Recently researching how to choose a brokerage, I found that the rankings of securities firms in Taiwan vary quite a bit, with different companies offering more than double the discount on commissions. It’s really important to compare carefully.

Based on last year's market share, Yuanta, KGI, and Fubon are still the mainstream, but choosing a broker shouldn’t just be about rankings; commission discounts are the key. For example, Yuanta and KGI both start at a 40% discount, but new clients at KGI can get as low as 25%. If you trade a lot, SinoPac can even negotiate down to 20%. I did a quick calculation using TSMC as an example—buying and selling 5 lots each, the difference between a 60% discount and a 20% discount on commissions can save over 3,000 NT dollars, which really shouldn’t be ignored.

However, low commissions aren’t everything. You also need to consider how user-friendly the trading software is, whether they have enough securities sources, especially if you often need margin trading, as larger brokers tend to offer more favorable interest rates. Some small brokers lower commissions to attract customers, but their system stability and order execution speed may not be as good. These hidden costs can actually be more damaging.

If you’re investing in overseas stocks, using an international broker might be more cost-effective. For example, Mitrade offers zero commissions, Interactive Brokers has advantages with large capital, and Firstrade offers commission-free ETFs—all have their own benefits. But for local Taiwanese brokers buying Taiwan stocks, it’s still the most convenient—24-hour customer service, quick withdrawals, and these advantages are worth considering.

When choosing a broker, remember to compare commissions, software experience, margin interest rates, and service quality. Finding the one that best fits your trading style is the most important.