## Beginner's Must-Read: How to Buy Stocks, The 2025 Complete Guide to Getting Started

Have you seen people around you share their investment returns and started to wonder if you should try? Starting your investment journey in 2025 is not difficult. This detailed guide will help you clarify your thoughts and step by step enter the stock market.

## Step One: Choosing the Right Broker and Account Opening Process

### Key Points in Selecting a Broker

The most critical decision before investing is choosing a suitable broker. When evaluating, focus on the following aspects:

**Cost Considerations**
- Taiwan stock transaction fees generally around 0.1425%, with some brokers offering discounts for electronic orders
- For US stocks, pay attention to minimum fees per trade; small investors may see profits eroded
- Overall costs include commissions, transaction taxes, currency exchange costs, etc., and should be calculated comprehensively

**Trading Experience**
- User interface friendliness directly impacts trading efficiency
- Quote speed and system stability are crucial for short-term traders
- Beginners are advised to choose intuitive trading apps

**Value-Added Services**
- Regular investment features are helpful for investors with limited funds
- Research reports and stock selection tools can improve decision quality
- Chinese language support and customer service are important to avoid time zone issues
- Deposit and withdrawal convenience directly affects fund flow efficiency

💡 Tip: Many brokers offer demo accounts. Trying out the platform before depositing funds is a wise choice.

### Practical Guide to Opening an Account

The account opening process is relatively simple. After selecting a reputable broker, prepare your dual ID documents and seal, then apply for an account. The broker will guide you through the process. Carefully read the terms and sign the necessary documents.

Most brokers now support online account opening, allowing you to complete the entire process from home, saving the trouble of visiting the office.

## Comparing Taiwan Stocks and US Stocks: Two Investment Paths

### Taiwan Stock Investment Guide

**Advantages**
- Natural understanding of local companies, easy to grasp industry trends
- More complete regulatory framework, market oversight is relatively strict
- Fixed trading hours (Monday to Friday 9:00-13:30), easy to plan

**Disadvantages**
- Smaller market size, large capital flows may cause volatility
- Transparency of listed companies still needs improvement; financial reports vary in quality

**Cost Structure**
- Commission: 0.1425% of transaction amount
- Securities transaction tax: 0.3% on sales
- Investing via ETFs or funds can diversify risk but incurs management fees

### US Stock Investment Guide

**Why Consider It**
- Rich investment targets, top global companies gathered
- Many innovative companies (AI, electric vehicles, etc.) first listed in US stocks
- Cost-friendly, no transaction tax
- High transparency and strong financial regulation

**Challenges to Note**
- Numerous companies with diverse industries, research takes time
- Trading hours are at night to early morning in Taiwan (21:30-4:00), time zone issues unavoidable
- Exchange rate risk must be considered; NT dollar depreciation can directly erode profits

**Investment Tips**
- Start by researching well-known large companies
- Long-term investors should adopt regular investment strategies to diversify risk
- Choosing brokers that offer USD accounts can reduce currency exchange frequency and costs

## How to Buy Stocks: Detailed Explanation of Three Methods

### Method One: Buying Individual Stocks

**Through Domestic Brokers**
- Fees usually range from 0.25% to 1% of transaction amount
- Exchange fees and activity fees are relatively low

**Through Overseas Brokers**
- Many have reduced or eliminated fees, but exchange fees still apply
- Lower initial deposit thresholds, more suitable for small investments

**Fee Negotiation Tips**
- Large, established brokers often offer discounts of 34-40%
- Smaller brokers may offer 70-80% discounts to attract clients
- Large-volume traders (millions) can negotiate better terms directly with account managers

### Method Two: Contract for Difference (CFD) Trading

This is a recent investment method in Taiwan, allowing profit from price fluctuations without owning the actual stocks.

**Advantages**
- Flexible leverage, trade large positions with partial margin
- Profit from both rising and falling markets, not limited to one direction
- Low deposit requirements, small funds can participate
- 24/7 trading, global markets available at any time

**Disadvantages**
- Leverage amplifies gains and losses; risk management is crucial
- No dividend income
- Platform choice must be cautious; must be regulated internationally

**Leverage Usage Example**
| Leverage | Actual Margin Payment |
|------------|------------------------|
| 1x | 1,671.4 USD |
| 2x | 835.7 USD |
| 10x | 167.14 USD |

💡 Advice: Beginners should strictly set stop-loss and take-profit points; avoid over-leveraging.

### Method Three: Index Funds and ETFs

**Operation Principles**
- Automatically diversify investment risk, avoiding over-concentration
- Cover giants like Apple, Microsoft, and others
- Transaction costs are only about one-third of individual stocks

**Cost Analysis**
- Management fee around 0.03-0.2%
- Trading fees are the same as stocks, but with tax exemptions
- Long-term holding advantages are clear

**Suitable For**
- Investors who don’t want to pick individual stocks
- Long-term investors seeking stable growth
- Beginners with limited funds wanting quick diversification

## Quick Guide to Stock Basics

### Must-Know Trading Hours
- **Taiwan stocks**: Monday to Friday 9:00-13:30
- **US stocks**: Monday to Friday 21:30-4:00 (Taiwan time)
- US stocks also have pre-market and after-hours trading sessions

### Explanation of Trading Units
- **US stocks**: Minimum 1 share, no batch limit
- **Taiwan stocks**: Standard unit is 1 lot (1000 shares), fractional trading available
- **Hong Kong stocks**: In lots, but lot size varies per stock

### Basic Market Observation
**Price Types to Know**
- Current Price: latest成交价
- Closing Price: last成交价 of previous trading day
- Opening Price: first成交价 of the day
- Daily High/Low: highest and lowest prices of the day

**Basic Charting Tools**
Many websites offer free charting services. Beginners should understand basic price movements first. As experience grows, learn advanced technical analysis tools like candlestick charts, moving averages, MACD, etc.

## Four Directions for Beginners to Choose Stocks

**Start with Familiar Fields**
Choose industries you understand, such as technology products or consumer brands, to better judge company prospects.

**Prioritize Leading Companies**
Large market cap and high reputation tend to be more stable and less prone to hype.

**Reasonable Valuation**
Use P/E ratio or dividend yield to preliminarily assess stock price fairness.

**Portfolio Strategy**
Mix dividend-yielding and growth stocks to better respond to market changes.

## Four Key Risk Management Points Every Beginner Must Know

**1. Broker Selection Has Long-Term Impact**
Fee differences can be significant over time. As trading volume increases, negotiate discounts with your broker.

**2. Research Thoroughly Before Buying**
Buying blindly without understanding the company is very risky. Review fundamentals, financials, and track important news.

**3. Strictly Follow Risk Discipline**
Set clear stop-loss and take-profit points. Generally, take partial profits at targets, and cut losses if they exceed preset limits. Many investors fail because they rush to take profits and hope for rebounds when losing.

**4. Find Your Own Pace**
- Day trading requires all-day monitoring
- Dividend investing suits working professionals
- Swing trading tests technical analysis skills

Choose the method that makes you most comfortable, and avoid blindly following others’ strategies.

## Three Steps to Start Trading

Complete account registration → Choose deposit method → Search for targets and execute trades

**Initial Tips**
- Practice with demo accounts for at least 3 months
- Keep real funds small initially
- Record every trade in detail for review and learning

The investment journey is full of challenges, but with systematic learning and strict discipline, beginners can gradually build their own investment system.