Introduction
Many foreigners are surprised to learn that they can invest directly in Philippine stocks.
Generally, the Philippine Stock Exchange (PSE) allows international investors to participate, as long as they meet certain account and ownership requirements.
In this guide, we’ll walk you through how to start investing in the Philippine stock market as a foreigner, step by step.
1. Can Foreigners Buy Philippine Stocks?
Yes, foreigners can legally buy and sell shares listed on the Philippine Stock Exchange.
However, there are a few restrictions to be aware of:
- For instance, some companies (especially in land, media, and utilities) have foreign ownership limits of up to 40%.
- Foreigners must open an account with a PSE-accredited broker.
- Investors trade using Philippine pesos (PHP).
Most sectors like banking, retail, and manufacturing are open to 100% foreign investment.
2. Choose a Licensed Online Broker
Foreigners must open an account through a licensed Philippine stockbroker.
Here are some reputable online brokers that accept non-Filipino investors:
- COL Financial – One of the most popular and foreigner-friendly platforms.
- AB Capital Securities – Great for long-term investors.
- First Metro Securities – Backed by Metrobank Group.
- BDO Securities – For those using BDO Bank accounts.
When choosing, check the broker’s:
- Minimum deposit requirement
- Supported IDs for foreigners
- Online platform features and trading fees
3. Prepare the Required Documents
To open a trading account, foreigners typically need the following:
- Valid passport
- Alien Certificate of Registration (ACR I-Card) or long-term visa
- Proof of address in the Philippines (utility bill, lease, or condo statement)
- TIN (Tax Identification Number) – Required for tax purposes
Some brokers allow remote account opening for foreigners living abroad, but most require verification in person or via courier.
4. Fund Your Account
Once approved, deposit funds into your brokerage account.
You can use:
- Bank transfer (BDO, BPI, Metrobank, etc.)
- Online payment channels (GCash, Maya, InstaPay, Wise)
- Foreign remittance if transferring from abroad
Investors trade in Philippine pesos (PHP), so they must convert foreign currency before investing.
5. Start Buying Philippine Stocks
Once funded, you can buy shares from the PSE-listed companies.
You can start with as little as ₱5,000–₱10,000, depending on your broker’s minimum order.
Foreigners often invest in:
- Blue-chip stocks (e.g., SM, BDO, AC, TEL, GLO)
- Dividend stocks with high yields
- REITs (Real Estate Investment Trusts) such as AREIT or MREIT
If you’re new, consider index-tracking ETFs like FMETF, which mirror the PSEi.
6. Understand Taxes and Dividends
Taxes automatically apply to your transactions and dividends:
| Type | Tax Rate |
|---|---|
| Stock sale (Capital gains tax) | 0.6% per trade |
| Cash dividends | 10% withholding tax |
| Stock dividends | Non-taxable |
Your broker automatically handles these deductions.
7. Repatriating Profits Abroad
Foreign investors can freely repatriate profits and dividends as long as:
- Investors must make investments using legally remitted funds.
- Philippine banks record each transaction.
- Investors must pay all required taxes properly.
Using the same bank or remittance channel for withdrawal simplifies the process.
8. Tips for Foreign Investors
- ✅ Monitor the foreign ownership percentage (visible on the PSE Edge website).
- 💡 Keep records of your remittance and investment documents.
- 🔒 Avoid unlicensed brokers or social media trading groups.
- 📊 Diversify through REITs and index funds for stability.
Conclusion
Investing in the Philippine stock market as a foreigner is not as complicated as it seems.
With a valid account, proper documentation, and a trusted broker, anyone can participate in one of Southeast Asia’s most dynamic markets.
The key is to start small, stay informed, and focus on long-term growth.
Internal Link Example
You can also read our What is the PSEi? The Philippine Stock Exchange Index Explained to understand how the market benchmark works.
🔑 Key Takeaways
- Foreigners can invest in Philippine stocks via accredited brokers.
- Ownership limits apply in certain industries.
- Foreign investors need a valid ACR card, passport, and TIN.
- All trading is done in Philippine pesos (PHP).
- Investors can freely repatriate profits and dividends after paying taxes.
