Before the advent of the Internet, people traded stocks the old-fashioned way. They picked up the phone, called their broker, and gave instructions.
Today, you won’t have to purchase stocks over the phone. You won’t need to speak with a stock broker either. You can buy shares with just a computer and a reliable internet connection. It’s that easy. So, if you want to trade stocks, you’ll need to open an online stock market account.
Opening an account is simple. Just follow these steps:
1. Choose an Online Broker
There are so many online brokers out there that could help you start your stock market investment. The most popular one is COL Financial. You can open an account with them for just 5,000 pesos — and you can use the full amount to purchase the stocks you want. Plus, they offer investment guides on their site to help you choose the shares you want to buy.
I know what you’re thinking: “5,000 pesos! Ang mahal naman.”
If the minimum initial investment amount is too high for you, don’t worry. There are online stock brokers that don’t require any minimum initial investment at all. A couple of these brokers include BPI Trade and First Metro Securities. The condition is that you must have an existing BPI bank account if you want to choose BPI Trade or a current Metrobank account if you want to go with First Metro.
2. Prepare and Submit the Required Documents
Some of the basic documents you’ll need to fill out and submit are the following:
1. Application Form
2. Online Securities Trading Agreement (OSTA)
3. Photocopy of Valid Government-Issued IDs with Clear Signature and Photo
4. Tax Identification Number (TIN)
5. Recent Billing Statement
These are just the basics documents they could ask of you. Some brokers may require more documents for submission. Check with your broker what you need to submit.
3. Fund Your Account
Online stock brokers offer various ways to fund a stock trading account. If you chose COL Financial as your broker, you could fund your account by visiting their business center or by making an over-the-counter or online bills payment.
When it comes to stockbrokers that act as bank subsidiaries, funding is easier since you can use your bank account to fund your trade account directly. If you have a BPI savings account, you can use it to fund your BPI trade account.
Once the funds are in your trading account, you can buy the stocks you want. You can then start investing in the stock market, and make your money work for you.