Investing in stock shares is the most popular investment
when it comes to paper or portfolio assets. You buy shares of stocks of listed
companies in the Philippine Stock Exchange and sell them at a future time to gain
profits. However, some investors who engaged in this type of investment
experienced losses than gain due to the uncertainty and volatility of the share
prices over time. A gain on share price today may unexpectedly turn into a loss
tomorrow because of the changes in the market trend.
If you are an Overseas Filipino Worker and wanted to invest
in stocks or equities, your first objective is to open your online trading
account. However, the main hindrance for you is your physical presence to apply
for one. The reason behind is that most stock brokerage
firms offering this type of trading platform require the applicant’s personal
appearance during the application process. The best time for you to do this is
during your vacation which, for most land-based workers, happened annually. For
sea-based workers, it may happen more frequently within a year.
If you are really driven to invest in stocks through the
online trading platform, the following steps would guide you through the
process.
STEP 1. CHOOSE AN ONLINE
TRADING PLATFORM
At present there are several banks and stock brokerage firms
which offer online trading facilities. You can select among these providers
which will give you the best features to help you succeed in your stock shares
investing.
To view the list of banks and stocks brokers which offers
online stock trading facility, you can click on this link HERE. These are the list
of the different online stocks trading platform and the requirements in opening
an account.
It is more beneficial if the online trading platform you
would chose may have an established online link with your bank account. This
way you can fund your online trading account from your bank account or withdraw
some of your investment returns from your online trading account in favor of
your bank account.
Personally, my favorite online trading platform is BPI
Trade. BPI’s online facilities gave me the convenience to fund my BPI Trade
account through my BPI savings account by using the BPI Express Online facility
anytime and anywhere I am.
STEP 2. PLAN TO OPEN AN
ONLINE TRADING ACCOUNT
Most of the banks and stock brokerage firms from the list mentioned
require your presence to sign and submit your application forms before they can
process your online trading account application. For an OFW, the best time to
apply for your online trading account is during your annual vacation.
Prepare all the necessary documents required in applying for
your trading account. Check the nearest branch of the bank or stock brokerage
firm near your area. During your annual vacation, you are ready to apply for
your online trading account with the bank or stock brokerage firm of your choice.
STEP 3. APPLY FOR A BANK
ACCOUNT
One of the most important requirements of opening an online
trading account is having your bank account. This bank account will serve as
your settlement account for your online trading account.
For convenience, open a bank account with an existing
arrangement with the online trading platform provider. It would be more
comfortable if your bank and your online trading account were provided by the
same company.
An example of this is BPITrade and Bank of Philippine
Islands, Rizal Commercial Banking Corporation and RCBC ezTrade and Metrobank
and First Metrosec Online.
Citiseconline, on the other hand, has a merchant payment
arrangement with BPI, Metrobank and BDO Unibank, Inc.
Once you have your bank account, enroll it with the bank’s
online internet banking facilities. Use this facility to monitor your account transactions
as well as do fund transfers into your online trading account. Once you’re back
into your work destinations abroad, do your banking and online trading through
the internet.
STEP 4. APPLY FOR ONLINE
TRADING ACCOUNT
Submit all the necessary requirements for your online
trading account application. It will take few days for your account to be
approved. Once your account is confirmed, you can fund your trading account by
transferring fund from your settlement account via the internet banking
facilities of your bank. Each online trading account may have minimum balance
to be maintained. Please read the fine prints in your online trading facility
user agreement to make sure about this.
STEP 5. BUY STOCK SHARES
ONLINE
Fund your online trading account with sufficient amount to
buy shares of stocks. In building your portfolio of stocks, you can implement
the different stock investing strategies discussed here in PISO Ni Juan like
the Peso Cost Averaging or the Peso Value Averaging methods whichever type you
are comfortable with.
We are also posting the top performing stocks here at PISO
Ni Juan on a monthly basis for you to be updated on the current stocks trends
in the Philippine Stocks Exchange.
For regular updates regarding investing and personal
finance, we encourage you to join our mailing lists and our groups account in
Google+ and Facebook.
STEP 6. MONITOR THE
PERFORMANCE OF YOUR PORTFOLIO
Monitor your stocks investment portfolio through your online
trading account. Through your online trading platform, you can see the actual
buying and selling actions in the Philippine Stock Exchange. You can participate
on the current trading by posting your bids to buy shares of stocks or make an
offer to sell stocks in your portfolio.