Online stock trading accounts jump 48% in 2011

MANILA, Philippines - The number of online stock trading accounts grew 48 percent in 2011 as the popularity of the Internet has opened up the stock market to the broader investing public.

Since the emergence and development of Internet-based trading systems and brokers, more individual investors are buying and selling stocks of listed companies on their own using online platforms.

A survey done by the PSE showed that the number of online trades nearly doubled to 1.71 million as the number of accounts surged to 52,750 from only 35,559 in 2010.

The same survey showed that online trades accounted for 20.7 percent or 1.71 million of total stock transactions last year compared with only 16.3 percent share in 2010.

Total transaction value amounted to P164.75 billion, up 90.1 percent from only P86.67 percent. The amount represented 6.9 percent of total value turnover, net of block sales.

Of the total online accounts, 99.8 percent or 52,269 were retail accounts while the remainder represented institutional accounts.

“This rapid growth of online trading in the Philippines is reflective of the growing awareness about stock market investing among Filipinos. As the market continues to set new record levels in 2012, I think it is safe to say that the 17,000 new online investors were indeed wise to have opened accounts last year,” PSE president and chief executive officer Hans B. Sicat said.

As of May 4, 2012, the PSE index has grown by 21.2 percent and breached multiple closing highs 19 times.

Majority or 51,358 of the total online investors are active traders.

The same survey showed that while there were more male online investors, the females were more active traders.

Majority or 59.51 percent of retail investors trading online also had an annual income of less than P500,000.

About half or 49.3 percent of their retail online investors belonged to the 30 to 44 years old bracket while 28.9 percent are 18 to 29 years old.

The results were based on the data provided by COL Financial Group (formerly Citiseconline.com), BPI Securities, First Metro Securities Brokerage Corp., Accord Capital Equities Corp., F.Yap Securities, RCBC Securities, AB Capital Securities, Wealth Securities, and Angping & Associates Securities.

Stock trading used to be confined to the well heeled who could afford to engage a broker to complete a trade on the client’s behalf.

The advance of technology, however, has given rise to a new breed of investors - online traders who want to maximize wealth and investment.

Online share trading has eliminated the need for paper based trading.

Another advantage the online method provides is that individuals can trade from anywhere and at their convenience.