It sounds risky, but not investing might cost you more in the long run. That’s the paradox many Filipino employees face when thinking about the stock market.
If you’ve ever wondered how to invest in the stock market in the Philippines, you’re already one step closer to growing your money. The stock market isn’t exclusive to the wealthy or finance-savvy; it’s a tool anyone can use to build long-term financial security.
In this beginner’s guide, you’ll learn the basics of stock investing, how to open an account, pick your first stocks, and manage risks wisely. You’ll also explore user-friendly platforms and simple strategies, which can help you start your investment journey with clarity and confidence.
What is the Stock Market and How Does It Work?
The stock market includes companies that sell shares of their business to the public to generate funds. Buying a stock enables you to own a small piece of that company—if the business grows, so does your investment.
In the Philippines, the Philippine Stock Exchange (PSE) is the official marketplace where stocks are bought and sold. It connects investors like you with local companies looking to grow.
Unlike saving in a bank—where your money earns fixed, modest interest—investing in stocks gives your money the potential to grow faster. However, it can come with higher risks. Stock prices can rise and fall unpredictably due to factors like market sentiment, economic conditions, company performance, or global events.
This means you could lose part of your investment if the market takes a downturn or the company you invested in experiences financial difficulties. That’s why Unicapital’s executive advises first-time investors to stay calm and think long-term.
“Buy low, sell high. It sounds easy, but it takes patience and self-control. The goal is to find good value when prices are low, not when the crowd is already excited. Markets go through ups and downs. Smart investors buy when others are unsure, and sell when others are rushing in.”
– Neil Patrick A. Gabaldon, AVP, Equities Sales, Unicapital Securities, Inc.
Remember: it’s not just about timing the market—it’s about staying in the market, learning as you go, and allowing your money to grow.
Factors to Consider When Choosing Stocks
When selecting stocks, a good starting point is to consider brands or companies you’re already familiar with. This familiarity can give you an edge, as you may better understand their products, services, and market presence. However, be cautious of companies that are well-known only because of hype or hearsay.
Always back up your choices with thorough research into their actual performance and growth potential. Popularity alone is not a reliable indicator of a good investment. Here are other factors we should avoid overlooking:
Company Fundamentals
Smart investing begins by examining a company’s fundamentals, including earnings, debt, cash flow, and overall financial health. Companies with stable profits and manageable debt are usually better positioned for long-term growth, making them safer bets for first-time investors.
Industry or Sector Trends
It is also helpful to consider the broader industry or sector to which the company belongs. Is it part of a fast-growing field, such as technology, healthcare, or renewable energy? Companies in rising industries often enjoy more growth opportunities, which can translate to higher returns for you over time.
Dividends
These are cash payouts that companies distribute to their investors. Dividend-paying stocks provide passive income and can help balance out the ups and downs of the market.
Stock Price and Growth
A stock’s price history can reveal steady growth or significant fluctuations. Beginners typically benefit from stocks with stable growth patterns, as these support the goal of building wealth slowly but surely.
By considering these factors, you’ll make smarter choices—whether you’re investing to grow your funds steadily or retire early using the proceeds of your account.
Market Research
You might think you can rely on social media or stock tips from friends. However, Mr. Gabaldon points out:
“Don’t just copy what others are doing. Research the company or fund thoroughly before investing. When you understand what you’re buying, you feel more confident and less stressed during market changes. In the end, no one will take care of your money better than you.”
How to Buy Stocks in the Philippines
Buying stocks in the Philippines is simpler than you might think. Follow these easy steps to start investing and growing your money.
Choose a stockbroker or online trading platform
The first step is to open an account with a licensed stockbroker or online trading platform in the Philippines. Unicapital’s UTrade is a great option—it’s beginner-friendly and backed by financial experts who can guide you.
To register, you’ll need to submit valid identification, proof of address, your tax identification number (TIN), and other Know Your Customer (KYC) requirements. This process ensures the security of your investments and verifies your identity to protect your financial information.
Fund your account
Once registered, it’s time to fund your account. Most brokers, including UTrade, allow funding via bank transfers, mobile wallets, or over-the-counter deposits.
While the typical initial deposit is ₱10,000, UTrade allows you to start investing with as little as ₱5,000 or even ₱1,000 if you join its free monthly webinars. This makes investing accessible, even for those just starting out. This initial deposit can be fully used to buy stocks.
Place your first buy order
After funding your account, you can place your first buy order. Log in to your trading platform and search for the stock symbol you want to buy (e.g., AC for Ayala Corporation).
Next, choose your order type:
- Market order: Obtains the stock at the current market price.
- Limit order: Sets a specific price you’re willing to pay.
Input the number of shares you want to purchase, keeping in mind the required board lot or the minimum amount of shares you can buy.
Monitor and manage your investments
Once you’ve bought your stocks, regularly monitor their performance using your platform’s tools. Remember, investing is a long game—don’t expect instant returns.
You can reinvest any dividends you earn or add more capital over time. With patience and consistency, you’ll build a stronger, more diversified portfolio.
Turn Your First Investment Into Your First Win
You don’t need to be a stock market genius or have hundreds of thousands of pesos to start investing. All it takes is the courage to begin and the discipline to keep going. Open a trading account, choose stocks with solid fundamentals, invest consistently, and protect your capital through smart risk management.
Think of each investment as planting a seed. With time, patience, and the right strategy, those seeds can grow into the wealth you need to fund your dreams, secure your retirement, or even build a lasting legacy.
Why wait? Start your journey to financial growth today. Open a UTrade account with Unicapital.
