The Complete Guide to Stock Trading Fees You Must Check Before Choosing a Brokerage

There is something you might be missing when chasing profits in stock investing. That is the stock trading fees that are deducted every time you make a trade. Even if you achieve the same return rate, higher fees significantly reduce the actual amount you keep. In this article, we will delve into the fee structures of different securities firms and organize cost-saving strategies that investors can practically apply.

All About the Costs in Stock Trading: Fees Explained

The costs involved in buying and selling stocks are more than you might think. They include the trust trading commissions paid to securities firms, fees paid to related institutions such as the Korea Exchange and the Korea Securities Depository, and currency exchange fees incurred during overseas stock transactions.

The fee structures for domestic and international stocks are completely different. Domestic stocks generally have lower fees, but when trading U.S. stocks, you must pay additional fees such as the U.S. Securities and Exchange Commission(SEC) fee, and the Financial Industry Regulatory Authority(FINRA) fee, on top of the trust trading commission. Typically, online trading of overseas stocks involves fees around 0.25%, which is much higher than domestic stock trading.

2025 Major Securities Firm Fee Overview: Which One Is Cheaper?

Each securities firm sets its stock trading fees differently, and even within the same firm, fees vary depending on the trading platform. Here is a comparison of domestic and overseas stock trading fees and key benefits among the top 5 securities firms based on online trading.

Mirae Asset Securities: Applies a fee of 0.136% for domestic stocks and 0.25% for overseas stocks. For new or dormant customers opening a direct account, domestic/U.S. stock trading fees are fully waived for 90 days.

Korea Investment & Securities: Charges 0.147% for domestic stocks and 0.25% for overseas stocks. New or dormant customers trading overseas stocks via the Bankis app receive a 3-month fee waiver.

Samsung Securities: Operates a fee structure of 0.147216% plus a fixed 1,500 KRW for transactions under 10 million KRW. Overseas stocks are charged at 0.25%, with a 3-month fee waiver for new/dormant non-face-to-face accounts.

Kiwoom Securities: When trading through its own platform, Youngwon Moon 4, only 0.015% domestic stock fee applies. This is the lowest in the industry. Overseas stocks are charged at 0.25%, with a 3-month fee waiver for new/dormant customers.

Shinhan Investment Corp: For transactions under 30 million KRW, charges 0.1391639% plus a fixed 2,000 KRW fee. Overseas stocks are charged at 0.25%, with the longest benefit of a 1-year fee waiver for new/dormant customers.

While overseas stock fees don’t vary much across firms, domestic stock fees can differ greatly depending on trading volume and platform. For small-scale traders, whether fixed fees apply is particularly important.

Small Fees Add Up? Compound Effect on Returns

One reason investors overlook fees is the misconception that “it’s not a big deal.” However, over time, the true power of fees becomes evident.

Suppose you make 10 trades with 1 million KRW each, earning 10% profit each time. If the fee is 0.1%, your final amount is about 2.57 million KRW; at 0.2%, about 2.54 million KRW. The difference of around 30,000 KRW may seem small, but as trading size and frequency increase, this gap grows exponentially.

The impact is even more severe with fixed fees. Samsung Securities’ fixed 1,500 KRW fee may seem small, but if you trade 50 times a month, that’s 75,000 KRW; at 100 trades, 150,000 KRW. For small, short-term traders, this can significantly erode actual profits.

Cost-Reduction Strategies Tailored for Investors

First: Find a securities firm that matches your trading pattern

There is no one-size-fits-all best securities firm. The optimal choice depends on your trading volume and frequency.

• Small, short-term traders: Kiwoom Securities’ 0.015% fee is overwhelmingly advantageous, as it has no fixed fee.
• Large-volume traders: Choosing firms with lower absolute fees, such as Mirae Asset(0.136%) or Korea Investment(0.147%), is beneficial.
• Beginner investors: Utilizing Shinhan Investment’s 1-year fee waiver can be a good strategy to learn before switching.

Second: Maximize benefits from new/dormant customer promotions

Almost all securities firms run fee waiver events for new or dormant customers. To make the most of these:

• When planning to switch firms, open a new account just before the current benefits expire.
• Some firms allow customers to choose the start date of benefits, so apply just before engaging in serious trading.
• Conduct sufficient trading during the benefit period to maximize gains.

Third: Redesign your trading approach

Trading frequency and size directly influence fees.

• If you lack a clear split-buy strategy, it’s better to buy once rather than multiple small trades.
• Take advantage of lower fees for larger transaction amounts.
• If focusing on short-term trading, concentrate trades on platforms with lower fees.

Fourth: Manage currency exchange costs smartly

When trading overseas stocks, currency exchange fees and rates are often overlooked.

• Since currency exchange at securities firms often offers unfavorable rates, exchange currency in advance when rates are low.
• Check for preferential exchange rates offered by different firms.
• For large transactions, calculate how much the exchange rate difference actually affects costs before exchanging.

Fifth: Fully understand the fee structure

Each securities firm has its own complex fee calculation methods.

• For example, Shinhan Investment’s “under 30 million KRW + fixed 2,000 KRW” structure should be understood beforehand.
• Calculate your typical trading amount to see how much you actually pay in fees.
• Check the latest fee information on the firm’s website or through customer service.

Conclusion: Fees Are Hidden Variables in Investment Performance

Pursuing high returns in stock investing is important, but managing stock trading fees is equally crucial. A mere 0.1% difference may seem small, but over time, it can significantly impact your returns.

By choosing the right securities firm, adjusting your trading approach, and utilizing new customer benefits, you can reduce fee burdens and become a more profitable investor with the same skill level. When starting or switching securities firms, consider not only your expected returns but also these cost factors to create the most advantageous environment for your investments.