Philippines Financial Brokerage Market Outlook to 2023

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)” provides a comprehensive analysis on the financial brokerage market. The report covers various aspects including introduction on financial brokerage market, issues and challenges, trends and developments, investor profile, SWOT analysis, competitive landscape and government regulations. The report also covers market ecosystem, economic analysis of Philippines and comparison with other Emerging economies of South-Asia, competitive landscape including company profiles and cross-comparison among market players on key operational, customer base and financial parameters, growth drivers, recent developments, issues and challenges, decision making criteria for customers while choosing a brokerage firm and snapshots on Investor profile in Philippines. The report concludes with a snapshot on Introduction of Derivatives segment in brokerage market, market projections and analyst recommendations including success story of Zerodha India Financial Brokerage Market highlighting the key strategies for entering and remaining profitable in the highly fragmented market, highlighting the major opportunities and cautions.

Market Overview

The Philippines financial market is currently one of the most promising financial markets in South-Asia with very few financial products offered for trading at present but will increase in a few years. Trading activities in Philippines is highly regulated Due to very low trading volume & relatively fewer trading accounts; most of the brokerage firms provide brokerage services at the lowest cost prescribed by the SEC. The players currently charge brokerage fees for equity trading and plan to expand financial services towards asset management, mutual funds, wealth management, algorithmic trading, top picks and other services that can lure the customers. The industry grew at a negative CAGR during this period. The overall revenue in the financial brokerage industry witnessed a rising trend on account of a reduction in simplification of tax structure for trading, increasing investor’s confidence & political stability in Philippines in last year.

Philippines Financial Brokerage Market Segmentation

By Type of Trading Activity: In the financial brokerage market, equity segment has dominated the overall market in terms of transaction volume throughout FY’2014-FY’2018 which was supplemented by higher liquidity in equity, issuance of bonus shares in few instances thereby justifying the considerable share of equity in the overall market. Commodities’ trading was suspended by SEC back in 1990s and has not been started yet. PSE is in initial phase to restart the Commodities & Derivatives Exchange and is expected to start the segment very soon. Due to absence of Commodities & Future exchange, trading in other instruments have not been prevalent yet. Beginning of trading in this segment will open added revenue stream for the brokerage firms.

By Mode of Trading: In the financial brokerage market, trades are placed by the investors through traditional mode that is through broker’s assistance or through online mode where investors place orders online by a trading platform.

Competitive Landscape

The Philippines Financial Brokerage market is fragmented in nature. UBS Securities is the market leader and has the highest market share in the Financial Brokerage market in Philippines on the basis of projected equity trading volume in FY’2019. This was followed by CLSA, Credit Suisse, COL Financial, Deutsche Regis Partners, Maybank ATR Kim, Macquarie Capital and others. These market players compete in the brokerage market in Philippines on the basis of commissions charged, quality of supplementary services and technology and reputation.

Philippines Financial Brokerage Market Future Outlook

The total revenue from Philippines Financial brokerage Industry is expected to rise at a positive CAGR during the period FY’2019 - FY’2023E. This is mainly supported by the projected increase in investor education, government’s initiative towards setting up commodities exchange & stable macroeconomic factors’ contribution towards the overall revenue is expected to rise at a positive CAGR during the same period driven by rise in financial inclusion of the overall population as technology will be leveraged to expand the area of operations. Moreover, improvements in technology will lead to reduction in operational costs, the benefit of which can be passed on to the consumers as brokerage firms compete to stay relevant in the market. Foreign firms are bringing developed tech from their operations in developed countries to Philippines to provide better service to Filipino investors.

Key Topics Covered in the Report

• Executive Summary
• Research Methodology
• Overview and Market Genesis for Philippines Financial Brokerage Market
• Business Model Of Philippines Financial Brokerage Industry
• Comparative Analysis of Philippines Financial Brokerage Market with Global Financial Brokerage Market
• Investor Education in Philippines Financial Brokerage Market
• Philippines Financial Brokerage Market Size, FY’2014-FY’2018
• Philippines Financial Brokerage Market Segmentation
• Snapshot of Philippines Financial Brokerage Market
• Trends & Developments in the Philippines Financial Brokerage Market
• Issues and Challenges in Philippines Financial Brokerage Market
• SWOT Analysis of Philippines Financial Brokerage Market
• Government regulations and Initiatives in Philippines Financial Market
• Competition Scenario & Major Players in Philippines Financial Brokerage Market
• Philippines Brokerage Market Future Outlook and Projections,FY’2019-FY’2023
• Analyst Recommendations
• Inception of Derivatives Segment
• Zerodha’s Success Story in Indian Financial Brokerage Market