Recently, many people have asked me how much a stock needs to go up to avoid losing money.

This question seems simple, but in reality, many people can't calculate it accurately.
Today, let's delve into the cost structure of buying and selling stocks, and the core issue of how much a stock needs to rise to break even.

First, let's talk about the situation in Taiwan's stock market.
Many believe that as long as the stock price rises, they can make a profit, but in fact, the transaction fees and taxes significantly erode your gains.
Taking Master Kong as an example, suppose you buy one lot of stock at 200 NT dollars, with a transaction fee rate of 0.1425%, and the broker usually offers a 40% discount, then the purchase fee would be 171 NT dollars.
When selling, you not only pay another 171 NT dollars in transaction fees but also an additional 0.30% securities transaction tax, which is 600 NT dollars.
In total, you need to earn 942 NT dollars to truly break even.

This is why I say the question of how much a stock needs to rise to avoid losing money is crucial.
Many retail investors only look at the percentage increase or decrease, ignoring transaction costs, and as a result, even if the stock price rises, they still incur losses due to fees and taxes.
In Taiwan, different brokers offer varying discounts on transaction fees.
Major brokers like Fubon, Yuanta, E.SUN, and Uni-President provide electronic order discounts ranging from 1.68-fold to 2-fold, with minimum transaction fees for fractional shares as low as 1 NT dollar.
Choosing the right broker can save a lot of costs.

If you want to invest in US stocks, the situation becomes even more complicated.
Buying US stocks through Taiwanese brokers' cross-border trading services usually involves fees between 0.25% and 1%, plus an additional 0.00278% sell transaction tax, a $3 system service fee, ADR custody fees, and other miscellaneous charges.
For example, Yuanta's electronic order fee ranges from 0.5% to 1%, but there is a minimum charge of $35, meaning even small orders cost at least $35.
In contrast, trading US stocks directly through overseas brokers often has no transaction fees, but the deposit and withdrawal costs are around $30.

I personally favor CFD platforms like Mitrade because they charge no commissions, no trading taxes, and no deposit or withdrawal fees—only the spread.
For short-term traders, saving on transaction costs is significant.
Moreover, Mitrade supports deposits and withdrawals in New Taiwan Dollars, which is very friendly for Taiwanese investors, with a minimum deposit of only $50.

Back to the core question: how much does a stock need to rise to break even?
Simply put, you need to calculate all the costs involved in buying and selling, then ensure that the profit from the stock's increase exceeds this total cost.
In Taiwan's stock market, this means your gains must surpass the sum of transaction fees and taxes.
In the US market, you need to consider the different fee structures of cross-border or overseas brokers.
Frequent traders should pay extra attention, as each trade incurs fees on both buying and selling sides.

Overall, choosing the right trading method and platform can greatly reduce costs.
Taiwanese investors should compare the discount levels offered by various brokers, while US investors need to weigh the differences between cross-border and overseas brokers.
If you're a short-term trader, CFD platforms have clear cost advantages.
Regardless, always calculate how much a stock needs to rise to break even before placing an order—this is the only way to truly protect your profits.