisdiction of the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Services Authority of Seychelles (FSAS), and the Money Services Business (MSB), all of which contribute to the security of the group’s operations.
There are multiple stock markets available globally for investors in Philippines to buy shares. Most of the brokers support a wide list of global exchanges and let the investors get access to any exchange they want to buy stock from. Brokers such as eToro support the stocks on exchanges from New York, London, Hong Kong, Frankfurt, Paris, Sydney, Zurich, Stockholm, Madrid and Milan for investors in Philippines.
By enabling users to invest in the stock market without using a financial advisor, online trading platforms are preferred. Traders can buy stocks online and on mobile devices using market-leading systems like MT4, MT5, and other proprietary platforms offered by online brokers such as eToro and Capital.com. Every trading platform has its own features and policies so traders are free to choose whichever while keeping their goals in their mind.
Every trader who wants to buy shares needs to evaluate if the broker he/she chooses offers real shares or CFD shares for trading. If they buy real shares, they can have a stake in the company, but CFD shares are different. CFDs involve leverage that can amplify the risks as well as the likelihood of greater returns without giving a trader stake in the organization. Investors or traders can opt for any broker according to their needs based on their offerings.
The price paid when an investor buys or sells stock may comprise two items: fees levied by the brokerage handling the transaction and the cost associated with the stock. The commission is the actual name of this charge. For stock purchases, where some brokers charge 1% to 2% of the price in total or a flat fee. They carry out transactions for clients and also provide financial planning and investment advice to investors. Stock brokers like eToro and Capital.com do not charge any commission on stock trading.
What are the Popular Trading Platforms used to Buy Stocks from Philippines?
Traders are always looking for a trading platform that best suits their trading goals. There are two forms of platforms usually available to the traders if they wish to buy shares.
Proprietary Trading Platforms and Apps
Brokers that provide direct investment but commission-free trading by not engaging in the trading activities on behalf of their customers provide proprietary trading platforms. These brokers are not interested in customers’ trading activities; instead, they benefit from market activities. For online buying of shares in Philippines, traders can use one of eToro’s proprietary trading platforms. An extensive selection of shares is available for trading on eToro, an Israelian broker that is subject to regulation. The user-friendly new interface uses cutting-edge technology. For the clients, the features are quite convenient. Moreover, eToro provides a mobile app that can be downloaded on iOS and Android. Dealing with shares is also possible with the eToro mobile trading app. They provide tools for navigating, which prioritize user-friendliness and customizable capabilities like detailed charting for experienced share-dealing account users.
MT5 Platform & App
MetaTrader 5 is the newest version of trading software introduced by MetaQuotes. It enables the traders to use high-end features to automate their trading experience. The MT5 Online Platform is the best option when installing a desktop terminal. It allows share trading using any browser. It functions on all operating systems, including Windows, Linux, and Mac. Traders can use all of MetaTrader 5’s online functionality to study financial markets and place orders. The only thing needed is an Internet connection. Without even a desktop computer, buying shares from Philippines is still possible. The only thing then you need to do is download MetaTrader 5 and install it on your phone, which can be done for both iOS and Android devices. Mobile applications allow you to do the full range of trading functions, including checking your trading history and conducting in-depth analyses utilizing chart patterns and graphical objects.
Why should I Buy Stocks?
Buying stocks is never a bad idea. When a trader buys a stock in a company, he gets shareholder rights as well as his share of ownership in the company. The stock price of a company clearly depicts its performance. If the performance of a company is good, the stock price will likely rise due to high demand and vice versa. Therefore, traders can invest in stocks of those companies they think will grow in future. Companies send a part of their profits to shareholders through dividends, regardless of whether the stock price has declined or not. But not every company pays dividends to its shareholders. Investors may benefit from a number of advantages from dividends earned through stock ownership.
There are risks associated with buying stocks that are worth mentioning here. The stock market volatility is the main risk associated with stock investing. The stock market continually faces ups and downs. More volatile stock prices are those that fluctuate rapidly and significantly and can have an effect on the stock price. Company-specific risk is also associated with trading stocks. If the company fails to generate sufficient revenue, the investor will have to face loss. People may be discouraged from diversification of their portfolios due to the inherent risk in the idea of investing in the stock market.
But stock investing can turn into a lucrative process and are extremely important in optimizing your investments as well. This could be done if you manage your risk tolerance well by implementing risk management techniques and better strategies.
There are different kinds of stocks a trader can invest in, they include penny stocks, blue-chip stocks etc. Blue-chip stocks have recently been a popular choice for investors. They are highly priced. Having a blue-chip stock is an indication of a good track record and stable financial position for an organization. On the other hand, penny stocks are listed at a price of less than $1 but are highly volatile.
Is Buying Stocks Worth the Risk?
When investors purchase stock of a specific company, they are essentially acquiring a share in that business. As a result, buying stocks will provide investors with a sense of ownership. Holding ownership entitles them to shareholder status. Additionally, they get yearly financial reports that provide them with in-depth information on the business. Buying stock in a specific firm is a means for investors to show their support for that business and its overall success. Diversification offered by stock market investments offers significant benefits to investors who spend their money in several investment categories. Independently from other investments, stock market investments experience value changes.
Dealing with a broker is necessary in order to purchase stocks on the stock market. The reason for this is that brokers are knowledgeable about stock markets and keep track on stock performance. But every broker always puts a disclaimer for the clients. eToro, for example, warns its clients that although CFD share trading results in huge gains, approximately 80% of clients lose their money.
Philippine investors must exercise caution while choosing their investments, though. They can reduce their risk and generate successful returns by grasping the fundamentals and technical know-how, and also by carrying out appropriate research before buying any stock.
What Reddit and Quora Say About Buying Stocks from Philippines
Here are online reviews from some popular social websites about buying stocks from Philippines.
Reddit is a platform to hold discussions, rate and review products and services as well, and publish content. It has many reviews and information regarding buying stocks from Philippines. One of such reviews contained information on stocks. The reddit user said that one must check the availability of stocks on the brokers’ site to buy after deciding on becoming a short-term investor or a long-term investor. It has been stated that short-term investors frequently have gambling tendencies and profit from stock volatility. It entails purchasing when prices are low and selling when prices are high. It is the riskiest approach, thus, beginners should avoid using it. Long-term investors put money into investments for future usage; they typically research the firm and purchase the shares no matter the cost in the expectation that the price would rise over time.
Quora is a great platform when it comes to displaying your queries and questions related to any topic and getting answers from members all over the world. It has mixed reviews on buying stocks from Philippines. A Quora member was found asking how to invest in US stocks from Philippines. From the answer, we have summarized that there is no need to go to the exchange personally. All that an investor needs to do is to find a broker and review if US stocks are available to be traded from Philippines. Open an account with the chosen broker after going through the reviews of all the brokers available.
How to buy stocks from Philippines is one of the questions on the mind of a beginner investor in the Philippines. That, along with choosing the right broker that suits them. Investors throughout the world have access to a variety of stock markets, and brokers like eToro support stocks listed on different exchanges from New York, London, Hongkong, Frankfurt, Paris, Sydney, Zurich, Stockholm, Madrid, and Milan. A trader needs to keep many factors in mind including whether the broker is regulated or not, the payment methods, accounts offered by the broker, and the range of instruments available to trade.
There are proprietary trading platforms, as well as MetaTrader 5 available for traders to buy stocks. Most brokers offer commission-free trading but there are other fees associated with buying stock such as spreads, overnight fees, etc. When a trader purchases a company’s stock, he/she also acquires shareholder rights and a portion of the company’s ownership. The performance of a company is represented by its stock price. Traders can purchase shares in companies they believe will experience future growth and benefit them in the future.
There are multiple risks associated with stock trading. One of the most significant ones is stock market volatility. This and all other risks can be mitigated by employing risk management techniques. There are multiple discussions available on Reddit and Quora concerning buying stocks from Philippines, which help investors make informed decisions.
Q & A
A stock is a type of asset/instrument that denotes the holder’s ownership stake in the issuing company and is typically traded on stock markets.
In contrast to a stock split, a reverse stock split involves fewer marketable shares of a company being outstanding. It is often dependent on a predefined ratio. A reverse stock split of 3:1, for instance, would result in the holder of 3 shares receiving 1 share in exchange.
The maximum price a buyer would pay to purchase a specific amount of stock at any particular time is referred to as the “bid.” The lowest possible price a seller will accept for the stock is referred to as the “ask.” Almost invariably, the bid price is always less than the ask, or “offer,” price.
A company is considered to have a blue chip stock if it has a huge market capitalization, a stellar reputation, and a long history of business success. Large corporations with blue-chip stocks are regarded as being valued, reliable, and well-established. Investors like blue-chip stocks for their dependability, but they are not exempt to economic slowdowns. A significant market index such as the S&P 100, Dow Jones Industrial Average, or Nasdaq 100 includes the majority of blue-chip stocks
A stock exchange is a platform where traders can buy and sell shares of different companies and other financial instruments like bonds.
Investors interested in buying stocks in Philippines can choose an online broker such as eToro and Capital.com to buy stocks.
Investing in stocks is fundamentally about building and expanding wealth. “Buy cheap, sell high” is the most fundamental investing advice that traders follow while making stock market investments. Buying stock in a firm entails that the buyer owns a portion of it, enabling him to partake in the revenue generated by the company. The diversification of the portfolio is increased by investing in shares. In addition to his primary source of income, the portfolio may now offer investors many streams of income, including real estate, securities, and interest from bank accounts.
The stocks in Jollibee can be bought by opening a brokerage account online with eToro or Capital.com and placing your order.
The main distinction among bonds and stocks is that while bonds reflect an entity’s debt, stocks reflect ownership in a company. Due to this distinction, investors may prefer one type of financial investment more than another based on their objectives and level of risk tolerance. Stocks are riskier. They can, however, also be more profitable than bonds. The explanation is that stocks have a higher potential gain but also a higher potential loss if things don’t work out. Bonds, on the reverse hand, are typically less hazardous. Yet, because of their consistent income sources from monthly interest payments by issuers, they offer lesser returns than stocks.
Common stock and preferred stock are the two major types of stock that are often issued when a firm sells shares of stock to the general public. The power to vote and a portion of the company’s profits are yours when you possess common stock. Owners of common stock may also receive dividends, which are periodical payments provided to stockholders, however these distributions are often unpredictable and not guaranteed. In preferred stock, the second major type of stock, investors often receive a set dividend from it. Moreover, preferred stockholders are given preference: Even in the event of bankruptcy or liquidation, preferred shareholders are paid dividends before common shareholders
Beginners with little money can buy fractional shares/stocks such as the ones offered by eToro.
Using a buy-and-hold technique, where you keep assets for a long period instead of purchasing and selling them frequently, is one common technique to make profit in the stock market.
International stocks from a range of global exchanges are available on brokerage companies for investors in Philippines to buy.
Buying stocks during a market downturn is known as “buying the dip,” and it is closely related to the phrase “buy low, sell high.” Many beginner and seasoned investors might be unsure if this strategy is suitable for them.
For investors trying to reduce their investment risk, portfolio diversification is indeed the practice of choosing a range of investments within every asset category. Diversification among types of investments may also help to mitigate the negative effects of significant market fluctuations in your portfolio.