(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download your free ebook here.)
If you are a Filipino anywhere in the world who has an online BDO account, and want to start investing in the Philippine stock market, then you are just a few clicks away from buying your first stock.
This is after BDO Nomura Securities Inc. opened its doors to small retail investors, allowing the opening of Philippine stock market trading account all online.
About BDO Nomura PSE Broker
BDO Nomura is a result of joint venture of the Philippine’s largest bank BDO Unibank Inc and Japan’s Nomura Holdings Inc. The deal has renamed PCIB Securities, a securities dealer and broker with a seat in the Philippine Stock Exchange, to BDO Nomura Securities Inc. PCIB Securities was one of the subsidiaries acquired by BDO years ago when it merged with Equitable PCI Bank resulting to its rising as the country’s largest bank then.
According to BDO, the following are three reasons why it’s good to start buying / selling stocks through their brokerage arm BDO Nomura:
1. You can apply, fund your account and trade all online – no need to go to the branch!
2. There is no minimum investment amount to start with and no maintaining balance required in your account
3. You get the latest market news and research, delivered, daily, weekly and monthly; useful for any type of investors – from beginners and experts.
How to Open a Trading Account in Philippine Stock Market with BDO Nomura
Opening a trading account is very easy as long as you already have an online BDO banking account.
The fact that you already have an active BDO banking account made it possible for you to open a trading account all online without the need for personal appearance.
That means no hassle for you in printing and submission of physical application forms which are very common challenges for Pinoys based abroad or those living in the provinces far from central cities. All you need to have is access to the internet and an active online BDO banking account.
Again, the steps below assume that you already have an online BDO banking account. This is important since you will be using your online BDO banking user ID when logging in to BDO Nomura trading platform. If you don’t have this yet, then do this preliminary step first.
Step by step Account Application in BDO Nomura
For those who already have an online BDO account, then just follow these few steps:
STEP 1: Go to BDO Nomura website – https://www.bdo.com.ph/bdonomura and click in the upper right-hand corner the Online Trading > Enroll Now.
STEP 2: Log-in using your BDO Online Banking User ID and password.
STEP 3: Enter the one-time password (OTP) you received via SMS on your mobile phone.
STEP 4: You will be able to read the Instruction and Consent form. Just tick the “I have read fully understand…” box.
STEP 5: Click on I Agree in the Terms and Conditions in the next screen.
STEP 6: You will then need to fill out the Investor Profile and Suitability form.
Just provide all the answer needed and click Next.
STEP 7: Re-type the displayed CAPTCHA code, then click Submit.
Review the details provided in the next screen and click Confirm.
AND YOU’RE DONE!
Just wait for the approval of your application which will be sent to your email.
In my case, I was able to receive the approval email the day after I submitted my online application, so it’s really quick. This email contains your Customer Code Number which is your unique client code, with the attached copy of your Letter of Instruction and Consent, Terms and Conditions, Investor Profile and Suitability Test (which you completed during your application)
Another email will be sent to you the next working day indicating your Control Code. This control code is an additional security check you use when buying or selling stocks.
The email may appear a little weird because first, it has a subject PSETRADEX | FORGOT PIN which confusingly has no mention of its connection to your BDO Nomura application in any way. (Just bear with this 🙂 )
Once you receive this email containing your control code, you can log-in back again and you will be prompted to change your control code in your first log-on.
Once your account is all set, you can now proceed to the next stage of stocks investing which is funding your trading account to buy your first stock.
Update – Feb 14 2020
You can watch this video highlighting the latest developments about BDO Nomura this 2020 with regards to funding and buying/selling stocks.
How to Do Funding of your BDO Nomura Account
You can do funding of your BDO Nomura trading account through your BDO Nomura Settlement Account.
To see your assigned BDO Nomura Settlement Account Number, login to www.bdo.com.ph/bdonomura using your BDO Online Banking user id and password.
Go to the Deposit/Funding Menu and your assigned Settlement Account Number is already displayed in the “Transfer to” field (see below illustration). You may already fund your Settlement Account through this facility should you wish to add trading buying power.
Once your trading account has enough funds, you are then ready to buy your first stock! Yahoooo!
BDO Nomura Trading Platform
Currently, BDO Nomura uses what is called as PSETradex Explore.
It’s a web-based trading terminal that allows its users easy access to a wide array of market and stock information and quick trading actions. Some of its features include Watch list, stock info and charts, portfolio monitoring and tracker records.
Navigating through the platform may be overwhelming at first so just bear with the learning curve phase. 🙂
Below is a sample actual transaction for buying 110 shares of Metrobank (stock code MBT).
And just like other stockbrokers, you will also be receiving via email a confirmation notice of every matched buy or sell order you made, with the breakdown of expenses.
For breakdown of fees and commissions, you can read this post: Costs of Trading in Philippine Stock Exchange.
BDO Nomura Stock Portfolio
Once you have bought your first stock, you can then see your stock portfolio on the homepage each time you log-in, as shown below.
To see the actual gain or loss, you need to click Trade to go to the trading platform where you make your buy/sell order. For my first stock transaction above, my 110 shares of MBT as of 04-11-2017 has gone up by 1.47% which is equivalent to unrealized gain of 137 pesos (still better than banks’ returns) :).
BDO Nomura Statement of Account
BDO Nomura also sends Monthly Statement of Account as an attachment via email to give you a summary of your account and stock holdings every end of the month. It’s a good habit to save this as part of your record-keeping.
Selling your stocks will go through a process similar to when you buy it.
This selling is necessary to convert your stocks to cash which in turn you can withdraw.
I guess the best thing about this BDO Nomura tie-up with BDO is the cashless transactions you can make if you already have BDO account. Their researches though still have a lot to improve compared to other online brokers but I believe it will soon catch-up in its services with time.
If you have more general starter’s questions, you can also send me an email via my contact form here.
Have fun investing,
P.S. If you want explore also investing in pooled funds, like Mutual Fund and UITF, available in the Philippines, you can check the blogposts below.
- How to Invest Online in Philippine UITF (Unit Investment Trust Fund) for beginners
- How to Invest in Philippine Mutual Funds Online
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