Taiwan Investors Must Read: How to Precisely Choose the Right Trading Platform from the Top Ten Brokerage Firms

2026-01-05 15:38:11

Key Considerations When Choosing a Brokerage — Understand These Before Opening an Account

For Taiwanese investors looking to enter the stock, bond, or options markets, the first challenge is: how to choose a broker? With numerous options on the market, each claiming its own advantages, the most suitable one for you is the best. Before introducing specific brokerages, let’s first look at the most important aspects to consider when selecting a broker.

1. Commission Discounts — Seemingly Small, but Significantly Impactful

The official commission rate for Taiwan stocks is 0.1425%, payable on both buy and sell transactions. However, in practice, most online orders can get discounts. Be aware that discount policies vary by broker, and those with higher trading volumes often have more bargaining power.

Some brokers lower commissions to attract clients, but may compromise on system stability, order execution speed, or customer service quality. Therefore, commission fees are important but not the sole criterion when choosing a broker.

2. Trading Software — User-Friendly Apps Are Intangible Assets for Improving Win Rates

Each broker offers free trading tools, but their features and ease of use vary greatly. You need to see real-time quotes, technical analysis, account balances—these basic functions are available from all, but which one feels most intuitive depends on the individual. It’s recommended to download trial versions first, find the platform that suits your trading logic best, and then decide.

3. Securities Sources and Margin Conditions — Invisible Factors That Determine Trading Flexibility

Larger brokers usually have more abundant securities lending sources (the amount of stocks available to borrow), and their financing interest rates are more competitive. For Taiwan stocks, the margin ratio is 60% for listed stocks and 50% for OTC stocks, but financing interest rates range from 6% to 7%. A one percentage point difference can add up over time. If you frequently use margin trading, choosing a large broker is more cost-effective.

2024 Taiwan Brokerage Market Landscape — Complete Ranking of the Top Ten Domestic Brokers

Based on last year’s total trading volume, the market share ranking of Taiwan’s top ten domestic brokers is as follows. These are well-established firms with decades of operation, covering major markets such as Taiwan stocks, US stocks, Hong Kong stocks, and more.

Rank	Broker Name	Market Share(%)	Main Trading Products
1	Yuanta Securities	12.89	Taiwan stocks, ETFs, Hong Kong stocks, Chinese stocks, US stocks, Japanese stocks, international futures, options, etc.
2	KGI Securities	10.08	Taiwan stocks, Taiwan ETFs, futures, options, and overseas repurchase agreements(Hong Kong, US, China, Japan)
3	Fubon Financial	7.05	Taiwan stocks, Taiwan ETFs, futures, options, and overseas repurchase agreements(Hong Kong, US, China, Japan)
4	E.SUN Securities	4.62	Overseas securities investments in US stocks, Hong Kong stocks, Chinese stocks, and Japanese stocks
5	Cathay Securities	4.06	Taiwan stocks, ETFs, bonds, warrants, futures, odd-lot trading, and overseas commodities
6	Yuanta Securities	3.38	Taiwan stocks, bonds, futures, warrants, and overseas commodities
7	Yuanta FHC Securities	3.18	Taiwan stocks, bonds, futures, warrants, and overseas stocks(US, China, Hong Kong)
8	Hua Nan Yung Chuang	2.54	Taiwan stocks, bonds, futures, and overseas repurchase products(Hong Kong, US, China, Japan, structured products abroad)
9	Mega Securities	2.52	Taiwan stocks, bonds, futures, warrants, structured products, and overseas repurchase agreements
10	Union Securities	2.43	Taiwan stocks, bonds, warrants, futures, and overseas repurchase agreements(Hong Kong, US, China, Japan)

Source: Taiwan Stock Exchange

Top Ten Brokers’ Fee Comparison — Which Is the Most Cost-Effective?

Trading Taiwan stocks involves two types of costs: commission fees and transaction taxes. The transaction tax is fixed at 0.3%, only charged on sales, and cannot be negotiated. Commission fees vary depending on the broker and trading volume.

Overview of Electronic Order Discount Rates for Each Broker

Code	Broker Name	Discount	Commission Discount Method
8560	Yuanta Securities	60%	Daily rebate
9200	KGI Securities	60%(New customers 25%)	Monthly rebate
9600	Fubon Financial	60%(New customers below 20%, within 1 million monthly trading)	Monthly rebate
9A00	E.SUN Securities	20%(Monthly trading under 1 million)	Monthly rebate
8880	Cathay Securities	28%	Daily rebate
2856	Yuanta FHC Securities	65%	Monthly rebate
6005	Yuanta Securities	60%	Daily rebate
2880	Hua Nan Yung Chuang	65%	Monthly rebate
2855	Union Securities	25% off for trades under 100,000; 20% for 100,000–500,000; 16.8% above 500,000	Monthly rebate
000700	Mega Securities	50%	Monthly rebate

Actual discounts depend on account opening and negotiations with brokers.

Cost Calculation Example

For buying and selling 5 shares of TSMC(TSM) at NT$430 and NT$450 respectively, estimated costs:

Item	Buy	Sell
Transaction Amount	NT$21,500,000	NT$22,500,000
Commission(60%)	NT$1,838.25	NT$1,923.75
Transaction Tax(0.3%)	NT$0	NT$6,750
Total Cost per Transaction	NT$1,838.25	NT$8,673.75

Total transaction cost: NT$10,512. Negotiating lower discounts could further reduce costs.

Overseas Stock Investment — Another Option for Taiwanese Investors

Many Taiwanese investors want to invest in US or Hong Kong stocks but find the costs prohibitive. Using domestic brokers’ “repatriation” orders often incurs higher fees. In such cases, directly using overseas broker platforms may be more economical.

Top Three Popular Overseas Investment Platforms

Mitrade — The First Choice for Small Investors and Leverage Enthusiasts

Mitrade is a global CFD(CFD) trading platform offering US stocks, Hong Kong stocks, indices, forex, commodities, and cryptocurrencies. Regulated by ASIC in Australia, it supports leverage from 1x to 200x, with no restrictions on two-way trading.

Features: Zero commission(only spreads), very low minimum deposit(starting at US$50), 24-hour Taiwanese customer service, support for NTD deposits, and free demo accounts. Suitable for traders with small capital seeking leverage.

Interactive Brokers(IBKR) — Preferred for Large Capital Traders

Founded in 1977, this veteran international broker offers a full range of products including stocks, bonds, funds, ETFs, futures, and forex. Supports multiple markets(US, UK, Germany, Japan, Korea), with no minimum deposit, and commissions as low as US$0.005 per share.

Features: Complete product line, suitable for asset allocation, more cost-effective for large funds. Margin accounts require maintaining over US$2,000.

Firstrade — A Good Partner for Regular ETF Investments

A US-based online broker focusing on discount services, regulated by FINRA and SIPC. Zero commissions on stocks, ETFs, mutual funds, and options. Simple, intuitive interface, especially popular among Taiwanese dividend investors.

Features: Zero commissions, easy operation, beginner-friendly. Drawback: higher withdrawal fee(US$25 per withdrawal), not ideal for frequent withdrawals.

Full Comparison of the Three Platforms

Platform	Main Advantages	Commission	Withdrawal Fee	Trading Products
Mitrade	Zero commissions, low threshold, flexible leverage, free demo	Zero commissions(spread)	1-2 free withdrawals per month	US stocks, Hong Kong stocks, indices, forex, commodities, crypto CFDs
Interactive Brokers	Large capital friendly, comprehensive products, international accreditation	US$0.005/share	$10	US, UK, Germany, Japan, Korea stocks, bonds, funds, ETFs, futures, CFDs, forex
Firstrade	Zero commissions, intuitive interface, beginner-friendly	Zero commissions	$25	US stocks, mutual funds, ETFs, options

Three Steps to Open an Overseas Broker Account

Step 1: Register Online

Using Mitrade as an example, fill in your email, set a password, and choose your main trading currency to complete registration. The system will immediately open a demo account for practice.

Step 2: Complete KYC Verification and Deposit Funds

Submit identity documents to activate real trading. Mitrade supports multiple deposit methods including Skrill, Poli, credit cards(Visa/Mastercard), and international wire transfers. You can start trading with just US$50.

Step 3: Search for Products and Start Trading

Log into the trading platform, enter stock name or code in the search bar, find your target, and place orders. The platform supports mobile, web, and PC terminals.

Final Advice

For investing in stocks, bonds, or options/futures in Taiwan, you must open an account with a licensed broker. Domestic brokers offer high convenience, safety, and reasonable Taiwan stock trading fees.

However, if your target is overseas markets, directly choosing an overseas broker often reduces costs. Regardless of the path you choose, remember to compare commission discounts, order software smoothness, securities sources, margin conditions, and service quality. Each broker has its strengths; finding the one that best fits your trading style and capital size is the smartest decision. Happy investing!

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