Internet growth attracts more online traders

Banking on the country’s robustly increasing internet penetration rate, online stock brokerage firm CitisecOnline recently launched a campaign to attract more retail investors to the equities market.

In a recent briefing, CitisecOnline president Conrado Bate quoted a study by IDC stating that internet users are expected to double in number in 2008 to 21.5 million from today’s 11.8 million. Increasing connectivity at more affordable rates, stated Bate, is likely to attract more internet users to online trading.

With a registered paid-up capital of P300 million, CitisecOnline intends to win more participants to the stock market by offering them the convenience and efficiency of online trading as a come on. According to Bate, previous experience in stock trading need not be a prerequisite.

He relates that the company’s online facility has been warmly received with the top clients accounting for a monthly average turnover of P5 million each. He adds that CitisecOnline and internet trading in general have leveled the playing field for stock market investors. Online participation has allowed investors to place their orders instantaneously and to be less dependent on a personal broker who can only process so many orders via telephone during peak trading hours.

CitisecOnline also provides investors enough information previously filtered by the traditional broker. These include the most active stocks, top 20 gainers and losers, heavily traded stocks, all the way to broker transactions.

Juanis Barredo, CitisecOnline vice-president, disclosed that the company’s mission is to convince more Filipinos that the stock market offers huge profit potential. Its capacity to multiply investments is unparalleled. The company will offer online education and traditional seminars for interested investors.

Bate revealed that the use of the online trading platform could attract market participants as high as 250,000 which is half of the initial subscriber base of Petron Corporation’s IPO in 1994, one of the most widely placed offerings in the history of the Philippine Stock Exchange.

It hopes to convert majority of current investors, who now trade through traditional brokerages, to online trading offering commissions of as low as 0.25 percent, automatic settlement of trade, off-hours trade placement, fundamental and technical analysis and other features. It has a customer service center to assist clients in various matters and site navigation.

For more details, please call 633-3777 or send inquiries to [email protected].