Which trading platform should you choose for investing in US stocks in 2026? A complete guide for Taiwanese investors

Why Are More and More Taiwanese Investing in U.S. Stocks?

In recent years, the U.S. stock market has attracted a large number of Taiwanese investors. Similar to opening an account with a local broker for Taiwanese stocks, entering the U.S. stock market also requires going through a legitimate trading platform or broker. However, with numerous options available, how to choose the most suitable U.S. stock trading platform has become a primary concern for many investors. This article will help you find the best investment solution by examining platform security, trading costs, service quality, and other factors.

Five Key Factors in Choosing a U.S. Stock Trading Platform

Before deciding to invest, you must evaluate your own situation. Different investors have different needs—beginners prioritize ease of use, experienced investors focus on the variety of trading instruments, and small investors care about minimum deposit requirements. Therefore, the following five factors should serve as your screening criteria.

First Factor: Fund Security and Regulatory Qualifications

The top priority for overseas investments is fund safety. The most direct way to assess whether a platform is trustworthy is to check if it is regulated by reputable international authorities. Common regulatory agencies include: the U.S. Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation (SIPC), the Australian Securities and Investments Commission (ASIC), and others.

If a platform holds licenses from these agencies, even in the event of unforeseen circumstances, investors’ assets are protected accordingly. This is a fundamental requirement when selecting a platform.

Second Factor: Completeness of Trading Instruments

Not all platforms offer the same investment products. Some restrict options trading, some prohibit short selling, and these limitations may affect your trading strategies. Before opening an account, be sure to confirm whether the platform supports the trading instruments you need, including stocks, ETFs, options, cryptocurrencies, etc.

Third Factor: Transparent Fee Structure

Most platforms charge based on the number of trades or shares. But the key is to understand the full fee list—beyond transaction commissions, are there withdrawal fees, overnight fees, financing rates, and other costs? Some platforms offer promotional discounts for new users, which can also help reduce investment costs.

Fourth Factor: Localized Customer Service and Language Support

Language convenience is often overlooked but is very important in actual operation. Being able to communicate with customer service in Chinese can prevent misunderstandings and operational errors. A good platform should provide 24-hour Chinese customer support, especially considering time zone differences.

Fifth Factor: Efficiency of Fund Deposits and Withdrawals

Whether depositing or withdrawing funds, the speed of transactions directly impacts your trading efficiency. Slow fund transfers may cause you to miss good trading opportunities. Choosing a platform that supports multiple deposit/withdrawal methods and offers quick transfers can greatly enhance your trading experience.

Comparison of Major International U.S. Stock Trading Platforms

Based on the five key factors above, here is a comparison of several well-known, large-scale platforms:

Recommendations for Three Types of Investors

Beginners: Prioritize Ease of Use and Low Barriers

For novice investors, operational simplicity is crucial. Overly complicated interfaces increase learning costs and may lead to mistakes. Additionally, low minimum deposits allow beginners to start practicing with smaller capital, reducing trial-and-error costs.

Some platforms are designed specifically for beginners, offering intuitive interfaces, demo accounts for practice, and detailed educational resources. These platforms usually do not charge commissions, instead earning through floating spreads, making them very suitable for small-scale investors.

Experienced Investors: Focus on Variety of Instruments and Tools

For seasoned investors, the most important factor is whether the platform provides a rich array of trading tools and products. They may need to trade futures, options, or engage in cross-market arbitrage. These investors are often willing to accept higher fees if the platform offers professional analysis tools and market data.

Some established international brokers offer over 400 trading instruments, support multiple global markets, and are equipped with enterprise-grade trading terminals and data services, making them ideal for such investors.

Small Investors: Emphasize Low-Cost Solutions

For investors with limited capital, cost control is paramount. They want to start trading with minimal initial funds and avoid high fees eating into returns.

CFD trading offers new opportunities for these investors. Using leverage, they can control larger assets with less capital. For example, some platforms allow opening positions with 0.01 lots, requiring only $50 to start trading. These platforms typically do not charge commissions, with trading costs mainly coming from spreads, which is very suitable for small investments.

Ways to Purchase U.S. Stocks in Taiwan: Contracted Services

Besides opening accounts directly on international platforms, Taiwanese investors can also buy U.S. stocks through local brokers’ “contracted” services. Essentially, this means Taiwanese brokers act as agents, placing orders with foreign brokers on your behalf, so you do not need to open an overseas account yourself.

Comparison of Common Taiwanese Broker Contracted Services

The advantage of contracted services is familiarity and lower perceived risk, but the downside is that fees are usually higher than opening an account directly with an international platform. For small regular investments, contracted services may be simpler; however, for frequent or larger trades, opening an international account is more cost-effective.

Standard Online Account Opening Process

Most platforms today support online account registration, which is free and straightforward. Generally, the process involves three main steps:

Step 1: Create an Account

Fill in basic information, including email, password, and select base currency (USD, AUD, etc.). Many platforms also offer demo accounts, allowing new users to familiarize themselves with platform functions without risk. Demo accounts typically come with virtual funds (e.g., $50,000) for practicing trading strategies.

Step 2: Complete Identity Verification

Provide detailed personal information, including country of residence, name, ID type and number, date of birth, contact details, etc. Reputable platforms will conduct KYC (Know Your Customer) procedures, which are standard for international anti-money laundering regulations. The verification is usually completed online, and if there are issues, you can consult Chinese-speaking customer service.

Step 3: Deposit Funds and Start Trading

Use supported deposit methods (credit card, bank transfer, e-wallet, etc.) to fund your account. After depositing, you can begin trading. Most platforms offer hundreds of trading products, including stocks, indices, forex, gold, cryptocurrencies, ETFs, and more.

How Much Capital Is Needed to Start Investing in U.S. Stocks?

Many people misunderstand the costs involved in U.S. stock investing, thinking they need to pay large account opening fees. In fact, opening a U.S. stock account at legitimate financial institutions is usually completely free.

The main cost is the purchase of stocks themselves. Unlike Taiwan’s stock market, where one lot (1000 shares) is the standard unit, U.S. stocks are traded per share. For example, if a tech giant’s stock is priced at $630, buying one share without margin requires paying $630.

However, investors now have another option—CFD trading.

What is CFD Trading?

CFD (Contract for Difference) is a trading method that uses margin and leverage. Investors do not need to pay the full stock price upfront but only a certain percentage as margin to control a larger position. For example, with 1:100 leverage, an investor only needs to pay $6.30 margin to open a position worth $630.

This significantly lowers the entry barrier, especially suitable for small investors. But leverage is a double-edged sword—it can amplify gains but also losses, so it must be used cautiously.

Cost Components of CFD Trading

The main costs of CFD trading include three parts:

Spread Cost

The spread is the difference between the bid and ask prices. The buy price is usually slightly higher than the sell price, and this difference is the spread. Some platforms offer very narrow spreads (as low as 0.01), while others have wider spreads. Spreads increase with trade size and are the primary cost in CFD trading. Some platforms do not charge commissions, profiting mainly from spreads, which are competitive within the industry.

Commission Fees

Some platforms charge a commission, usually a percentage of the trade amount or a fixed fee. Many modern platforms have eliminated commissions, instead earning through spreads.

Overnight Fees (Swap Rates)

If a position is held overnight, the platform charges an overnight fee. The calculation formula is: trade size × contract size per lot × opening price × daily overnight rate percentage. For example, a commodity might have overnight rates of -0.0168% for buy and -0.014% for sell. Long-term traders should pay attention to these costs.

High-Quality Trading Platforms Should Offer Tools and Services Such As

With technological development, modern U.S. stock trading platforms no longer just support order placement but also provide a range of professional tools to help investors make better decisions.

Trading Strategies and Market Analysis

A quality platform offers strategy suggestions based on recent market trends, incorporating fundamental and technical analysis. These analyses should be based on objective market data rather than subjective judgments.

Expert Opinions and Market Sentiment

Platforms should aggregate industry experts’ views on short- and medium-term market outlooks to help investors understand market consensus. Additionally, providing market sentiment indices allows investors to see the proportion of capital bullish or bearish.

Economic Calendar and Real-Time News

A comprehensive platform highlights significant events that may impact prices, such as economic data releases, corporate earnings reports, central bank decisions, etc., with importance levels. It also offers real-time news covering forex, commodities, cryptocurrencies, stock indices, and other fields.

Real-Time Quotes and Charting Tools

Unlagged real-time quotes are fundamental for trading. Platforms should provide various charting tools (candlestick, line charts, etc.) and timeframes (minutes, hours, daily) for accurate technical analysis.

Risk Management Features

All trading involves risk. A top platform should offer stop-loss and take-profit functions, allowing investors to set profit targets and risk limits when opening positions. Advanced features include trailing stops, which automatically move stop-loss levels as profits grow, protecting gains without constant monitoring.

Common Pitfalls to Avoid When Choosing a Platform

Pitfall 1: Focusing Only on Fees, Ignoring Other Costs

Many investors only look at apparent trading commissions but overlook hidden costs like spreads, overnight fees, financing rates, etc. Some platforms advertise “zero commissions” but have wide spreads, resulting in higher overall costs. It’s essential to calculate total costs rather than focusing on a single fee.

Pitfall 2: Being Attracted by High Leverage and Ignoring Risks

While high leverage allows controlling large positions with small capital, it also magnifies losses. Many beginners recklessly use high leverage, leading to account liquidation. It’s recommended that beginners start with low leverage and gradually adapt to market conditions.

Pitfall 3: Overtrust in Recommendations and Lack of Independent Thinking

Every investor’s situation is different. A platform that works perfectly for others may not suit you. Before opening an account, evaluate your own needs, capital, and risk tolerance.

Pitfall 4: Ignoring Regulatory Qualifications

Not all platforms claiming to be “international” are trustworthy. Confirm whether they hold proper licenses from regulated financial authorities. Unregulated platforms may perform well initially but can become untraceable if issues arise.

Recommended Process for Investing in U.S. Stocks

1. Clarify Your Investment Goals and Style — Long-term holding or short-term trading? Value investing or technical trading?

2. Select Platforms Based on Your Investment Style — Different platforms suit different strategies. Long-term investors may prefer low-cost options, while active traders need advanced tools.

3. Compare Regulatory Qualifications and Overall Costs — Security is paramount; costs are secondary.

4. Use Demo Accounts for Testing — Most platforms offer demo accounts. Practice in a risk-free environment and verify your trading strategies.

5. Start Small and Increase Gradually — Even after choosing a platform, begin with small amounts, learn, then scale up.

6. Continuously Monitor and Adjust — Investment is dynamic. Regularly review whether your platform remains the best fit as market conditions and personal circumstances change.

Conclusion

There is no absolute “best” in choosing a U.S. stock trading platform—only the most suitable one for you. It depends on your investment scale, trading frequency, risk appetite, and operational habits.

For Taiwanese investors, whether opening accounts directly with international platforms or using local brokers’ contracted services, the key is to select a legitimate, secure, and transparent platform to avoid falling into traps for the sake of lower costs.

Investing in U.S. stocks is fundamentally similar to investing in Taiwanese stocks; the main difference lies in trading tools and market environment. With proper research, cautious selection, and effective risk management, Taiwanese investors can achieve good results in the U.S. market.