COL Financial Guide for Stock Investing Beginners

by Venus Zoleta, on category "Personal Finance"

May 23, 2019


COL Financial Philippines | Moneymax

Looking to grow your money in the long term through investing in stocks? Gone are the days when only the wealthy can afford to buy stocks. Now, everyone—even college students and housewives—can begin investing through online stock brokers like COL Financial.

Stock investing in the Philippines is made easy and affordable for the average investor through online trading platforms. It’s worth opening an account with COL Financial if you’re planning to start as an investor even with minimal knowledge and experience in investing.

What is COL Financial?

COL Financial Group, Inc. (formerly CitisecOnline) is one of the leading and most popular online stockbrokers in the Philippines. For around 20 years, the company has been offering an easy and affordable way for Filipinos to invest in the stock market through its online trading platform.

What Can You Do with COL?

COL Financial Philippines

A beginner-friendly online platform for stock investors, COL Financial not only enables users to buy and sell stocks in the Philippine stock market but also equips them with the tools, knowledge, and up-to-date information they need to make smart investing decisions.

Its range of online trading and information services include the following:

  • Real-time execution of trades
  • Automated order placement and execution online
  • Access to real-time stock quotes and other market statistics
  • Stock research reports and market commentaries
  • Online portfolio tracker
  • Price charting program and Ticker system display

Is COL Financial the Right Online Trading Platform for You?

How to Choose the Best Online Stockbroker in the Philippines

Only you can determine whether COL fits your needs as an investor or not.

Doing your own research is the best way to know if this online stockbroker is the right one for you. Here are the different things you can do to help you decide:

1. Attend Free COL Public Seminars

COL Financial conducts free two-hour seminars on the basics of mutual fund investing and stock market investing for beginners. Everyone who’s interested—COL client or not—may register online for a slot.

Seminars are usually held in COL offices in Pasig, Makati, and Davao on select days of the week, including Saturdays. Sometimes, there are seminars scheduled in the COL Investor Centers in Cebu and Ilocos Norte, as well as other parts of the country.

If you have little or no experience in investing, participating in one of the seminars is a good way to get a head-start in investing and to know more about COL Financial as a company and an online trading platform.

What’s great about COL seminars is that attendees gain a lot of knowledge and tips on starting their investing journey. The resource speakers aren’t salesy or pushy when it comes to encouraging attendees to sign up for a COL account. You can even ask them questions and listen to their responses (not just to yours but to other attendees who ask questions as well).

View the COL Public Seminar schedules here.

2. Sign Up for a Free Trial

To get a feel of how COL Financial’s online platform works, register for a free seven-day trial of the platform before you open an account with COL.

For one week, you can explore the different features and functionalities of the online trading platform, taking note of the advantages and disadvantages of using it.

3. Explore Other Online Stockbrokers

The final deciding factor is knowing how COL Financial compares to other online stockbrokers in the Philippines. There are currently almost 30 of them, so it’s time-consuming to compare all of them.

You may trim down your choices by comparing only stockbrokers that allow an affordable minimum investment of PHP 5,000 and below.

Here are the online stockbrokers you may want to research and review first. Explore their website, contact their office, read online reviews, and compare their features and services.

 

Online Stockbroker

Minimum Investment

AB Capital None
ALPHASEC PHP 5,000
BDO Nomura None
BPI Trade None
COL Financial PHP 1,000
FirstMetroSec None for Metrobank accountholders, PHP 2,500 for depositors of other banks
Luckysec Online PHP 5,000
Philstocks PHP 5,000
VC Securities None

The advantage of COL Financial and other brokerage firms that are not tied to a bank over those run by banks like BDO and BPI is that prospective clients need not open an account with an affiliate bank.

For example, BDO Nomura and BPI Trade allow only their depositors to open a trading account with them. With COL Financial, anyone regardless of bank account owned can open an account for as low as PHP 1,000.

How to Open a COL Financial Account

If you’ve decided to go with COL Financial, you need to apply for an online stock brokerage account first before you can start investing through the online trading platform.

Filipinos and foreigners here and abroad who are 18 years old and above may open a COL account. COL accepts applications from foreign residents in the Philippines and OFWs. An In Trust For account can even be opened for minors, which is ideal for parents who want to prepare for their children’s college education.

COL Financial Application Steps

1. Decide which account type to open

COL Financial offers three types of accounts that fit certain budgets, needs, and investment goals.

 

COL Account Type

Ideal for

Minimum Investment

Services

COL Starter Beginners who want to invest in the long term PHP 1,000
  • Basic research reports
  • Standard market information
  • End-of-day charting data
COL Plus Active traders (Those who buy and sell stocks for short-term profit) PHP 25,000
  • Streaming quotes
  • Comprehensive research reports
  • Live chart data with some customizable features
COL Premium Premier investors PHP 1 million
  • Access to a wide range of features
  • Assistance from a dedicated personal relationship manager

For more details on each COL account type, click here.

2. Prepare the COL Financial requirements

COL Financial application forms

Download, print, and fill out the required forms for COL account opening. Or you can get a hard copy from the company’s main office (24/F 2403-B East Tower, Philippine Stock Exchange Center, Exchange Rd. Ortigas Center, Pasig).

Valid ID

Have your valid ID photocopied. COL Financial accepts government-issued IDs, such as the following:

  • Passport
  • SSS ID/UMID
  • GSIS eCard Plus
  • Driver’s license issued by the LTO
  • PRC ID
  • Voter’s ID

Read more: Valid IDs in the Philippines You Need to Have

Tax Identification Number (TIN)

All applicants are required to provide their TIN, regardless of their taxpayer status. Non-resident foreigners and unemployed Filipinos may apply for TIN by filing BIR Form 1904 together with a copy of the birth certificate (and passport for non-resident foreigners).

Additional COL Financial requirements

For opening an In-Trust-For account, parents need to submit a photocopy of their valid government-issued ID and birth certificate of the beneficiary/minor applicant.

Expats should submit their Alien Certificate of Registration or Work Permit from the Department of Labor and Employment (DOLE).

3. Submit the requirements to COL Financial

To submit your COL account opening documents for verification, you may either go to a COL Financial office (or any iRemit branch abroad for overseas Filipinos) or send them via mail.

Those who will personally submit their COL Financial requirements may visit any of these COL branches that are open on Mondays to Fridays from 8:30 a.m. to 5:30 p.m.:

  • Pasig – 2403-B East Tower, PSE Centre, Exchange Rd., Ortigas Center
  • Makati – G/F Citibank Tower, Valero cor. Villar St.
  • Davao City – 2/F Robinsons Cybergate, J.P. Laurel Ave., Bajada
  • Cebu City – Unit B205 Axis Entertainment Ave., Vibo Place, N. Escario St.
  • Ilocos Norte – Level 2, Unit 242 Robinsons Place Ilocos Expansion Mall, Brgy. 1, San Nicolas

If you live far from the locations listed above, you can mail your documents to one of those addresses. Use a standard letter envelope for faster delivery to the COL office. As soon as COL Financial receives the requirements you sent, expect a sales officer to contact you to schedule a video conference call with you.

After submitting the complete requirements, you’ll be issued an eight-digit COL account number. Keep a copy of your account number, as you’ll use this for funding your account and logging in to your online account.

4. Fund your COL account

To activate your COL account and start investing, you need to fund it through any of these options:

  • COL Business Center in Ortigas, Pasig
  • Online bills payment through the online banking facility or mobile app of AUB, BDO, BPI, China Bank (online banking only with PHP 10 transaction fee), Metrobank, Robinsons Bank, or UnionBank
  • Over-the-counter bills payment through AUB, BDO, BPI, Metrobank, Robinsons Bank, or UnionBank (All banks, except AUB and Robinsons Bank, charge a transaction fee ranging from PHP 7 to PHP 110.)
  • Overseas remittance through BDO Kabayan Bills Bayad, BDO Overseas Remittance, or iRemit

Make sure to fund your COL account within three months after you submitted your documents. Otherwise, you’ll have to file a new COL Financial application.

When funding your account, indicate the accountholder’s name and the eight-digit COL account to ensure that the payment gets credited to your account within one to three days.

To view more details on funding your COL account, click here.

5. Access your COL account

COL Financial Philippines

Once COL Financial confirms receipt of your funding, your account will be activated. You’ll receive an email containing your account number and password. Use these details to log in to your online account. For the user ID, enter your eight-digit account number.

For your COL account’s security, change your password as soon as you log in for the first time. Here’s how:

  1. Under the Home tab, click on “Change Profile.”
  2. Click the Edit tab next to “Password” on the second column.
  3. Enter your current and new password (Must be eight to 12 characters with at least one uppercase, one lowercase, and one number).
  4. Type your new password again.
  5. Click the Change Password button.

Congratulations! You can now begin investing in the stock market using your COL account.

How to Use the COL Financial Online Trading Platform

To confirm if your funds are credited to your account, log in and click “Trade” > “Portfolio.” You should see the Cash Balance table on the upper left part of the page, which shows the amount available for buying stocks.

Remember that trading in the Philippine Stock Exchange (PSE) happens on Mondays to Fridays (except for Philippine holidays) from 9:30 a.m. to 12 p.m. and 1:30 p.m. to 3:30 p.m. You can’t buy or sell stocks when the stock market is closed.

Note: The procedures for buying and selling stocks online discussed here focus on just the basics to give beginning investors an overview of what to expect when they start using the COL trading platform. Researching and keeping yourself updated on the latest in the stock market is a must before you start investing in stocks.

How to Buy and Sell Stocks Using COL Financial

COL Financial Philippines

Buying or selling stocks involves placing an order on the COL trading platform. Here are the steps you need to take after logging in to your COL account:

  1. Click the Trade tab > Enter Order.
  2. In the Order Details table, tick the appropriate box (Buy or Sell) next to “Transaction.”
  3. Enter your order details:
    Stock Code The symbol representing a particular company listed in the PSE (e.g., ALI for Ayala Land, Inc., JFC for Jollibee Foods Corporation. etc.)
    – # of Shares: The number of shares you want to buy based on the board lot assigned to your chosen stock
    – Price: The price at which you’d like to purchase the stock based on its current quote
  4. Click the Preview Order button. This will show a summary of the order for your review.
  5. Enter your password.
  6. Click Place Buy/Sell Order to submit the order for posting.

Can’t buy or sell stocks online because you lost your internet connection? You can still place an order by calling the customer service at (02) 6-515-888. An agent will help you post your order. You’ll be charged a commission fee of 0.5% (instead of the regular 0.25% for orders placed online) for the service.

How to Withdraw Money From Your COL Financial Account

Once you’ve sold some or all your stocks, you’d want to withdraw your funds, of course. You can do it either online or manually.

Online withdrawal

COL Financial Withdraw

  1. Log in to your COL account.
  2. Click the Trade tab > Portfolio > Withdrawal Request.
  3. Read the Terms and Conditions. Click the Accept button.
  4. Fill out the online withdrawal request form. You can choose to either have your funds deposited to your enrolled bank account or claim your check.
  5. Click the Submit button.

Manual withdrawal

  1. Download, print, and fill out the fund withdrawal form.
  2. Submit the accomplished form through any of these options:
    – COL Business Center in Ortigas, Pasig
    – Email to withdrawals@colfinancial.com
    – Fax to COL’s Accounting Department at (02) 634-6958
  3. Call the COL Business Center at 6-333-777 to ask for confirmation on the availability of your check for pickup.

Final Thoughts

If you are a bit hesitant in investing directly in stocks (which is understandable given the fluctuations of stock prices) because you’re still learning the ropes or too busy to analyze market trends, you can instead start with investing in mutual funds through the COL Fund Source. No need to register for a new COL account, as existing COL clients can access this feature within the online trading platform.

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