2025 Taiwan Brokerage Firm Selection Guide — Comprehensive Analysis of Fees and Securities Lending Capabilities

Investing in stocks, bonds, or options in Taiwan requires retail investors to go through securities firms to trade directly. This article provides a detailed overview of the Taiwan Securities Firms evaluation system, analyzing market share rankings, commission discounts, and borrowing convenience, helping you identify the most suitable broker more accurately.

Top Ten Domestic Taiwan Securities Firms by Market Share

Taiwan has numerous local securities firms, but about ten well-established institutions are widely recognized, each with decades of operational experience. Most of these brokers support trading in Taiwan stocks, US stocks, but be aware that “re-commissioned” (复委託) fees are generally higher.

Based on the total trading volume for 2024, here are the Top 10 Taiwan Securities Firms by Market Share:

Source: Taiwan Stock Exchange, Data period: January 1 - December 31, 2024

Analysis of Taiwan Stock Trading Cost Structure

Trading stocks in Taiwan involves mainly two types of costs: Commission Fees and Transaction Taxes. The official commission rate is set at 0.1425%, applicable to both buying and selling, with a minimum charge of NT$20 if the calculated fee is lower. Transaction tax is only levied on sales at a rate of 0.3%.

Although the commission fee is officially fixed, with the popularity of online orders and increased competition among brokers, large-volume investors can generally obtain discounts. The discount rates vary significantly depending on trading volume, mainly influenced by client scale. Note: Transaction tax is a government tax and not subject to discounts.

For example, trading 5 shares of TSMC (TSM) with a base commission of 0.1425% and a 60% discount:

Overview of Electronic Order Commission Discounts by Broker

Commission discounts vary significantly among brokers, with different treatments for new and existing clients. Here are the main discount schemes:

Commission discounts are not fixed; investors can negotiate with brokers for better terms. For high trading volumes and large capital, more favorable discounts are usually obtainable.

Five Key Factors in Choosing a Broker

1. Commission Discount Level

The actual impact of discount differences should not be underestimated. Some brokers process refunds the next day, while most do monthly settlements. Note: Smaller brokers often lower commissions to gain market share, but their system stability and order execution speed may be inferior to larger brokers. Commission is important but should not be the sole decision factor.

2. Trading Software Experience

All brokers offer free trading tools, such as Yuanta’s “Invest Mr.” app, KGI’s “Mobile e Strategy,” etc. Investors need to use these apps for real-time quotes, technical analysis, account management, etc. Ease of use and feature completeness can only be judged through actual use; it’s recommended to download trial versions before deciding.

3. Borrowing and Margin Trading Capabilities

Larger brokers usually provide ample securities lending sources, which are crucial for margin trading. Sufficient securities lending not only increases trading opportunities but also benefits strategies like short selling (borrowing stocks to sell, then buy back at lower prices). Expanding investment options.

Margin interest rates depend on broker policies; currently, Taiwan stock margin interest rates are generally between 6% and 7%. Larger brokers often offer lower rates due to scale advantages. If frequent margin trading is needed, prioritize brokers with strong borrowing capacity.

4. Risk Management and Customer Support

A broker’s risk management system, response speed, and professionalism directly affect the trading experience. It’s advisable to choose firms with comprehensive customer service and investment consulting.

5. Overseas Investment Support

If planning to invest in US stocks, Hong Kong stocks, or other overseas markets, evaluate the costs of re-commissioned services offered by brokers. Some brokers’ overseas trading costs may be higher than specialized overseas platforms.

Alternatives for Investing in Overseas Markets

If Taiwan stocks are your main focus, local brokers offer convenience and security, with relatively competitive fees. However, for overseas markets like US or Hong Kong stocks, directly choosing overseas brokers is often more cost-effective.

Compared to re-commissioned trades through local brokers, overseas brokers usually provide lower trading costs. Here are three platforms popular among Taiwanese users:

Mitrade — Ideal for Small-Amount and Leverage Trading

Mitrade is a global CFD( trading platform regulated by ASIC Australia. Supports US stocks, Hong Kong stocks, indices, forex, commodities, cryptocurrencies, etc., with adjustable leverage from 1x to 200x, suitable for both long and short positions.

Recently, it has significantly localized services for Taiwanese users: supports NTD deposits/withdrawals, offers 24-hour Traditional Chinese customer service, and eliminates international call charges.

Core Advantages:

• Funds security: Trust account safeguards retail client funds
• Low entry barrier: Only US$50) (~NT$1,500)(
• Cost efficiency: Zero commissions, two free withdrawals per month, only low spreads
• Practice mode: Demo account for risk-free training
• Localization: 24-hour Taiwanese customer support, NTD payments

Suitable for: Small idle funds investors, leverage traders, day traders, or hedging traders

) Interactive Brokers — For Large Capital Investors

Interactive Brokers, founded in 1977, serves global investors, with accounts available for users in Taiwan, Mainland China, Hong Kong, Singapore, etc. Offers US, UK, German, Japanese, Korean stocks, as well as bonds, funds, ETFs, futures, forex, and more. No minimum deposit, with per-share trading fees as low as US$0.005, and Chinese customer support.

Core Advantages:

• No account opening fee
• Lower costs for large-volume trading
• Comprehensive product line for global asset allocation

Suitable for: Investors with substantial funds seeking cost efficiency and diverse financial products

Note: Margin accounts### and securities lending accounts( require maintaining a minimum balance of US$2,000.

) Firstrade — Beginner-Friendly US Stock Broker

Firstrade is a US-based online broker regulated by FINRA and SIPC. Supports US stocks, ETFs, mutual funds, options, with zero commissions, renowned for its user-friendly interface, especially popular among Taiwanese investors for ETF investments.

Core Advantages:

• Zero commissions on stocks, ETFs, options
• Simple, intuitive interface suitable for beginners
• Protection against unauthorized trading losses

Suitable for: Long-term US stock and ETF investors, those seeking low-cost regular dollar-cost averaging

Note: Withdrawal fees are relatively high( US$25 per withdrawal); it’s advisable to minimize frequent withdrawals.

Quick Comparison of Overseas Broker Platforms

Opening and Trading Process with Overseas Brokers

Step 1: Account Registration

Using Mitrade as an example, the online registration process is straightforward. Fill in email, set password, select primary trading currency, and complete. You can immediately access a demo account to familiarize yourself with the platform.

Step 2: Complete KYC and Deposit Funds

After identity verification, you can start real trading. Funding methods are flexible, supporting Skrill, Poli, credit cards(Visa/MasterCard), international wire transfer, etc. A minimum of US$50 is sufficient to start live trading.

Step 3: Search for Target Products and Place Orders

Log into the trading platform, enter stock name or code in the search bar, quickly locate the desired trading instrument, and execute buy or sell orders.

Overall Recommendations

For Taiwanese investors mainly trading Taiwan stocks, bonds, futures, and options, opening accounts with local Taiwan securities firms is the most convenient and secure, with competitive trading fees. However, if focusing on overseas markets, especially US or Hong Kong stocks, directly choosing overseas brokers is often more cost-effective.

Key factors in selecting a broker include: discount level, ease of electronic order placement, borrowing and margin trading capabilities, branch network convenience, and customer support quality. Since each broker has its strengths and weaknesses, finding an institution that matches your investment style and needs is the best choice.

Wishing all investors to find the most suitable trading platform!