I just recently realized that I basically know nothing about picking a brokerage. After reading through a lot of information, I finally understood that the rankings of brokerage account openings in Taiwan actually differ quite a bit.

For the top ten brokerages, such as Yuanta, KGI, and Fubon—these long-established brands—their market shares are not the same, and their commission discounts vary drastically as well. Some offer 60% discounts, while others start as low as 20%. I learned that it’s not just about the discount; you also have to consider whether the app is good to use, whether there are enough securities available, and how the margin interest is calculated. With just a small difference in these details, the cost difference can be enormous.

Especially if you want to do margin trading, margin financing and securities lending, or short selling, larger brokerages really do have a clear advantage—plenty of securities means more chances to execute trades. But to be honest, smaller brokerages may lower their commissions very aggressively to attract clients, yet their system stability is not necessarily guaranteed. The trade-offs here are fairly complicated.

Later, I found out that if you want to invest in US or Hong Kong stocks, using an overseas brokerage might be more cost-effective. Platforms like Mitrade have low entry barriers and convenient deposits and withdrawals, which makes them even more suitable for people who trade with leverage. On the other hand, the commission fees for reinvestment-by-delegation (i.e., custody transfer/part of the handling process) at Taiwan local brokerages really are not cheap.

So my current approach is: use a local brokerage for Taiwan stocks, and open a separate overseas brokerage account for overseas markets. That way, even though the brokerage account opening rankings may look high, the purposes are actually separate—so you end up saving more on costs. How do you choose?