How to choose a securities lending broker in Taiwan? Complete guide to rankings and fees in 2025

Things to Know Before Opening an Account: 5 Key Factors in Choosing a Brokerage

If you want to trade in the Taiwan stock market, whether it’s stocks, bonds, or options, you must open an account with a securities firm. However, with so many options available, novice investors often face a dilemma. Instead of passively waiting, it’s better to clarify your investment needs first.

The difference in brokerage fee discounts is astonishing and should be a primary consideration. Taking TSMC as an example, buying 5 lots (NT$2.15 million) with a 60% discount on the commission costs NT$1,838; selling 5 lots (NT$2.25 million) costs NT$1,924, plus NT$6,750 in transaction tax, making the total cost NT$10,512 per trade. The discount on brokerage fees can be a decisive factor in overall trading costs, but don’t just look at the discount percentage—some small brokers lower fees to gain market share but compromise on system stability, order execution speed, and service quality.

Ease of use of trading software is often underestimated. Yuanta Securities’ “Investment Gentleman” app, KGI Securities’ “Mobile eStrategy,” and others each have their features, but the actual experience varies from person to person. Only by trying them firsthand can you determine if real-time quotes, technical analysis, account management, and other functions are complete.

Margin and securities lending capabilities determine trading flexibility. Larger brokers usually have ample securities (for short selling) and offer more favorable financing interest rates. The margin ratio for Taiwan stocks is 60% for listed stocks and 50% for OTC stocks, with financing interest rates typically floating between 6% and 7%.

Convenience of branch locations and quality of customer service often impact long-term experience. Larger brokers have more branches nationwide and faster customer response times.

2025 Taiwan Domestic Securities Firm Rankings and Market Share

Based on the total trading volume in 2024, here is the complete ranking of the top ten domestic brokers in Taiwan:

Source: Taiwan Stock Exchange 2024 Statistics

Electronic Order Fee Discount Table

Official brokerage fees are 0.1425% (charged on both buy and sell), with a minimum of NT$20 per transaction. In practice, most investors can obtain discounts, depending on trading volume and broker policies.

Source: Broker websites’ statistics

Note that brokerage fee discounts are usually not fixed. Investors with high trading volume and ample funds can negotiate better terms with their brokers.

Practical Calculation of Taiwan Stock Trading Costs

Taking TSMC as an example, understanding the full cost structure:

Buying:

• Stock price: NT$430 per lot
• Number of lots: 5
• Total purchase: NT$2,150,000
• Brokerage fee rate: 0.1425%
• Discounted fee: NT$1,838.25 (60% discount)

Selling:

• Stock price: NT$450 per lot
• Number of lots: 5
• Total sale: NT$2,250,000
• Brokerage fee rate: 0.1425%
• Discounted fee: NT$1,923.75 (60% discount)
• Transaction tax (0.3%): NT$6,750

Total trading cost: NT$10,512

Note: Transaction tax is levied by the government and cannot be discounted. The more favorable the brokerage fee discount, the more significant the difference in overall trading costs.

Recommendations for Different Investors in Choosing a Broker

Small investors and dividend stock savers: Prioritize brokers with strong new client promotions and comprehensive app features. If monthly trading is within NT$1 million, E.SUN Securities’ 20% discount is attractive; for long-term ETF holdings, Yuanta’s ETF discounts are worth considering.

Active traders: Focus on brokerage fee discounts, system stability, and securities lending capabilities. Yuanta and KGI, as the top two market share brokers, have advantages in securities lending and financing services, suitable for investors requiring high trading flexibility.

Margin and short-selling enthusiasts: Compare financing interest rates and securities availability. Larger brokers like Yuanta and KGI usually offer more favorable financing rates and higher securities lending success rates.

Overseas investors: Overseas omnibus services offered by domestic brokers tend to have higher fees. For frequent US or Hong Kong stock trading, using overseas brokers directly might be more cost-effective.

Three Major Platforms for Overseas Investment

If you want to venture into overseas markets, the omnibus fees charged by domestic brokers can be a hidden cost. Here are three international platforms with their advantages:

Mitrade—Ideal for small investors and leverage enthusiasts

Mitrade is an ASIC-regulated CFD trading platform from Australia, allowing trading of US stocks, Hong Kong stocks, indices, forex, commodities, and cryptocurrencies. Features include:

• Very low deposit threshold: US$50 (~NT$1,500) to start
• Simple commission structure: Zero commission, only spreads
• Flexible leverage: 1x to 200x adjustable
• Localized service: 24-hour Taiwan support, NTD deposits/withdrawals, 1-2 free withdrawals per month
• Demo account: Risk-free practice for beginners

Especially suitable for small idle funds to leverage, day trading, or hedging.

Interactive Brokers—Preferred for large capital traders

Founded in 1977, IB serves global investors. Trading products include US, UK, German, Japanese, Korean stocks, bonds, funds, ETFs, futures, forex, etc.

• No minimum deposit: Open account with NT$0
• Fee structure: US$0.005 per share, more friendly for large trades
• Complete product line: One-stop global asset allocation
• Chinese support: Provides Chinese customer service
• Margin account: Requires maintaining over US$2,000

Ideal for experienced investors with substantial funds seeking low costs.

Firstrade—Great for beginners and ETF dividend investors

A US-based online broker regulated by FINRA and SIPC. Main products are US stocks, ETFs, mutual funds, options.

• Zero commission trading: Stocks, ETFs, options free of charge
• User-friendly interface: Simple and intuitive, easy for beginners
• Additional protection: Compensation for unauthorized trading losses
• Withdrawal fee: US$25 per withdrawal; reduce frequency to save costs

Especially suitable for long-term US stock and ETF investors practicing dollar-cost averaging.

Comparison Table of Three Major Overseas Platforms

How to Open and Trade with Overseas Brokers

Step 1: Online registration
Using Mitrade as an example, fill in email, set password, select main currency. After completion, you can immediately practice with a demo account to familiarize yourself without risk.

Step 2: Complete KYC verification and deposit
Submit identity documents to open a real account. Funding methods include Skrill, Poli, credit card, wire transfer, etc. Mitrade’s minimum deposit is US$50, enough to start trading.

Step 3: Search and trade
Log in, enter stock name or code in the search bar to find trading targets. Platforms usually provide real-time quotes, technical analysis tools, and risk management features.

Final Reminder

In Taiwan, investing in stocks, bonds, or derivatives must be done through legitimate securities firms. Domestic brokers offer safety, reliability, and reasonable trading costs for Taiwan stocks, but overseas omnibus services tend to have higher fees.

When choosing a broker, consider multiple factors: fee discounts, ease of trading software, securities lending and financing capabilities, branch convenience, and customer service quality. There is no absolute best choice—only the broker that best fits your investment style.

For those aiming at overseas markets, directly using overseas brokers (like Mitrade, Interactive Brokers, Firstrade) may be more cost-effective. Regardless of your choice, clearly define your investment goals and risk tolerance to find the most suitable trading partner.