Reducing Investment Costs: The Complete Guide to Overseas Stock Trading Fees and Domestic Securities Transaction Fees

Many people focus only on the return rate when investing in stocks. However, in terms of actual impact on profits, transaction fees cannot be ignored. Especially for overseas stocks, fees tend to be higher than domestic stocks, requiring more careful management. In this article, we will understand the fee structure, compare and analyze fees across securities firms, and explore practical ways to reduce costs.

Understanding the Stock Trading Fee Structure

Fees incurred when buying and selling stocks are not just a simple cost. They consist of multiple components and vary depending on the trading target and method.

Fee Components for Domestic Stock Trading

When trading domestic stocks, you pay entrusted trading fees to the securities firm and fees to related institutions such as the Korea Exchange and the Korea Securities Depository. The trading fees for domestic stocks are relatively low. Most securities firms set online trading fees in the mid-0.1% range, which confirms this.

Differences Between Overseas and Domestic Stock Fees

Trading overseas stocks, especially U.S. stocks, involves a much more complex fee structure. In addition to entrusted trading fees, there are currency exchange fees, SEC( (U.S. Securities and Exchange Commission) fees, FINRA) (Financial Industry Regulatory Authority) fees, and others. As a result, overseas stock trading fees are generally around 0.25% based on online trading, more than twice as high as domestic stock trading fees.

2025 Major Securities Firms Trading Fee Comparison Table

Each securities firm applies different fees depending on the trading platform and amount. Here is a summary of the fee status and preferential policies of the top 5 securities firms as of now.

While overseas stock fees are maintained at similar levels across firms, domestic stock trading fees vary greatly depending on the platform. Notably, trading through HeroMoon4 can be done at a very low fee of 0.015%.

The Actual Impact of Trading Fees on Final Returns

The key reason why fees should not be ignored is the compound interest effect. For example, assume you make 10 trades with 1 million won each, earning 10% profit per trade. If the fee is 0.1%, the final profit would be about 2.57 million won, but with a 0.2% fee, it drops to about 2.54 million won. It may seem like a small difference of 30,000 won, but as the trading amount and frequency increase, this difference grows exponentially.

Hidden Risks of Fixed Fees

Some securities firms’ fixed fees are also significant. For example, Samsung Securities charges an additional 1,500 won for transactions under 10 million won, on top of 0.147%. While this may seem small for a single trade, doing 100 trades would accumulate fixed fees of 15,000,000 won. For investors engaging in frequent small trades, these fixed fees can significantly erode returns.

Practical Strategies to Reduce Fees

Step 1: Choose a securities firm suited to your trading pattern

Not all securities firms are advantageous for every investor. If you mainly do small, short-term trades, choose a firm that does not charge fixed fees. Conversely, for large-volume trades, look for firms offering lower fees as the transaction amount increases. Understanding your average trade size and frequency, then comparing the lowest fees offered, is crucial.

Step 2: Utilize new/dormant customer benefits

Most major securities firms offer fee exemptions or discounts for new and dormant customers. Many waive overseas stock fees for 3 months to 1 year. To maximize these benefits, apply for them just before starting your trading and concentrate your transactions during this period.

Step 3: Optimize trade size and frequency

It can be more advantageous to execute trades in a single transaction rather than multiple smaller ones. If splitting trades is unnecessary, reduce the number of transactions to minimize cumulative fees. Also, since fixed fee structures make lower transaction amounts relatively more expensive, it’s efficient to trade a certain minimum amount in one go.

Step 4: Manage currency exchange fees and rates

Another cost not included in overseas stock fees is the currency exchange fee. Currency conversions through securities firms often have less favorable rates than banks or specialized platforms. If you plan to invest in foreign currencies like USD, consider exchanging when rates are favorable or using securities firms’ preferential exchange programs to cut costs.

Conclusion: Increase Returns Through Smart Cost Management

The success of stock investing is not determined solely by the return rate. Fee management is also a critical factor in final profits. Overseas stock fees are higher than domestic ones, requiring more careful handling.

By clearly understanding your trading patterns, accurately grasping the fee structures of different securities firms, and actively utilizing new customer benefits, you can significantly reduce unnecessary costs. This strategy can not only save money but also enhance your investment returns.