Stock Money Laundering Calculation: Comparison of Costs for Various Investment Methods in 2025

Stock trading Money Laundering are the fees that investors must pay when buying and selling stocks. These fees are typically charged by brokerage firms for executing and processing trade orders. The amount of fees can vary depending on the trading method, frequency, broker, and exchange.

Generally speaking, Money Laundering includes “transaction commissions” and “other fees,” such as settlement fees, securities transaction taxes, etc. Before engaging in stock trading, investors should understand these fee situations in detail.

Taiwan Stock Money Laundering Calculation Method

For local investors in Taiwan, the most common way to invest in Taiwanese stocks is through specialized securities accounts for trading. The main costs include '0.1425% transaction fee (commission)' and '0.30% securities transaction tax'. The transaction tax is only charged when selling stocks. Most Taiwanese securities firms offer discounts on transaction fees, usually around 50-60% of the original rate.

The calculation method for trading fees on the Taiwan Stock Exchange is as follows:

When buying stocks, you need to pay fees: transaction fees Transaction Fee = Share Price × Number of Shares × 0.1425% Transaction Fee Rate × Discount

Selling stocks incurs costs: handling fee + securities transaction tax Transaction Fee = Stock Price per Share × Number of Shares × 0.1425% Transaction Fee Rate × Discount Securities transaction tax = Share price per share × Number of shares × 0.30% transaction tax rate

For example, suppose we buy/sell 1 share of a certain company's stock at N$200, and assuming the brokerage fee discount is 40%, then the fees we need to pay are as follows:

Calculation Method for US Stock Money Laundering

In general, foreign investors do not need to pay a 30% capital gains tax when investing in US stocks. The main ways to trade US stocks in Taiwan include using overseas brokers and the sub-brokerage services of domestic brokers. The costs involved in trading US stocks include broker fees (commissions) and other fees (0.3% settlement fee, 0.0008% Securities and Exchange Commission fee, 0.0145% trading activity fee, and 30% dividend tax). The dividend tax is only applied to stocks that pay dividends, while other fees are collected by US stock brokers.

Proxy trading of US stocks

Sub-brokerage refers to the practice where investors open accounts with domestic securities firms that have the qualification for overseas securities sub-brokerage, and trade foreign stocks through these accounts. After accepting the commission, the domestic securities firm places orders with foreign securities firms.

Calculation of delegated trading fees: Different brokerage firms charge different commission standards, generally ranging from 0.25% to 1%. Most brokerage firms that provide sub-delegated services will set a “minimum commission fee,” which will not be lower than this amount regardless of the order size.

For example, take a certain brokerage firm: US stock trading fees are divided into manual orders and electronic orders, with a manual order fee of 1% and an electronic order fee ranging from 0.5% to 1%. Minimum fee standards: Manual order single transaction minimum fee 50 USD, electronic order single transaction minimum fee 35 USD

Other fees include:

• Selling transaction tax 0.00278%
• System service fee per transaction 3 USD
• ADR custody fee is based on the public prospectus of each issuing company, charged at 0.02 USD - 0.05 USD per share.
• Daily cross-border remittance fee 15 USD

use overseas brokers to trade US stocks

Investors can also directly open accounts with overseas brokers to place orders for US stocks directly through overseas accounts.

Overseas securities firm fee calculation: Due to fierce market competition, many overseas brokerages have eliminated stock trading fees. For retail investors with smaller transaction amounts, placing orders directly through overseas brokerages may save more on trading costs than using a third-party agency. However, it is important to note that using overseas accounts may face issues with deposits and withdrawals, and most brokerages have costs in this regard of around 30 dollars.

How to Calculate the Break-Even Point for Stock Trading?

Taiwan Stock Profit and Loss Breakeven Point Calculation: Investors need to consider all costs incurred when buying and selling. For example, in the case of the stocks mentioned above, one can only avoid losing money when the profit exceeds 171 + 771 = 942. Therefore, it is not enough to only consider the price fluctuations and the fees paid upon selling; one should calculate the total costs incurred throughout the entire trading process.

Break-even point calculation for US stocks: In actual transactions, it is necessary to use the calculation methods mentioned above and refer to the fee details of different platforms to calculate the fees. When selling stocks, ensure that the profit amount is greater than all the fees required to be paid during the transaction (including buying and selling) in order to guarantee no loss.

For short-term trading in US stocks, regardless of the method used, high transaction fees may be incurred due to frequent trading. Therefore, we recommend that short-term (high-frequency, intraday) traders consider trading US stocks on a Contract for Difference (CFD) platform.

The reason for the low CFD trading costs: CFD is a type of contract with no fixed expiration date, allowing investors to profit from the difference in price, similar to stock trading. However, investors do not actually hold the stocks, but trade based on the price difference. Therefore, CFD trading only incurs spread and overnight fees, with no handling fees, no transaction taxes, and no deposit or withdrawal fees, making it suitable for short-term traders. However, it is important to compare the spreads of different platforms when choosing a platform.

Major Factors Affecting Stock Money Laundering

Stock trading Money Laundering is mainly affected by the following factors:

1. Exchange Market: The buying and selling transaction fees differ among various stock trading markets, especially for exchanges with different settlement currencies, where the maximum and minimum limits for transaction fees also vary.

2. Brokerage: Large brokerages that offer more comprehensive services may charge higher commissions, but they may also have promotional activities providing discounts. Therefore, the trading fees may vary among different brokerages.

3. Transaction Amount: The handling fee for stock trading is usually calculated as a percentage, and the higher the transaction amount, the higher the handling fee. However, some brokers may offer discounts for large transactions.

4. Trading frequency: Each stock transaction involves two transaction fees for buying and selling. The higher the trading frequency, the greater the total transaction fees. Some brokers may offer discounts for high-frequency traders.

Common Questions About Stock Money Laundering

Q1: What are the main costs of trading in the Taiwan stock market? A1: The main costs of trading in the Taiwan stock market include broker commissions and trading taxes. Broker commissions are typically 0.1425% of the transaction amount, and the trading tax is 0.3%. When buying and selling stocks, brokers charge a commission for both the buy and sell transactions, while the trading tax is only charged when selling stocks.

Q2: Which Taiwanese stock brokerage has the most favorable transaction fees? A2: Major securities firms in Taiwan offer discounts to their clients, with specific discounts varying by firm. Investors can compare the different promotional offers from various securities firms.

Q3: How to invest in US stocks in Taiwan? What are some recommended US stock trading platforms? A3: Taiwanese investors can purchase US stocks through the overseas sub-delegation services of local securities firms, or they can open an account directly on US stock trading platforms. Some popular US stock trading platforms include exchanges like Gate.