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Tuesday, March 5, 2013

My 2nd Online Stock Broker - BPI Trade

It was about 3 years ago when I opened my first online trading account with COL Financial, they were referred to as CitisecOnline then, but it's been quite a while that I've been contemplating on signing up for a 2nd broker because I want to have a 2nd account to track the performance for my different portfolio constructed using a different strategy other than my personal calls. Hence the idea of opening an account either with FirstmetroSec or BPI Trade.

But it was EkkayTrader who convinced me to just go with BPI Trade as a 2nd online broker since as she pointed out, there was a major improvement on BPI Trade's trading platform, not to mention it was pretty easy to open an account with them. So yeah, thanks to E! haha



COL and BPI Trade

 Though BPI Trade has improved, I personally think that COL is the superior broker in terms of functionality, ease of use, research and built in functions. For the COL account owners I think the extra value you get with opening a 2nd trading account with BPI Trade are as follows:



1. Interest on your cash balance - cash balances that will be used to purchase stocks will be parked under a BPI Direct savings account opened under your name, Interest rates will be the same with BPI's regular savings account (w/c is though close to nothing, interest is still interest haha)

-A caveat here however is that BPI Trade charges a PDTC Depositary Maintenance Fee of PhP 0.00000833 for every Peso of market value of your holdings as of month end and will be debited from your BPI Trade Bank Account monthly. - Take note of the word monthly. To put this in perspective, this is like 1% fee on the NAV of your positions for 100 years. Not that bad if you ask me, this should be offset on the interest you get on your cash balance.

2. More research - You get access to BPI's sell side analyst reports if you have a BPI Trade account

3. Broker diversification - Just like the idea on parking your funds on multiple banks to reduce your risk in the event one of those banks go under, then same with a the online stock broker.

4. No cash out - no need to lay out cash in opening an account with BPI Trade for as long as you have an account with BPI.


Final remarks
COL is still the best online stock broker, pero panalo din mag-open ng account with BPI Trade. Haha!

Happy investing!
Cheers!
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7 comments:

  1. UnknownMarch 6, 2013 at 4:37 PM

    I never thought of "parking" to multiple online brokers. You made a good point there, and I started considering!

    But I'm hearing a lot of bad things about BPI Trade despite the improvement.

    I'm interested to hear your future experience with BPI Trade :)

    God bless!

    ReplyDelete
    Replies
    1. Filipino InvestorMarch 6, 2013 at 11:10 PM

      Haha same here, bro. BPI Trade generally has a bad reputation for being slow in the past. But i've been browsing it now and it seems fine haha. Anyways my positions here will be mostly buy-and-hold one year so speed is not a very big issue. I personally think that COL is still the best though :)

      Delete
    2. UnknownJuly 24, 2013 at 3:02 PM

      Hi Kenny,

      I am an average Filipino whose financial education is very poor and whose sole source of income is by working for a Job [that I love] but does not really pay well for all the effort that put into it.

      I finished literature - so you'd figure that I do not know anything about making money except for working and waiting for a pay check that comes every 15 days.

      I know that making money is not that easy, and understood early on during my readings about "financial freedom, investing, blogging, etc.." that you have to invest on "learning" first... I have done several readings and is pretty much aware of how some basic things about money making "work", but acknowledge that what I know is insufficient.

      So... I need some advise as to where I need to start my "education". Where i should start and where do these concepts apply. And what might work for an average Filipino like me.. Your reply would be much appreciated, Sir. :)

      Delete
    3. Filipino InvestorFebruary 19, 2014 at 6:04 AM

      Dylan, I will answer this through a blog post as I believe a lot of Filipinos have the same question as well. Stay posted. :)

      Delete
    4. Filipino InvestorOctober 16, 2014 at 5:33 PM

      Hi Dylan,

      You might find this post useful since you're starting out on investing.

      http://www.filipinoinvestor.com/2014/10/ten-investment-advice-for-newbie.html

      For starter readings I would suggest you read:

      1. Rich Dad Poor Dad by Robert Kiyosaki
      2. One Up on Wall Street by Peter Lynch

      You can also watch some videos on youtube on how the stock market works. Khan Academy also a lot of useful videos about finance and investing that is straight forward and easy to understand. You may want to check out.

      Good luck in your investments!

      Cheers,
      Kenny

      Delete
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    ReplyDelete
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