PHILIPPINES: SEC Removes Minimum Stockbroker Commission to Boost Capital Market Activity

Thursday April 18 2024

On 17^th April 2024, the Securities and Exchange Commission (SEC) removed the minimum amount of commission that stockbrokers may charge their customers, as it seeks to spur activity in the Philippine Stock Exchange (PSE). The new rule allows brokers to set their own commission schedule for transactions with their customers, without the limitations of a prescribed regulatory minimum commission.

A 1977 resolution by the SEC previously set the broker’s commission at 1.5%. Meanwhile, guidelines issued by the PSE prescribed a minimum commission ranging from 0.25% to 0.05% of the value of a trade transaction. The removal of the minimum commission considers the rise of online trading platforms, which have paved to way to more cost-efficient transactions.

The SEC is banking on the removal of the minimum commission to help spur trading in the stock market, in line with other recent reforms implemented to boost the capital market.

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