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Philippine SEC reforms broker fees to attract more retail investors

The Philippines Securities and Exchange Commission (SEC) has abolished the minimum commission rate that stockbrokers can charge, effective immediately. This move, part of Memorandum Circular No. 7 issued on April 16, aims to increase market activity by allowing brokers to set their own fees. Previously, a 1977 SEC resolution and Philippine Stock Exchange (PSE) guidelines enforced commission rates ranging from 0.25% to 1.5% of the trade value. SEC Chairperson Emilio B. Aquino expressed hope that lower transaction costs would attract more retail investors and enhance trading. The decision also reflects the efficiency of online trading and aligns with practices in neighbouring countries, potentially increasing competition among brokers and impacting service quality.


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