Online trading has become an incredibly popular means of transacting or dealing in financial products. Not only are various financial instruments available online, but even brokers, brokerage firms and trading platforms have an electronic version these days. In regular trading, whenever a trader wants to invest his money, he must call his brokerage firm and place a request to buy a particular security for the desired amount. The broker places the order on the market and then transmits the confirmation to the trader. Once the trading account is confirmed, a brokerage fee is charged and the order is placed within a predetermined period.Online trading makes this process faster and easier. Instead, these days investors can make their trades on their own as and when required, using an online trading platform. Depending on the trading platform you choose, different investment tools are available.

No matter what your current starting capital and expertise is, you have the potential to become a successful trader by investing in the world's largest companies.

But first things first.

Let's look at investing in Alcoa stock in the Philippines.

Alcoa Corporation is an American industrial corporation, a major producer of primary aluminum and aluminum raw materials. The company is the eighth largest producer of this metal in the world. It owns seven operating bauxite mines located in different parts of the world, and is one of the largest producers of bauxite. Alcoa's production capacity provides eight per cent of the world's alumina market.

The company was founded in 1888. It was founded by the American inventor Charles Martin Hall, who developed an inexpensive process for producing aluminium. Together with an American industrialist Alfred Hunt, they registered the Reduction Company in Pittsburgh with experimental smelting works.

As of 31.03.2020, the company had 13,800 employees. As of the same date, 185.92 million shares of the company are in free float. The value of the company's controlling stake as at 31.03.2020 is estimated to be USD 2.138 billion.

Alcoa securities are an asset with high growth potential. If market conditions are favourable, they could bring good returns.

You can find out more about the company on the official Alcoa website
You can find out more about the company on the official Alcoa website

How to invest in Alcoa shares in the Philippines?

Alcoa shares are traded on the New York Stock Exchange. The company is listed under the ticker symbol AA.

To work with Alcoa stock you will need to use the services of an intermediary - a licensed broker. There are plenty of brokerage firms in the Philippines brokerage market. Choose one that has a license to operate as well as good experience in the stock market. Visit the traders' forums and find out what kind of reviews a given broker has. Always rely only on real experience and not on colorful advertisements.

The brokerage company will provide you with an online trading platform with the help of which you will perform all the transactions. The platform will be your main online office, so it is important to familiarise yourself with how it works.

Select
Select "AA" ticker to find Alcoa shares on the platform

There are many different ways of investing.

The classic investment option is the dividend income option, whereby you invest a certain amount of money in a company with the aim of receiving dividends from its activities at a frequency and amount specified in the investment agreement. The amount payable is approved by the company's shareholders' meeting and is determined by the company's internal policies.

Alcoa pays a dividend, but the payment has been suspended for the past few years. Dividend payments are scheduled to resume in February 2022.

The most popular option, however, is online trading. This type of investment is probably the most profitable option, but it is also the riskiest. The essence of this investment method is simple: buy cheaper - sell dearer. Since the stock market is quite dynamic, the price of a stock can increase several times in just a few minutes which gives an investor a chance to make a significant profit in a short period of time. However, it should not be forgotten that everything has to be reversed and stocks can also go down in price, which can lead to a loss of money.

Buying Alcoa shares
Buying Alcoa shares

Trading derivative financial instruments, which are known as CFDs, is also gaining popularity. What is a CFD?

CFD stands for Contract for Difference. CFD trading is a method that enables individuals to trade and invest in an asset by entering into a contract between themselves and a broker instead of buying the asset directly. The trader and the broker agree to replicate the market conditions and make up the difference when the position is closed.

An advantage of trading CFDs is the possibility of using leverage. Leverage allows you to significantly increase the amount of investment as well as the profit. But at the same time the risk of transaction increases. Statistics show that up to 80% of inexperienced traders suffer losses when using the multiplier. If you are not experienced enough, do not rush to activate this feature.

Information on the trading conditions for Alcoa shares
Information on the trading conditions for Alcoa shares

How do I buy Alcoa shares in the Philippines?

You can buy Alcoa shares in the Philippines by registering on the platform of your chosen broker.

An online trading platform is a program that enhances your ability to open, close and manage market positions through an online broker acting as a financial intermediary.

When choosing a suitable online trading platform, you should ensure that you check the reliability of the broker, the turnaround time for deposits and withdrawals and whether a minimum deposit amount is required for the service.

Registration is quick and does not require a lot of personal details - a new user will only spend a few minutes filling in their name and email address on the form. It is also possible to use personal information from social networks. At the end of the process you can work using your account.

Registration on the platform is quick and simple
Registration on the platform is quick and simple

Once the account is activated, the trader will be able to use the demo account, which is a test version of a live account designed for training purposes. The system will credit the demo account with 10,000 virtual dollars. The funds can be used for any trades on real quotes. It will not bring any real profit, but will give you a chance to practice trading without risking any real money.

Take the opportunity to practice on a demo account
Take the opportunity to practice on a demo account

To start real trading, activate a real account. All trading programs require a minimum deposit to activate a real account. The amount of this first funding varies depending on the platform. In our case, the minimum deposit to activate a live account is only $10.

Making a deposit is easy: click on the "make a deposit" option and choose from the list of options that will open, the one that is most convenient for you. The system allows you to make a deposit using your credit card, or using one of the renowned online money transfer systems (WebMoney, AdvCash, Skrill, Perfect money or Neteller). Afterwards you will be able to withdraw money from your account using the same system or credit card. The minimum withdrawal amount is just $2.

Replenish the deposit in two clicks
Replenish the deposit in two clicks

How do I become a successful trader?

We should not forget that, despite the seemingly simple operations and accessibility of online investing, trading is a whole science, which requires you to have at least a basic understanding of how the stock market works, understanding certain patterns and processes, and requires constant training and deepening of knowledge.

The online investment platform contains a 'training' section, where you will find a lot of useful information and even video lessons that will help you understand the principles of the stock market more quickly. You can also use external sources of information for training purposes. These days, any information that interests you can easily be found on the Internet. Do not be lazy to study the stock market continuously. This will help you quickly understand the laws of the investment market and develop your own trading strategy.

To get off to a good start, take free lessons, which can be found directly on the platform in the "education" section. Practice with a demo account. When starting out by trading with real money, use small amounts of money to get started.

Persistence in learning, deliberate and cautious moves, willingness to analyse and pay attention will help you gain the experience you need to become a successful investor.

To be successful in online stock trading you must have a fundamental knowledge of the stock market. You must also be able to analyse certain factors which influence the price fluctuations of a particular company's shares. Such factors include political and economic processes in the country and at the interstate level, as well as force majeure situations, such as man-made disasters or natural calamities. Market knowledge and the ability to analyse is unfortunately not a hundred percent guarantee of your success, but it is the key to minimising your risks.

Analysts give a comforting outlook on an investment in Alcoa.

We believe that investing in Alcoa shares in the Philippines is an excellent choice.

We wish you successful operations and high profits!

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