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Author: Marilyn Powell
Financial Analyst
Marilyn Powell

Filipino Stock Trading

With the number of stock traders in the Philippines currently numbering above one million, it is clear that this form of trading is fast becoming a prevalent form of investment. Stockbrokers have also reported signing up an increasing number of younger and female investors, shattering the image of the typical stock trader being a middle-aged male. Responding well to the change in demographics, far more brokers are now offering online brokerage services.

The Filipino government keeps a tight rein on all matters financial under the joint control of the SEC (Securities and Exchange Commission) and the Bangko Sentral Ng Pilipinas (BSP). Every stockbroker is highly-regulated and under constant supervision from those authorities, ensuring an exceptionally secure and safe stock trading environment for all Filipino investors.

With stock trading showing such a steep upward growth curve over the last ten years, there are now many more stockbrokers to choose from. Finding precisely the right one can prove a tiresome task, but a good starting point is reading our in-depth broker reviews, which are compiled by our resident panel of experts. All of our panel members have stock trading experience to their credit, so you can feel reassured that any broker that making it onto our recommended list has passed their scrutiny.

Top Rated Stocks Sites

#1 - Pocket Option: Best Overall

Pocket Option Logo
9.8
Superb
Bonus Up-to $2000 Assets 130+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
AMEX PayPal PaySafeCard Skrill
121 visited this site today
Pocket Option Review

Editors Summary

Pocket Option offers many excellent features to new and existing traders. When you check-out the various account types, you will see that they work with traders of any level – newbie, beginner, experienced, master etc. This site is so easy to use, and while CySEC does not license them, they have good feedback online and tick all of the boxes of a trusted broker. We love the ease of use and no-frills approach which is replicated with a great user experience.

#2 - Olymp Trade: Best Free Demo

Olymp Trade Logo
9.3
Excellent
Bonus Up-to $1600 Assets 70+
Min. Trade $1 *Payout % 91.48%
Over 70+ assets to trade now
Min deposit $10, min trade $1
Exceptional level of education
Big emphasis on ‘client experience’
Not available to US/EU citizens
Some reports of platform ‘lagging’
Deposit Methods
AMEX Bitcoin Klarna PaySafeCard
88 visited this site today
Olymp Trade Review

Editors Summary

Olymp Trade is a massive player in the fixed time trading marketplace, and their seamless platform and competitive rates of return are excellent. Their minimum $10 deposit and $1 trades means that the service is accessible to anyone who wants to trade and their education service supports their commitment to new traders as one of the best brokers.

#3 - ExpertOption: Best Mobile App

ExpertOption Logo
9.1
Very Good
Bonus Up-to $1000 Assets 50+
Min. Trade $1 *Payout % 89.72%
Over 50+ assets to trade now
Multiple accounts for all budgets
Support available in 15 languages
Free support manager for traders
Maximum trade expiry is 15 minutes
50x trading requirement for bonuses
Deposit Methods
Klarna PaySafeCard MasterCard Neteller
40 visited this site today
ExpertOption Review

Editors Summary

The recent entry of ExpertOption into the fixed time trades market gives them the benefit of being able to offer what their traders want. Their demo account allows novices to dip their toe without risk and to learn the basics of trading before they start. With a range of account types and the ability to open an account with as little as $50 and make $1 trades, they aren't out of reach for those who want to start slow and get to grips with what they are doing.

Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Stocks Sites in The Philippines

Philippines

Due to the high level of regulatory authority exercised over stockbrokers in the Philippines, you know that you can trade safely, which brings us to some other factors that are also very important to the majority of the stock trading community.

Mobile Trading

Over the last few years, many improvements have been made to Internet services in general, but especially so for wireless connectivity. Stockbrokers have reacted to this fact and invested far more into the development of mobile apps or optimised websites. At this stage, the quality of mobile access still varies quite a bit between brokers, so if trading on the move is your plan, this is a factor to investigate. Another variable is the availability of Wi-Fi, which is still unreliable in some areas.

Deals And Incentives

When you consider this aspect of a stockbroker’s client offering, think more in terms of rewards for loyalty or regular trading than of receiving a cash incentive. It is also worth knowing that no two brokers are alike in how they choose to retain their client base and incentives can come as lower trading fees, an upgrade to your account or free software to use with your trading platform; all of which will add up over time.

Diverse Asset Types

Every Filipino stockbroker is expected to support the Philippine Stock Exchange (PSE) and to offer stocks listed there to his clients. You are also likely to receive preferential trading conditions by investing in your homegrown market. If you have your sights set on other world stock markets, then you will need to shop around a bit to find your niche brokerage.

Good Customer Support

Customer support has a big part to play in every stockbroker’s business operation; not surprising when a part of the formal licensing process is to draw up a policy for customer support. Under SEC guidelines, every brokerage must detail how they intend to interact with clients from the first point of contact, through to guiding them towards becoming successful stock traders. Needless to say, every stockbroker provides direct points of contact for clients either by phone or on a live chat basis, with suitably qualified personnel in attendance.

Broker Fees And Tax

Todays Top Traders
Trader Broker Asset Profit

In general, stockbrokers in the Philippines offer two levels of service to clients: ‘Broker-Assisted’ or ‘Self-Serviced’. Each assisted account holder has an appointed adviser, who will provide advice and guidance on potential investment opportunities, as well as completing all buy or sell orders on your behalf. With the level of interaction required, this type of account attracts annual fees equating to about 8% of your total investment fund.

Many self-service accounts have now migrated towards the provision of a trading platform, from which clients can place orders themselves, with the broker acting as an intermediary between traders and the stock market. To make successful trading decisions in this way, you need much more knowledge, but there is a considerable saving to be made in terms of the overall fees paid to your stockbroker.

Under Philippine laws, you are liable for Income Tax based on your total annual income, calculated on a sliding scale basis. You do not pay Income Tax on the first P250,000 of income and the top rate is capped at 30%. Trading profits count towards your income, so it is best to keep accurate records of all investment activity for this purpose.

Filipino Licencing

Becoming a stockbroker in the Philippines is not an easy process and any that makes it through is definitely of a high calibre in every sense. Before even applying for a licence, applicants must register for the Capital Market Professionals program, undergo a lengthy education and successfully pass a ‘licensure’ examination. This part is the responsibility of the Philippine SEC (Securities and Exchange Commission), which also issue licenses to successful candidates and monitors performance based on acceptance of these fundamental principles:

  • Valuation techniques
  • Market analysis
  • Investment portfolio techniques
  • Regulations
  • Ethics

Another body involved with regulation is Bangko Sentral Ng Pilipinas (BSP), the central bank of the Philippines. The BSP tasks a separate department called the Monetary Board with ensuring the financial validity of a brokerage, which must prove it has enough capital to sustain its own business as well as having sufficient in hand to cover the value of client investments at any given time.

Lastly, a stockbroker must also pursue accreditation by the Philippine Stock Exchange (PSE), which allows him to buy and sell stocks. Given that every aspect of a Filipino brokerage is permanently under very close scrutiny, it is clear that you will enjoy one of the safest and most secure environments in the world for stock trading.

Under Philippine laws, you are liable for Income Tax based on your total annual income.

How we Recommend Brokers

Looking at the high level of regulation imposed on Philippines-based stockbrokers by the SEC and BSP, we have no hesitation in recommending those brokers first when it comes to collating a shortlist. The first step in our extensive reviews is to confirm that a stockbroker holds the correct licensing and that his conduct under it has been exemplary.

We pay particular attention to the broker’s website accessibility, looking at two key areas, firstly checking that it is as functional and fast-loading as possible and secondly, that suitable security and encryption technologies are in place; the same goes for any mobile trading platform. On that last point, due to the limitations of Wi-Fi in certain areas, an app optimised for Android or iOS is often a better option than a mobile website.

As you have seen, customer support is a high priority matter for stockbrokers in the Philippines, so last but not least, we test out each broker’s customer support, reviewing every aspect from the speed of trade execution right through to how quickly you can expect a response from customer support personnel. All of the information we gather from each review transforms into an easy-to-read format which you can find in the stock trading section of our website.

Our Review Rating System (More Info)

10% 10% 10% 15% 15% 20% 20% Pie Core
  • Account Types
  • Banking & Payouts
  • Bonuses & Promotions
  • Mobile Trading
  • Trade Types
  • Special Features
  • Customer Support
Expert Reviews

Frequently Asked Questions

FAQ

Is stock trading in the Philippines legal and safe?

Stock trading is an entirely legitimate activity for citizens of the Philippines, the stockbrokers in your own country are particularly well-regulated by the SEC and provide a very safe trading environment.

Do I need to pay fees and taxes on my profits?

The minimum fees you can expect to pay are a cost per trade, and maintenance for your trading account if this is on a self-service basis; commissions are higher for a broker-assisted account. You can also expect to pay income tax on your trading profits.

Can I test brokers before trading with real money?

There is still a variation between stockbrokers, but with the increasing numbers of online account holders, it is becoming a more prevalent trend. If this facility is an option, it is an invaluable tool where you can practice or even test out new trading strategies.

Is it easy to make deposits and withdrawals?

Stock traders must place orders via an accredited stockbroker, using a verified bank account. Once that process is in place, deposits or withdrawals are easy, using standard digital bank transfer methods.

Can I trade using my mobile or tablet device?

Many stockbrokers now offer this service, but with Wi-Fi availability still lacking in some areas, it is best to check the situation in your location and to use an app suited to your device rather than using a mobile-optimised website.

Top Rated Stocks Site

#1 - Pocket Option: Best Overall

Pocket Option Logo
9.8
Superb
Bonus Up-to $2000 Assets 130+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
Visa Klarna Neteller Skrill
133 visited this site today
Pocket Option Review
Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Meet The Author
Marilyn Powell
Marilyn Powell
Financial Analyst

Marilyn won’t mind us saying she’s our resident geek. She spends most of her time recommending various investments to her clients based on their financial goals and how risky an investment strategy they are interested in undertaking.

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