If you are like me, when you first arrived in the Philippines, you knew there was a mountain of wealth-building investment opportunities in this country. One of these common investments is known as the Philippines stock exchange or PSEi for short. But, can foreigners invest in the Philippines stock market?
A foreigner can invest in the Philippines stock exchange. The Securities and Exchange Commission (SEC) has put slight restrictions on foreign investment. The main restriction is a foreigner can not own more than 40% shares of a company in the Philippines.
How Much Capital Do I Need To Invest In The Philippines Stock Exchange?
You can start investing in the Philippines stock exchange with a small capital of around 1000 pesos (£15.66 GBP / $19.26 USD / $ 25.66 CAD / €17.58 EUR / $28.68 AUD). But when investing in the philippine stock exchange, there is a board lot on each corporation, which is set to different amounts on each company. If you are not familiar with the term board lot, in its most straightforward way, it’s the minimum amount of shares you will need to buy, such as board lot 100 = minimum of 100 shares.
For example, let us take Jollibee shares. They are currently at ₱218 pesos each. However, they have a board lot of 10, so if you wanted to become a Jollibee shareholder, you would need to buy in lots of 10. If we wanted to know the minimum price to invest, it’s merely the board lot x the current price (218 x 10) ₱2180 total investment.
How Do I Get Started In The Philippines Stock Exchange As A Foreigner?
The most popular company that foreigners and Filipinos use is a company called Col Financial. They are an online trader. This means you can buy and sell your shares instantly on your computer from anywhere in the world, which is great when looking at today’s question of – can a foreigner invest in the Philippines stock market.
Many other companies out there can help, but flexibility for foreigners COL financial would be your best option. You can contact them only by visiting their offices as they have numerous offices across the Philippines, or you can contact them via Facebook.
They require you to fill out a form, and also, some passport documentation is needed to set up an account. Once it has been set up, you send your funds to their bank account. They then transfer your capital to your COL trading account, and you are good to go.
If you are a foreigner outside of the Philippines but wish to invest, you can do so. A few US friends I met on my travels in Thailand are also traders in the Philippines stock exchange, but the SEC or the trading companies could change their requirements. But currently, you can invest as long as you provide extra documentation before trading.
Now we know the answer to the question – can a foreigner invest in the Philippines stock market. The next question is, how do I know what companies are open?
What Companies Are Open To Foreigners On The Philippines Stock Market?
Investors can easily find out if the company is open to foreigners. With Col Financial and other stock market brokers, investors can see each business and if it’s open to foreign investment. This will show (often near the board lot). Many stock market websites also include this information and update this in real-time.
Does A Foreigner Need To Pay Tax When Investing In The Philippine Stock Market?
With COL Financial, the great thing is they take care of all the tax implications for you! When you sell, you can see fees and tax before you decide to sell, so it’s already taken care of.
All trading companies I’ve come across either help or take care of the taxes for you, so this area should not be a concern as it’s often straightforward to do the more challenging part tends to be tax in your home county.
Are There Any Tips For The Philippines Stock Exchange For Foreigners?
Yes, we put together a special beginner’s guide for stocks and shares in the Philippines, highlighting some great tips, especially those new to trading.
The Philippine stock exchange is very similar to other stock exchanges. It’s important to remember the Philippines Is still recognized as a developing country. This means there is defiantly room for progress and significant opportunities to earn money.
I would always recommend looking at any Philippines investment through your eyes and local eyes and seeing what industries you think are still young and haven’t reached their prime yet.
As a foreigner who is wishing to invest in the philippine stock exchange, you are likely an experienced investor or have some trading / investing experience. Still, sometimes we focus all on the figures and charts. We often don’t sit down and think about what areas in the Philippines need progress in the years to come (often resulting in a high increase).
Any gaps or room for progress in a particular industry could be an excellent opportunity for a smaller corporation in the PSEi.
Alaya land. if you timed the market right ten years ago, you would have made more money through a stock market investment in the Philippines rather than putting the same amount of capital in a real estate investment. (without the headache!)
That is because Ayala’s stock has grown at an incredible rate over the last 10 + years. If you choose as I do to invest in a company you feel would bring progress to the Philippines, it’s the right starting place. But there is always more research and information needed before deciding to invest.
Can a foreigner invest in the Philippines stock market? Absolutely!
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