Taiwan's Top Three Brokerage Firms Lead the Way! Complete Securities Firm Evaluation and Commission Fee Analysis for 2025

The Essential Path to Investing in Taiwan Stocks: Why Choose the Right Broker

Retail investors looking to trade stocks, bonds, or futures in Taiwan must open an account with a securities firm to proceed—this is the surefire way. However, with numerous brokers in the market, how can you find the most suitable trading partner? This article will analyze the strengths of major Taiwanese brokers, focusing especially on the core advantages of the top three brokers in Taiwan, helping you make an informed decision before opening an account.

The Top Three Brokers in Taiwan: Market Share Rankings and Strength Comparison

According to the 2024 annual trading volume statistics, the Taiwanese securities market is dominated by several established brokers. Among them, the Top Three Brokers are Yuanta Securities, KGI Securities, and Fubon Financial Holdings, collectively holding over 30% of the market share, forming the backbone of Taiwan stock trading.

First Tier: Detailed Overview of Taiwan’s Top Three Brokers

Yuanta Securities (Market Share 12.89%)

• Most comprehensive trading categories: covering Taiwan stocks, ETFs, Hong Kong stocks, China stocks, US stocks, Japanese stocks, international futures, and options
• Discounted commissions: electronic orders at 60%; new customers enjoy regular fixed-amount Taiwan stock discounts
• Refund method: daily refund model, ensuring quick fund flow

KGI Securities (Market Share 10.08%)

• Strong overseas investment convenience: offers overseas omnibus entrustments for Hong Kong, US, China, Japan, etc.
• Discounted commissions: electronic orders at 60% (new customers at 25%), highly competitive
• Refund mechanism: monthly refunds

Fubon Financial Holdings (Market Share 7.05%)

• Clear advantages in margin financing and securities lending: as part of a large financial group, ample securities sources
• Discounted commissions: electronic orders at 60%, new customers under 20% (monthly trading within 1 million NT$)
• Special service: ETF trades over 100,000 NT$ receive a 100 NT$ voucher

Decoding the Fee System of Major Taiwanese Brokers

Fee Structure and Calculation Logic

Trading Taiwan stocks involves two main costs: commission fees and transaction taxes. The official fixed commission fee is 0.1425% (applies to both buy and sell), with a minimum charge of 20 NT$. Transaction tax is only paid upon selling at 0.3%, with no discounts available.

However, with the popularity of online orders and increased broker competition, actual commission fees have been significantly reduced through discounts. Different brokers offer varying discounts based on their scale; high-volume investors can negotiate more favorable terms with their brokers.

Comparison Table of Electronic Order Commission Discounts

Actual Trading Cost Example

Taking TSMC (TSM) as an example, buying and selling 5 lots:

From this case, it’s clear that transaction tax accounts for most of the trading cost. Although the difference in commission discounts per trade may seem small, the long-term cumulative effect is significant.

Core Criteria for Choosing a Taiwanese Broker

1. Discount Rate and Refund Method

Different brokers offer varying discount levels and refund schedules. Some smaller brokers may have lower commissions but could incur hidden costs due to system stability or order execution speed, making them less cost-effective. The top three brokers in Taiwan, thanks to their scale, can offer competitive discounts while maintaining service quality.

2. Trading Software and User Experience

The apps provided by brokers differ significantly in features. Yuanta’s “Investo” and KGI’s “Mobile eStrategy” have loyal user bases. Real-time quotes, technical analysis tools, and account management ease of use require personal experience to evaluate.

3. Securities Source and Margin Interest

Larger brokers (like the top three) generally have abundant securities sources, and their margin interest rates are more competitive (around 6%-7%). If you frequently engage in margin trading or short selling, the advantages of large brokers become even more apparent.

4. Overseas Investment and Omnibus Entrustment Efficiency

Taiwanese investors who want to buy US or Hong Kong stocks through local brokers often use “omnibus” models, which usually involve higher fees. Choosing large brokers with well-established omnibus systems (such as the top three) offers better security.

Overseas Direct Investment: An Alternative to Skip Intermediaries

If you’re interested in overseas markets, opening an account directly with international brokers might be more cost-effective, avoiding the extra fees of Taiwan brokers’ omnibus entrustments.

Global CFD Trading Platform: Mitrade

Designed for small investors and leverage trading enthusiasts, offering global assets including US stocks, Hong Kong stocks, indices, forex, commodities, and cryptocurrencies. Regulated by ASIC Australia, supports NTD deposits/withdrawals, starts trading with just $50, and provides 24-hour Chinese customer support seamlessly.

International Established Broker: Interactive Brokers

Founded in 1977, serving investors worldwide. Trading categories include US, UK, Germany, Japan, Korea stocks, bonds, funds, ETFs, futures, with a maximum commission cap of 1%. Suitable for large capital investors; margin accounts require a minimum balance of $2,000.

US-based Online Broker: Firstrade

Pure online broker with zero commissions on stocks, ETFs, and options, favored by Taiwanese ETF investors. Simple and user-friendly interface, regulated by FINRA and protected by SIPC. However, withdrawal fees are high ($25 per transaction), so minimize frequent withdrawals.

Quick Comparison of the Top Three Overseas Platforms

How to Open an Account and Start Trading Overseas

Step 1: Online Account Application
Fill in your email, set a password, choose trading currency, and complete basic registration. Most platforms also offer demo accounts for risk-free practice for beginners.

Step 2: Complete Identity Verification and Deposit Funds
After KYC verification, you can start real trading. Deposit methods typically include credit card, wire transfer, third-party payment, etc.

Step 3: Search for Assets and Trade
Log into the trading platform, enter stock codes or company names in the search bar to view quotes and place orders.

Final Advice: Choose the Right Broker, Achieve More with Less

When selecting a securities broker in Taiwan, investors should consider multiple factors such as discount rates, user experience of trading software, securities source, and margin interest. Thanks to their scale, service quality, and transparency, the top three Taiwanese brokers remain the first choice for Taiwan stock trading.

However, if your focus shifts to overseas markets, directly using international brokers can avoid high omnibus fees and offer greater flexibility. Whether choosing domestic or overseas brokers, the key is to find a partner that best fits your trading habits and capital scale, minimizing costs and establishing a solid foothold in the market.