How to Invest in the Philippine Stock Market: For Beginners

What is Stock Market and Stocks?

     Before we start, let us first define what a stock market is. A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately. 

     A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated. Also known as "shares" or "equity." 

     So now, you already have the idea of what stocks is, right? You might be excited to be a co-owner of any company  listed in the Philippine Stock Exchange. I was so thrilled when I first bought my very first stock, it was DMCI. I was like "I'm a co-owner of DMCI!". It may be for only few hundred stocks but still I can say that I am now part of the company. For complete list for company available for the public, please see Pesobility.

     Way back in college, I already knew what stocks and stock market is. I have done extensive research on how does it work. And when I finally graduated in college and went here in Manila, I knew that it was the right time. But it took me almost 2 years working here in Manila before I finally decided to invest in the stock market. By the way, I have read Bo Sanchez's book "My Maid Invests in the Stock Market". I am telling it is written in a manner that can be easily understood by everyone. I am a graduate of BS Computer Science and never we had a subject that tackles economy or the market. Investing is not only for those who finished business courses. And yes, Sanchez's maid even invested in the stock market. So if she can, we DEFINITELY CAN too!

The Book that inspires me to Invest

Find an Online Broker

       I prefer to have an online broker rather than having an actual person who will deal with my stocks. There are a lot of online broker available but I feared I will end up in a scam website so I did extensive research. Having read the book above, Sanchez's suggested the COL FINANCIAL so I started from there. Knowing him as a motivational and inspirational speaker, these reasons are enough for me not to doubt the  credibility of the company. They are the only online broker that is listed in the Philippine Stock Market so that means you can buy shares from them too and you can be their co-owner. So I finally decided to go to their office and open an account.


      They are just located at 24th F, TekTite Towers, Exchange Rd, Ortigas Center, Pasig 1605. See the maps and picture below.

Philippine Stock Exchange, Ortigas

If you're not good on directions, here.

      They will ask you to fill up a form. Don't forget to bring at least 2 valid ID's. You can pay upfront the PHP5000.00 but it my case I paid a week after via Metrobank. Once you accomplished the form, in 1-3 business days they will send your account number via email. But there will be no password yet not until you deposited the PHP5000.00. So I go to MetroBank and fill up a  Payment Form there, scanned the receipt and sent it to deposits@colfinancial.com. After one day, they sent me my password and there, I now have my account. I changed the password and I can see the PHP5000.00 reflected in my account. The amount you deposited will be your initial fund to buy stocks. It is not even a membership fee. I could say joining COL FINANCIAL is free.

Metrobank Payment Slip

Getting Started

       You should be excited by now to buy your first stocks. You can actually attend a seminar for free at the COL Financial office. Just go to their website and register. Below is a tutorial from COL's Youtube Account about getting started. For more tutorials, just visit their channel.