Comprehensive Guide to Opening a Securities Account: Benchmark Analysis of Taiwan and US Stock Investment Plans

2025-12-24 19:12:59

The Three Major Misconceptions About Opening an Investment Account

Many novice investors entering the stock market tend to fall into common pitfalls when choosing a securities account. The most frequent approach is to overemphasize brokerage fee discounts while neglecting platform usability, timely customer support, and hidden costs that erode long-term investment returns. In fact, a suitable securities account should be evaluated comprehensively based on fee transparency, order placement tools’ smoothness, and the ability to quickly receive assistance during risks.

Core Indicators for Evaluating a Securities Account

Complete Understanding of Cost Structure

Brokerage fees are the most straightforward cost at first glance, but the actual impact on returns comes from the overall cost structure. Different brokers adopt various discount mechanisms—some fixed percentage discounts, others tiered reductions—where larger trading amounts may enjoy better discounts. Fractional share trading and regular fixed investments often come with exclusive discounts.

Novices often overlook hidden costs such as taxes, platform annual fees, currency exchange fees, etc. Over a long-term investment cycle, these seemingly minor expenses can significantly erode final returns. Therefore, when comparing securities accounts, it is essential to require brokers to clearly list all fee items.

Practicality of Trading Tools

Whether the software interface is intuitive and the order placement process is smooth directly affects the efficiency of executing investment decisions. An improperly operated app may cause investors to miss critical trading opportunities at crucial moments.

A good trading tool should include comprehensive technical analysis charts, real-time financial reports, push notification mechanisms, and one-click order functions. These elements are vital for beginners to quickly get started.

Accessibility of Support Services

Encountering problems during investment is inevitable. 24-hour online customer service, physical consultation points, and simulated trading practice—these support channels’ completeness determine whether investors can smoothly navigate the learning curve.

Market Positions of Major Stock Brokers in Taiwan

Based on Taiwan Stock Exchange trading volume data, here are the top ten brokers by market share. Many investors prefer leading brokers mainly due to market recognition and risk management considerations.

Rank	Broker Name	Minimum Fee	Minimum Discount	Main App
1	Yuanta Securities	NT$20 (fractional share NT$1)	60%	Investment Mr.
2	KGI Securities	NT$5 (fractional share NT$1)	60%	Mobile eStrategy, Mobile Dealer
3	Fubon Securities	NT$20 (fractional share NT$1)	40-60%	Fubon ePoint
4	E.SUN Securities	Minimum NT$1	40% (within NT$1 million/month)	Large Investor Trading, iLeader
5	Cathay Securities	Minimum NT$1 for Taiwan stocks	28%	Tree Spirit APP
6	Yuanta Fubon Securities	NT$20	65%	Action Expert
7	Quam Securities	NT$20 (fractional share NT$1)	65%	Quam Mobile Winner
8	Uni-President Securities	Minimum NT$1	60%	Uni-eOrder
9	Hua Nan Yong Chang Securities	Minimum NT$1	65%	Hua Nan Good God e Counter
10	Mega Securities	NT$20	50%	Mega Mobile VIP

Frequent and large-volume traders may negotiate with their account managers for even lower discounts.

Fixed Investment Plans and Promotions

Small-scale fixed investments have become the mainstream choice for new investors in Taiwan. Many brokers offer fee discounts for such investors. Here are some competitive plans:

Broker	Promotion Details	Applicable Products	New Customer Bonus
Yuanta Securities	NT$1 per transaction; 200 NT$ voucher after 3 deductions	Taiwan stocks, ETFs	NT$700 voucher
E.SUN Securities	1% for under NT$20,000, minimum NT$1	Taiwan stocks, ETFs	7-11 shopping credits NT$100 or NT$500 gift card
KGI Securities	NT$1 per transaction	Taiwan stocks, ETFs	Convenience store shopping NT$300, after 3 deductions NT$900 voucher
CTBC Securities	NT$1 per transaction under NT$20,000	Taiwan stocks, ETFs	Fee credits NT$300-400
Cathay Securities	NT$1 per transaction regardless of amount	Taiwan stocks, ETFs	High-interest savings 2.5% and lottery chance
Shin Kong Securities	NT$1 per transaction under NT$20,000	Taiwan stocks, ETFs	NT$500 first deduction, annual renewal NT$500 bonus
E.SUN Securities	NT$1 under NT$10,000; 0.5% for over NT$10,000	Taiwan stocks, ETFs	Enter invitation code for NT$100 7-11 e-gift card

Three Paths to Invest in US Stocks

Taiwanese investors have three distinct ways to access the US stock market, each with different cost structures, operational difficulty, and investment flexibility.

Offshore Custodian: Local Service-Oriented Solution

Operation Process

Investors open a custodial account through a Taiwanese broker, which then acts as an agent to place trades with US partner brokers. This involves a “two-layer” delegation, hence the name custodial.

Preparation includes dual IDs, seals, copies of foreign currency deposit slips, etc., which can be applied for online or in person. First, open a foreign currency settlement account at a domestic bank to set up the fund transfer mechanism.

Cost Structure

You need to pay both the Taiwanese broker and the US broker’s fees. The following are the fee levels of major custodial brokers:

Broker	Commission Rate	Minimum Commission
Yuanta	0.5%-1%	US$35
KGI	0.5%	US$39.9
Cathay	0.35%	US$29
E.SUN	0.5%-1%	US$35
Fubon	0.25%	US$25
Quam	0.2%	US$3
Yuanta Fubon	0.5%	US$35
Mega	0.4%	US$1

Suitable Scenarios

Custodial accounts are suitable for investors seeking localized support, with moderate trading speed requirements, mainly for medium to long-term holdings. Advantages include no need for international remittance, with risk management handled by the Taiwanese broker. Disadvantages are slower trade execution, limited tradable instruments, and higher overall costs.

Direct Account Opening with Overseas Brokers: Cost-Optimal Solution

Account Opening Requirements

Investors apply directly to US brokers, preparing passports or IDs, filling out online forms, uploading ID documents, and verifying residence. The process is standardized but interfaces are fully in English or partly Chinese.

Costs and Funding

Most top-tier overseas brokers offer zero-commission trading, but international wire transfers incur fees (~NT$600–NT$1000). Deposit thresholds vary—some have no limit, others require over US$25,000.

Overview of quality overseas brokers:

Broker	Commission	Minimum Deposit	Withdrawal Fees	Trading Products
TD Ameritrade	US$0	US$0	US$25	US stocks, ETFs, options, futures
Charles Schwab	US$0	US$25,000	US$25	US stocks, ETFs, options, futures
Firstrade	US$0	US$0	US$25	US stocks, ETFs, options
IB (Interactive Brokers)	US$0.005/share (min US$1)	US$0	US$10	Global stocks, ETFs, options, futures, forex

Suitable Scenarios

Ideal for high-volume, cost-sensitive, self-learning investors. Fast trade execution, rich investment options (including leveraged ETFs, options), but requires managing remittance risks and system learning costs.

CFD (Contract for Difference): Short-term Trading Tool

Operation Mechanism

CFD is a financial derivative where investors sign contracts with CFD providers, trading based on underlying asset price movements without owning the actual stocks. Minimum trade units can be as low as 0.01, with very low thresholds.

Platform Comparison

Platform	Minimum Deposit	Commission	Spread	Trading Instruments	Max Leverage
Mitrade	US$100	None	From 0.12	US stocks, HK stocks	200x
IG Market	US$200	None	From 0.3	US stocks, HK stocks	200x
OANDA	US$100	Minimum 0.1%	From 1	US stocks, HK stocks	888x

Mitrade Experience Review

This platform is especially suitable for small investors. The app is simple and intuitive, fitting modern mobile trading habits. Over 300 assets including US stocks, HK stocks, Australian stocks, indices, etc., with no trading commissions. Main costs are spreads and overnight interest. Supports multiple deposit methods (bank transfer, credit card, Skrill, etc.), with TWD, USD, USDT available. New accounts enjoy up to US$100 bonus.

Risks and Opportunities of CFD

Advantages include low entry barrier, high liquidity, support for short selling, and easy operation—ideal for short-term strategies. Disadvantages are high leverage risk, requiring professional knowledge, and market volatility that can rapidly deplete principal.

FAQs on Opening Accounts

Capital Requirements

Local Taiwanese stock accounts have no explicit minimum capital. Beginners can start with NT$5,000–10,000. Fractional share trading requires only the share price amount. For US stocks, some brokers have no minimum, others require over US$100. Futures trading generally demands higher capital.

Online Account Security

Regulated brokers use encryption to protect personal data, with legal oversight ensuring user rights. Online account opening is generally safe, provided the institution is licensed and regulated.

Fee Transparency

When opening an account, clearly understand all costs including commissions, stamp duty, bank transfer fees, and account management fees. Request detailed fee schedules to avoid hidden charges later.

Investing involves risks. Before entering the market, thoroughly assess your personal risk tolerance and choose suitable securities accounts and investment tools based on your goals and time horizon.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.