CitisecOnline sees doubling of business

CitisecOnline expects its online stock trading business to double this year, given the continued improvement in the government’s fiscal position, the low interest rate environment and the robust growth in overseas Filipino workers’ (OFWs) remittances.

Citisec president Conrado Bate said the investment stock portal is positioning itself to become the leading online financial services provider in Asia through an intensified educational campaign.

Bate said the company hopes to take advantage of the growing Internet market to encourage retail investors to trade online.

He said the potential of online trading in the Philippines remains largely untapped as he noted the growth of the other markets in the region such as South Korea where online traders comprise 81 percent of their market and Japan with online traders accounting for 70 percent.

"We believe that the growth of Internet usage has made online trading a lot easier and more attractive to many…We would like to empower individuals to achieve financial independence. The market is more transparent like everybody now has access to information so this should encourage more individuals to invest in the market," Bate said.

Bate said the company’s online facility has generated a subscriber base of 500 and this is seen to double by the end of the year. Citisec’s top clients account for a monthly average turnover of P5 million each, Bate said.

He said online trading has allowed investors to place their orders at the price they desire and to be less dependent on a personal broker who can only process so many orders via telephone during peak trading hours.

Bate said the firm’s objective is to convince more Filipinos that the stock market’s biggest attraction is its ability to generate huge profit potential.

He estimates that the market’s retail investor base could grow to as much as 250,000 from only 50,000.

Bate said lack of market awareness and confidence and limited accessibility have impeded investor growth.

The firm said it hopes to convert the majority of current investors, who now trade through traditional brokerages, to online trading offering as low as 0.25 percent, off hours trade placement, fundamental and technical analysis and other features as come-ons.

Capitalized at over P300 million, CitisecOnline is also a member of the Hong Kong exchanges.