How to open an investment or a trading account.
This page is specifically dedicated to the people who are deeply interested in finding ways on how to guide and grow their own way of investing and/or trading in the local bourse (the Philippine Stock Market). (also inspired by my significant other: M.Santos)
Part 1: Opening and Funding an account
Part 2: Withdrawing funds from an account
Part 3: Basic navigation with your online stock broker account
Part 4: Author's hard learned lessons prior to utilizing a strictly privatize online service.
*Disclaimer: the author does not compel anyone to use what he is using (COL FINANCIAL) as to be the designated online stock broker. It is in the author's own experience that he finally decided to use this online stock broker compared to any other that are available listed on the following: (source: MARIFEL DUNGO, List of Accredited Online Trading Brokers in the Philippines)
This page is specifically dedicated to the people who are deeply interested in finding ways on how to guide and grow their own way of investing and/or trading in the local bourse (the Philippine Stock Market). (also inspired by my significant other: M.Santos)
Part 1: Opening and Funding an account
Part 2: Withdrawing funds from an account
Part 3: Basic navigation with your online stock broker account
Part 4: Author's hard learned lessons prior to utilizing a strictly privatize online service.
*Disclaimer: the author does not compel anyone to use what he is using (COL FINANCIAL) as to be the designated online stock broker. It is in the author's own experience that he finally decided to use this online stock broker compared to any other that are available listed on the following: (source: MARIFEL DUNGO, List of Accredited Online Trading Brokers in the Philippines)
PART 1: Opening and Funding an account
The author will briefly explain here as to what the step by step pictures represent: (please see the red circles as a guide)
Steps to open your own investment/trading account:
1. Go to your preferred online stock broker (author preferred to use COL FINANCIAL-which houses his two accounts: a speculative trading and a value investing account)
2. Select your preferred account. (the author would suggest for a COL STARTER account)
3. Choose OPTION 2: Download and FILL-UP all FORMS and PRINT IT.
4. Prepare copy of additional requirements: 1 Government issued ID + Billing statement (no later than 3 months past)
5. Submit *PERSONALLY* all the requirements to COL BUSINESS CENTER: 2403-B East Tower, PSE Centre Exchange Road, Ortigas Center, Pasig City, Philippines 1605* (Behind SM MEGAMALL)
6. You can only fund the account after 24 hours of application. You may fund it at the stockbroker's preferred method: (author initially used the "over-the-counter bills payment")
*The reason why the author would want the interested investor or trader to choose this route instead of Option 1: online application, is that there will be an opportunity for the applicant to know more about the business itself and be guided personally by one of their secretaries in ACTUALLY navigating a REAL LIVE ACCOUNT upon submission of the application.
The author will briefly explain here as to what the step by step pictures represent: (please see the red circles as a guide)
Steps to open your own investment/trading account:
1. Go to your preferred online stock broker (author preferred to use COL FINANCIAL-which houses his two accounts: a speculative trading and a value investing account)
2. Select your preferred account. (the author would suggest for a COL STARTER account)
3. Choose OPTION 2: Download and FILL-UP all FORMS and PRINT IT.
4. Prepare copy of additional requirements: 1 Government issued ID + Billing statement (no later than 3 months past)
5. Submit *PERSONALLY* all the requirements to COL BUSINESS CENTER: 2403-B East Tower, PSE Centre Exchange Road, Ortigas Center, Pasig City, Philippines 1605* (Behind SM MEGAMALL)
6. You can only fund the account after 24 hours of application. You may fund it at the stockbroker's preferred method: (author initially used the "over-the-counter bills payment")
*The reason why the author would want the interested investor or trader to choose this route instead of Option 1: online application, is that there will be an opportunity for the applicant to know more about the business itself and be guided personally by one of their secretaries in ACTUALLY navigating a REAL LIVE ACCOUNT upon submission of the application.
Here are the steps in picture screen:
PART 1: Opening and Funding an account (PICTURES)
PART 1: Opening and Funding an account (PICTURES)
Part 2: Withdrawing funds from an account
If upon immediate cases, the newly decided investor or trader wants to withdraw his/her funds or newly found earnings.
Steps:
1. Log in to your account.
2. FORMS>Download PDF file for WITHDRAWAL REQUEST FORM>FILL UP with your specific instructions where the currency will be deposited>SCAN>EMAIL TO: [email protected]
3. Wait within 24 hours before it appears in your bank savings account.
If upon immediate cases, the newly decided investor or trader wants to withdraw his/her funds or newly found earnings.
Steps:
1. Log in to your account.
2. FORMS>Download PDF file for WITHDRAWAL REQUEST FORM>FILL UP with your specific instructions where the currency will be deposited>SCAN>EMAIL TO: [email protected]
3. Wait within 24 hours before it appears in your bank savings account.
Part 3: Basic navigation with your online stock trading account
This is the basic navigation tips for you to start purchasing and selling your stock.
1. Go to WATCH LIST
2. Type in your STOCK QUOTE/CODE
3. Check the BOARD LOT (minimum shares you can purchase at a transaction)
4. Hit Buy or Sell.
5. Congratulations on your first share of a company :)
6. To view your portfolio. (see the pictures below)
*Stock quote/code is a short cut for your desired company. There will be a list available in the: Philippine Stock Exchange website.
*Disclaimer: The author would like to impart with the eager investor or trader to fully research first about the company or group of companies he/she would start investing with. The author does not suggest what his list of stocks in the portfolio as the GOOD investments to buy, it was purchased through the author's preference and future risk is already discounted to it.
RULE OF THUMB: Do not trade or invest for long term in a company that you just heard from a good friend, investment professional, professional trader, life insurance professional, etc.
(See the Part 4: Author's hard learned lessons prior to utilizing a strictly privatize online service.)
This is the basic navigation tips for you to start purchasing and selling your stock.
1. Go to WATCH LIST
2. Type in your STOCK QUOTE/CODE
3. Check the BOARD LOT (minimum shares you can purchase at a transaction)
4. Hit Buy or Sell.
5. Congratulations on your first share of a company :)
6. To view your portfolio. (see the pictures below)
*Stock quote/code is a short cut for your desired company. There will be a list available in the: Philippine Stock Exchange website.
*Disclaimer: The author would like to impart with the eager investor or trader to fully research first about the company or group of companies he/she would start investing with. The author does not suggest what his list of stocks in the portfolio as the GOOD investments to buy, it was purchased through the author's preference and future risk is already discounted to it.
RULE OF THUMB: Do not trade or invest for long term in a company that you just heard from a good friend, investment professional, professional trader, life insurance professional, etc.
(See the Part 4: Author's hard learned lessons prior to utilizing a strictly privatize online service.)
Part 4: Author's hard learned lessons prior to utilizing a strictly personalize and privatize online service.
It has been 3 years since the author started trading and investing. Investing for bigger gains as to compared with what the usual LOW savings rate a Local Bank will provide (see Philippine Banks savings rate).
Not everyone will be fit to be engaging in such endeavor (researching, timing, purchasing a stock). It is risky, time consuming and would require beyond the usual patience prior to expecting a desirable return upon a purchase.
Valuable lessons learned by the author:
1. Having someone deal with my investments.
2. Leaving a time deposit for 1 year time deposit and expecting a good lump sum out of it.
3. Trading and expecting a 100% or even greater return within one day.
1. Having someone deal with my investments.
For busy people who have been wanting to earn more out of their hard earned money, nothing will be as good as a resolution than relying to a 'professional' all his hard earned savings for them to be invested and for it to bear desirable returns over a period of time.
Working a 5-6 hour part time afternoon job prior to a grave-yard shift for 5 days a week may not be an optimal way of providing time to research of about the suitable investment vehicle, but then provides good enough income for a struggling professional.
With a 20,000+ PHP per month surplus, the author had relied upon a friend of his then best friend as a 'professional trader' in the FOREX business. Thus, with the promise of a 100% return in every month of investing of at least 20,000 PHP or more, the author was then lured to the deceptive yet skillful way of the referred 'friend'.
Never to meet personally but once, the 'professional trader' utilized every social media available as to show the author the ways on how to attain more money with his current minute savings. Through SKYPE, FACEBOOK, Yahoo Messenger, etc, The 'professional trader' had shown the CHARTING ANALYSIS etc. to the author. With such deceptive statements (e.g. "You can earn $500 within a month"), the author thought no more and immediately pulled out his BDO savings wire transferring it to this great 'professional trader'.
1 week return showed gains of $40-50-which is not bad to start with. With the turmoil resurfaced between the defaulting of Greece in 2011 and other not so much easy to understand information coming from CNBC, Bloomberg, and from the 'professional trader' alike. The author decided to just keep on doing the wire transfer monthly. So as to his surprise, he had already deposited a 70,000 PHP to this once in a lifetime wonderful investment opportunity courtesy of the friend-the 'professional trader'.
Losses began to pile up within the third month amounting to $600-700 USD (30,800 PHP); which by that time the author now would like to withdraw his hard earned money. To his surprise, the self-acclaimed 'professional trader' wouldn't bulge and demands even a FEE of 10,000 PHP for his great investment service. Soon after, this 'professional investor' had hidden away from the author's reach.
Even after filing complaints, summons from the Local Barangay, and to the Cyber Crime division of the National Bureau of Investigation (NBI, Manila) for record keeping. The author never once again found a way to communicate with this great 'professional investor'.
#1 Lesson learned: Never trust anyone with your money.
Lessons 2 and 3, (Leaving a time deposit for 1 year time deposit and expecting a good lump sum out of it and Trading with expecting a 100% or even greater return within one day), will be pretty much self explanatory. As listed below the Bank Savings Rates are as low as ever, depositing i.e. a 100,000 Php worth for 1 year TIME DEPOSIT would yield just about 1,000 PHP (not discounting TAX yet).
It has been 3 years since the author started trading and investing. Investing for bigger gains as to compared with what the usual LOW savings rate a Local Bank will provide (see Philippine Banks savings rate).
Not everyone will be fit to be engaging in such endeavor (researching, timing, purchasing a stock). It is risky, time consuming and would require beyond the usual patience prior to expecting a desirable return upon a purchase.
Valuable lessons learned by the author:
1. Having someone deal with my investments.
2. Leaving a time deposit for 1 year time deposit and expecting a good lump sum out of it.
3. Trading and expecting a 100% or even greater return within one day.
1. Having someone deal with my investments.
For busy people who have been wanting to earn more out of their hard earned money, nothing will be as good as a resolution than relying to a 'professional' all his hard earned savings for them to be invested and for it to bear desirable returns over a period of time.
Working a 5-6 hour part time afternoon job prior to a grave-yard shift for 5 days a week may not be an optimal way of providing time to research of about the suitable investment vehicle, but then provides good enough income for a struggling professional.
With a 20,000+ PHP per month surplus, the author had relied upon a friend of his then best friend as a 'professional trader' in the FOREX business. Thus, with the promise of a 100% return in every month of investing of at least 20,000 PHP or more, the author was then lured to the deceptive yet skillful way of the referred 'friend'.
Never to meet personally but once, the 'professional trader' utilized every social media available as to show the author the ways on how to attain more money with his current minute savings. Through SKYPE, FACEBOOK, Yahoo Messenger, etc, The 'professional trader' had shown the CHARTING ANALYSIS etc. to the author. With such deceptive statements (e.g. "You can earn $500 within a month"), the author thought no more and immediately pulled out his BDO savings wire transferring it to this great 'professional trader'.
1 week return showed gains of $40-50-which is not bad to start with. With the turmoil resurfaced between the defaulting of Greece in 2011 and other not so much easy to understand information coming from CNBC, Bloomberg, and from the 'professional trader' alike. The author decided to just keep on doing the wire transfer monthly. So as to his surprise, he had already deposited a 70,000 PHP to this once in a lifetime wonderful investment opportunity courtesy of the friend-the 'professional trader'.
Losses began to pile up within the third month amounting to $600-700 USD (30,800 PHP); which by that time the author now would like to withdraw his hard earned money. To his surprise, the self-acclaimed 'professional trader' wouldn't bulge and demands even a FEE of 10,000 PHP for his great investment service. Soon after, this 'professional investor' had hidden away from the author's reach.
Even after filing complaints, summons from the Local Barangay, and to the Cyber Crime division of the National Bureau of Investigation (NBI, Manila) for record keeping. The author never once again found a way to communicate with this great 'professional investor'.
#1 Lesson learned: Never trust anyone with your money.
Lessons 2 and 3, (Leaving a time deposit for 1 year time deposit and expecting a good lump sum out of it and Trading with expecting a 100% or even greater return within one day), will be pretty much self explanatory. As listed below the Bank Savings Rates are as low as ever, depositing i.e. a 100,000 Php worth for 1 year TIME DEPOSIT would yield just about 1,000 PHP (not discounting TAX yet).
Trading and expecting huge returns comes into a greater learning curve that one trader or investor should engage in. The author would like to suggest that once after opening an account, it is better to buy valuable mispriced stocks rather than chasing stocks that are trending up. Though this can be a learning curve that may take some time. This is better than losing all your hard earned money by just relying on the psychology of the traders and other tenured investors that has way beyond experience and financial backing than you.
Before you start out buying shares from publicly listed companies at your own preferred price. Understand yourself more as to what will be your loss percentage ratio tolerance and how much you can afford to lose so as you can sleep at night.
Losing 100% of my hard earned savings (70,000 PHP) within 3 months time I attest to you will not be the series of best good night sleeps you will ever experience.
An example of a loss percentage ratio tolerance is something can be elementary explained as-if you will be willing to put in 10,000 PHP for an investment and willing to take a loss of at least 3,000 PHP before closing your position or selling your stock (Philippine Stock Market does not provide short selling). In this case, you have at least a 30% loss percentage ratio tolerance. This should well bind with your investment or trading rule.
Discipline and further self-learning can develop you into a better investor or a trader in this circumstances and as long as you can sleep tight at night knowing that you are earning minute gains every now and then counts rather than the other way around.
As a new trader or investor (there is a BIG difference among the 2), the author would like to suggest for you to view this short clip from the investopedia website. Learning the difference between a fundamental versus a technical analysis can provide a clearer pathway for an endeavoring interested individual.
Before you start out buying shares from publicly listed companies at your own preferred price. Understand yourself more as to what will be your loss percentage ratio tolerance and how much you can afford to lose so as you can sleep at night.
Losing 100% of my hard earned savings (70,000 PHP) within 3 months time I attest to you will not be the series of best good night sleeps you will ever experience.
An example of a loss percentage ratio tolerance is something can be elementary explained as-if you will be willing to put in 10,000 PHP for an investment and willing to take a loss of at least 3,000 PHP before closing your position or selling your stock (Philippine Stock Market does not provide short selling). In this case, you have at least a 30% loss percentage ratio tolerance. This should well bind with your investment or trading rule.
Discipline and further self-learning can develop you into a better investor or a trader in this circumstances and as long as you can sleep tight at night knowing that you are earning minute gains every now and then counts rather than the other way around.
As a new trader or investor (there is a BIG difference among the 2), the author would like to suggest for you to view this short clip from the investopedia website. Learning the difference between a fundamental versus a technical analysis can provide a clearer pathway for an endeavoring interested individual.
With all this, the author would like to let the interested individual that he/she may contact him through email stated at the CONTACT section for other questions.
*Addendum:
For more information about other investment vehicles: the difference between Life Insurance, UITFs, Life insurance + equity investments and other investment propaganda that are recently sprouting everywhere given the bullish nature of the financial market that the Philippines has right now. The author would like the reader to be referred to one of his acquaintance's website Mr. Christopher Lim's PinoyFIQ.com.
Topics such as Index vs. Managed funds, pooled funds, and other interesting to know investment vehicles are succinctly detailed.
It is where the author may well recall on of the few encounters with the financial writer that it is best not to overly diversify through investing with these so called "life + stock insurance investment" deals that currently are getting paid more attention to yet based on the fact that it barely provides clarity and rather provide a little over much acceptable returns for the endeavoring "investors" on the first few years (take note: YEARS) after initial investment on these type of investment instruments. This REAL return of investment (ROI) after several years will not be clarified in any contract provided by an insurance agent and rather not be mentioned during the contract signing.
With this the author would like to end with these words, CAVEAT EMPTOR!
and with a quote,
*Addendum:
For more information about other investment vehicles: the difference between Life Insurance, UITFs, Life insurance + equity investments and other investment propaganda that are recently sprouting everywhere given the bullish nature of the financial market that the Philippines has right now. The author would like the reader to be referred to one of his acquaintance's website Mr. Christopher Lim's PinoyFIQ.com.
Topics such as Index vs. Managed funds, pooled funds, and other interesting to know investment vehicles are succinctly detailed.
It is where the author may well recall on of the few encounters with the financial writer that it is best not to overly diversify through investing with these so called "life + stock insurance investment" deals that currently are getting paid more attention to yet based on the fact that it barely provides clarity and rather provide a little over much acceptable returns for the endeavoring "investors" on the first few years (take note: YEARS) after initial investment on these type of investment instruments. This REAL return of investment (ROI) after several years will not be clarified in any contract provided by an insurance agent and rather not be mentioned during the contract signing.
With this the author would like to end with these words, CAVEAT EMPTOR!
and with a quote,
"Be fearful when others are greedy. Be greedy when others are fearful"
Warren Buffet-
M.Y.
July 13, 2014
Warren Buffet-
M.Y.
July 13, 2014
References:
1. http://philpad.com/list-of-accredited-online-trading-brokers-in-the-philippines/
2. [email protected]
3. http://pse.com.ph/stockMarket/home.html
4. http://philippines.deposits.org/
5. http://www.investopedia.com/video/play/fundamental-versus-technical-analysis/
6. http://pinoyfiq.com/pinoyfiq/
1. http://philpad.com/list-of-accredited-online-trading-brokers-in-the-philippines/
2. [email protected]
3. http://pse.com.ph/stockMarket/home.html
4. http://philippines.deposits.org/
5. http://www.investopedia.com/video/play/fundamental-versus-technical-analysis/
6. http://pinoyfiq.com/pinoyfiq/