Did you know for as low as P1,000 “every Juan” can start investing in the Philippine stock market?
Curious but don’t know where or how to start? Here’s a simple guide on how to start investing in stocks in the Philippines.
As a beginner, the secret is to be teachable, curious, and serious to learn. Along the way, you’ll know if it’s for you.
Read more to know the pros and cons and the following benefits, too.
How to Invest in Stock Market in the Philippines (2025)
- Why should you consider stock investment?
- How the stock market actually works
- What are the benefits of stock market investing?
- How to make money from stock market: short-term vs long-term
- How to start stock market investing
- What are the common mistakes to avoid in stock market investing?
- What are the risks involved in stocks?
Why should you consider stock investment?
When you buy stocks from companies like Jollibee or SM, you actually become a part owner of that business! This means:
- When the company does well, your investment grows (price appreciation)
- When they make money, you might get a share of profits (cash dividends)
- But remember — if they lose money, your investment can drop too
Think about it this way: bank deposits give you tiny rewards for keeping money with them. The typical savings accounts in 2025 give you about 0.10-0.20% interest income per year. That means if you put ₱10,000 in a savings account, you’d earn just ₱10-20 after a whole year.
With stock investing, your money has more room to grow. While nothing is guaranteed, many long-term stock market investors aim for around 8% growth per year. Some active traders might even see 30% gains (though this comes with much higher risks involved).
How the stock market actually works
The Philippine Stock Exchange is basically a big virtual marketplace where people buy and sell company shares.
Everything happens electronically now — no paper certificates, just digital records of who owns what through a computerized book entry system.
Think of it like an online shopping platform, but instead of buying products, you’re buying tiny pieces of businesses. When you place an order, a computer system matches you with someone willing to sell at that market price.
What’s the PSE?
The Philippine Stock Exchange (PSE) is basically a marketplace where people buy and sell pieces of companies (stocks). Think of it like an online marketplace, but instead of buying shoes or gadgets, you’re buying small ownership pieces of businesses.
1. Lots of companies to choose from
You can buy stocks from many different listed companies:
- Well-known businesses like Jollibee or SM
- Financial institutions like BDO or BPI
- Phone companies like Globe or PLDT
It’s like having menu options. You can pick what looks good to you.
2. Stock prices go up and down
Stock prices change every day based on:
- How well the company’s growth is progressing
- What’s happening in the economy (economic
- indicators)
- What other buyers and sellers are doing
Sometimes prices jump up (yay!), sometimes they drop (boo!). That’s normal, it’s called market volatility.
3. Availability of stock market transactions
The market follows split trading sessions:
- Morning: Monday to Friday, 9:30 AM – 12:00 PM
- Afternoon: Monday to Friday, 1:00 PM – 2:45 PM (Philippine Standard Time)
A 1-hour lunch break separates the sessions. The PSE is closed on national holidays.
When you buy stocks, the settlement period—the time for ownership transfer—is 2 business days (T+2). For example:
A Tuesday trade settles by Thursday.
This replaced the older 3-day (T+3) system in August 2023 to align with global standards and reduce risks.
4. Big players in the market
Institutional investors and other financial institutions also buy stocks sometimes in huge amounts. When these big players make moves, they can make prices swing more dramatically.
5. The good and not-so-good parts
The good stuff:
- Your money can grow faster than in savings accounts
- You get a share of company profits (cash dividends)
- You actually own a piece of the business
- It can be a source of passive income
The challenging parts:
- Your initial investment might lose value sometimes
- You need to be patient
- Some publicly listed company might not perform well
- It can feel scary when prices drop
What are the benefits of stock market investing?
Investing in the stock market offers several key advantages for growing your money:
1. Higher growth potential
Unlike bank savings, which might give you just 0.10-0.20% yearly, stocks can potentially provide higher yields. This is why many people choose stocks for long-term wealth building.
2. Becoming a business owner
When you buy common stocks, you actually own a piece of that business! If you invest in Jollibee, you become one of its many owners.
You get to share in their success through:
- Capital appreciation as the stock value grows
- Cash dividends when they share profits (if approved by the board)
- Voting rights in company decisions
3. Easy access to your money
Unlike real estate or time deposits, you can sell your stocks quickly when you need your money back. The Philippine stock market is open every weekday, making it relatively easy to convert stocks to cash.
4. Protection against inflation
Fixed-income instruments like savings accounts often can’t keep up with rising prices. Stocks have historically provided returns that beat inflation over long periods.
5. Building a diverse stock portfolio
You can spread your investments across different companies and other asset classes. Maybe some tech stocks, some banking stocks, and some consumer companies.
This spreading investments strategy helps protect you from putting all your eggs in one basket when one sector isn’t performing well.
6. Passive income through dividends
Many established companies share a portion of their profits with shareholders. These cash dividends can provide regular income without you having to sell your shares – perfect for creating passive income streams.
7. Learning opportunity
Following the stock market helps you understand business, economics, and investing — valuable life skills that improve your financial literacy over time.
Remember that these benefits come with risks involved. The stock market experiences market volatility, and there’s always a chance your initial investment could decrease in value during market downturns.
How to make money in the stock market: short-term vs long-term
1. Day trading and quick gains (for short-term)
If you want quick gains, you can open one account online on COL Financial. You can start buying the stocks that you believe in most and trade daily. As a beginner, you’ll have to learn the basics of technical analysis, get real-time updates on prices. It would be best if you learned the nooks and crannies of stock trading.
Online trading platforms have made it easier for individuals to participate in day trading by providing real-time updates and tools for technical analysis.
2. Buy stocks and diversify the stock portfolio (for long-term)
Another approach is to study, research, and more research. Research before buying the stocks from companies you think will do well for the long-term. Let’s say 5 to 10 years from now.
Long-term means you are willing to let your hard-earned money to “sleep” for that long.
The longer you hold them, the better the gains. Managing a diversified stock portfolio is crucial for long-term investment success, as it helps spread risk across different asset classes. But again, you need to understand that investing in the stock market involves risk.
You may want to start buying blue-chip stocks. These stocks have higher price liquidity and are easy to trade. They are not accompanied by high-risks and are considered safe investment instruments compared to other stocks.
Hint: Think of the basic needs: food, homes, electricity, banks. More on blue-chip companies on our next blog.
How to start stock market investing
Save up a sum of money and are ready to invest? You can get started in this simplified 4-step process.
There are hundreds of accredited stockbrokers licensed by the Philippine Stock Exchange (PSE). You can choose the type of investment service you want based on your convenience and preference.
1. Choose your broker
A. Online (COL Financial, First Metro, and Phil Stocks)
These online trading platforms have democratized investing, allowing anyone to participate in the stock market with a relatively low market price for initial investment.
The online stock brokers directly communicate with the customers online. Clients execute the orders, and they have direct access to the market’s information.
COLF is an online platform that has been receiving great reviews for being an easy-to-use stockbroker. You can start funding your account for as minimum amount as P1,000 as of writing.
B. Traditional (Use a licensed broker or salesman to handle account)
These are assigned licensed salespeople to handle your account, and they take orders via phone call. These trading participant representatives can assist with your investment decisions.
2. Open your stock market brokerage account
You can avail COL Financial’s entry-level account at P1,000. You can download the forms here. Fill up the forms and attached with the requirements and send them over via mail. If you want quick verification of documents and approval, you can drop by at their office in Ortigas.
3. Fund your account
You can fund your account via online banking. Once approved, COL will provide the bank details so you can fund your account. You’re given a grace period of three months to fund your account for activation.
You can either fund your account via bank deposit or personally deposit the money to your broker’s office.
4. Place your order: buy or sell order, via online or phone call to your stockbroker
Again before you buy or sell, you may want to read more on the particular listed company you want to buy stocks from. For starters, you can read The Intelligent Investor by Benjamin Graham and Increase your Financial I.Q. by Robert Kiyosaki.
For beginners, you can buy stocks on a regular schedule with the same amount of fund. Do this if you’re going to invest for long-term. It’s the Peso-Cost average where you grow your money in the long run.
5. Monitor or track your investments
Investing is an ongoing process as you may want to track and monitor the progress of your stocks. If you choose the online stock brokerage like COL, you can log in to their website. You can access all the information and historical data you need.
But wait there’s more!
What are the common mistakes to avoid in stock market investing?
While investing in the stock market can be a lucrative venture, there are several common mistakes that investors should avoid
1. Skipping your homework
Many new investors buy stocks because someone recommended it or because the company is popular. This is like buying a car without checking if it runs! Always research the company’s financial health, leadership, products, and competition before investing.
2. Letting emotions drive decisions
Fear and greed are your biggest enemies in stock investing. Panic selling during market drops or buying impulsively when prices soar usually leads to losses. Stick to your investment strategy rather than following market hype.
3. Putting all your eggs in one basket
Investing everything in just one or two companies is extremely risky. Spread your investments across different:
- Companies
- Industries
- Asset classes (stocks, bonds, etc.)
This way, if one investment performs poorly, others might still do well.
4. Trying to time the market
Even professional traders struggle to perfectly time buying at the lowest price and selling at the highest. Focus on long-term growth instead of trying to predict short-term market movements.
5. Trading too frequently
Excessive buying and selling increases transaction value and often reduces returns. Each trade comes with fees that eat into your profits. Most successful investors hold quality stocks for years.
6. Ignoring your risk tolerance
Know how much market volatility you can handle without losing sleep. Your investment decisions should match your:
- Financial goals
- Time horizon
- Comfort with price fluctuations
7. Not having a clear plan
Investing without specific financial goals is like driving without a destination. Define what you’re investing for, how long you’ll stay invested, and what returns you need to achieve your objectives.
Remember: The most successful stock market investors make calculated decisions based on research, patience, and discipline—not on rumors or get-rich-quick hopes.
What are the risks involved in stocks?
In any investment, risks always exist. It’s a matter of how much money are you willing to risk. Think for long-term gains, instead of instant gratification.
1. Market volatility
The PSEi experiences amplified price swings due to thin average daily trading volumes (₱6.6 billion in late 2024) and rising corporate debt risks. For example: In December 2024, the index fell 1.72% in a single session amid foreign investor exits.
Publicly listed companies’ debt-to-market cap ratios have surged, exacerbating sensitivity to macroeconomic shifts.
2. Policy shifts impact
BSP cut rates by 25 bps in 2024, altering investment strategies. CREATE Act uncertainties from unclear tax guidelines stall corporate planning.”
3. Global market vulnerability
Foreign ownership limits in the Philippine stock market, such as Jollibee’s 40% cap (lifted in early 2025 to attract global investors), directly influence market liquidity and amplify sensitivity to global shocks. When foreign participation is restricted, trading volumes thin out, making prices more reactive to external events.
4. Election cycle disruption
2025 midterms is expected to slow government spending due to a mandatory ban on new projects, impacting corporate earnings. In addition, campaign promises inflate expectations without fiscal backing. That’s not all, political tensions between Marcos and Duterte factions may fuel market volatility
Final thoughts
Investing in the stock market can be a rewarding experience for those who are willing to take the time to educate themselves and avoid common mistakes.
By understanding the benefits of stock market investing and avoiding common pitfalls, you can increase your potential for success and achieve your long-term financial goals and life goals.
Whether you’re a seasoned investor or just starting out, the Philippine stock exchange offers a wide range of opportunities for growth and wealth creation.
With the right mindset and strategy, you can start investing in the stock market and begin building your wealth over time.