How to Pick the Best Online Stock Trading Platform for You
Published: May 19, 2020 | Updated: October 12, 2020 | Posted by: Moneymax | Personal Finance
Online stock trading platforms have made stock investing more available and convenient for Filipinos. You can simply buy and sell stocks online with just a click of a button (or a tap on your smartphone if you’re using a mobile app). It’s so easy to monitor your investment portfolio anytime in the comfort of your home.
Online stock brokers in the Philippines have made all of these things possible through their respective online trading platforms. Gone are the days when you have to visit the broker’s office or make a phone call each time you want to place or cancel a trade order.
With different online stock brokers in the Philippines to choose from, you’re unsure of which to pick. How do you determine which option is the best trading platform for you? Keep reading to find out how to select the best online stock trading platform for you.
Table of Contents
What is an Online Stock Trading Platform?
An online stock trading platform is a web-based or app-based tool that allows investors and traders to build, track, and manage their portfolio in one place through an online stock broker. Users can make investment or trading decisions without assistance from their broker.
Online trading platforms in the Philippines are accessible only to clients of online stock brokers. This means you have to open an online stock trading account with a stock brokerage company first before you can use its online trading platform for buying and selling stocks.
4 Factors to Consider When Choosing an Online Stock Trading Platform
1. Your Budget
The first and most important consideration for beginners is how much they can afford to pay for opening an online stock trading account.
Online Stock Brokers with a Minimum Investment of PHP 5,000 or Less
If you want to start investing but don’t have hundreds of thousands worth of capital, you can start with as little as PHP 5,000.
Even better, if you already have a BDO, BPI, or Metrobank account, there is no minimum deposit to start investing through their respective online stock trading platforms. Listed here below are some of the online stock broker you may choose from with a minimum investment of PHP 5,000 or less.
|Online Stock Broker||Online Trading Platform||Minimum Investment|
|AB Capital Securities, Inc.||ABCSI||None|
|Alpha Securities Corporation||ALPHASEC||PHP 5,000|
|BA Securities, Inc.||BASecOnline||PHP 5,000|
|BDO Nomura Securities, Inc.||BDO Nomura||None|
|BPI Securities Corporation||BPI Trade||None|
|COL Financial Group, Inc.||COL Financial||PHP 5,000|
|Eastern Securities Development Corporation||GoTrade||PHP 5,000|
|First Metro Securities Brokerage Corporation||FirstMetroSec||None|
|Lucky Securities, Inc.||Luckysec Online||PHP 5,000|
|Philstocks Financial, Inc.||Philstocks||PHP 5,000|
Online Stock Brokers with a Minimum Investment of PHP 10,000 and Above
If you have more than PHP 5,000 to invest, consider also the PSE-accredited online stock trading brokers in the Philippines below.
|Online Stock Broker||Online Trading Platform||Minimum Investment|
|A & A Securities, Inc.||A & A||PHP 50,000|
|AAA Southeast Equities, Inc.||AAA Equities||PHP 20,000|
|Abacus Securities Corporation||MyTrade||PHP 100,000|
|AP Securities, Incorporated||APS Online||PHP 50,000|
|Coherco Securities, Inc.||CohercoTrade.ph||PHP 150,000|
|DA Market Securities, Inc.||iTrade||PHP 50,000|
|F. Yap Securities, Inc.||2TradeAsia||PHP 25,000|
|Globalinks Securities and Stocks, Inc.||GTrade||PHP 20,000|
|HDI Securities, Inc.||HDI Securities||PHP 25,000|
|Investors Securities, Inc.||Investors Online||PHP 50,000|
|JAKA Securities Corporation||JAKA Securities Online||PHP 25,000|
|Maybank ATR Kim Eng Securities, Inc.||MakeTrade||PHP 1 million|
|Meridian Securities Incorporated||MSi Trade Online||PHP 20,000|
|Optimum Securities Corporation||Optimum Online||PHP 25,000|
|Papa Securities Corporation||P2P Trade Online||PHP 50,000|
|RCBC Securities, Inc.||RCBC ezTrade||PHP 10,000|
|Regina Capital Development Corporation||Regina Online Investing||PHP 25,000|
|Timson Securities, Inc.||Timson Trade||PHP 20,000|
|Triton Securities Corporation||TritonSec||PHP 10,000|
|UCPB Securities, Inc.||MyStocks||PHP 10,000|
|Unicapital Securities, Inc.||UTrade||PHP 10,000|
|VC Securities Corporation||VC Trade||PHP 10,000|
|Wealth Securities, Inc.||WealthSec||PHP 20,000|
Online Stock Investing Fees and Charges
Aside from the minimum portfolio balance, it’s also important to be aware of fees and charges when trading.
Every time you buy or sell your shares, you are charged the following fees:
- Broker’s commission – 0.25% of the gross trade amount (number of shares x unit price) / Minimum of PHP 20 per stock per day
- Value-added tax (VAT) – 12% of the broker’s commission
- Philippine Stock Exchange (PSE) transaction fee – 0.005% of the gross trade amount
- Securities Clearing Corporation of the Philippines (SCCP) fee – 0.01% of the gross trade amount
- Sales tax (selling transactions only) – 0.60% of the gross trade amount
To easily compute your stock trading costs, you can use the PSE Academy’s online investment calculator.
When choosing a broker with your budget in mind, it’s best to get the most bang for your buck. If you have only PHP 5,000 and want to start trading now, consider a broker with a low entry fee and low commission.
Online trading platforms ease the buying and selling of stocks. In the same manner, adding funds to your account should be convenient as well. Online deposits and withdrawals add a level of convenience you can’t disregard.
Check the FAQ page of your broker of choice to know the different options for funding your account.
Most online stock brokers in the Philippines allow clients to fund their accounts through over-the-counter and online bills payment with various banks, overseas remittance services, and directly in the brokerage company’s office.
However, the easier and faster way to fund an online stock trading account is through platforms of brokers that are affiliated with major banks.
For example, BDO Online Banking clients can directly transfer money from their savings account to their stock trading account through the BDO Nomura platform. If you have a BPI Online account, opt for a BPI Trade account so that you can quickly deposit and withdraw your money online.
The same can be said if you have a Metrobank Direct account and a First Metro Securities trading account (the stock brokerage company of the Metrobank group).
3. Online Stock Trading Platform Features
Online trading platforms in the Philippines are generally user-friendly and easy to use even for beginners. What sets them apart are the various features they offer that help their clients in making the right stock picks.
It’s important to know the features you need in an online brokerage account before opening one.
For long-term investors, here are some key features to look for in an online stock trading platform:
- Real-time stock quotes
- Morning notes and news
- Company reports
- Research reports and investment guides, both fundamental and technical
- Charting tools with analysis on stock price
- Stock picks/recommendations
If you decide to be a day trader instead of a long-term investor, the features of your online stock trading account need to have live and streaming data instead of end-of-day numbers.
If you’re an online stock trading beginner, you can open a trial account with different brokers to get a feel of their platform before you sign up for their service.
4. Value-Added Services
Value-added services are features that go beyond the standard. For example, COL Financial’s Premium Account, with a minimum portfolio balance of PHP 1 million, provides additional features such as a relationship manager and a more detailed portal of your stock picks.
Another thing to consider is if your online stock trading account comes with a mobile app. BDO Nomura Mobile, FirstMetroSec GO, and Philstocks Mobile are among the stock trading apps that are mobile versions of their main trading account. This makes stock investing even more convenient, letting you buy and sell stocks using your phone.
Aside from these services, you can also look into free seminars and other learning platforms offered by online stock brokers in the Philippines. Seminars typically cover a wide range of topics, from fundamental analysis to technical analysis, which beginners need to know. Take advantage of these additional resources and services to learn the ins and outs of investing in the stock market.
Stock trading is one of the best ways of making your money work for you. However, you can’t just jump in blindly. “There are no shortcuts when investing. Learning and practicing are key,” says Marvin Germo, author of the Stock Smarts series of books.
One way to learn more about the stock market is by picking the brokerage firm that provides an online stock trading platform tailored to your needs. If you want to know more about making the right stock pick, read this article focused on coming up with your stock investing strategy.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.