The Complete Guide to Investing and Trading in U.S. Stocks in 2026! How Taiwanese Investors Can Choose the Right Trading Platform

In recent years, an increasing number of Taiwanese investors are focusing on overseas markets, especially favoring the US stock market. However, to place orders and trade US stocks, the first step is to choose a reliable US stock brokerage platform. This article will provide a detailed introduction on how to select a US stock broker, compare the features of different platforms, and outline the complete account opening and order placement process.

Core Elements Comparison of US Stock Brokerage Platforms

When selecting a US stock trading platform, multiple dimensions need to be considered. We conduct a systematic analysis from trading fees, withdrawal costs, security regulation, and trading instruments to help investors understand the characteristics of different platforms:

How Different Investors Should Choose a US Stock Broker

1. Choices for Beginners and Small Investors

For novice investors, ease of operation and low barriers are primary considerations. Many modern trading platforms offer:

• User-friendly interface: Easy-to-use design suitable for beginners, no complex professional knowledge required
• Low minimum deposit: Starting with as little as $50-$100 to begin trading
• Zero commission or floating spreads: Reduces trading costs, ideal for frequent traders
• Flexible leverage: Allows controlling larger assets with less capital, e.g., adjustable leverage options of 1-10x
• Chinese language support: 24/5 Chinese customer service and localized operation guides

These platforms are especially suitable for small investors who invest a small monthly salary surplus for short-term investments.

2. Choices for Professional Traders and Large Capital Investors

For experienced traders with substantial funds, platforms should offer:

• Rich trading instruments: Including stocks, options, futures, forex, CFDs, and more
• Global market coverage: Not only US stocks but also UK, German, Japanese, Korean stocks, etc.
• Tiered fee structure: Lower fees with higher trading volume, suitable for large transactions
• Powerful analysis tools: Professional-grade charts, technical indicators, market data
• Margin trading capabilities: Support for margin accounts, usually requiring a minimum fund (e.g., $2,000)

Cost Components of US Stock Orders

Direct Trading Costs

When placing US stock orders, investors need to understand the following fee structures:

1. Trading Commissions

• Fixed: A fixed amount per share (e.g., $0.005/share)
• Tiered: Automatically adjusts based on monthly trading volume (higher volume, lower fee)
• Per trade: A fixed fee per transaction (e.g., $2.88 per trade, but free if principal exceeds $2,000)
• Zero commission: Completely free trading, only spreads are charged

2. Spread Costs Spread refers to the difference between the bid and ask prices. In CFD trading, spread is the main cost. For example:

• Standard spreads: As low as 0.01 points
• Variable spreads: Change in real-time based on market volatility

Hidden Costs

1. Overnight Fees (Swap Rates) For CFD trading, holding positions overnight incurs swap fees. The calculation formula is: Overnight fee = Number of lots × Contract size per lot × Opening price × Daily overnight rate percentage(%)

For example, the overnight fee for gold might be: Buy -0.016800%, Sell -0.014000%

2. Withdrawal Fees Different platforms have varying withdrawal costs:

• Some platforms offer first free withdrawal or limited free times per month
• Subsequent withdrawals may cost between $5-$50
• Certain platforms have tiered free withdrawal policies (e.g., more free withdrawals if total deposits exceed $10,000)

3. Other Fees

• Third-party fees: Some platforms pass on exchange or settlement fees
• Short selling fees: May incur when selling short
• Account maintenance fees: Some traditional brokers may charge, but most modern platforms have eliminated these

Detailed US Stock Order Placement Process

Step 1: Create Account and Verification

1. Basic Information Registration

   • Enter email and password
   • Choose base currency (USD/AUD/TWD, etc.)
   • Optional third-party login (Google/Facebook)

2. Complete Personal Information

   • Country/region of residence
   • Real name
   • ID type and number
   • Date of birth and contact details

3. KYC Identity Verification

   • Upload ID documents
   • Pass platform review (usually 1-2 working days)
   • Quality platforms offer full Chinese customer support assistance

Step 2: Deposit Funds and Prepare Capital

Choose suitable deposit methods:

• Credit/Debit Card: Visa or MasterCard, instant credit
• E-wallets: Skrill, Poli, etc.
• Bank Transfer: Suitable for large deposits, takes 3-5 working days
• Local Payment: Platforms supporting TWD deposits can avoid currency exchange hassle

Deposit threshold: Modern platforms usually have no minimum, but it’s recommended to start with at least $50-$100

Step 3: Start US Stock Trading

Before trading US stocks, understand the basics:

1. Trading Units

• Minimum trading unit is 1 share (unlike Taiwan stocks where 1 lot = 1,000 shares)
• Lower capital requirement for low-priced stocks
• For example, a stock priced at $631 per share requires $631 to buy one share

2. Order Types

Traditional Stock Trading: Buy stocks directly, paying the full amount. Advantages: stable ownership, disadvantages: high capital requirement.

CFD Trading: Use margin and leverage to trade. The process:

• Select trading instrument (US stocks, indices, gold, cryptocurrencies, etc.)
• Choose leverage (1-10x)
• Enter trade size and direction (long or short)
• Set take profit/stop loss levels
• Confirm order

3. Risk Management Tools

When placing each US stock order, fully utilize risk management tools:

• Take profit: Automatically close position at target profit
• Stop loss: Close position automatically to limit losses when market moves unfavorably
• Trailing stop: Adjust stop loss as profit increases to maximize gains

Capital Needed to Start US Stock Investment

( Account Opening Costs

Opening a US stock account at legitimate financial institutions is usually completely free, with no hidden fees.

) Minimum Trading Capital

Traditional method:

• Buying a single US stock requires the equivalent amount in USD
• For example, purchasing 1 share of TSMC (about $120) requires $120

Leverage trading method:

• CFD trading can significantly reduce capital requirements
• 1x leverage: buying 1 share at $631 requires $631
• 10x leverage: controlling the same trade with only about $63

Thus, starting with a few tens of dollars is possible, especially suitable for investors with limited funds.

Trading Tools and Services a US Stock Broker Should Provide

Modern US stock trading platforms should be equipped with a complete trading ecosystem, including:

1. Trading Strategies and Analysis

Platforms provide predictions based on technical and fundamental analysis, offering scientifically sound trading strategy suggestions.

2. Professional Opinions and Comments

Industry experts’ short-term and medium-term views on popular assets help investors grasp market sentiment.

3. Economic Calendar

Marks all important economic events, data release times, holiday trading schedules, etc., with priority alerts.

4. Real-time News and Information

Covers real-time news across forex, commodities, cryptocurrencies, indices, technical analysis, etc., allowing investors to stay updated on market dynamics.

5. Real-time Quotes and Charts

• No delay real-time price updates
• Multiple candlestick chart tools
• Customizable technical indicators
• Support for different timeframes analysis

6. Market Sentiment Index

Summarizes market long and short positions, helping investors judge current market attitude toward assets.

7. Risk Management Tools

In addition to take profit/stop loss, some platforms offer advanced features like trailing stops, enabling effective risk management without constant position monitoring.

Core Factors in Choosing a US Stock Broker

1. Fund Security and Regulation

The top priority is fund safety, which requires checking whether the platform is properly regulated:

• US regulation: FINRA (Financial Industry Regulatory Authority), SIPC (Securities Investor Protection Corporation)
• Australia regulation: ASIC (Australian Securities and Investments Commission)
• European regulation: CySEC, etc.

In case of platform bankruptcy, regulated platforms can protect investors’ assets.

2. Trading Instruments and Features

Ensure the platform offers the trading instruments that meet your needs:

• Basic: US stocks, ETFs
• Advanced: Options, futures, forex
• Derivatives: Cryptocurrencies, precious metals, crude oil

Some platforms may restrict options combinations or prohibit short selling; understand these details in advance.

3. Fees and Promotions

Fee models vary greatly; compare comprehensively:

• Commission structure (fixed, tiered, per trade, zero commission)
• Withdrawal policies
• Overnight rates
• Platform promotions (welcome bonuses, demo funds, etc.)

4. Language and Customer Support

For Taiwanese investors:

• Whether full Chinese interface and documentation are provided
• Chinese customer service hours and response efficiency
• Whether support is from real humans or AI bots

5. Fund Transfer Speed

Order execution efficiency and fund deposit/withdrawal speed are closely related:

• Deposit speed: credit cards usually instant, bank transfers take 3-5 days
• Withdrawal speed: affects capital turnover efficiency
• Settlement speed: US stocks typically settle T+2

6. Platform Usability

Choose based on investment experience:

• Beginners: prioritize simple interface and intuitive features
• Professionals: prioritize feature-rich, comprehensive tools

Another Way for Taiwanese Investors to Buy US Stocks: Contract for Difference (CFD)

Besides opening accounts directly with overseas brokers, Taiwanese investors can also purchase US stocks through local brokers’ contract-for-difference (CFD) services. CFD is a service mode where Taiwanese brokers entrust overseas brokers to execute orders on their behalf.

Advantages of CFD:

• No need for English communication, fully Chinese service
• Funds transfer via Taiwanese banks, more convenient
• Supports regular fixed investments in US stocks

Disadvantages of CFD:

• Higher fees (usually 0.2%-1%)
• Limited trading options
• Lack of professional trading tools

Fee comparison: CFD transaction fees are usually 0.2%-1% of the trading amount, with some platforms setting minimum fee limits (e.g., $3-$39.9).

Common Misconceptions About US Stock Orders

Misconception 1: Opening an account requires payment

Fact: Opening an account at legitimate platforms is completely free, with no hidden fees. Costs only arise from subsequent trading.

Misconception 2: You must have sufficient funds to start

Fact: Modern platforms support deposits as low as $50-$100, and leverage can further reduce capital needs.

Misconception 3: US stock trading fees are expensive

Fact: Many platforms now offer zero-commission trading, with main costs being spreads, not commissions.

Misconception 4: Leverage trading always results in losses

Fact: Leverage is a neutral tool; the key is proper use. Reasonable risk management and stop-loss settings can effectively control risks.

Misconception 5: US stock order times are limited

Fact: US markets have clear trading hours (9:30 am to 4:00 pm EST), but many platforms offer pre-market, after-hours, or other trading opportunities.

Summary and Recommendations

Choosing the right US stock broker is the first step to start investing in US stocks. Investors should evaluate based on their own circumstances:

Step 1: Clarify personal needs

• Investment capital size
• Investment experience level
• Expected trading frequency
• Desired trading instruments

Step 2: Conduct multi-dimensional evaluation

• Compare trading fees and withdrawal policies
• Verify regulatory compliance
• Assess customer service and language support
• Test platform interface and usability

Step 3: Make a cautious decision Investing abroad differs from local investing; investors must make informed choices. It’s recommended to first use demo accounts to familiarize with platform features, then start with small real funds.

Simple 3-step journey to start US stock investment:

1. Register an account – Fill in basic info, complete identity verification
2. Deposit funds – Choose suitable deposit method, transfer capital
3. Place US stock orders – Trade via platform, utilize tools for risk management

Remember: Successful US stock trading requires not only choosing the right platform but also proper risk management and continuous learning.