Complete Guide to Reducing Stock Trading Fees: Practical Strategies and Brokerage Comparison

Most investors focus solely on returns when starting stock trading, but in reality, stock trading fees are a key factor that determines long-term profitability. Trading fees may seem simple, but they have a much greater impact through compound effects than expected. In this article, we will examine the structure of fees, the fee systems of different securities firms, and practical strategies for cost reduction in detail.

Understanding the Structure of Stock Trading Fees

Stock trading fees do not only refer to the commissions paid to securities firms. Stock trading fees encompass various costs incurred during each transaction.

First, for domestic stock trading, the basic fee is the entrusted trading commission paid to the securities company. Additional fees are charged by related institutions such as the Korea Exchange and the Korea Securities Depository. For domestic stocks, these fees are relatively low and vary depending on the trading platform and transaction volume.

Overseas stock trading has a more complex structure. In addition to the entrusted trading commission, currency exchange fees are charged separately. For U.S. stocks, fees include the U.S. Securities and Exchange Commission(SEC) fee and the Financial Industry Regulatory Authority(FINRA) fee. Generally, for online trading, the entrusted trading fee for overseas stocks is around 0.25%, significantly higher than domestic trading.

Comparison of Major Securities Firms’ Fee Systems in 2025

The stock trading fees vary greatly depending on the trading platform and transaction amount. Looking at the fees of the top 5 securities firms for online trading, we have:

Mirae Asset Securities charges 0.136% for domestic stocks and 0.25% for U.S. stocks. They are currently running a promotion that waives domestic and U.S. stock trading fees for 90 days for new customers.

Korea Investment & Securities applies a fee of 0.147% for domestic stocks and 0.25% for U.S. stocks. They offer a 3-month fee waiver for U.S. stock trading for new and dormant account customers on their Bankis platform.

Samsung Securities applies a structure of 0.147216% + 1,500 KRW for transactions under 10 million KRW. It features a fixed fee structure. U.S. stocks are charged at 0.25%, and new or dormant non-face-to-face account customers receive a 3-month fee waiver for U.S. stock trading.

Kiwoom Securities offers the lowest domestic stock trading fee of 0.015% on the HeroMUN4 platform. U.S. stocks are charged at 0.25%, and a 3-month fee waiver event is available for new/dormant non-face-to-face accounts.

Shinhan Investment Corp. charges 0.1391639% + 2,000 KRW for transactions under 30 million KRW. U.S. stocks are at 0.25%, and they provide the longest fee waiver period of 1 year for new/dormant customers.

For domestic stocks, transaction fees range widely from 0.015% to 0.147% depending on the transaction amount and platform. In contrast, all major securities firms set the U.S. stock fee at 0.25%.

The Actual Impact of Trading Fees on Profits

Suppose you make 10 transactions of 1 million KRW each, expecting a 10% profit per trade. If the fee is 0.1%, the final profit would be about 2.57 million KRW, but at 0.2%, it drops to about 2.54 million KRW, resulting in a difference of approximately 30,000 KRW.

As trading amounts and frequency increase, this difference widens further. Fixed fees are often overlooked. For example, with Samsung Securities’ fixed fee of 1,500 KRW, making 100 trades totals 150,000 KRW in fees, which can significantly reduce the profitability of small, short-term traders.

Practical Strategies to Effectively Reduce Stock Trading Fees

First, understand the fee structure precisely. Different securities firms have varying basic fees, fixed fees, and platform-specific charges. If you plan to do small, frequent trades, choosing a firm without fixed fees is advantageous.

Second, strategically utilize promotional benefits. Promotions offering fee waivers for 3 months to 1 year are common for new or dormant customers. Applying for these benefits just before starting full-scale trading can greatly reduce initial costs.

Third, manage your trading scale and frequency. It is more effective to reduce fees by making fewer, larger trades rather than splitting trades into smaller ones. Larger transaction amounts typically result in lower fee rates.

Fourth, pay attention to exchange rate fluctuations and currency exchange fees. When trading overseas stocks, using preferential exchange rates or exchanging currency in advance at favorable rates can be beneficial.

Fifth, choose a securities firm that matches your trading pattern. High-frequency small traders might prefer low-fee platforms like Kiwoom Securities, while large-volume traders may opt for firms with lower basic fees such as Mirae Asset Securities.

Conclusion

Stock trading fees are a crucial variable that influences investment returns. By understanding the fee structures accurately, selecting the right securities firm based on your trading pattern, and effectively utilizing promotional benefits, you can significantly reduce costs in the long run. Managing costs is as important as pursuing returns for achieving true investment success.