Complete Guide to Stock Trading Fees: Cost Analysis by Brokerage and Strategies to Maximize Profits

Why Should You Pay Attention to Stock Trading Fees

Investors often focus solely on returns and overlook the impact of stock trading fees. However, trading costs are a crucial factor that significantly affect overall profitability.

For example, if you make 10 transactions with 1 million won each and assume a 10% return per trade, a difference of 0.1% versus 0.2% in fees results in a 20,000 to 30,000 won difference in final profit. As the investment amount increases and the number of trades grows, this gap expands exponentially. Considering the power of compound interest, reducing fees is especially important in long-term investing.

Additionally, fixed fees charged by some securities firms cannot be ignored. For instance, Samsung Securities charges an additional fixed fee of 1,500 won for transactions under 10 million won, on top of a 0.147216% commission. Performing 100 small trades can add up to 150,000 won in fixed fees, significantly eroding returns.

Composition of Stock Trading Fees

Stock trading fees do not only refer to brokerage commissions. When trading domestic stocks, they include the entrusted trading fee paid to the securities firm and related institution fees paid to the Korea Exchange and the Korea Securities Depository.

For overseas stock trading, the fee structure is more complex. In addition to brokerage commissions, currency exchange fees are incurred, and for U.S. stocks, fees paid to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are also applicable. Typically, major securities firms charge around 0.25% for online overseas stock trading.

Comparison of Major Securities Firms’ Stock Trading Fees in 2025

Trading fees vary significantly depending on the securities firm and trading platform. Analyzing online trading for major securities firms yields the following:

Mirae Asset Securities: Domestic stock trading fee is 0.136%, overseas stock trading fee is 0.25%. They offer a 90-day exemption from domestic and U.S. stock trading fees for new or dormant clients who open a direct non-face-to-face account.

Korea Investment & Securities: Domestic stock trading fee is 0.147%, overseas stock trading fee is 0.25%. They are running a promotion that exempts U.S. stock trading fees for 3 months for new/dormant overseas stock clients.

Samsung Securities: Charges 0.147216% + 1,500 won for transactions under 10 million won, and 0.25% for overseas stocks. They offer a 3-month fee waiver for new/dormant non-face-to-face account clients trading U.S. stocks.

Kiwoom Securities: Domestic stock trading fee on the HeroMUN4 platform is as low as 0.015%. Overseas stock trading fee is 0.25%, with a 3-month exemption for new/dormant non-face-to-face accounts trading U.S. stocks.

Shinhan Investment Corp: Charges 0.1391639% + 2,000 won for transactions up to 30 million won, and 0.25% for overseas stocks. They provide the longest benefit, offering a 1-year exemption for new/dormant non-face-to-face account clients trading U.S. stocks.

Strategies to Reduce Stock Trading Fees

( Understand the Fee Structure Precisely

Before starting trading, analyze the fee structure of your chosen securities firm in detail. The difference between firms with fixed fees and those without can be substantial. For example, Shinhan Investment charges an additional fixed fee of 2,000 won for transactions under 30 million won, which can make small, short-term trades more expensive than expected.

) Take Advantage of Fee Waiver Events

Most major securities firms offer various fee waiver programs for new or dormant clients. Trading intensively during these events can maximize benefits. Some events allow clients to choose their start date, so planning strategically when to apply is important.

Optimize Trade Size and Frequency

Larger trade amounts tend to have lower fee rates, so avoiding unnecessary split trades and placing sufficiently large orders at once is more efficient. This strategy is especially important for firms with fixed fees.

Be Cautious of Currency Exchange Fees

Currency exchange fees for overseas stock trading can be higher than expected. Many securities firms offer less favorable exchange rates than banks, so it’s advisable to prepare foreign currency in advance when rates are favorable or to check and utilize the firm’s preferential exchange rate benefits.

Choose a Securities Firm That Fits Your Trading Style

If you mainly engage in small, short-term trades, choosing a firm without fixed fees###e.g., Kiwoom Securities### is advantageous. Conversely, if you trade large amounts at once, a firm with a progressive fee structure may be better. Analyzing your trading pattern and selecting the most suitable securities firm is the first step to maximizing profits.

Conclusion

Stock trading fees are a key variable that influences investment returns. Understanding the fee structure accurately, choosing a securities firm aligned with your trading style, and leveraging fee waiver events are essential for long-term wealth growth. Small cost savings can compound over time, leading to significant differences in returns.