If you’ve been thinking about growing your money beyond savings accounts, chances are you’ve considered the stock market. But let’s be real—most Filipinos find it intimidating. Terms like “PSEi,” “bull market,” or “brokerage fees” can easily scare off beginners.
Don’t worry. This guide will break things down step by step so you can confidently start your stock market journey—even if you have zero experience.
Why Invest in the Stock Market?
The stock market gives you a chance to become a part-owner of big companies in the Philippines like Jollibee, Ayala, SM, or BDO.
Here’s why it’s worth considering:
- Higher growth potential compared to bank deposits or time deposits.
- Dividends (some companies pay part of their profits to shareholders).
- Liquidity—you can sell your shares anytime.
- Beating inflation over the long term.
Of course, it’s not risk-free. Prices go up and down daily, but if you invest for the long term, you give your money time to grow.
Step 1: Know Your Why
Before investing, ask yourself: Why am I doing this?
- Do you want long-term wealth growth?
- Are you saving for retirement?
- Or are you just curious and want to try it out?
Your reason will guide your strategy. If it’s for the short term, stocks might not be for you.
Step 2: Open a Stock Brokerage Account
You can’t directly walk into the Philippine Stock Exchange (PSE) to buy shares. You need a brokerage account.
Popular online brokers include:
- COL Financial
- BPI Trade
- First Metro Sec
- BDO Nomura
When choosing, consider:
- Minimum deposit (COL starts at ₱1,000).
- Platform usability (easy to navigate for beginners).
- Research tools (so you know what you’re buying).
Step 3: Fund Your Account
Once approved, deposit money into your brokerage account. This becomes your “buying power” to purchase stocks.
Tip: Start small. Even ₱5,000–₱10,000 is enough to begin.
Step 4: Choose Your First Stocks
This is where many beginners freeze. The golden rule? Invest in companies you understand and believe in.
For example:
- If you eat at Jollibee, you know its business.
- If you shop at SM, you understand its market power.
For starters, consider:
- Blue-chip stocks (large, stable companies).
- Index funds/ETFs (like FMETF) if you want instant diversification.
Step 5: Decide on a Strategy
There are different ways to invest:
- Long-term holding (buy and hold) → Perfect for retirement and wealth growth.
- Peso-cost averaging (PCA) → Invest a fixed amount regularly, no matter the price.
- Active trading → Higher risk, requires skill and constant monitoring.
For beginners, PCA with blue chips or an index fund is usually the safest bet.
Step 6: Monitor, But Don’t Panic
Stock prices move daily, but don’t stress yourself checking every hour. Focus on your long-term goals. Review your portfolio at least quarterly, not every time the market dips.
Step 7: Keep Learning
The stock market is a continuous learning experience. Read financial blogs, attend webinars, and follow market news. The more you learn, the smarter your decisions will be.
Final Thoughts
Investing in the stock market isn’t just for the rich—it’s for anyone willing to learn and start small. Your ₱5,000 today could grow into much more if you stay consistent and disciplined.
If you want a broader perspective on why Filipinos should consider stocks, check out my earlier article: Investing in Stocks: A Guide for Filipinos.
But if you’re ready to begin, follow this beginner-friendly guide and start your journey now.