[Finterest] Who’s actually investing in the Philippine stock market?

MANILA, Philippines – A record number of Filipinos ventured into the stock market in 2024.

The Philippine Stock Exchange (PSE) reported that stock market accounts reached 2.86 million by year-end, up a staggering 50.1% from just 1.91 million in 2023. That’s the largest year-on-year jump since the PSE began tracking investor data in 2008.

In other words, a record number of Filipinos are trying their hand at the stock market, and a big reason why is digital accessibility. Online accounts alone jumped by 62%, from 1.53 million to 2.47 million in just 12 months. It’s never been easier to open an account or place a trade.

Fintech superapps like GCash and Maya have made stock trading available alongside e-wallet functions, while emerging brokers like DragonFi, in partnership with digital-only bank CIMB, are preparing to offer their services within each other’s app.

“This substantial growth was made possible by the enabling of digital platforms to connect to PSE’s trading engine,” said PSE president and CEO Ramon Monzon. “PSE is committed to being true to its advocacy of promoting financial inclusion.”

Beneath these headline numbers, let’s take a more nuanced look at who’s investing.

As in the past years, retail investors account for the overwhelming majority of accounts. But while retail investors make up 98.9% of all stock market accounts, their presence doesn’t quite translate into significant market power. Retail trading accounted for just 16% of total market value turnover. There lies the gap between growing participation and actual investment volume.

Most Filipino investors are simply not trading in large amounts. The average value of an online trade last year was P50,746, while traditional trades averaged just under P100,000. Institutional and foreign investors, though far fewer in number, continue to drive the majority of trading activity, often influencing stock prices more significantly than the millions of small account holders. (READ: Waking up PSE from its stupor: More on strategies to enhance market development)

In fact, institutional and foreign investors are such powerful forces in the local stock market that the PSE even launched a conference specifically for these market movers to have a venue to interact with PSE-listed companies.

During the inaugural conference in 2025, PSE chairman Jose Pardo said that the handful of institutional investors in the market contribute around 80% of PSE’s trading volume. The effect of this is that the swings in price stock in the market can largely be determined by the moves of a few massive players, and that affects everyone else.

But though they might not have the same level of influence in swaying the market, younger investors are still leading the charge when it comes to market participation. Filipinos aged 30 to 44 make up the largest share of total and online investors, and their numbers grew from 45.6% to 48.8% year-on-year. Even Gen Z investors (18 to 29 years old) are catching on fast, increasing their share to 26.5% of total accounts, up from 19.5%. (READ: Gen Z wants credit but can’t get it. Banks need to step up their game.)

Older investors, by contrast, are dialing back. Those aged 60 and above now comprise just 7.3% of all accounts, nearly halving their share from the year before. Could this demographic shift be prompted by the rise of mobile-first investing platforms that resonate more with younger, tech-savvy Filipinos?

Interestingly, women also edge out men among retail account holders — comprising 50.7% of total accounts and 50.8% of online accounts. It’s a small but positive shift in a country where men have long been seen as the ones handling the “big money” decisions.

Then there’s the matter of income. The PSE’s report shows that over 82% of retail investors earn less than P500,000 a year, or roughly P41,000 a month. Even if you’re at the higher end of this income range, supporting a family can leave little room or appetite for putting whatever extra money you have left from your paycheck into a risky stock market. This could help explain why even as more people open accounts, average trade sizes remain small. Meanwhile, the share of investors earning over P1 million annually fell to just 10.9%.

The PSE president is hoping that a newly enacted law — the Capital Markets Efficiency Promotion Act (RA 12214) — will further encourage investor participation as it slashes the stock transaction tax (STT) and consequently makes it more affordable to trade on the PSE. (READ: What is the PSEi, and why does it matter?)

“While growth in retail accounts has been remarkable, the real challenge is getting retail investors to participate more actively in our market,” Monzon said. “We are optimistic that the upcoming reduction in STT to 0.1 percent from 0.6 percent, along with the various investor education programs and upcoming pipeline of products of the Exchange, will encourage greater investor activity for the remainder of 2025.” – Rappler.com

Finterest is Rappler’s series that demystifies the world of money and gives practical advice on managing your personal finances.

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