2025 US Stock Investment Guide: A Comprehensive Overview of International Brokers and Local Channels in Taiwan

As global capital markets become interconnected, an increasing number of Taiwanese investors are turning their attention to the U.S. stock market. However, trading U.S. stocks is not conducted directly and requires a qualified brokerage platform. This article will comprehensively analyze the selection criteria for U.S. stock trading platforms, benchmark major international brokers, and introduce local Taiwanese alternatives.

Core Evaluation Dimensions of U.S. Stock Trading Platforms

Before choosing among many U.S. stock trading platforms, investors should thoroughly understand their own circumstances. Beginners entering the market, retail investors with limited funds, and experienced traders seeking professional tools have different platform needs. Once investment goals and strategies are established, the following standards can be used for benchmarking:

1. Regulation and Fund Security

The primary consideration for overseas investments is the security of funds. Evaluating a broker’s strength hinges on whether it is certified by legitimate regulatory authorities. Recognized international regulators include FINRA and SIPC in the U.S., ASIC in Australia, among others. Becoming a member of these organizations ensures that even if the broker faces bankruptcy, investors’ assets are protected by law.

2. Trading Instruments and Market Coverage

Different platforms support varying U.S. stock trading tools. Some platforms restrict options combinations or prohibit short selling. For risk-hedging needs or experienced traders, such restrictions may hinder trading. It is recommended to review detailed trading rules before opening an account.

3. Cost Structure and Fee Transparency

Fees on U.S. stock trading platforms mainly fall into two categories: per-transaction charges and per-share charges. While the difference in these costs is limited, hidden fees require close attention. For example, some platforms impose additional charges when trading exceeds certain share thresholds. Promotional activities and discounts also directly impact trading costs.

4. Customer Support and Language Services

Most investors find it challenging to operate fluently in English. Language barriers can lead to miscommunication and unnecessary trouble. An increasing number of international brokers offer full Chinese-language services, including Chinese official websites and 24-hour customer support, which is a significant advantage for Chinese-speaking users.

5. Fund Flow Efficiency

Whether depositing, withdrawing, or transferring funds, all transactions must go through the broker’s channels. The speed of fund arrival directly affects trading efficiency. Delays may cause missed opportunities or even liquidity crises.

Comparison of Major International U.S. Stock Trading Platforms

Based on the above evaluation dimensions, here is a basic comparison of five well-known international platforms with larger scale and reputation:

Individual Analysis of International Platforms

InteractiveBrokers (IBKR)

Basic Information: Founded in 1977, supports account opening in Taiwan, Mainland China, Hong Kong, Macau, Singapore, and other regions. No minimum deposit; trading fees are fixed ($0.005 per share) or tiered. Offers Chinese language support.

Fee Structure:

• Fixed: $0.005 per share
• Tiered: based on monthly trading volume (≤300,000 shares/month at $0.0035/share; over 100 million shares at $0.0005/share)
• Margin accounts require a minimum balance of $2,000

Platform Advantages:

• Wide range of trading instruments including stocks, ETFs, options, futures, forex, mutual funds
• Extensive market coverage supporting US, UK, Germany, Japan, Korea, and more
• Transparent fee calculation; the larger the volume, the lower the unit cost
• Suitable for high-volume and professional traders

Disadvantages:

• Complex interface with a steep learning curve
• Higher unit costs for small trades
• Beginners need time to learn platform features

SogoTrade

Basic Information: Founded in 1986, supports account opening in Taiwan, Mainland China, Hong Kong, Macau, Singapore, etc. No minimum deposit; Chinese customer service available.

Fee Structure:

• Orders under 100 shares: $2.88 per trade
• Large orders: zero commission on principal over $2,000
• Withdrawal fee: $50

Platform Features:

• Attractive sign-up bonuses for new customers
• Fee structure less favorable for small-volume traders
• Better suited for investors making larger single trades

Firstrade

Basic Information: Founded in 1985, supports account opening in Taiwan, Mainland China, Hong Kong, Macau, Singapore, etc. No minimum deposit or account balance requirements; offers Chinese app support.

Fee Structure:

• Trading commissions: $0
• Withdrawal fee: $25
• Be aware of implicit costs (e.g., PFOF order flow payments)

Platform Features:

• Supports trading in U.S. stocks, ETFs, options, mutual funds
• Cost structure friendly to beginners
• Market quotes may have delays
• Customer service hours aligned with US Eastern Time, leading to time zone issues

Fidelity

Basic Information: Founded in 1946, supports account opening in Mainland China, Hong Kong, Macau, Singapore, etc. Offers commission-free trading with no minimum deposit.

Pros and Cons:

Advantages:

• No trading commissions for individual investors
• Eliminates many recurring fees (phone, broker services)
• Low rate of free mutual fund trades

Disadvantages:

• Taiwanese users can only trade funds, not open U.S. stock accounts
• Margin interest rates are relatively high (5.5%-9.825%)
• Platform features are relatively basic

Local Taiwanese Channels: Re-entrustment Service Comparison

Using Taiwanese brokers to buy U.S. stocks is called “re-entrustment,” where Taiwanese brokers delegate order placement to foreign institutions. Mainstream options include:

Characteristics of Taiwanese Brokers: Advantages include familiarity, localized support, and low entry barriers. However, compared to opening direct international accounts, re-entrustment adds intermediary costs. Investors should evaluate whether the trading frequency and volume justify these additional costs.

Analysis of U.S. Stock Trading Costs

Many beginners misunderstand the costs involved in opening a U.S. stock account, thinking there are extra fees. In fact, opening a U.S. stock account at legitimate financial institutions is usually free.

The main costs in U.S. stock trading come from the purchase itself. Unlike Taiwan’s minimum trading unit of 1,000 shares, U.S. stocks are traded per share, allowing flexible purchase quantities.

For example: If a tech stock is priced at $631, and no margin is used, the investor must pay $631 to buy one share.

Cost Structure of CFD Trading

Besides traditional stock trading, CFDs (Contracts for Difference) offer an alternative investment method. Using margin and leverage, investors can operate with less capital to trade U.S. indices, commodities, forex, and other assets.

CFD trading costs mainly include three components:

1. Spread The difference between buy and sell prices. The buy price is usually slightly higher. Spreads widen with increased trading volume and are the primary cost in CFD trading.

2. Commission Some platforms charge a trading commission, typically as a percentage of the trade amount or a fixed fee. Some claim to offer zero-commission models.

3. Overnight Fees Calculation formula: number of contracts × units per contract × opening price × daily overnight rate percentage

For example, with gold, if the overnight fee is -0.016800% (long) or -0.014000% (short), the specific fee depends on position size.

Process of Opening a U.S. Stock Trading Account

Most platforms now support online account opening, which is simple and usually free. Using international platforms as an example, the process generally involves three steps:

Step 1: Create an Account

• Enter basic information (email, password)
• Choose base currency (USD/AUD, etc.)
• Optional: link third-party accounts (Facebook/Google)
• Many platforms offer demo accounts with virtual funds for practice

Step 2: Deposit Funds

• Support various deposit methods (credit card, wire transfer, third-party payment)
• Specific options vary by platform

Step 3: Execute Trades

• Platforms offer hundreds of financial products
• Including stocks, indices, forex, commodities, cryptocurrencies
• Can start trading immediately

Key Recommendations Summary

Choosing a U.S. stock trading platform hinges on clarifying personal needs, assessing risk tolerance, and benchmarking service quality and fee structures.

Overseas investment differs from local stock trading and relies entirely on broker services. Taiwanese investors should conduct thorough research and careful comparison before starting U.S. stock trading to ensure they select the platform best suited to their circumstances.

Three steps to start trading U.S. stocks:

1. Register – complete identity verification and basic info registration
2. Deposit – quickly fund the account via multiple channels
3. Trade – seize opportunities and execute trading plans