Introduction
Many people think they need a large amount of money to invest in the Philippine Stock Exchange (PSE), but that’s not true.
You can start investing with a small amount of capital — the minimum capital to invest in PSE stocks is as low as ₱5,000 to ₱10,000.
In this guide, we’ll explain how much you need to begin, what affects your starting capital, and how to make the most out of your first investment in Philippine stocks.
1. Minimum Capital to Invest in PSE by Broker
Each online stockbroker in the Philippines sets its own minimum initial deposit.
Here’s a general overview:
| Broker | Minimum Capital | Notes |
|---|---|---|
| COL Financial | ₱5,000 | Most popular among beginners |
| AB Capital Securities | ₱10,000 | Offers free seminars and research tools |
| First Metro Securities | ₱2,500 | Can link directly to Metrobank account |
| BDO Securities | ₱10,000 | Integrated with BDO online banking |
| Philstocks | ₱1,000 | Lowest starting capital, beginner-friendly |
💡 Some brokers allow account opening first and funding later, giving flexibility to new investors.
2. Understanding Board Lot System
In the Philippine Stock Exchange, shares are bought in board lots — fixed groupings that depend on the stock’s price.
This means your minimum order amount varies per company.
Example:
- ₱5 per share × 100 shares (minimum lot size) = ₱500
- ₱100 per share × 10 shares (minimum lot size) = ₱1,000
So even if your account has ₱5,000, you can choose several small-lot stocks instead of buying high-priced ones.
3. Other Costs to Consider
When investing in PSE stocks, there are small transaction costs that slightly reduce your available capital.
| Type | Rate | Description |
|---|---|---|
| Broker’s commission | 0.25% of trade value (min ₱20) | Paid per transaction |
| VAT | 12% of broker’s commission | Standard tax |
| SCCP fee | 0.01% | Clearing and settlement |
| PSE transaction fee | 0.005% | Charged by the exchange |
Altogether, these total roughly 0.28% per trade — minimal for beginners but important to remember.
4. Recommended Starting Capital
While the minimum is ₱5,000, a more comfortable starting amount is around ₱20,000–₱30,000.
This allows:
- Better stock diversification
- Easier cost management
- More flexibility to average down when prices fall
💡 Starting small is fine — consistency and learning matter more than size.
5. Best Stocks for Small Capital
Beginners with limited funds can consider:
- Dividend-paying stocks (DMC, GMA7, TEL)
- REITs (AREIT, MREIT, CREIT)
- Index ETFs like FMETF
These options require small capital but offer stable returns and easy monitoring.
6. Tips for Beginners
- Start small but consistent. Add funds monthly.
- Use online brokers with educational materials.
- Avoid penny stocks until you understand the market.
- Track dividends — reinvest them to grow faster.
- Stay updated on PSE market trends and economic news.
7. Example: ₱10,000 Starter Portfolio
Here’s how a beginner might allocate ₱10,000:
| Stock | Amount | Reason |
|---|---|---|
| AREIT | ₱3,000 | Stable REIT dividend income |
| DMC | ₱3,000 | Consistent dividend payer |
| BPI | ₱2,000 | Blue-chip growth stock |
| FMETF | ₱2,000 | Diversified exposure to PSEi |
This diversified mix provides a balance of growth and income even with a small budget.
Conclusion
You don’t need a lot of money to invest in the Philippine Stock Exchange.
Remember, the minimum capital to invest in PSE stocks is small — what matters most is starting early and staying consistent.
The key is to start early, learn continuously, and invest regularly to grow wealth over time.
Internal Link Example
Want to know how foreigners can participate in the market?
Read our Investing in Philippine Stocks as a Foreigner guide.
🔑 Key Takeaways
- Minimum capital to start investing is ₱5,000–₱10,000
- Some brokers allow even smaller deposits
- Transaction fees total around 0.28% per trade
- A good starting point is ₱20,000–₱30,000 for diversification
- Starting small and consistent is the best approach
