05 online stocktrading account 06 15 handout
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TRANSCRIPT
How to open one, online.
stockbroker online trading
account
How to inject money …
How to operate the account, * place an order...
* View market data...
Access the Stock
Exchange
Buy & Sell directlyYou yourself can
trade Stocks
Directly…Fast, Easy, Low
Cost.stockbroker online trading
account
Bank Account
How is it different from a…
Bank Account
My MONEY
Savings Account, or
Checking Account
Contains only MONEY
Savings Account, or
Checking Account
Stockbroker TRADING Account
+ Dividends
MONEY
Contains only MONEY Stock Div.
+ SHARES of stock
Cash Div
Stock Exchange
Stockbroker ONLINE Account“Input your own Transactions.”
Use your computer
Stock Trading
Account directly
Just like buying: airline e-ticket.
Stock brokerYou,
the client
Stock Exchange
This is the new method, to buy a stock
Stock Trading
Account
Buyers
SellersSellers
Sellers
BuyersBuyers
Stock Exchange
You can see what other investors are doing.You can interact with them via computer.
Stock brokerYou,
the client
Stock Trading
Account
Go to your
computer
B U Y
S E L LAccount: Free of Charge
P.S.E.
Dial 8590600 for guidance.
Ask for help, to open an online trading account
Fill up forms “ONLINE”
Account Information
Trading Agreement
Signature Card
Print & Sign
Photocopy of ID cards Attach
Place in an Envelope.
Fill-up, name, address, TIN
number: print.courier of Metrobank
branch
Deliver to …
Print & Sign
Creates ONLINE Trading Account
Email for You…c/o any Metrobank branch
courier pouch 90033
Deliver …
Your APPLICATION for an online trading account, has been approved.
Email for You…
First METRO Sec Stock Trading Account
Stock 1Stock 2or Mutual
FUND
Cash Check
OLD style: transfer MONEY, into stock trading account, to be allowed to trade… * LINE UP AT …TELLER…
Online trading account:
1. OPEN A STOCK-TRADING ACCOUNT.
2. INFUSE MONEY.
3. BUY STOCKS.
STEPS
Start:
MONEY
First METRO Sec Stock Trading Account
Cash Check
Money
Dear Bank Teller:
.. My own STOCK
TRADING ACCOUNT
“I want to deposit Cash
into”
OLD style: Line up, at the tellerNEW style: online transaction,
SECURE.
Stock 1Stock 2or Mutual
FUNDFirst METRO Sec Stock Trading Account
Metrobank Account
Connect BANK account to “TRADING” account
Thru “Metrobank Direct” online service
IF you have no Metrobank account, deposit P25,000 into the stock-trading account, as minimum start-up amount.IF you have a Metrobank account, just use it, to transfer money into the …stock trading account.
To BUY
Online STOCK-TRADING Account
Money
BANK ACCOUNT
Stock
StockStock
StockStockStock
Mutual FUND* Stock*F.A.M.I.
MoneyMoney
How the trading account works:
Online STOCK-TRADING Account
Mutual FUND*
MoneyStockStockStockStockMoney
Can be “Joint AND-OR”
IF this is “Joint AND-OR”
Husband & Wife
Brother & Sister
Friend & Friend
Father & SonIf child is below 18 years of age
BANK ACCOUNT
NOW ..11 months
12th month
3. Open ‘Online Stock Trading
Account’
Think Ready?1. Metrobank dep. account
2. Ask for Online “Direct” Access Plan
ObservePut in Money
Trade, invest
Study
NOW Time passes…
Open ‘Online Stock
Trading Account’
Will get reminder
phone call Do
nothing
BUY A stock
OKAY
After 12 months
Will get reminder
phone call
OKAY
After 3 years
One millionONE MILLION
PHILEX = stock code
“PX”
STOCK “SYMBOL” = stock code
Example of a “BUY” order
14.2
1,420
PX
Money
14.2
1,420There is a
seller at 14.2
Confirm order POSTED !
100 shares x 14.2 =
1,420 + transaction costs
POSTED !
You, Buyer, at 14.2
Seller at 14.2
Sellers at 14.3
Sellers at 14.4
Buyers at 14.1
Buyers at 14.3
Price of the stock
At least: Shares
Minimum Investment
5,000 5 25,000
4,999 5 24,995
1,999 5 9,995
999 10 9,990
499 10 4,990
199 10 1,990
99 10 990
49 100 4,900
19 100 1,900
9 100 900
Minimum Order Size
10K
2K
25K
“Board Lot”: minimum # of shares.
Types of Fees Amount Buy Sell Stockbroker’s
commission plus 12% Value-added Tax on commissions*
BC allowable range is 0.25% to 1.5% or a minimum of Php.20.000, whichever is higher
Clearing Fee
0.01% of transaction amount
PSE Transaction Fee
1/200 of 1% of transaction amount
Stock Transaction Tax
0.5% of transaction amount
Trading Costs
¼ of one percent
1% of 1%
1/200 of 1%
Half percent
BUY Pesos 10,000 x 0.0025 25 broker comission
x 0.0001 1 clearing fee
x 0.0000005 0.005 stock exchange fee
26.005 pesos
For every P10,000 worth BUY order, TXN costs are 26.005
SELL Pesos 10,000 x 0.0025 25 broker comission
x 0.0001 1 clearing fee
x 0.0000005 0.005 stock exchange fee
x 0.005 50 government tax
76.005 pesos
For every P10,000 worth SELL order, TXN costs are 76.005
One millionONE MILLION
Metrobank = stock code
“MBT”
STOCK “SYMBOL” = stock code
Example of a “BUY” order
127
12,700
MBT
Confirm order POSTED !
100 shares x 127 = 12.7K + transaction costs
Money
12712,700
Go to your computer...
POSTED !
Buyers at 127
Sellers at 127
Sellers at 128
Sellers at 129
Buyers at 126
Buyers at 128
Stocks that you own
# of shares
Bought at this price
Now trading at this price
Your “COST”
= Value of your
“POSITION”
Your “PROFIT, so far”
minus
equals
=
After buying the stock• You get a RECEIPT, or
‘Confirmation Slip,’ online• You see ‘Statement of
Account,’ online.
You see, what you have bought, so far…
Monitor them, LIVE.
“ALERT me by email
when the price of
this STOCK reaches
this LEVEL.”
“Send share
prices to my email,
at noontime and after ‘close.’
When can you execute trades?
till
When can you ENTER an online ORDER?
ANYTIME
It gets implemented
by 930am
AFTER HOURS !
NEXT DAY
Trading: Buying & Selling of Stocks
Investing: placing more & more money in
Stocks
Expert
BEGINNERExperiments, First Steps
“Trading TIPS”
smphmegbdo
ayala corp
Read the news, tips… view technical charts.
“What stocks to buy?” read daily TIPS
5,400
Today: 22
Worth: 34
Worth between 19 and 23
Calculated Earnings & Company Value
Today: 11
Worth: 23
50,000
65,000
46,000
52,000
48,000
JULY 2012
FEB 2013
FAMI EQUITY FUND
Adjust the percentages. Alternating…
__% in Stock market MUTUAL FUND
__% in Stocks that you will personally select and
monitor
A
B
C
D
E
F
QUESTIONS.
Investing in Equities
Stocks, direct or
Via Mutual Fund
Deposits are insured:
For Risky Assets:
Universal Bank, does
both, plus, it can own insurance
company.
Stockbroker
They put money “to work”
PRIVATE MUTUALBANK FUND &
“U.I.T.F.”
Savings BComm’L B
Investing your millions for you
“Safe”Unsafe, Uncertain !
Investing your thousands for you
Which “bank” invests your millions for you?
Minimum = 5 million Charges = 4% per year
$ DOLLARS Private Bank:
Who can invest your P5,000 for you, at low cost.
Mutual FUND. The “private bank” for ordinary people.
Minimum = P5,000Charges = 1.7% percent a year.
68
Mutual Fund 1. You have
money.2. You hire a
professional, to manage it.
Unit Investment Trust Fund: 1. BANK Trust
Fund, open to the public.
2. You buy a UNIT.
69
Mutual Fund
Unit Investment Trust Fund
OPERATED BY A STOCK
BROKER
Sold by SALES AGENTS
OPERATED BY A BANK
Sold at bank branches
How to buy mutual funds
Get application forms at:
www.fami.com.ph
Invest 5,000At 5 / share
1,000 shares
Buy MORE shares, each
month
Buy 100K of stocks, directly
Buy 100K of mutual funds:
Pay P2000 now. (2% of assets)
Pay P1700/year (1.7% of assets)
Like: Hiring a “Driver”
Pay P 261in commissions,
for the entire trade.
Inflation, 4%
Track record
High returns, %
Safe (good credit) RISKY (uncertain)
“Save & Learn”Fixed-Income Fund,
11% / year
“Save & Learn”Balanced Fund,
18% / year
ALL Bonds
Half Bonds,Half Stocks
“Save & Learn”Equity Fund,
24% / year
ALL Stocks
Get Forms: at www.fami.
com.ph
Fixed-Income and other Stocks
47%
Power10%
Telecoms7%
Holding Companies
13%
Properties21%
Transport2%
• P 11bn• Growth -Oriented• All Stocks• For Aggressive
Investors
Equity Fund2006 Net Yield 67%2007 Net Yield 12%2008 Net Yield -31%2009 Net Yield 53 %2010 Net Yield 63%2011 Net Yield 8%2012 Net Yield 18%CAGR 24%
FAMI “Equity Fund”
WWW.PIFA.COM / facts and figures
Go to ...
Stocks49%
Bonds26%
Deposits24%
Others1%
• Launched in May 2007• Moderate Returns• A balance of stocks and bonds
Balanced Fund
2007 Net Yield 4%2008 Net Yield -5%2009 Net Yield 45%2010 Net Yield 62%2011 Net Yield 7%2012 Net Yield 17%CAGR 18%
To consistently make money: invest LONG-
TERM 79Buy NOWBuy LOW
Sell HIGH
Wait
The principle is the same:
The Objective
Adjust the percentages, to suit your preferences.
__% in Stock market MUTUAL FUND
__% in Stocks that you will personally select and
monitor
A
B
C
D
E
F
50,000
65,000
47,000
52,000
49,000
JULY 2012
FEB 2013
FAMI EQUITY FUND
“Trading TIPS”
“What to Buy”
Philex
JG Summit OREALIetc
15
What’s happening
to this stock, so
far?What
is next move?
“FGEN” generates electricity & sells it.
!
BUY
2636
48
Strong BUY
SELL
18
Alexander Gilles
• Lecturer on “MARKET EDUCATION” for First Metro Securities (stockbroker)
• Financial analyst. Educator.
To introduce: