Want to Invest in US Stocks from Taiwan? Complete Guide to Popular Brokers: Account Opening Process & Pros/Cons Analysis

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Are you thinking about how to trade US stocks but hesitating due to complicated account opening processes?

In fact, for most Taiwanese investors—especially those with small or long-term portfolios—opening an overseas broker account directly is far more cost-effective than using “complex entrusted trading.”

This guide will help you understand the key differences so you can make the smartest decision.

Key Points

• Taiwanese investors opening overseas broker accounts directly is usually much cheaper than “complex entrusted trading.”
• Overseas brokers offer zero-commission trading, more investment choices, and much more powerful features.
• Beginners can choose Firstrade—it’s simple to use and has very low fees.
• Investors with larger capital can choose Charles Schwab—it provides comprehensive financial services.
• Professional investors can choose Interactive Brokers—it offers global markets and professional tools.

Complex Entrusted Trading vs. Overseas Brokers: Which Should You Choose?

When you decide to invest in US stocks, you first face a fork in the road: use “complex entrusted trading” through a local Taiwanese broker or bank, or open an overseas broker account directly? These two methods have their own pros and cons; understanding their core differences is the first step to making the right choice.

Core Differences and Pros/Cons Comparison

To make it clear at a glance, here is a table comparing the key differences between the two methods:

Complex Entrusted Trading: The “Funds Stay in Taiwan” Peace-of-Mind" Option

The biggest advantage of complex entrusted trading is “familiarity” and “peace of mind.” Your funds always remain in your Taiwanese bank account, and all transactions are handled through familiar local institutions without dealing with complicated international wires.

Suitable For:

• Very low-frequency traders: If you plan to trade only once or twice a year and can accept high per-trade fees.
• Extremely conservative investors: If you feel uneasy transferring funds overseas and are willing to pay extra for that peace of mind.

However, this peace of mind comes at a high price. Taiwanese brokers’ complex entrusted handling fees typically range from 0.15% to 1%, with a minimum charge. For example, even for a small trade, you may pay at least $35 or more. Over the long term, these fees significantly erode your returns.

Overseas Brokers: The Mainstream Choice for Low Cost and High Flexibility

For the vast majority of investors, opening an overseas broker account directly is the more economical choice. This has become the mainstream way for Taiwanese investors to participate in the US stock market.

The biggest attraction is zero commission. Well-known brokers like Firstrade and Charles Schwab offer zero-fee trading on US stocks and ETFs. This means you no longer pay a fixed fee per trade—extremely beneficial for dollar-cost averaging or frequent traders.

Additionally, overseas brokers have far more powerful features than complex entrusted trading. A classic example is the Dividend Reinvestment Plan (DRIP).

• When stocks you hold pay dividends, platforms like Firstrade and Charles Schwab can automatically use that money to buy fractional shares of the same stock, compounding your dividends.
• Firstrade supports DRIP for over 4,000 stocks and ETFs, while Charles Schwab covers all S&P 500 components.

These powerful features and low costs are critical factors to consider when thinking about how to trade US stocks.

Investment Decision Guide: Which Method Suits You?

Now you should have a clear understanding of both methods. So which one is right for you?

Simply ask yourself: How much do you care about trading costs and investment efficiency?

• If you prioritize low cost and high efficiency, want better long-term returns, and don’t mind spending a little time learning online account opening and international remittance, then an overseas broker is undoubtedly your best choice.
• If you prioritize ease of operation and keeping funds in Taiwan, trade very infrequently, and are willing to pay extra for that convenience, then complex entrusted trading can serve as a backup option.

In summary, for the vast majority of Taiwanese investors who want to cultivate the US stock market long-term, overcoming psychological barriers and choosing a reliable overseas broker is the highest-value first step toward global investing.

Popular Overseas Broker Pros/Cons Comparison

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Once you decide to open an overseas broker account, the next question is: Which one suits you best among the many options? You’ve probably heard of Firstrade, Charles Schwab, and Interactive Brokers—but what are their specific strengths?

Don’t worry—this section breaks down the features of major mainstream brokers in detail to help you make the smartest choice.

Mainstream Broker Overall Strength Comparison

To give you a quick overview, here’s a table comparing the core strengths of several popular brokers.

Firstrade: The Zero-Commission First Choice for Beginners

If this is your first time touching US stocks or you want the simplest, lowest-cost platform, Firstrade is undoubtedly your top pick. With over 30 years of history, it is famous for being extremely beginner-friendly.

Core Advantages: Zero threshold, full Chinese support, completely zero-commission trading.

Firstrade’s biggest appeal is its zero-cost strategy.

• Stocks, ETFs, and options trading are all zero commission.
• No minimum deposit required—you can start with any amount.

For beginners, a friendly platform is crucial. Firstrade excels here with abundant beginner-focused resources:

• Simplified trading interface: Both web and mobile apps have clear, intuitive interfaces for easy order placement.
• Rich educational content: Offers articles from “What is a stock?” to ETF guides and options strategy video tutorials—learn while investing.
• Watchlist sync: Set up watchlists on desktop and view them anytime on mobile.

Even better, Firstrade launched fractional share trading in April 2024. This allows you to invest in over 4,000 US stocks and ETFs starting at just $5. This means even expensive stocks like NVIDIA or Amazon become accessible—a huge boon for small investors.

Charles Schwab: The Comprehensive and Stable Choice for Larger Capital

If your investment capital is substantial (typically recommended ≥$25,000) and you want more than simple stock trading, Charles Schwab is your ideal choice. As one of the largest listed brokers in the US, Schwab is renowned for rock-solid reputation, comprehensive financial services, and excellent customer support.

Core Advantages: Outstanding reputation, high-quality research reports, powerful linked global bank account features.

Schwab provides rich research resources to help you make more professional decisions. You get free access to Schwab expert reports and third-party research from institutions like Credit Suisse and JPMorgan—something ordinary brokers cannot match.

However, Schwab’s ace feature for Taiwanese investors is the Schwab Bank Investor Checking account linked to your investment account, offering:

• Global ATM fee rebates: Full reimbursement of ATM fees worldwide.
• No foreign transaction fees: Use the linked debit card abroad with no extra charges.
• No account fees: No monthly fees or minimum balance.

This gives you tremendous convenience for overseas travel, spending, or fund handling—essentially a perfect global bank account.

Note that Schwab’s international account requires a $25,000 minimum. While high, the comprehensive services and security make it absolutely worth it for investors with sufficient capital.

Interactive Brokers (IBKR): Global Market Tools for Professional Investors

When you graduate from beginner status and seek more professional tools, lower costs, and broader global markets, Interactive Brokers is your ultimate choice. It is the top platform for professional traders and institutions, famous for powerful features and extremely low costs.

Core Advantages: Global market access, ultra-competitive margin rates, professional trading tools.

IBKR’s biggest feature is unmatched globalization. One IBKR account lets you invest in over 150 global markets, covering far more than US stocks—including forex, futures, bonds, etc. (Note: Taiwanese investors cannot directly trade Taiwan stocks via IBKR, but its breadth remains unmatched.

For trading costs, IBKR offers two pricing models:

For most people, the fixed $0.005 per share is already highly competitive. Additionally, IBKR’s margin loan rates are far lower than competitors—currently 6.83% across all tiers, very attractive for leveraged investors.

IBKR also provides the professional-grade Trader Workstation (TWS) platform and powerful API, allowing custom strategies and algorithmic trading—the true professional tool for answering “how to trade US stocks.”

Moomoo, Tiger Brokers, Webull: Emerging Broker Feature Comparison

In recent years, emerging internet brokers like Moomoo, Tiger Brokers, and Webull have risen rapidly. They focus on mobile experience and strong Chinese community features, deeply loved by younger investors.

Core Advantages: Native Chinese experience, active investment communities, generous signup bonuses.

Their biggest common point is strong emphasis on user experience and community interaction. You can complete all trading within the app and see other investors’ holdings, discuss hot topics, and never invest alone.

These brokers generally offer zero-commission US stock trading but may charge a small platform fee—for example, Moomoo charges $0.0049 per share, minimum $1.99 per order. Tiger supports more markets than Webull, including US, Hong Kong, UK stocks, options, and futures.

They also frequently launch very attractive signup bonuses, such as Moomoo offering up to 15 free stocks for new users—a major reason for rapid user growth. If you like mobile operation and enjoy sharing insights with others, these emerging brokers are great choices.

How to Trade US Stocks: Practical Account Opening & Funding Tutorial

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After choosing your preferred broker, you enter the practical phase. Account opening and funding are not as complicated as imagined. You only need to prepare documents and follow the online process step by step to successfully open your US stock investment account. This is the most critical practice for learning how to trade US stocks.

Universal Document Preparation for Overseas Broker Account Opening

Before starting the online application, prepare electronic versions (scans or clear photos) of the following two types of documents—this will greatly speed up your account opening.

• Identity Document (choose one):
  • Your valid passport
  • Valid government-issued Taiwan National ID card
• Address Proof Document (provide one):

  Important reminder: The name and address on this document must exactly match what you fill in the online application. Documents are usually required to be within the last 3–6 months.
  Brokers generally accept:

  • Utility bills: Water, electricity, gas, or phone bills.
  • Financial institution statements: Bank statements or credit card statements.
  • Government-issued documents: Tax receipts or official letters.

Detailed Online Account Opening Steps

Most overseas brokers have very intuitive online account opening processes. Simply visit the broker’s official website, click “Open Account,” and follow these core steps:

1. Fill in personal information: Name, residential address, occupation, financial status, etc.
2. Select account type: Usually choose “Individual Account.”
3. Upload proof documents: Upload your prepared identity and address proofs.
4. Sign electronic agreements: Read and agree to account opening terms online.
5. Submit application and wait for review: After submission, the broker typically completes review within a few business days and notifies you by email.

Taiwan Bank Wire Transfer Funding Guide

After account approval, the final step is to wire funds from your Taiwanese bank account to the broker account. This is the last hurdle in learning how to trade US stocks. You need to provide the broker’s receiving bank information to your bank.

The most important information for international wire transfer is the SWIFT code. Think of the SWIFT code as the bank’s international ID, ensuring your funds arrive accurately.

Here is example information for wiring to a Charles Schwab account:

After wiring from Taiwan, funds typically take 1 to 5 business days to appear in your broker account. Due to time differences and bank processing, actual arrival time may vary.

Now you fully understand how to trade US stocks. For you, choosing the right overseas broker is the highest-value way to start US stock investing.

Your Final Broker Selection Guide:

• Beginner entry: Choose Firstrade.
• Professional trading: Consider Interactive Brokers.
• Comprehensive wealth management: Prefer Charles Schwab.

The first step in investing is action. Start preparing documents now and embark on your global investment journey!

FAQ

Do foreigners need to pay tax when investing in US stocks?

As a Taiwanese investor, you enjoy tax advantages.

Your stock price difference profits (capital gains) are tax-free. However, dividends received are subject to 30% withholding tax. The broker handles this automatically—no extra filing required.

How do I transfer money back to Taiwan from an overseas broker account?

It’s the reverse of depositing.

You initiate an “international wire” or “withdrawal” request in the broker platform, fill in your Taiwanese bank account details, and the broker wires the funds to you.

If the broker goes bankrupt, is my money safe?

Yes, your assets are safe.

All mainstream US brokers are protected by the Securities Investor Protection Corporation (SIPC). Each account enjoys up to $500,000 protection, including $250,000 in cash.

Do I need a US bank account to invest in US stocks?

No.

You can directly wire funds from your Taiwanese bank account to your overseas broker via international wire transfer. A US bank account is not required to invest in US stocks.