2024 Taiwan Brokerage Commission Fee Comparison Guide: How to Precisely Choose the Most Suitable Trading Platform

Investing in Taiwan stocks has become a nationwide activity, but retail investors must open an account with a securities firm to buy and sell stocks, bonds, or futures options. With many domestic brokers and overseas platforms available, “securities transaction fee comparison” is the top priority for investors to make informed decisions. This guide will systematically analyze the features and pros and cons of Taiwan’s top ten securities firms, making the selection process more transparent and efficient.

Market Share and Service Scope of Taiwan’s Top Ten Domestic Securities Firms

Based on the total trading volume in 2024, the market landscape of Taiwan’s domestic brokers remains relatively stable. Below are the top ten brokers and their market shares:

These brokers lead the market due to their comprehensive service systems and strong capital backing. It’s important to note that overseas investments via domestic brokers (i.e., “OMNIBUS” or “re-entrusted” trading) usually incur higher fees than direct overseas broker transactions, and this cost difference should be factored into investment decisions.

Discounted Fees and Actual Trading Cost Analysis

When comparing “securities transaction fees,” many investors focus only on surface discounts, overlooking the core factors affecting actual trading costs.

Cost Structure of Taiwan Stock Trading

Taiwan stock trading involves two types of costs: commission fees and transaction tax. The official commission rate is 0.1425%, applied to both buy and sell transactions, with a minimum of NT$20 per trade. The transaction tax is 0.3% on the sale, and this tax is non-discountable.

Although the commission fee is officially set, online order placement reduces broker costs, and fierce market competition gives large-volume traders room for negotiation. Discount policies vary significantly among brokers and are usually based on trading volume and capital scale.

Major Brokers’ Electronic Order Discount Schemes

Practical Cost Calculation Example

Suppose you buy 5 lots of TSMC (entry at NT$430, exit at NT$450). Here’s how discounts affect costs:

This example shows that even with a 60% commission discount, transaction tax remains a major cost component. Therefore, commission discounts alone do not determine overall trading costs.

Five Key Factors in Choosing a Broker

1. Actual Meaning of Commission Discounts

While a 60% vs. 28% discount is significant, the key point is that discounts are negotiable. Larger trading volume and capital can lead to bigger discounts. Some small brokers may offer very low commissions but compensate with hidden costs like poor system stability, slow order execution, or weak customer support, which can be detrimental long-term.

2. Ease of Use and Functionality of Trading Software

All brokers provide free trading tools, e.g., Yuanta’s “InvestoMan” app, KGI’s “Mobile eStrategy,” etc. Investors should evaluate: Is the interface intuitive? Are features comprehensive? Is order execution smooth? Can you view real-time quotes, technical analysis, and account balances?

Software experience directly impacts trading efficiency and decision quality. Try before you decide.

3. Availability of Securities and Margin Interest Rates

Larger brokers typically have ample securities lending (for short selling) and lower margin interest rates. If you frequently use margin trading, consider top five brokers for better costs and service.

Margin ratios are capped at 60% for listed stocks and 50% for OTC stocks, with interest rates around 6-7%. Larger brokers often have more favorable rates.

4. Physical Branches and Customer Support

While online trading is mainstream, complex transactions like account opening consultations or large margin applications may require face-to-face communication. Check if the broker has branches near you and offers 24-hour support to avoid issues later.

5. Overseas Investment and OMNIBUS Costs

For US and Hong Kong stocks, domestic brokers’ OMNIBUS trading incurs higher fees. Using overseas brokers directly may be more cost-effective. This factor should be part of your overall broker evaluation.

Overseas Platforms for US and Hong Kong Stocks: Cost Comparison

When investing in overseas markets, domestic brokers’ OMNIBUS methods are often more expensive. Here are three overseas platforms with distinct features:

Mitrade — Ideal for Small Investors and Leverage Trading

Mitrade is a global CFD trading platform regulated by ASIC in Australia, supporting US stocks, Hong Kong stocks, indices, forex, commodities, and cryptocurrencies. Its main feature: 0 commission (cost mainly via spreads), leverage from 1x to 200x, friendly for beginners (minimum NT$50 deposit).

Localized for Taiwanese users — supports TWD deposits/withdrawals, 24-hour Taiwanese customer service, free demo accounts. Suitable for small capital, hedging, or testing leverage.

Advantages:

• Very low entry barrier (NT$50)
• Monthly free withdrawals (1-2 times)
• Full two-way trading

Interactive Brokers — Professional Choice for Large Capital

Founded in 1977, IB is a veteran international broker with a large global user base. Supports trading in US, UK, Germany, Japan, Korea stocks, and more, plus bonds, ETFs, futures, forex.

Advantages:

• No account opening fee
• Very low trading fees (as low as $0.005 per share)
• Wide product range

Note: Margin accounts require maintaining over US$2,000.

Firstrade — Friendly Platform for US Stocks and ETFs

Firstrade is a US-based online broker regulated by FINRA and SIPC. Known for zero commissions on stocks, ETFs, options, popular among Taiwanese investors for regular ETF investing.

Drawback: Higher withdrawal fee ($25 per transaction). Best for long-term stock or ETF investors.

Cost Comparison of the Three Platforms

Opening an Account and Practical Tips

Three Quick Steps to Open an Account

Step 1: Create an Account
Using Mitrade as example, online registration is simple: enter email, set password, choose currency, and get a demo account for risk-free practice.

Step 2: Complete Verification and Deposit
After KYC approval, activate real trading. Mitrade supports Skrill, Poli, credit cards (Visa/MasterCard), or international wire transfers. Taiwanese investors can deposit in TWD directly, very convenient.

Step 3: Search for Assets and Start Trading
Log in, enter stock name or code in the search bar, find your target, and place orders.

Final Recommendations When Choosing a Broker

Before making a final decision, evaluate in order:

1. Commission and Discount Policies — but don’t rely solely on these
2. Trading Software Experience — try the platform yourself
3. Margin and Financing Costs — if applicable
4. Customer Support and Service — for problem resolution
5. Overseas Investment Costs — for diversified asset allocation

Every broker has pros and cons. The best choice depends on your trading habits, capital size, and investment goals. Carefully compare costs and services to find the most suitable partner.

Whether investing in Taiwan stocks via local brokers or directly trading US/HK stocks through overseas platforms, thorough “securities fee comparison” and cost assessment are key to reducing transaction costs and increasing long-term returns. Happy trading!