Stock Purchase Fees, Can You Really Ignore Them? The Complete Guide to Brokerage Fees

Investors often focus solely on returns and end up falling into the trap of stock purchase fees. But do you realize how much these seemingly minor fees can eat into your long-term profits? Today, we will introduce the various fee structures involved in stock trading, differences among securities firms, and smart ways to reduce these costs.

Unavoidable Fees in Stock Trading

The fees paid when purchasing stocks do not only refer to brokerage commissions. They include entrusted trading fees(paid to securities firms), related institution fees(such as Korea Exchange, Korea Securities Depository), and, in the case of overseas stock trading, currency exchange fees.

Domestic stock trading has a relatively simple fee system. You pay a certain percentage of commission to the securities firm and additional fees to related institutions. On the other hand, overseas stock trading, especially US stocks, is more complex. Besides brokerage fees, there are currency exchange fees, SEC( Securities and Exchange Commission) fees, and FINRA( Financial Industry Regulatory Authority) fees layered on top.

2025 Major Securities Firms Stock Purchase Fee Comparison: Which is Cheapest?

Let’s compare the fees of the top 5 domestic securities firms for online trading.

Mirae Asset Securities: Domestic stocks 0.136%, US stocks 0.25% New or dormant customers opening a non-face-to-face direct account can enjoy 90 days of free domestic and US stock trading fees.

Korea Investment & Securities: Domestic stocks 0.147%, US stocks 0.25% Currently running a promotion offering 3 months of free US stock trading for new/dormant customers of Bankis.

Samsung Securities: 0.147216% + 1,500 KRW(fixed) for transactions under 10 million KRW US stocks are charged at 0.25%. New/dormant non-face-to-face account customers get 3 months of free US stock trading.

Kiwoom Securities: Based on the Hero Moon 4 platform, 0.015%(most affordable) US stocks are 0.25%. Offers 3 months of free US stock trading for new/dormant non-face-to-face accounts.

Shinhan Investment Corp: 0.1391639% + 2,000 KRW(fixed) for transactions under 30 million KRW US stocks at 0.25%. Most notably, they offer a full year of free US stock trading for new/dormant customers.

While domestic stock fees vary significantly depending on transaction amount and platform, most overseas stocks are around 0.25%. Therefore, choosing a securities firm aligned with your main platform use is important.

The Reality You Can’t Ignore: How Much Do Fees Cut Into Your Profits?

What seems like a small fee can compound over time through compound interest.

For example, assume you make 10 trades of 1 million KRW each, earning 10% profit each time:

• With a 0.1% fee: final profit about 2.57 million KRW
• With a 0.2% fee: final profit about 2.54 million KRW
• Difference: roughly 20,000 to 30,000 KRW

As the amount increases or the number of trades grows, this difference expands exponentially.

Fixed fees are also significant. For instance, Samsung Securities charges an additional 1,500 KRW for transactions under 10 million KRW. If you trade 100 times, fixed fees alone total 150,000 KRW. Small-scale day traders might see their profits significantly reduced just from these fixed costs.

How to Smartly Reduce Stock Purchase Fees

1. Understand the fee structure precisely

Before trading, carefully check the securities firm’s fee system. Even if the percentage fee is the same, additional fixed fees can be disadvantageous for small transactions. For example, Shinhan Investment charges an extra 2,000 KRW for transactions under 30 million KRW, which effectively raises the actual fee rate for smaller trades.

2. Don’t miss out on fee promotion events

Most securities firms offer fee exemptions for new or dormant customers. Shinhan Investment offers a full year of free US stock trading, and Mirae Asset provides 90 days free. Some benefits can be activated at your discretion, so plan your trading period accordingly to maximize these offers.

3. Manage your trading size and frequency strategically

Frequent small purchases can accumulate high fees. If you don’t have a specific plan for split buying, consider executing larger trades at once to save on fees. Also, larger transactions tend to have lower fee rates.

4. Pay attention to currency exchange fees

When trading overseas stocks, currency exchange costs can be a major leak. Many securities firms offer less favorable rates than banks. Exchange currency when rates are low or utilize securities firms’ preferential exchange rates.

5. Choose a securities firm that matches your trading style

If you are a small-scale day trader, Kiwoom Securities(Hero Moon 4 platform with no fixed fees and 0.015%)is suitable. For large transactions, opt for firms with low base fees like Mirae Asset(0.136%). Matching your trading pattern with the right platform is key.

Final Advice: Don’t Ignore Fees Any Longer

In stock trading, returns are important, but trading fees are equally critical. Small fees you ignore today can turn into tens or hundreds of thousands of KRW difference after a few years.

By utilizing the fee comparison and reduction tips introduced today, you can trade more efficiently. Remember, increasing your investment returns is important, but reducing unnecessary costs is just as vital.