Want to invest in overseas markets but feel overwhelmed by the many options? Many investors often wonder “which sub-brokerage broker is the best” so they can entrust their funds with confidence and open the door to global investing. In fact, sub-brokerage is a mainstream channel for local investors to participate in overseas markets. This article will take an in-depth look at the key information behind sub-brokerage broker recommendations, with a particular comparison of popular market options such as Fubon Securities sub-brokerage, Yuanta Securities sub-brokerage, and Cathay Securities sub-brokerage, helping you find the overseas investment partner that suits you best.
Whether you are an experienced investor or a beginner just getting started with overseas markets, this article will provide practical guidance to help you evaluate different brokers’ strengths, including fees, trading platforms, and service quality. This will allow you to make a smart choice with ease, so your portfolio is no longer limited to a single market, effectively diversifying risk and capturing global growth opportunities!
In Taiwan, if you want to invest in overseas stock markets such as the US, Hong Kong, and Japan, the most common way is through a domestic broker’s “sub-brokerage” service. Simply put, an investor entrusts funds to a Taiwan broker, and the Taiwan broker then forwards the order to its partnered overseas broker to execute stock trades or other financial product transactions in overseas markets. This is an indirect mechanism for participating in overseas markets. For investors unfamiliar with overseas account-opening procedures or facing language barriers, it provides a relatively convenient channel.
Sub-brokerage works like adding an extra layer of agency service. Investors place orders with a domestic broker, and the domestic broker consolidates and forwards them to a partnered overseas broker for execution. Although there is an additional intermediary step, its advantages are clear:
Investing overseas through sub-brokerage allows you to easily participate in global market movements, no longer limiting your assets by geography. If you want to learn more about the basics of overseas investing, you can refer to this article: Overseas Investing Beginner’s Guide.
In addition to sub-brokerage, many investors also consider opening an account directly with an overseas broker. There are several key differences between the two that can affect your choice:
| Comparison Items |
Sub-Brokerage |
Opening an Account Directly With an Overseas Broker |
| Fees | Usually higher, with a minimum fee threshold, and custody fees may apply. | Usually lower, with some options even offering zero fees, and no custody fees. |
| Trading Platform | Chinese interface, simpler features, and the range of tradable products may be more limited. |
Mainly in English, with professional and feature-rich functions, and a wide range of tradable products. |
| Customer Service | Chinese customer service provided by domestic brokers, making communication easier. | Customer service is mostly in English, and time zone differences may make communication less convenient. |
| Tax Handling | Domestic brokers assist with tax reporting documents for overseas income. | You must handle overseas income reporting yourself, and the process is more complex. |
| Account Opening Process | Relatively simple, usually available online or over the counter. |
More documentation is required. You need to complete the W-8BEN form, which is more cumbersome. |
Generally speaking, if your investment amount is not large, your trading frequency is not high, and you prefer Chinese-language services and domestic tax support, sub-brokerage will be the more convenient option. However, if you are seeking lower trading costs, a wider range of investment products, and you are capable of handling English interfaces and overseas taxes, you may consider opening an account directly with an overseas broker.
When it comes to sub-brokerage broker recommendations in Taiwan, the securities companies under the three major financial holding groups, Fubon, Yuanta, and Cathay, are undoubtedly top choices for many investors. Each has its own features and advantages. Below, we will provide an in-depth analysis of these three popular brokers to help you determine which sub-brokerage broker is the best.
Fubon Securities sub-brokerage holds a solid position in the market and is known for its comprehensive financial services and brand credibility. Fubon Securities offers trading in multiple markets such as US stocks, Hong Kong stocks, and Japanese stocks. Its trading system is highly stable, making it suitable for investors who seek reliable services.
As one of the leaders in Taiwan’s securities industry, Yuanta Securities sub-brokerage services are also widely favored by investors. Yuanta Securities’ strengths lie in its broad market coverage and diverse product offerings, which can meet the needs of different investment strategies.
In recent years, Cathay Securities sub-brokerage has actively promoted digital services. Its simple, user-friendly app interface and relatively competitive fees have attracted many younger investors. It places particular emphasis on user experience, making overseas investing more intuitive.
Among many options, deciding “which sub-brokerage broker is the best” requires a comprehensive assessment of your investment habits, capital size, and service expectations. Below are five key factors to help you evaluate and choose more thoroughly:
This is the issue most investors care about. When comparing sub-brokerage brokers, in addition to the headline “fee rates”, you should pay close attention to the “minimum fee per transaction” and hidden costs such as “custody fees” and “dividend processing fees”. For example, if your trade size is not large but the broker’s minimum fee is high, the cost ratio of each trade will increase significantly. Be sure to calculate your average trade amount and assess which fee structure is most favorable for you. Some brokers offer recurring investment promotions, which is also worth considering for long-term investors.
A good trading platform should be stable, fast, and intuitive to use. Whether on a desktop platform or a mobile app, it should allow you to place orders easily, check market quotes, and manage your assets. Especially during periods of high market volatility, platform stability becomes even more important, helping you avoid missing trading opportunities due to lag or system slowdowns. Try each broker’s demo trading features or watch tutorial videos to see whether the interface design fits your usage habits.
How far you can go depends on how broad your investment horizon is, and how far your broker can take you. Confirm whether the broker offers the overseas markets you are interested in (such as US stocks, Hong Kong stocks, and Japanese stocks) and the investment products you want (such as individual stocks, ETFs, bonds, futures, etc.). Some brokers’ sub-brokerage services may be limited to specific markets or products. If your investment strategy is more diversified, you will need to choose a broker with broader coverage. This will directly affect the flexibility of your overseas portfolio allocation.
When you encounter trading issues, have questions about system operations, or want to understand market information, timely and professional assistance is crucial. Good customer service should respond quickly and provide professional answers, ideally with multi-channel support (phone, online customer service, dedicated account representative). Especially for overseas trading, time zone differences may affect service responsiveness. Choosing a broker that offers evening or 24/7 support provides stronger assurance.
Choosing a broker with strong brand credibility and solid financial strength provides greater peace of mind for your overseas investing. Confirm whether the broker is strictly regulated by Taiwan’s financial authorities (such as the FSC) and whether it has robust risk management mechanisms. In addition, understand the broker’s information security measures to protect your account and personal data from being compromised. This is the most basic and most important step in safeguarding your investment security.
For sub-brokerage broker recommendation services, investors often have some questions. Below are several common questions and answers:
A: The minimum investment threshold for sub-brokerage varies by broker and investment product. Generally, buying US stocks is usually based on “shares”, so it depends on the stock price you want to buy. More importantly, the “minimum fee per transaction” is the threshold you need to consider. For example, if a broker’s minimum fee for US stocks is US$10, even if you only buy US$50 worth of shares, you still need to pay a US$10 fee, which makes your transaction cost ratio very high. For small-amount investors, it is recommended to look for brokers with a lower minimum fee threshold, or choose recurring investment plans with fee discounts.
A: Yes. Investing in US stocks through sub-brokerage mainly involves two taxes:
1. US Dividend Tax: US brokers withhold 30% tax on dividends received by non-US tax residents.
2. Taiwan Overseas Income Tax: If a Taiwan resident’s overseas income exceeds NT$1,000,000 in a year, and together with domestic income the total basic income exceeds NT$6,700,000 (2023 tax year), it must be included in the basic income amount and taxed under the minimum tax system. The broker will provide detailed trading statements and dividend information to facilitate filing. It is recommended to consult a professional accountant to ensure your tax filing is accurate.
A: To open a sub-brokerage account, you usually need to prepare the following basic documents:
Some brokers also offer online account opening services. The process is relatively simplified and may be completed through video verification or document uploads. For the specific required documents and procedures, please refer to the announcements on each broker’s official website.
A: Fund transfers for sub-brokerage mainly go through the settlement account designated by your domestic broker. When buying overseas stocks, the broker will place a hold on or deduct funds from your New Taiwan dollar account (or deduct foreign currency if you use a foreign currency settlement account). After selling stocks and receiving proceeds, the funds will first be remitted back to the domestic broker’s foreign currency account. You can choose to keep the foreign currency or exchange it into New Taiwan dollars and transfer it into your New Taiwan dollar account. The entire process is completed within the domestic financial system, making it relatively safe and convenient.
A: Sub-brokerage is particularly suitable for the following types of investors:
In short, sub-brokerage provides a lower-threshold overseas investment channel with more comprehensive support.
Through this article’s sub-brokerage recommendations and detailed comparisons, you should now have a clearer understanding of how to choose “which sub-brokerage broker is the best”. Whether you are seeking the stable and comprehensive Fubon Securities sub-brokerage, the broad market coverage of Yuanta Securities sub-brokerage, or the digital experience and competitive fees of Cathay Securities sub-brokerage, the final choice should come down to your personal investment needs and preferences.
By considering key factors such as fees, trading platforms, product diversity, customer service, and brand credibility, and comparing the strengths of different brokers from multiple angles, you will take a crucial first step toward successfully starting overseas investing. We hope this guide helps you find your own wealth growth opportunities in global markets!
