Online Brokers and How to Open an Online Account

Since we started, we have been receiving a lot of queries on how to start investing. First, you have to arm yourself with considerable knowledge before venturing any capital on investing. Learning is a continuous process even for people with long years of experience in the stocks market. Even highly educated people find time to update themselves and sometimes re-learn what they know. The second, and perhaps more concrete step in starting to invest is finding a stockbroker. The easiest and most accessible these days is through online. Below are the list of accredited brokers by PSE: 


We will provide a comprehensive review and comparison of strengths for each of these online platforms in our subsequent posts. For now, we will focus on how to open an account.

Generally, there are five steps in opening an individual online account:

1. Download the online application form. These are usually found in the home pages of the stockbroker's site.
2. Fill up all the necessary details in the form.
3. Send out the form to the office address indicated in the form along with your valid ID with picture. Some online brokers allow online submissions as long as the form is clearly filled-up. Also, others may have particular preference or may require two or more on the IDs to be submitted. Generally, all government issued IDs or passport are acceptable.
4. Wait for a few days until your account is approved and activated..
5. Fund your account. The initial amount varies among the brokers, but regular accounts usually require P25,000 balance.

For joint accounts, both account holders are required to provide the requested documents. For corporations, additional documents will be needed:
          a. SEC Registration Documents
          b. Latest Articles of Incorporation and By-Laws
       c. Board Resolutions/Secretary Certificate ( approval to open an online trading account with AB Capital Securities, Inc. and the authorized officers with specimen signatures beside their names)
          d. Latest Audited Financial Statements
          e. Company Profile
          f.  Latest General Information Sheet (Ex: List of Directors, Partners, etc.)
          g. List of Principal stockholders owning 2% of the Capital Stock
          h. Principal IDs of authorized officers (Ex: Passport, Driver's License, etc.)


The money you will deposit will be used so you can start buying stocks. If you are not sure or not confident with your judgement, transactions can also be broker-assisted - meaning a stock agent will help you decide on what is best to buy based on your preferences and risk tolerance, for higher commission fees. I have never tried broker assisted-transactions, but I think it can be helpful for beginners. As our wise elders would say, admitting you need help is the first step to get help. You wouldn't want to lose your investments by trying to do it by yourself even if you are not yet capable of making a sound judgement. Also remember that opening an account is just the beginning, earnings profits are achieved through learning, hardwork and experience.   


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