How to invest in the stock market and buy stocks in the Philippines

If you want to grow your wealth, you may be wondering how to invest in the stock market in the Philippines and internationally, to diversify your assets and allow your money to work for you. There are different ways to invest - and a whole array of different asset types - which can be a bit overwhelming at first. However, if you’re trying to figure out how to buy shares in a company, how to invest in US or other international assets, or how complex products like CFDs work, there is help out there.

This guide looks at the basics of how to buy stocks in the Philippines, focusing on online brokers which can help you learn about investing and execute trades easily. We'll also introduce Wise, a handy tool to manage over 40+ currencies seamlessly.

Disclaimer: This guide is for information only - investing comes with risk and the value of your assets can go down as well as up. Take professional advice before you invest your funds.

What are stocks and bonds?

While you’re learning about how to invest in the stock market you’ll likely hear about all different types of investment options, including stocks and bonds. Broadly speaking, stocks are shares in a company, while bonds are usually bought from governments. Both are assets which can change in value - which means you may be able to trade them for more than you paid in future, but which also means the value of the asset can go down.

Aside from stocks and bonds there are also many other more complex forms of investing such as options, futures, currencies, CFDs and more.

What does it mean to buy shares in a company?

When you buy shares in a company, you become a shareholder, and buy a small portion of that company. This means you can benefit from its profits if the company pays out dividends to shareholders, and you can re-sell your share or shares at a later stage. The value of your shares changes based on market forces all the time.

You can buy shares on the Philippine Stock Exchange¹ and on many different exchanges globally, depending on the type of company, currency and country you’re interested in investing in. The easiest way to trade shares in a company or other assets is through online trading platforms. It’s important to ensure the provider you use is properly licensed and regulated for the services you use - but online providers can be flexible and simple to use, allowing you to trade wherever you happen to be.

How to invest in the stock market?

So, how to buy stocks in the Philippines?

As we’ve seen, it’s not necessary to get bank brokerage if you don’t want to, as online trading platforms can help you manage your investments flexibly with your phone. While each online broker will have a slightly different way to use their services, the basic steps are as follows:

1. Select the online broker you want to use, and head to their website or app
2. Tap Open an account
3. You'll be prompted to enter your country of residence and personal information
4. Follow the steps to register your account and get verified
5. Fund your account in PHP or the currency of your choice
6. Start to trade within the provider’s online brokerage service or app

If you’re dealing with overseas stock markets, bear in mind that the broker may charge relatively high foreign exchange fees. These are charges applied whenever you convert from one currency to another. You might be able to cut the costs with services like Wise - more on that later.

How to buy US stocks in the Philippines

All of the online brokers we have highlighted below offer ways to invest across multiple different markets and asset types. These typically include options to buy US shares. This can give you access to a very broad range of companies and indices, and also offers a good way to diversify your investments across currencies.

Take professional advice before you start to invest - in the US or anywhere else. Bear in mind that when you trade in foreign currencies you’re also exposed to changes in the value of currency which can mean you pay higher fees or lose out on currency fluctuations over time.

Best trading platforms in the Philippines

You can open a brokerage account with a major bank in the Philippines, which will allow you to trade in person, online, or by phone, depending on the specific account you pick. However, for many customers, the best trading platforms in the Philippines are online and digital brokerages. These providers don’t have a branch network usually, but offer their products 24/7 through apps and websites, which means you can manage your trades whenever and wherever you want. Here are a few you may want to look out for:

Interactive Brokers (IKBR)

Interactive Brokers (IKBR) markets its huge global breadth, with options to trade stocks, options, futures, currencies, bonds, funds, on 160 global markets, all from the same account. While fees are headlined as 0 USD for US assets, you may need to be a US resident for this low cost - if you’re in the Philippines, check the pricing, which can start at a very reasonable 0.005 USD for US listed stocks and ETFs. Fees overall vary a lot by the asset class and country, as well as how you’re trading.

IKBR offers a very comprehensive range of assets and countries, and also gives access to excellent resources for research, and trading tools.

IG

IG offers trading options for CFDs, or 'contracts for difference’ across foreign currencies, commodities, stock indices, individual stocks, crypto and other asset classes. These are products which allow you to speculate on the likely movement in value of specific assets or baskets of assets.

These products come with a very high risk of losing money and so are only for experienced investors, although IG does also offer demo accounts where you can try out the service and the trading type without risk. This can mean that this broker appeals to people who want to move into CFD trading and need an introduction to how to trade.

Trading 212

Trading 212 offers ways to invest in one off stock purchases, regular payments to buy assets, CFDs and fractional stocks to allow even beginner investors to buy parts of high value stocks like Google, Amazon and Apple.

This range of asset and trade options can mean that Trading 212 is suitable for beginner investors with only a smaller amount of money to set aside, right through to more experienced investors who want higher risk products such as CFDs. Fees vary - there are no platform or commission fees on many trades for example, but foreign exchange commissions do apply if you’re working across currencies⁸.

If you need to manaage more than just PHP, consider the Wise account to manage your transactions in USD, GBP and more

🚀 Sign up for a free account

XTB

XTB offers digital ways to invest and trade in close to 7,000 different assets covering stocks, ETFs, CFDs, commodities, indices and more. This gives a really broad range of choice, with no account opening or holding fees, and many trades offering no commission.

Ultimately the fees you pay with XTB do depend on the asset and trade types and the volume you use your account, so do read the fine print before you sign up. 0.5% currency fees may apply if you’re trading investments in a selection of currencies, for example.

Mexem

Mexem is a well established European broker which offers access to a vast array of products and different asset types. In total there are over 30,000 products, in 150 markets, in 35 countries and 23 currencies - this allows you to choose the exact trade types that suit your interests, risk appetite and long term goals. You’ll be able to get free market data, and while the service is delivered mainly through a self-serve app, there is multi-lingual support if you ever need it.

Summary

You can trade and invest in stocks, shares and many other asset classes in the Philippines and internationally. While investing does come with risks which you must take into consideration, it can also be a good way to grow your wealth and meet your own financial goals.

Ang Wise account ay isang madaling paraan mag-hold at mag-exchange ng 40+ currencies, kasama na ang PHP, USD, CNY at marami pa. Kailangan mo lang gumawa ng libreng account para makapagsimula.

Sa Wise, pwede kang mag-exchange ng pera sa mid-market rate, yung totoong exchange rate na nakikita mo online, na walang patong! Plus, pwede ka rin mag order ng Wise card para mas convenient gumastos na walang foreign transaction fees. At kung kailangan mo ng cash, pwede ka ring mag-withdraw ng up to 2 beses nang libre (up to 12,000 PHP) kapag nasa abroad ka. Makakakuha ka pa ng 8+ local account details para direkta kang mabayaran sa Wise account mo sa peso at sa iba pang major global currencies.

Magse-send ka ba ng money or magbabayad abroad? Nag-o-offer din ang Wise ng fast at low-cost transfers na abot 140+ countries - pwede mong i-track ang transfer mo sa account mo at ma no-notify din ang recipient mo kapag dumating na yung transfer. Cut FX fees when you buy, sell and trade assets across currencies.

🚀 Magsimula sa Wise

1. Philippine Stock Exchange
2. Interactive Brokers
3. IG
4. Trading 212
5. XTB
6. Mexem
7. IKBR commissions
8. Trading 212 fees