Brokerage Fees That Influence Investment Returns: Comparison of Major Securities Firms and Cost-Reduction Strategies

Why Should You Pay Attention to Stock Trading Fees?

When investing in stocks, most investors focus solely on stock selection and returns. However, one easily overlooked factor is the fees charged for each transaction. While it may seem like a small percentage—around 0.1% to 0.2%—these minor differences can significantly impact long-term profits.

For example, with 1 million won and 10 trades, each yielding 10%, the final profit with a 0.1% fee is approximately 2.57 million won, but with a 0.2% fee, it drops to about 2.54 million won. The larger the trading volume or the more frequent the trades, the greater this difference becomes. Additionally, fixed fees imposed by some securities firms should not be ignored. Investors who trade frequently with small amounts may incur substantial losses just from fixed fees.

Components of Stock Trading Fees

Securities fees are not limited to just one type. The fee structures for domestic and international stock trading are entirely different.

When trading domestic stocks: It includes the commission paid to the securities firm for order execution, as well as related agency fees paid to the Korea Exchange and the Korea Securities Depository. Generally, domestic stock fees tend to be lower compared to overseas stocks.

When trading overseas stocks: In addition to the commission, currency exchange fees are charged, and for U.S. stocks, fees paid to the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are also applicable. Online trading fees for major securities firms for overseas stocks average around 0.25%, which is considerably higher than domestic trading fees.

2025 Securities Firm Fee Status Analysis

Fee structures vary across securities firms, and even within the same company, depending on the trading platform and volume. Comparing the domestic and overseas stock fees of the top five securities firms:

Mirae Asset Securities charges 0.136% for domestic stocks and 0.25% for U.S. stocks. New and dormant customers opening a non-face-to-face direct account are exempt from domestic and U.S. stock trading fees for 90 days.

Korea Investment & Securities has a domestic stock fee of 0.147% and 0.25% for U.S. stocks. New and dormant customers trading overseas via Bankis are offered a 3-month exemption from U.S. stock trading fees.

Samsung Securities charges 0.147216% plus 1,500 won for trades under 10 million won. Overseas stock fees are 0.25%, and new or dormant customers holding non-face-to-face accounts can benefit from a 3-month exemption from U.S. stock trading fees.

Kiwoom Securities offers the lowest domestic stock fee at 0.015% on the HeroMUN4 platform, with 0.25% for U.S. stocks. Non-face-to-face accounts for new and dormant customers are also exempt from U.S. stock trading fees for 3 months.

Shinhan Investment Corp. charges 0.1391639% plus 2,000 won for trades under 30 million won, with 0.25% for U.S. stocks. It provides the longest exemption period of 1 year for U.S. stock trading fees for new and dormant non-face-to-face account holders.

While overseas stock fees are relatively similar across firms, domestic stock fees vary significantly depending on trading volume and platform. Choosing a securities firm that matches your trading pattern is crucial.

Practical Strategies to Reduce Securities Fees

Maximizing investment returns requires managing securities fees effectively.

Choose a securities firm suited to your trading pattern

For small, frequent trades, firms without fixed fees are advantageous. Kiwoom Securities’ 0.015% fee is optimized for small-volume traders. Conversely, investors dealing with large amounts should compare fees based on their trading volume and select accordingly.

Utilize fee promotion events

Most major securities firms run fee exemption promotions for new and dormant customers. Shinhan Investment’s 1-year exemption is the longest, but it’s wise to apply at the optimal timing to maximize benefits based on your trading schedule.

Optimize trading volume and frequency

Reducing the number of trades can lower fees. Avoid unnecessary split trades and execute larger trades at once to minimize costs. This strategy is especially effective with firms that charge fixed fees.

Check fee structures in advance

Before trading, review the securities firm’s website to understand the exact fee structure. Some firms, like Shinhan Investment, add fixed amounts on top of basic fees. Calculating expected fees beforehand helps prevent surprises.

Manage exchange rates for overseas trading

Currency exchange rates offered by securities firms are often less favorable than banks or specialized platforms. It’s wise to exchange currency when rates are advantageous or to check each firm’s preferential exchange rate programs.

Conclusion

Although securities fees may seem small, they can significantly impact long-term investment returns. Choosing a securities firm that matches your trading volume and frequency, and actively utilizing available benefits, can elevate your profitability. Always check the latest information on each firm’s website.