BPI Trade Online Broker: Why It's the Best Online Broker for Our Investment Needs
Our Online Trading Needs
BPI Trade is one of several online stockbrokers participant at the Philippine Stock Exchange. PSE maintains a trading floor at the Philippine Stock Exhange Plaza in Makati City.
Low maintaining balance requirement
We have chosen BPI Trade to be our online broker for practical reasons. Attached to our settlement account at BPI Direct, our online trading account has a very low maintaining balance of Php500 monthly. We believe this arrangement is most suited for small capital online stock traders.
Cash flow
Our online stock trading cash flow would look like this oversimplified diagram we have prepared for purposes of illustration:
Online stock trading
We only need to learn two trading operations for our stock market activities: BUY and SELL.Stock symbol. Knowing the stock symbol of the listed company we want to buy or sell is one of the three requirements for placing either a buy or sell order. Simply check the BPI Trade list for easy reference.
Board lot. Take note of the board lot for the stock you have chosen to buy or sell. One board lot for Ayala Corporation (symbol: AC) is equal to 10 shares. One board lot for Ayala Land Inc. (symbol: ALI) is 100 shares. Hence, for AC you buy or sell in lots of 10 shares while for ALI you buy or sell in lots of 100 shares. The specific board lot for the company you have chosen to buy or sell will automatically show up at the upper right side of the Order screen right after you enter the stock symbol.
Bid and Offer prices. Bid is the highest price at which we are willing to buy our chosen stock. If someone in the market is willing to sell at a lower price than our Bid price, it is a good thing.
Offer is the lowest price at which we are willing to sell a specific stock in our stock portfolio. If someone in the market is willing to buy at a higher price than our Offer price, that is an extra good thing. Because of our limited capital, more often than not, we are holding just a single stock in our portfolio.
Stock position
Specific to BPI Trade, our Stock Position is our stock portfolio. This is the list of all the stocks we currently own at a given time. This list changes every time we completed a trade: either a Buy or Sell.
Match
Match is the event wherein our order to Buy or Sell a specific stock is paired with another trader or investor with a compliment order through our broker and their broker under the Philippine Stock Exchange Trading System. Our Buy order is matched with a Sell order. Our Sell order is matched with a Buy order.
Let us show you how we trade at the PSE through BPI Trade.
BUY Order Process
Step 1: Go to the BPI Trade website at https://www.bpitrade.com/
Step 2: Click the link for Sign In. Type your User ID and Password. Then click Enter button.
Step 3: While inside your trading account, click the link for Stocks.
Step 4: Choose the radio button BUY. Type the stock symbol (Symbol), the number of shares you want to buy (Volume) and the price at which you want to buy the stock from the market (Price) at the appropriate boxes. Then click the Submit button.
Step 5: Type your BPI Trade Password and click the Confirm button. At this point, all we need to do is wait for the Match.
SELL Order Process
Step 1: Go to the BPI Trade website at http://www.bpitrade.com/
Step 2: Click the link for Sign In. Type your User ID and Password. Then click Enter button.
Step 3: While inside your trading account, click the link for Stocks.
Step 4: Choose the radio button SELL. Type the stock symbol (Symbol), the number of shares you want to sell (Volume) and the price at which you want to sell the stock from the market (Price) at the appropriate boxes. Then click the Submit button.
Step 5: Type your BPI Trade Password and click the Confirm button. Wait for the Match.
BPI Trade: Our Online Broker of Choice
To sum it up, smallCOST has found BPI Trade to be the perfect platform for our online stock trading needs. With its user-friendly interface and reliable customer support, it has helped us make informed investment decisions. Additionally, its competitive pricing structure and low transaction fees make it an excellent choice for those with small capital who are looking to enter the world of online stock trading. Overall, smallCOST highly recommends BPI Trade to anyone looking for a reliable, efficient, and cost-effective online broker.
