Complete Analysis of Stock Trading Fees: Differences by Brokerage and Strategies to Improve Investment Returns

Many investors focus solely on returns when investing in stocks, but in reality, they often overlook how much fees paid during trading can significantly impact final profits. Especially for short-term traders or frequent traders, the cumulative effect of stock trading fees cannot be ignored.

Understanding the Fee Structure in Stock Trading

When buying and selling stocks, costs of various nominal types arise more than expected. Primarily, there are brokerage commissions paid to securities firms, fees paid to related institutions such as the Korea Exchange and the Korea Securities Depository, and currency exchange fees required for overseas stock trading.

Domestic stock trading fees are relatively low, with most securities firms charging online transaction fees of around 0.1% to 0.15%. In contrast, for overseas stocks, especially U.S. stocks, brokerage fees( are typically 0.25%), plus additional local regulatory fees and currency exchange fees.

How Stock Fees Affect Actual Investment Returns

Let’s look at how small differences in fees can create substantial differences in profits.

For example, if you conduct 10 trades with 1 million KRW each and assume a 10% profit per trade, the final profit would be about 2.57 million KRW with a 0.1% fee, but only about 2.54 million KRW with a 0.2% fee, resulting in a loss of around 20,000 to 30,000 KRW. As the investment amount and number of trades increase, these differences grow exponentially.

Additionally, fixed fees charged by some securities firms should not be overlooked. For instance, if a fixed fee of 1,500 KRW is charged for trades under 10 million KRW, doing 100 such trades would incur fixed fees of 150,000 KRW, which can significantly erode overall returns.

Comparison of Major Securities Firms’ Stock Fees in 2025

Sorted by lowest fees

Kiwoom Securities: Offers the lowest domestic stock trading fee at 0.015% on the HeroMUN4 platform. U.S. stock trading fee is 0.25%, and new/dormant customers opening non-face-to-face accounts are exempt from U.S. stock trading fees for 3 months.

Mirae Asset Securities: Sets domestic stock trading fees at 0.136% and overseas stocks at 0.25%. New customers opening a non-face-to-face direct account can enjoy 90 days of free online trading for domestic and U.S. stocks.

Korea Investment & Securities: Charges 0.147% for domestic and 0.25% for overseas stocks. New/dormant customers using the Bankis overseas stock service are exempt from U.S. stock trading fees for 3 months.

Samsung Securities: Charges 0.147216% + fixed fee of 1,500 KRW( for trades under 10 million KRW. Overseas stocks are at 0.25%, with a 3-month exemption for non-face-to-face account customers.

Shinhan Investment Corp: Charges 0.1391639% + fixed fee of 2,000 KRW) for trades up to 30 million KRW. Overseas stocks are at 0.25%, offering the industry’s longest 1-year exemption from U.S. stock trading fees.

( Guide to Choosing the Best Securities Firm Based on Trade Size

For investors mainly doing small, short-term trades, choosing a firm with no fixed fees is advantageous. Investors trading large amounts at once should prioritize firms with lower fee rates. Those focusing on overseas stocks should consider Shinhan Investment’s 1-year exemption or Mirae Asset’s 90-day exemption.

Practical Ways to Reduce Stock Trading Fees

) Understand the Fee Structure Precisely

Different securities firms have varying fee calculation methods, and fees are applied differently depending on trade amounts. Especially for small trades, fixed fees are often charged, so it’s essential to calculate beforehand which firm offers the lowest actual costs based on your average trading size.

Maximize Use of Fee Promotions and Benefits

Most major securities firms offer fee exemption benefits for new or dormant customers over extended periods. Some promotions allow customers to choose their start date, so applying just before active trading begins can maximize benefits.

Strategically Adjust Your Trading Pattern

Trading in larger, fewer transactions rather than many small trades can reduce fees, especially when fixed fees are involved. Intentionally controlling trading frequency can significantly cut cumulative fees.

Consider Exchange Rates and Currency Conversion Fees

When investing in overseas stocks, currency exchange through securities firms often offers less favorable rates than banks. Converting currency when rates are advantageous or actively utilizing securities firms’ preferential exchange rate programs is recommended.

Choose the Securities Firm That Fits Your Trading Pattern

The optimal securities firm varies depending on your investment amount and trading style. For short-term trading, select a platform with low fees; for large-volume trading, prioritize firms with lower fee rates.

Conclusion: The Importance of Managing Stock Trading Fees

Maximizing profits in stock investing is not just about picking good stocks. Understanding the fee structure, choosing the most efficient securities firm according to your investment style, and employing various fee reduction strategies are key to significantly improving your final returns. Especially for frequent short-term traders, these fee optimization strategies can have a more pronounced effect, making it worthwhile to review before starting your trading activities.