Why are the trading costs of US stocks much lower than those of Taiwan stocks? How many Taiwanese dollars does one share cost to get started?

Many investors often feel confused when first entering the stock market: why does trading in the US stock market seem so accessible, while the costs of buying and selling in the Taiwan stock market are outrageously high? The answer to this question is actually quite simple—there are fundamental differences in the trading mechanisms and unit settings between the two markets. To understand the advantage of how many TWD one share of US stocks is worth compared to Taiwan stocks, you first need to grasp the basic concepts of stock trading.

The Essence of Stock Prices: How Much Is Each Share Worth?

Stock price represents the real-time transaction price of a stock in the market, reflecting the amount of funds an investor needs to pay to acquire one share. In global stock markets, stock prices are quoted in the local circulating currency—US stocks are priced in USD, while Taiwan stocks are priced in TWD. For example, Tesla (TSLA) had a stock price of 254.110 USD on August 2, 2023, while TSMC’s stock price in Taiwan was 561 TWD.

Stock prices are not fixed; they fluctuate in real-time based on bid and ask prices from buyers and sellers. Taking Tesla as an example again, its stock price was 101.81 USD on January 6, 2023, and within less than 7 months, it rose to 254.11 USD. This price movement directly reflects the market valuation of the company’s worth.

It is important to note that the face value (i.e., the unit value when the company was issued) of a stock has no direct relation to its market price. Face value is only used to record the original capital contribution of shareholders, while the stock price is jointly determined by the company’s profitability, market expectations, and investor sentiment.

Differences in Trading Units Between Taiwan and US Stocks: Why Is One Share of US Stock Cheaper in TWD?

The key difference between the two markets lies in the setting of trading units:

The minimum trading unit for Taiwan stocks is 1 lot (which equals 1,000 shares), whereas for US stocks it is 1 share. This difference creates entirely different investment thresholds in the two markets.

Taking TSMC as an example, it is listed in both Taiwan and the US. Its stock price in Taiwan (stock code 2330) is 561 TWD. To buy a full lot, an investor needs to invest 561 × 1000 = 561,000 TWD (about 560,000 TWD) at once. In contrast, in the US (stock code TSM), the stock price is about 95 USD, so just 95 × 1 = 95 USD (about 3,000 TWD) is enough to buy one share.

This explains why investors often ask, “How many TWD is one share of US stock?”—because the entry cost for US stocks is indeed much lower than for Taiwan stocks.

The Zero-Share Trading Mechanism in Taiwan: A Solution to Lower Entry Barriers

Given the high cost of a full lot of Taiwan stocks, the Taiwan stock market has introduced a zero-share trading system, allowing investors to buy and sell stocks in quantities of 1–999 shares. This enables retail investors to participate in Taiwan stock trading with less capital.

However, zero-share trading has clear disadvantages compared to full-lot trading: lower liquidity, slower transaction speed (using a call auction mechanism, matched once per minute), whereas full-lot trading uses a continuous trading method, allowing immediate execution.

Core Factors Affecting Stock Prices

Whether in the US or Taiwan, stock price fluctuations are influenced by multiple factors:

Company fundamentals are the primary determinants of long-term stock prices. Companies with strong financial health and profitability attract investors, pushing up the stock price. Investors can evaluate company fundamentals by analyzing financial reports, revenue growth rates, and other indicators.

Macroeconomic environment such as GDP growth rate, interest rate policies, and inflation levels also have a profound impact on the entire stock market. When the economy is doing well, the market generally trends upward; during economic downturns, stock prices tend to decline.

Market sentiment—the collective psychological expectations of investors—is equally critical. Negative news, geopolitical risks, or global events (like pandemic shocks) can trigger panic selling, leading to sharp declines in the stock market; conversely, positive sentiment can drive prices up.

Summary

Understanding how many TWD one share of US stock is worth relative to a full lot of Taiwan stocks essentially boils down to understanding the differences in trading units between the two markets. US stocks, based on single shares with relatively lower prices, are among the most accessible mainstream markets for retail investors worldwide. Although Taiwan stocks have higher per-share costs, the introduction of the zero-share trading system has opened the door for small and medium investors. The choice of which market to invest in should be based on your capital size, risk tolerance, and investment goals.