How to Invest in Philippines Stock Market? Easy Steps for Beginners

Learning how to invest in the Philippine stock market is a great way to make your money grow and work for you. It might sound complicated at first, but anyone can start investing today, even with just a small amount of capital. Thanks to online trading platforms, buying and selling shares has become more convenient and beginner friendly.

Stocks are shares of ownership in a company. When you buy stocks, you’re buying a small part of a company. If that company grows, the value of your shares can go up, and you can earn money through dividends or by selling your shares later. 

All trading happens in the Philippine Stock Exchange (PSE), where you can buy and sell shares of well-known companies like Jollibee, Ayala, or SM.

Before you start, make sure you have some savings set aside for emergencies. Only invest money you won’t need right away. Once you’re ready, open an account with a licensed stockbroker or online trading platform such as BDO Securities, BPI Trade, or COL Financial. You’ll need a valid ID, TIN, and a small deposit to begin.

After your account is approved, you can start buying shares. Most beginners start with big, stable companies because they’re less risky. You can also invest small amounts regularly—a strategy called peso-cost averaging—to slowly grow your portfolio over time.
 

Key things to know before you start investing:

• Learn how the market works. Read about buying and selling shares, dividends, and market trends.
• Start small. Begin with an amount you’re comfortable investing while you learn the ropes.
• Choose a trusted broker. Go for licensed online platforms like COL Financial, BDO Securities, or BPI Trade.
• Understand the risks. There are several factors that affect stock prices, such as market conditions, company performance, and investor sentiment.
• Stay updated. Follow market news, company updates, and economic trends.

Making money from stocks isn’t about luck, it’s about understanding how they grow in value and how companies reward their investors. There are two main ways you can earn from your investments, depending on your strategy and how long you plan to hold your stocks.

1. Dividends - Some companies share part of their profits with their shareholders. These payments are called dividends, and they’re usually given every few months or once a year. For example, if you own shares in a company that performs well, you might receive a small cash payout for every share you hold. It’s a steady way to earn passive income, especially if you keep your stocks for the long term.
2. Capital Gains - This happens when you buy a stock at a lower price and sell it at a higher one. For example, if you bought a stock for ₱100 and sold it later for ₱150, your profit of ₱50 per share is your capital gain. The key is to buy when prices are low and sell when they go up—but timing the market takes practice and patience.

In short, you make money from stocks either by earning dividends while you hold them or by selling them later at a higher price. Some investors do both: they hold their shares long-term for dividend income while also waiting for the stock’s value to grow.

If you’re new to investing, the stock market might sound complicated, but it’s easier once you understand the basics. Think of it as learning how to make your money work for you instead of just sitting in a bank account.

1. Set your basics - Build an emergency fund, list your goals, and decide an amount you can leave invested for years.
2. Pick a broker or app - Choose an SEC-accredited broker like COL Financial, BDO Securities, or BPI Trade. Compare fees, app ease, and support.
3. Open and fund your account - Prepare a valid ID, TIN, and proof of address. Submit the forms, then deposit funds.
4. Choose your first stocks - Start small with large, stable companies. You can add a fixed amount on a regular schedule using peso cost averaging.
5. Place your order - In the app, enter the stock, number of shares, and your price. Review fees before you confirm.
6. Manage and learn - Check your portfolio on a set schedule, diversify across a few stocks, and focus on long-term growth instead of quick wins.

You buy stocks through a licensed stockbroker or an online trading platform that’s connected to the Philippine Stock Exchange (PSE). This is where all buying and selling of company shares in the Philippines officially happens.
Most beginners today use online brokers because they’re easy to access through your phone or laptop. Some of the most popular ones are:

• COL Financial – beginner-friendly with learning tools and market updates
• BDO Securities – convenient if you already have a BDO account
• BPI Trade – good for BPI clients who want a simple setup
• First Metro Securities – offers research and support for investors
• AB Capital Securities – user-friendly and beginner-oriented

In short, you buy stocks online through your broker’s platform, not directly from a company or the PSE.
 

Building your future isn’t just about stocks—it’s also about smart investments in things that help you grow. Download the Home Credit App to explore product loans for gadgets, appliances, or tools that support your goals.