Quick answer
To invest in Philippine stocks, open an account with an SEC-licensed online broker that is a PSE trading participant, fund it via bank transfer or e-wallet, and buy shares listed on the Philippine Stock Exchange in board lots (minimum share quantities that depend on price). Fees on a ₱10,000 purchase are about ₱30. Since July 2025, selling incurs a 0.1% stock transaction tax, and cash dividends are taxed 10%.
Key takeaways
- Use a broker licensed by the SEC and listed as a PSE trading participant.
- Shares trade in board lots; your minimum purchase depends on the stock's price.
- Buying costs about 0.3% (commission, VAT, PSE and SCCP fees); selling adds the 0.1% stock transaction tax.
- Beginners do best with an index fund or ETF core, plus a few large, profitable companies for learning.
- Invest money you won't need for 5+ years; stock prices can fall sharply in the short term.
On this page
Owning stocks means owning a piece of companies you deal with every day: the bank you use, the mall you visit, the telco in your phone. Over long periods, stocks have been one of the main ways ordinary investors grow wealth. They also carry real risk. Here's how to start properly.
Step 1: Make sure you're ready
Stock investing is for money you won't need for at least 5 years. Before you start, have an emergency fund and no high-interest debt. If a 30% drop in your portfolio would force you to sell, you're investing money you need.
Step 2: Choose an online broker
Look for a broker that is:
- licensed by the SEC as a broker-dealer, and
- a PSE trading participant (listed on the PSE website).
Compare:
| Factor | What to check |
|---|---|
| Minimum deposit | Some have none; others require a few thousand pesos |
| Commission | Usually 0.25% with a minimum per trade |
| Funding options | Bank transfer, InstaPay, e-wallet, bills payment |
| Platform | App quality, charts, research and order types |
| Extras | Peso-cost averaging programs, research reports, ETF/REIT access |
Common choices among Filipino investors include online platforms of bank-affiliated brokers, independent online brokers, and investing features inside e-wallet apps that partner with a licensed broker.
Step 3: Open and fund your account
- Apply online with a valid ID, your TIN and proof of address. Some brokers verify by video or selfie.
- Fill in the customer account information form, including your risk profile.
- Wait for approval, often within a few days.
- Fund the account by bank transfer or another channel the broker offers.
Step 4: Understand board lots
Stocks on the PSE are traded in board lots, a minimum number of shares that depends on the price range.
| Share price range | Board lot (shares) |
|---|---|
| ₱0.0001 – ₱0.0099 | 1,000,000 |
| ₱0.01 – ₱0.049 | 100,000 |
| ₱0.05 – ₱0.495 | 10,000 |
| ₱0.50 – ₱4.99 | 1,000 |
| ₱5.00 – ₱49.95 | 100 |
| ₱50.00 – ₱999.50 | 10 |
| ₱1,000 and up | 5 |
Example: a stock priced at ₱35 has a board lot of 100 shares, so the minimum purchase is ₱3,500 plus fees. A ₱120 stock trades in lots of 10, so the minimum is ₱1,200.
Board lot rules can change; check the PSE board lot table before ordering.
Step 5: Know your costs
Buying ₱10,000 worth of shares:
| Fee | Rate | Amount |
|---|---|---|
| Broker commission | 0.25% (min. ₱20) | ₱25.00 |
| VAT on commission | 12% | ₱3.00 |
| PSE transaction fee | 0.005% | ₱0.50 |
| SCCP fee | 0.01% | ₱1.00 |
| Total | ₱29.50 |
Selling ₱10,000 worth: the same fees, plus the stock transaction tax of 0.1% (₱10). CMEPA cut this tax from 0.6% to 0.1% effective July 1, 2025.
Dividends: cash dividends from Philippine companies are subject to a 10% final tax, withheld before they reach your account.
Step 6: Choose what to buy
For a beginner, a sensible structure:
- Core (60–80%): a broad, low-cost fund such as the PSEi ETF or an index fund. See index funds in the Philippines.
- Satellite (20–40%): a few large, established companies you understand, or REITs for dividends.
Before buying an individual stock, check:
- Does the company make consistent profits?
- Is its debt manageable?
- Does it pay dividends, and are they sustainable?
- Is the price reasonable relative to earnings (P/E ratio) compared with its history and peers?
- Can you explain in one sentence how it makes money?
Company disclosures, annual reports and financial statements are on the PSE EDGE disclosure portal.
Step 7: Use peso-cost averaging
Invest a fixed amount on a regular schedule, for example ₱3,000 every payday, regardless of the market. It removes the pressure of timing the market and builds the habit. Some brokers have automatic programs for this.
Mistakes to avoid
- Following tips from group chats and influencers.
- Buying very low-priced, thinly traded stocks because they "look cheap."
- Putting everything in one stock.
- Checking prices daily and reacting emotionally to news.
- Trading on margin or borrowed money.
- Ignoring the companies' fundamentals in favor of chart patterns you don't understand.
Record-keeping
Your broker withholds the stock transaction tax and dividend tax for you, so most individual investors don't need to file extra returns for listed-stock trading. Keep your annual statements and confirmations anyway.
New to investing in general? Start with our beginner's roadmap.
Frequently asked questions
How much money do I need to start investing in Philippine stocks?
Some brokers have no minimum or a small minimum deposit. The real minimum is the cost of one board lot of the stock you want, which for many companies is a few thousand pesos. Starting with ₱5,000–₱10,000 lets you buy a board lot of an ETF or several blue-chip stocks.
What are the fees for buying stocks in the Philippines?
Typical online broker fees: commission of 0.25% (often with a ₱20 minimum), 12% VAT on the commission, a PSE transaction fee of 0.005% and an SCCP fee of 0.01%. On a ₱10,000 purchase that's about ₱29.50. When you sell, the same fees apply plus the 0.1% stock transaction tax.
Is stock trading taxed in the Philippines?
Sales of listed shares through the PSE are subject to the stock transaction tax of 0.1% of the gross selling price (reduced from 0.6% by CMEPA in July 2025) instead of capital gains tax. Cash dividends from Philippine corporations are subject to a 10% final tax for resident individuals.
Can OFWs open a Philippine stock account?
Many Philippine brokers accept Filipino citizens living abroad, subject to their identity verification and anti-money-laundering requirements. Check the broker's rules for non-resident Filipinos.
Should I trade or invest long term?
Most beginners should invest long term. Frequent trading increases costs and requires skill and time; studies of retail traders worldwide show most underperform simple long-term investing.
Sources
Figures checked against these official and primary sources on October 4, 2026. Government rates and promos change, so confirm on the agency's site before you act.
- Philippine Stock Exchange: Investing at PSE
- PSE Academy: The board lot table
- PwC Philippines: CMEPA cuts stock transaction tax to 0.1%
- Securities and Exchange Commission: Registered brokers and dealers
General information, not personal financial, tax or legal advice. See our editorial standards and disclaimer. Found an outdated figure? Email support@success.ph.