Complete Guide to Taiwanese Stock Transaction Fees: A Table to Understand Buying and Selling Costs, Operate Like This to Avoid Losing Money!

Essential Pre-Investment Knowledge: Breakdown of Taiwan Stock Trading Cost Structure

Many investors focus solely on stock price movements when buying stocks, overlooking hidden costs during the trading process. In fact, the calculation of Taiwan stock transaction fees involves multiple layers of costs, including broker commissions and government taxes. According to regulations, Taiwanese investors must pay a 0.1425% transaction fee (commission) and a 0.30% securities transaction tax when buying or selling stocks, with the tax only incurred upon selling.

Most Taiwanese brokers offer discounts, typically between 50% to 60%, meaning the actual rate paid is significantly lower than the standard rate.

How to Calculate Taiwan Stock Buying and Selling Costs?

Buying Stage: Transaction fee = Stock price per share × Number of shares × 0.1425% × Broker discount

Selling Stage: Transaction fee = Stock price per share × Number of shares × 0.1425% × Broker discount Securities transaction tax = Stock price per share × Number of shares × 0.30%

Taking Master Kong (910322.TW) as an example, assuming purchasing 1 lot of NT$200 face value stocks with a 60% broker discount:

This means the stock must increase by at least NT$942 to break even.

Taiwan Stock Broker Fee Comparison: Choosing the Most Favorable Partner

Since there are many brokers in Taiwan with varying services, investors should choose based on factors like transaction fee discounts, minimum fees for odd lots, electronic order discounts, etc.:

US Stock Investment Cost Analysis: Prime Brokerage vs. Overseas Brokers

Taiwanese investors mainly have two options to enter the US stock market: through domestic brokers’ prime brokerage services or by opening accounts directly with overseas brokers. The cost structures and fee calculations differ significantly from Taiwan stock fees.

Prime Brokerage: Placing US stock orders via Taiwanese brokers

Prime brokerage (Sub-brokerage) refers to investors opening accounts with qualified domestic brokers, who act as intermediaries to place orders with overseas brokers. The main costs include:

Fee range: Different brokers charge between 0.25% and 1%

Other costs:

• Selling transaction tax: 0.00278%
• System service fee: USD 3 per order
• ADR custody fee: USD 0.02~0.05 per share
• Cross-border remittance fee: USD 15 daily

Major brokers’ prime brokerage US stock fees:

Overseas Broker Solutions: No commission but watch out for deposit/withdrawal fees

Many well-known international brokers have eliminated stock trading commissions, significantly reducing costs for retail investors. However, deposit and withdrawal fees are usually around USD 30:

Interactive Brokers

• Founded: 1978
• Commission: USD 0.005 per share (tiered) or adjusted based on monthly trading volume
• Withdrawal fee: USD 10
• Advantages: Largest global scale, access to worldwide markets

Mitrade

• Commission: Zero
• Minimum deposit: USD 50
• Advantages: Supports TWD deposits/withdrawals, user-friendly, some products with spreads as low as 0.01

Oanda

• Commission: 0.1%
• Minimum deposit: None
• Leverage: 888x
• Number of tradable US stocks: 800+

Firstrade

• Commission: Zero
• 24-hour Chinese customer service
• Withdrawal fee: USD 25

Cost Killer for Short-term Traders: Why CFDs Might Be More Cost-Effective?

Frequent traders face accumulating transaction costs. In this scenario, CFD (Contract for Difference) trading becomes an alternative.

CFD is a derivative contract without physical delivery, where investors profit from price differences rather than holding actual shares. Compared to traditional stock trading, CFDs only charge:

• Spread costs
• Overnight financing fees (if held overnight)

They do not involve transaction fees, taxes, or deposit/withdrawal fees, making them significantly cheaper for intraday traders. However, when choosing a CFD platform, it’s important to compare the spread differences carefully.

Four Major Factors Affecting Costs

Market differences: Different exchanges have varying upper and lower limits for fees, and rules are subject to change.

Broker policy differences: Large brokers usually have higher commissions but often run discount promotions; smaller brokers may have lower rates but limited services.

Trade size: Larger trade amounts mean higher absolute fees, but some brokers offer discounts or fixed fees for big trades.

Trading frequency: Each trade involves two costs (buy + sell), so high-frequency trading greatly increases total costs.

Common Investor Questions and Answers

Q: Why do the same Taiwan stock trades have such different fees?
A: Mainly depends on the broker and discount plan chosen. Different brokers offer varying promotions, and new customer discounts differ. Choose a broker that fits your trading habits and volume.

Q: Is buying US stocks via prime brokerage expensive?
A: Prime brokerage fees range from 0.25% to 1%, plus deposit/withdrawal fees and system service charges. The per-trade cost is not low, but for long-term investing rather than high-frequency trading, this cost is acceptable.

Q: Are there any common overlooked aspects when calculating Taiwan stock fees?
A: The most common oversight is only considering the fee discount, forgetting to add the 0.30% transaction tax. The actual breakeven point equals all transaction costs (buy fee + sell fee + tax).

Q: I want to do short-term trading; should I use stocks or CFDs?
A: For intraday or high-frequency trading, CFDs have a clear cost advantage. But if you want actual ownership or to participate in shareholder rights, stock trading is necessary.