2025 Investment Stock Complete Guide: A Beginner's Must-Read Comparison of the Three Major Trading Methods

Want to start investing in stocks but don’t know where to begin? Seeing others share investment insights makes you eager, but you’re worried about pitfalls? Don’t worry—this latest 2025 stock investment tutorial will help you avoid detours. This article will analyze the three mainstream trading methods: Taiwan stocks, US stocks, and CFDs, helping you quickly get started with stock investing.

Step 1: Choose the Right Broker and Start Your Stock Investment Journey

The first step in stock investing is selecting a suitable trading platform, which directly affects your trading costs and experience. When choosing a broker, these factors are most critical:

Fees and Cost Differences

Taiwan stock trading fees are generally 0.1425% of the transaction amount, but discounts for electronic orders vary greatly among brokers. For US stocks, pay attention to the minimum fee per trade (some platforms charge $10 per trade), which significantly impacts small investments. CFD platforms usually use spreads, with no fixed commission but hidden costs.

Trading Interface and Usability

Beginners should prioritize intuitive and user-friendly apps and trading interfaces. For frequent short-term traders, quote speed and platform stability are crucial.

Localized Support Services

The level of Chinese support on overseas platforms varies. Some offer Traditional Chinese interfaces and 24-hour Chinese customer service, effectively solving time zone issues. Platforms supporting TWD deposits and withdrawals can save currency exchange steps and reduce additional costs.

Recommended Approach

After selecting a platform, first apply for a demo account to experience the operation process. Confirm that the platform is user-friendly before trading with real funds.

Taiwan Stock Investment: Familiar but Limited

Advantages of Investing in Taiwan Stocks

✅ Better understanding of local companies, easier to grasp industry dynamics
✅ Strict regulatory standards, relatively controllable market risks
✅ Higher transparency of trading information

Disadvantages of Investing in Taiwan Stocks

❌ Smaller market size, large capital inflows/outflows may impact stock prices
❌ Gap in transparency and financial reporting quality compared to international giants
❌ Single industry structure, diversification is challenging

Cost Comparison for Stock Investment

Trading Taiwan stocks via securities accounts: commission is 0.1425% of transaction amount, plus 0.3% stamp tax on sales. Indirect investment through Taiwan stock funds/ETFs: ETF fees are the same as above, but stamp tax is only 0.1%, with internal deduction costs around 0.4%-1%; stock funds have a subscription fee of 3%, annual management fee of 0.2%, and manager fee of 1%-2.5%.

Actual costs vary by platform; always verify carefully before trading.

US Stock Investment: Global Opportunities and Risks Coexist

Why Beginners Consider Investing in US Stocks

✅ Rich investment options, including top global companies like Apple, Microsoft, Tesla
✅ Focus on innovative industries (AI, electric vehicles, cloud services), with high long-term growth potential
✅ Cost-effective, low commissions, no stamp tax on sales (0.3% on Taiwan stocks)
✅ One ETF can diversify investments across global markets, avoiding risks of single countries

Risks to Note When Investing in US Stocks

❌ Many companies with diverse industries, research complexity higher than Taiwan stocks
❌ Trading hours are from 9:30 PM to 4:00 AM Taiwan time, with obvious time zone challenges
❌ Currency fluctuations may eat into returns; currency exchange costs (TWD to USD) should not be overlooked

Three Ways for Beginners to Invest in Stocks

Method 1: Buying Individual Stocks via Repurchase or Overseas Platforms

Repurchase fees: 0.25%-1% commission, 0.0008% exchange fee, trading activity fee. Overseas platforms often offer better rates: 0%-0.1% commission, 0.0008% exchange fee, same activity fee.

Major brokers typically offer 60-65% discount on commissions; smaller brokers may cut rates to 20-30% to attract clients. Large accounts with monthly trading volume over a million can negotiate even better rates.

Method 2: Trading via CFD Platforms

CFD has become popular in Taiwan in recent years. Users do not hold actual stocks but profit from price differences. One account can operate in US stocks, forex, gold, crude oil, and more, making it ideal for small investors building diversified portfolios.

Core advantages of CFDs: flexible leverage (recommended 1-2x for beginners), controlling large positions with small margin. For example, with 1,000 yuan margin, you can trade a 10,000 yuan position.

Key risks: high leverage amplifies both gains and losses; no dividends received; platform choice must be cautious—only choose compliant platforms with FCA, ASIC, and other international certifications.

CFD operation steps: register an account → complete identity verification → search for the asset (enter stock code like TSLA or AAPL) → choose bullish or bearish position → fill in order and set leverage → confirm and place order.

Method 3: Investing in US Stock ETFs

Buy via repurchase or overseas platforms, with costs roughly equal to individual stock trading fees plus 0.03%-0.2% management fee. ETF trading tax is only one-third of individual stocks, offering clear long-term cost advantages.

ETFs are suitable for lazy investors; no need to pick individual stocks, as one product can bundle multiple high-quality companies. SPY (S&P 500) and VT (global market) are good beginner choices, especially with dollar-cost averaging to reduce costs.

Quick Guide to Basic Stock Investment Knowledge

Key Terminology Overview

Market order: execute immediately at current market price; limit order: execute only at or better than set price. Bid and ask reflect buying and selling pressure: bid volume indicates selling pressure (bearish signal), ask volume indicates buying pressure (bullish signal).

Trading Hours

Taiwan stocks: Monday to Friday, 9:00-13:30 (no closing). US stocks: Monday to Friday, 9:30-16:00 (Taiwan time 21:30-4:00), with pre-market and after-hours trading.

Understanding Trading Units

US stocks: minimum 1 share, suitable for small investors. Taiwan stocks: usually in lots of 1,000 shares (1张), but fractional trading is supported. Hong Kong stocks: in lots, but lot sizes vary (usually 20 or 100 shares).

Stock Market Monitoring Basics

Choosing Monitoring Tools

Most platforms offer free market data tools, suitable for beginners. Focus on these price indicators:

Current price: latest transaction price; closing price: last price of previous day; opening price: first transaction of the day; high/low: daily fluctuation range.

Learning Path for Advanced Skills

Initially, just familiarize yourself with basic price movements, then learn to identify trends via candlestick charts, progress to moving averages for trend direction, MACD for buy/sell signals, volume analysis for main force intentions, and financial statement interpretation for company quality. But all these require time to accumulate—patience is key.

How to Pick Stocks: The Right Approach for Beginners

Start with Industries You Know

Choose industries you understand. Frequent tech product buyers can focus on semiconductor stocks; regular consumers can research food and beverage stocks. Your familiarity directly impacts judgment accuracy.

Prioritize Large Companies

Large-cap, well-known companies tend to have lower risks and are less susceptible to short-term hype. Industry leaders usually have more stable fundamentals.

Learn Valuation Methods

Price-to-earnings ratio (P/E) and dividend yield are basic valuation tools to assess whether a stock is reasonably priced.

Build a Balanced Portfolio

Combining dividend stocks and growth stocks can help cope with different market cycles and diversify risk. Dollar-cost averaging is especially suitable for investors who cannot time the market precisely.

Four Essential Tips for Stock Beginners

Broker Selection Has Long-term Impact

Small differences in fees may seem minor but can accumulate to tens of thousands over time. Choosing a reliable platform is like choosing a teammate—crucial. For high trading volumes, negotiate discounts with customer service.

Do Your Homework Before Investing

Buying blindly without understanding the company is risky. Beginners should check: industry type and main products, financial indicators like EPS and gross margin, recent major news, and earnings calls. Many investors follow blindly without knowing the company, ending up trapped at high prices.

Strictly Follow Stop-Loss and Take-Profit Rules

Take half profits at 20% gain, set trailing stops for the rest; cut losses at over 10% loss—don’t hope for a rebound. This is the dividing line between retail investors and winners—winners know when to cut losses, amateurs hesitate.

Find an Investment Method That Fits You

Day trading suits those who can monitor the market all day; dividend investing is good for working professionals; swing trading combined with technical analysis helps find turning points. There’s no absolute best way—only what suits your rhythm.

Three Steps to Start Your Stock Investment Journey

Step 1: Register an Account

After choosing a platform, fill in basic info and submit an application. It’s recommended to start with a demo account to experience the entire trading process risk-free and familiarize yourself with the interface.

Step 2: Fund Your Account

Confirm the supported deposit methods. Some platforms support direct TWD transfers; others require currency exchange first. Understand the exchange rate and fees before proceeding to avoid unnecessary costs.

Step 3: Place Orders

Log in, search for the target stock code (e.g., TSLA for Tesla, AAPL for Apple), select buy or sell, input quantity, and confirm the order. The entire process usually takes only a few seconds.

Final Advice for Stock Beginners

The biggest mistake in stock investing is blindly following the herd. Practice with a demo account for 3 months, keep initial real funds small and comfortable, and record every trade for review. This builds experience and prevents large losses.

Remember: stock investing is not a get-rich-quick game but a long-term wealth accumulation process. Find what suits you, stick to discipline, and over time, the results will come.