2013 03 14 online stocktrading account

transcript

Account

My MONEY

Savings Account,

Checking Account

Contains only

Savings Account,

Checking Account

Stockbroker

TRADING Account

+ Dividends

Contains only

MONEY Stock Div.

+ SHARES of stock

Cash Div

Stockbroker

Account …“for ON-LINE

TRADING…”

You input your own

Transactions.

in your own

computer

Trading

Account

Exchange

actually

reach the

directly

broker You,

client

Exchange

This is the new method, to buy a stock

Trading

Account

Buyers

Sellers

Buyers

broker You,

client

Exchange

No need to wait …to make a phone call

Trading

Account

Buyers

Sellers

Buyers

Exchange

You can see what other investors are doing.

You can interact with them via computer.

broker You,

client

Trading

Account

computer

S E L L Account:

Free of Charge

P.S.E.

Customerservice

@firstmetrosec.com.ph

“open an

account”

Dial 8590600 for guidance.

customerservice

Ask for help, to open an

online trading account

Fill up forms “ONLINE”

Account

Information

Trading

Agreement

Signature

Print &

Photocopy of

ID cards Attach Place in

an Envelope.

Fill-up, then: print.

courier of

Metrobank

branch

Deliver to

First Metro Sec

Print &

“Open

Account”

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.

First METRO Sec

Stock Trading

Account

Stock 1

Stock 2

Stock 3

Cash Check

OLD style: Deposit 25,000 at the start, to be

allowed to trade.

LINE UP AT THE TELLER…

Online trading account:

1. OPEN A

STOCK-

TRADING

ACCOUNT.

2. INFUSE MONEY.

3. BUY STOCKS.

Start:

money. “PREPAID”

PURCHASES” 25,000

First METRO Sec

Stock Trading

Account

Cash Check

25,000

Dear Bank Teller:

.. My own

TRADING

ACCOUNT

“I want to

deposit Cash

into”

OLD style: Line up, at the teller

NEW style: online transaction,

SECURE.

First METRO Sec

Stock Trading

Account

Metrobank

Account

To RELOAD cash into the “prepaid” account

“Metrobank

Direct” online

service

IF you have no Metrobank account, deposit P25,000 into

the stock-trading account, as minimum start-up.

IF you have a Metrobank account, no “minimum balance”

is required.

Stock 1

Stock 2

Stock 3

25,000

user name

password

100,000

You see your

“available balance”

Same amount as

the balance inquiry

at ATM machine.

Balance: 100,000

100,000

You will be able to directly transfer

money from your bank account to your

stock trading account.

“Add funds for stock trading”

30,000

70,000

First METRO Sec

Stock Trading Account

Straight into: Stock Trading Account

No minimum balance of 25,000 required for

the stock trading account, if you connect it

to a Metrobank “deposit account”.

30,000

Shares

First METRO Sec

Stock Trading

Account

Metrobank

Account

To RELOAD cash into the “prepaid” account

“Metrobank

Direct” online

service

Log into Metrobank.com.ph, and view your own account.

Transfer money, by yourself, to

your own stock trading account.

No transaction fee

No transaction

fee, either

Does not earn

Interest.

First METRO Sec

Stock Trading

Account

Metrobank

Account

Minimum Balance: P2,000… earns interest.

Use the STOCK TRADING ACCOUNT to buy

STOCKS that pay an 8% cash dividend yield.

First METRO Sec

Stock Trading

Account

Metrobank

Account

Two separate accounts, separate Log-IN

“Metrobank

Direct” online

service

If you forget ...password, …answer guide questions like:

“What is your favorite sport? What was your first school

? Name of your pet dog? Name of your favorite actress.”

First METRO Sec

Stock Trading

Account

Metrobank

Account

If you sell a stock, you can use

the money to BUY other stocks.

“Metrobank

Direct” online

service

If you sell a stock, MONEY STAYS in the Trading Account.

Then, you may use the MONEY, to buy other stocks,

on the same day…

First METRO Sec

Stock Trading

Account

To WITHDRAW CASH, FROM

STOCK TRADING account

“Metrobank

Direct” online

service

There is money in your TRADING ACCOUNT… You

download the WITHDRAWAL SLIP from

www.firstmetrosec.com.ph. Sign it. Fax to me. Scan it,

email to customerservice@firstmetrosec.com.ph.

Stock 1

Stock 2

Stock 3

Metrobank

Account Sign Withdrawal

SLIP.. Fax

Online STOCK-

TRADING Account

ACCOUNT

Mutual FUND* Stock

*F.A.M.I.

Study the market

Make a Plan

Finally, Decide.

How the trading account works:

Online STOCK-

TRADING Account

ACCOUNT

Mutual FUND*

Money Stock

Stock Money

IF “Joint

AND-OR”

Must be also

“Joint AND-OR”

NOW 11

months

3. Open ‘Online

Stock Trading

Account’

Think Ready? 1. Metrobank

account *

2. Ask for Online

“Direct” Access Plan

Observe

Put in

Trade,

invest

One million

ONE MILLION

PLDT =

stock code

“TEL”

“SYMBOL”

character

per stock.

Example of a “BUY” order

280,000

Stocks that

you own

shares

Bought at

this price

Now trading

at this price

“COST”

= Value of

“POSITION”

Your “PROFIT, so far”

equals

After buying the stock

• You will get a

‘Confirmation Slip,’ online

• You will see ‘Statement of

Account,’ online

• You can view your

Portfolio Holdings, online

You can see, what you

have bought, so far…

“ALERT me

by email

when the

price of this

reaches this

PRICE.”

“Send the

prices to

my email,

noontime

and after

the close.

Price of the

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

“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

1/200 of 1% of transaction

amount

Stock Transaction

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

When can you execute trades?

When can you ENTER an online ORDER?

TIME It gets

implemented

by 930am

AFTER HOURS !

NEXT DAY

Trading: Buying

& Selling of Stocks

Investing: placing

more & more money in

Stocks

Expert

BEGINNER

Experiments, First Steps

Read the news, tips…

view technical charts.

“What stocks to buy?”

read daily TIPS

agilles@firstmetrosec.com.ph

• www.stockxchallenge.com free

download of my lecture files

• www.slideshare.com/sandygilles

• See also the research reports on

www.firstmetrosec.com.ph /

RESEARCH

agilles@firstmetrosec.com.ph SLIDESHARE.COM/

SANDYGILLES

8590600 / customerservice

Investing in Equities

Stocks, direct

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 MUTUAL

BANK FUND &

“U.I.T.F.”

Savings B

Comm’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 = P5,000

Charges = 1.7% percent a year.

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

MUTUAL FUND

We “make” our

own insurance.

“Let’s pool

our money

and invest it.”

“Mutual” BENEFIT

Mutual

Investment

Trust Fund

OPERATED

BY A STOCK

BROKER

Sold by SALES

AGENTS

OPERATED

BY A BANK

Sold at bank

branches

Inflation, 4%

Track record

High returns, %

Safe (good credit) RISKY (uncertain)

“Save & Learn”

Fixed-Income Fund,

8% / year

“Save & Learn”

Balanced Fund,

17% / year

Bonds,

Stocks

“Save & Learn”

Equity Fund, 23% / year

Stocks

Get Forms:

at www.fami.

com.ph

How to buy mutual funds

Get application forms at:

www.fami.com.ph

Invest 5,000

At 5 / share

1,000 shares

Buy MORE

shares, each

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 261 in commissions,

for the entire

trade.

With Stocks: With Mutual

Funds:

You ‘drive

your car.’

You decide

freely.

They ‘drive

your car.’

They decide

freely.

You get the stress They get the stress

Fixed-Income and

other Stocks

Telecoms

Holding

Companies

Properties

Transport

• P 8 bn

• Growth -Oriented

• All Stocks

• For Aggressive Investors

Equity Fund 2006 Net Yield 67.58%

2007 Net Yield 12.62%

2008 Net Yield -30.70%

2009 Net Yield 53.11%

2010 Net Yield 63.37%

2011 Net Yield 8.18%

YTD Yield (8/23/12) 18.88%

CAGR 24.40%

FAMI “Equity Fund”

Stocks

Deposits

Others

• P3 Bn

• Launched in May 2007

• For Long-term investment

• Moderate Returns

• A balance of stocks and bond investments

Balanced Fund 2007 Net Yield 4.07%

2008 Net Yield -4.86%

2009 Net Yield 45.36%

2010 Net Yield 61.97%

2011 Net Yield 6.62%

YTD Yield (8/23/12) 17.26%

CAGR 18.54%

To consistently

make money:

invest LONG-

TERM 57

Buy NOW Buy LOW

Sell HIGH

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

The price moves from “cheap” to “expensive,” and

cheap again.

Company

Earnings = net

profits

SELL BUY

Take-home

pay 60

Take-home

Forced

Savings!

Philippines Singapore

-Taxes -Taxes

-Voluntary Savings?

compounding

100 x 1.15 for 30 years

100 x 1.06 for 30 years

Why be “aggressive”?

Q: Why save, for years and years?

IF too conservative:

13,000

Strategy: buy as it

goes down…

Stocks have overshot their

Long-Term Average

1987 – 2012: 10%

2002– 2012: 20%

2012: 33%

2012-’17: 20%

Strategy: buy, IN

CASE it goes up.

Which is safer ?

A. to keep stock

certificates (paper)

B. electronic records

or “scripless”

Can be rendered

invalid by :

Termites

damage

Molds,

Mildew

Crayola of

Certificate

Recognized by

Broker

Exchange

Securities

Clearing

Enough

‘Back-up’s

Transfer Svc

ELECTRONIC

RECORDS, have

back-up systems

& security

P100,000 P100,000

Buy your

own stocks Pay P1700

a year

Less stress w/ Stress

On your Own Mutual Fund

2013 03 14 online stocktrading account

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