"Knock, knock"! Somebody is at the gate and you can hear him/her saying "Excuse me sir/ma'am, do you want to buy my XYZ shares in stock market?" Oh my, how stock trading would be so difficult if the buying and selling of stocks would be like that. Or you are in the market passing by their shop where stocks are sold like shirts or fish. Even me, I doubt if i would also do stock trading/investing if that's how it should be done. Thanks to stockbrokers, the buying and selling of stocks is easier.
By the way, taking its meaning from wikipedia "stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers on behalf of investors. A broker may be employed by a brokerage firm. A transaction on a stock exchange must be made between two members of the exchange—an ordinary person may not walk into the New York Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker". Some brokers not just do the buying and selling of stocks for you, their clients. They can also give you advices on which to sell or buy. You may choose between a manual stockbroker who does trading on the exchange trading floor or online stockbroker where transactions are done, well, online.
At today's computer age, stock trading can be done online already and I chose that one over the manual stockbroker. It is because I can do the transactions anywhere I could be but of course with internet connection. Also the charges is lesser in online stockbrokers than manual stock brokers. At least that's what I have researched for now. The following are the listed online brokers for the Philippine Stock Market;
I chose First Metro Sec as my online broker because I can transfer funds from my Metrobank account to First Metro Sec trading account on the same day! And the maintaining balance for my Metrobank account is only P2000 meaning I can start trading even if I only have P5000 in my savings! And from my experience of doing stock trading for only about 3 months, there has been no major problem that I have encountered. To compare the abovementioned online brokers, you may browse their website to see what they offer for their clients. You may click their FAQs for your questions. And for those who feel more comfortable with manual stockbrokers, you may visit the website of the Philippine Stock Exchange and click the Trading Participants button under the Other Links to get the complete list.
So, when do you want to have your first set of stocks? Come on, try to spare some time to read more about stock investing. If you are have 10 hours a day browsing your favorite website playing games or chatting, it would be wise if you can spare even just an hour a day for a start to read the PSE website and explore the world of stock market. Good luck!
NEXT: DOING ONLINE STOCK TRADING