GCash, brokerage partner set 0.25% commission fee per transaction

Instead of charging a P20-broker's fee, financial technology platform GCash and its stock brokerage partner AB Capital Securities Inc. will charge a 0.25% flat commission fee for stock trading using the in-app GStocks feature.

In a news release, GCash said that GStocks is now charging a 0.25% commission fee on all buy and sell transactions, replacing the P20-broker's fee "in a bid to further boost retail investor activity in the local stock market."

The fintech firm said that the move was in line with the Security Exchange Commission's (SEC) removal of the minimum commission stockbrokers may charge, as it seeks to boost trading in the local bourse by lowering costs for investors.

GCash said that the initiative aims to stimulate activity in the local stock market.

In September 2022, the Philippine Stock Exchange, GCash, and AB Capital Securities launched GStocks, allowing users of the mobile wallet to access stock trading through their application.

The PSE reported that stock market accounts grew by 11.3% in 2023 to 1,906,019 from 1,712,734 accounts in 2022, mainly due to new accounts opened through GStocks.

Of the over 1.9 million stock market accounts, 1,525,768 are online accounts, accounting for around 80% of the total.

GCash disclosed there are nearly 500,000 registered users of its GStocks trading feature.

The SEC, in removing the minimum stockbroker commission, said it considers the rise of online trading platforms, and took cues from other neighboring jurisdictions which also do not prescribe a minimum stockbroker's commission. — VDV, GMA Integrated News