Compare the Best Online Trading Platforms in the Philippines!

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 portfolios in one place through an online 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.

How much do I need to start online trading?

You don’t need to earn a big salary to be able to invest in the stock market. In fact, a majority of investors in 2018 earn less than ₱500,000 per year (or less than ₱41,666.67 per month), according to the PSE Stock Market Investor Profile report.

If you want to start investing but don’t have hundreds of thousands worth of capital, you can start with as little as ₱5,000. Some stockbrokers don’t require a minimum investment amount, as long as you have enough money in your account to purchase stocks and pay the trading fees.

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.

What online trading fees and charges should I expect?

Aside from the minimum 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 ₱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

What should I consider if my budget is limited?

When choosing a broker with your budget in mind, it’s best to get the most bang for your buck. If you have only ₱5,000 and want to start trading now, consider a broker with a low entry fee and low commission.

What features should I look for in an online trading platform?

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.

Can I try an online trading platform first before using it?

Yes! 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.

How do I fund my online trading 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.

Is there a limit to how much I can withdraw?

Usually, most online trading platforms don’t set limits to the amount you can withdraw from your account. However, they might set a minimum withdrawal amount. For example, Olymp Trade doesn’t have a withdrawal limit, but it has a minimum withdrawal requirement of $10, while XM set their minimum at $5.

How long will I wait to receive my withdrawal?

Ideally, it will take around 3-5 business days for online trading platforms to process your withdrawal or cash-out request. Here are the standard waiting time for each trading platform.

Do online trading platforms come with value-added services?

Yes! Value-added services are features that go beyond the standard. For example, COL Financial’s Premium Account, with a minimum portfolio balance of ₱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. Philstocks, XM, eToro, and Olymp Trade 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.