The Philippines is home to the Philippine Stock Exchange which has over 329 publicly listed companies. The Philippines, being one of the fastest-growing economies in Asia is an attractive place to invest, whether you are a Filipino living in the country or abroad the long-term fundamentals of the economy remain strong given the pandemic (ie. population, language, education). And in the last few years, technology has increased access to trading stocks on the Philippine stock exchange. Today, all major banks such as Banco De Oro, Metrobank, Bank of the Philippine Islands, and Chinabank offer products that allow you to invest in the Philippine Stock Exchange for a minimal fee and in some cases non at all. For non-bank options, AB Capital Securities Inc., COL Financial Group Inc., Philstocks Financial Inc., and GoTrade offer their own unique trading platforms and solely focus on investing in stocks on the Philippine stock exchange.
So, what is the difference between brokers?
If you are a client of one of the banks that offer trading services (Banco De Oro, Metrobank, Bank of the Philippine Islands, and Chinabank) then it may be easier to transfer money from your checking or savings account into the trading account. If you are looking to time the market and buy stocks quickly, this may be the best option for you. This is also a benefit if you are looking to sell and transfer your money back into your bank account as quickly as possible. You can find the fees per transaction on the bank’s website along with the applicable time for your money to be transferred.
The non-bank options (AB Capital Securities Inc., COL Financial Group Inc., Philstocks Financial Inc., and GoTrade) offer their own unique services. Philstocks Financial Inc. for example has its own mobile application for you to buy trade without having to use your computer's browser. For some people, this may be more convenient as they do not have quick access to their computers. On the other hand, COL Financial Group Inc. provides more research and advice with your account, which can help you make better decisions when choosing which stocks to invest in. At the end of the day, each company will offer its own slightly unique version of the product and you will have to understand which one will cater to your needs.
Why you should buy stocks in the Philippines?
The Philippines entered the pandemic on a stronghold. The economy grew healthily in 2019 and in the first months of 2020 until the pandemic hit. From March to December 2020 the Philippine economy contracted by more than 10% according to government figures; however, there have been a few bright spots in the early months of 2021. The Philippines manufacturing index has shown slight growth in this sector and foreign remittances continue to be a stronghold for the Philippine economy. That being said, as in all countries around the world, there are companies that are heavily affected by the COVID-19 pandemic and ones that benefit. It is no secret that the tech giants of the world have greatly benefited and increased their market share ten-fold as more people work from home and people switch to digital channels.
I am confident that the Philippine economy will rebound in 2021 as people adjust to the new normal and companies pivot their businesses into one that is more sustainable to the circumstances we are facing in the new normal. Some of the bright spots in corporate earnings seem to be in the residential real estate sector and telco’s (Globe & Smart telecommunication) to name a few. Filipinos have continued to invest and purchase real estate properties in the major cities as well as internet plans due to the work at home environment.
When you open an account with one of the local Philippines stockbrokers listed above you will have access to all the companies currently trading on the Philippine Stock Exchange. To learn more on how to analyze a good stock learn with us here.
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