“Years of robust economic growth have given rise to a middle-class with increased disposable incomes. Some of these incomes are splurged on consumption and luxury items, while some are put off in savings accounts for good use. But with very low interest rates, Filipinos are looking towards other investment prospects which has led to rise in demand of portfolio management and advisory services”
Integration of Professionals across boundaries: The Securities and Exchange Commission (“SEC”) issued guidelines which contains the rules on the implementation of the ASEAN Capital Markets Forum (“ACMF”) Pass. This is because the SEC is a signatory to the Memorandum of Understanding on the ACMF Pass under the ASEAN Capital Market Professional Mobility Framework (“Framework”) together with the regulators of Thailand, Malaysia and Singapore. The Framework aims to enhance the connectivity of capital market professionals in the ASEAN region. In relation to this, the ACMF Pass allows the free movement of professionals licensed from a home country to perform investment advice activities and issue research reports on ASEAN financial products in a host country under the Framework. The Guidelines are applicable to professionals in the Philippines who intend to obtain an ACMF Pass in another signatory country, and those in other signatory countries who want to obtain that same pass.
Increase in Online mode of Trading & Technological Advancements: There has been a great shift in technological advancements in the brokerage market in past 5-6 years. Foreign financial services firms are bringing technological advancement that they have been offering across the world to Philippines. The internet penetration in Philippines has also increase vastly in the above mentioned period, this can be seen from the increase in number online trading accounts in the country whereas the number of traditional brokerage accounts has remained stagnant. The number of online brokerage accounts has grown at a staggering CAGR of 37% from 2013-2018.
Increase In Market Capitalization and Expansion of Financial Services: Key differentiating factor amongst competition in Financial brokerage sector in Philippines is the services offered by the existing firms in brokerage market in Philippines, the existing companies and incumbent players have followed the strategy expanding financial services towards Research Services, Mutual Funds, Wealth Management, top picks and other services that can lure the customers. The revenue from commissions has declined at a CAGR of 5% between 2014 and 2018. The decrease in brokerage revenues is primarily due to the decrease in equity trading volume.
The report Titled “Philippines Financial Brokerage Market Outlook to 2023 – By Equity on Basis of Transaction Value, By Transaction Mode (Online & Offline), By Basis of Time of Delivery (Intraday & Delivery Based), By Type of Investor (Domestic & FII)“ by Ken Research suggested that the Financial Brokerage market in Philippines has been decreasing due to growing political instability, operational Inefficiency and poor internal governance. The market is expected to register a positive CAGR of 12.5% in terms of revenue during the forecast period 2018-2023E in Optimistic Scenario if the reforms undertaken by market participants work as expected, commodities & futures trading is initiated and the government’s Investment plans for Financial sectors are followed.
Key Segments Covered
By Type of Trading Activity
Equity
By Entity
Brokers-Dealers
Key Target Audience
Brokers
Dealers
Investment Banking and Private Equity Firms
Government Authority
Financial Institutions
Time Period Captured in the Report:
Historical Period: FY’2014-FY’2018
Forecast Period: FY’2019E-FY’2023E
Companies Covered:
UBS Securities
CLSA
Credit Suisse
COL Financial
Deutsche Regis Partners
Maybank ATR Kim
Macquarie Capital
Mandarin Securities
SB Equities
J.P. Morgan Securities
Key Topics Covered in the Report
Equity Trading Market Philippines
Financial Brokerage Market
Philippines Stock Brokerage Charge
Philippines Online Trading
Online Brokers for Traders in Philippines
International Online Brokers Philippines
Philippines Stock Exchange Brokerage Fee
COL Financial Philippines
Equity Market Philippines
Dealership Market Philippines
Revenue Brokerage Firms Philippines
Philippines Financial Brokerage Market Issues
Philippines Brokerage Recommendations
Educational Programmes for Investors Philippines
Total number of Active investors
Brokerage Company Profiles Philippines
Derivatives Exchange Introduction Philippines
Philippines Equity Transaction Volume
Zerodha Success Story India Brokerage
For more information, refer to below link:
Philippines Financial Brokerage Market Outlook to 2023
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Ken Research
Ankur Gupta, Head Marketing & Communications
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