The Philippine Stock Exchange Inc. (PSE) has allowed GCash users to trade stocks using the popular mobile phone application, a move that could significantly increase the number of individual traders.
Under the set-up, the PSE has developed an online platform within its system that will allow GCash users to trade.
Trades can only be allowed through a broker, and this will be conducted through AB Capital Securities Inc.
PSE President and CEO Ramon S. Monzon said the new system will have a soft launch by November and a full launch at the start of 2023.
Gcash currently has an investment feature but it is mainly for mutual funds. Martha Sazon, Gcash president and CEO, said there will be a button in its application called Gstocks by November to allow its users to trade.
“As we gave all Gcash users the tools to grow their income from the safety of their homes, even during a pandemic. We are proud to say that now based on our studies, one out of five mutual funds in the country are conducted through our platform” Sazon said during the launch of the partnership.
At the moment, the parties are still ironing out details such as the minimum amount of trade that will be allowed for GCash users. Monzon said the maximum amount “cannot be that big but there should be no minimum amount” to trade.
Monzon said the initiative is a possible game changer for stock trading as it could easily double or triple the 1.6 million accounts currently registered at the bourse in just a short period of time. Of this figure, about 1.16 million are online accounts.
The PSE’s accounts are growing at a compounded annual rate of about 31 percent from 2016 to 2021.
Monzon said the timing of the partnership is “just right” as the PSE will launch a data analytics platform by the end of the year, which will open access to market data for retail investors.
He said the program aims to “democratize” access to market data which is currently limited to big stockbrokerage firm.
He said it will address retail investors’ needs for market data that can aid them in their investment activities.