Detailed Calculation of Stock Trading Money Laundering: Comparison between Taiwan and US Stock Markets

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Stock Money Laundering Composition

The main fees that investors need to pay during the stock trading process include:

  • Money Laundering: The service fee charged by the broker
  • Clearing Fee: Settlement fees charged by the exchange or clearing institution
  • Money Laundering: The securities transaction tax levied by the government
  • Other fees: such as certificate management fees, handling fees, etc.

Analysis of Transaction Fees in the Taiwanese Stock Market

The main Money Laundering in the Taiwan stock market includes:

  • Money Laundering:The rate is 0.1425%, charged by the broker.
  • Securities Transaction Tax: The rate is 0.30%, levied only upon sale.

Most brokers will offer commission discounts, generally ranging from 50% to 60%.

Professional Analysis: The fee structure of the Taiwan stock market is relatively simple, but the securities transaction tax rate is high, which aims to suppress short-term speculation and encourage long-term investment.

Taiwan Stock Money Laundering Calculation Formula

When buying: Transaction Fee = Stock Price × Number of Shares × 0.1425% × Discount Rate

Sell: Transaction Fee = Stock Price × Number of Shares × 0.1425% × Discount Rate Transaction tax = Stock price × Number of shares × 0.30%

Total cost = Money Laundering + Securities transaction tax

Analysis of Money Laundering in US Stock Trading

There are mainly two ways to trade US stocks, each with a different fee structure:

  1. Delegated Trading

    • Transaction fee rate: generally between 0.25% - 1%
    • Minimum Money Laundering: Most brokers have a minimum fee standard
  2. Directly use overseas brokers

    • Money Laundering: Many overseas brokers have eliminated stock trading fees.
    • Money Laundering: Please note the additional fees that may arise from fund transfers.

Professional Analysis: While the delegated trading is convenient, the Money Laundering is relatively high; using overseas brokers directly can enjoy lower trading costs, but the efficiency and security of cross-border fund transfers need to be considered.

Stock Break-Even Point Calculation

To calculate the selling price of stocks without incurring a loss, the following factors need to be considered:

  1. All fees paid when buying
  2. Expected fees to be paid when selling
  3. The amount of income must be greater than the sum of the above two fees.

Calculation Formula: Break-even selling price = ( purchase price × shares + purchase costs + expected selling costs ) ÷ shares

Key Factors Affecting Money Laundering

  • Trading Market: Different countries and regions have their own fee structures for exchanges.
  • Broker Selection: Different brokers offer varying services and rates.
  • Transaction Amount: Some brokers offer more favorable rates for large transactions.
  • Trading Frequency: Some brokers offer special benefits for active traders.

Professional Analysis: Choosing the right trading method and broker can significantly reduce trading costs. For frequent traders, special attention should be paid to the impact of accumulated Money Laundering on returns.

Market Comparison: Taiwan Stock Market vs US Stock Market

Expense Item Taiwan Stock Market US Stock Market
Money Laundering 0.1425% (discount available) Re-delegation: 0.25%-1%<br>Overseas brokers: mostly free
Money Laundering 0.30% when selling None
Minimum Transaction Fee Generally None Re-delegation: Common<br>Overseas Brokers: Rare
Deposit and Withdrawal Fees Local bank transfers, low fees Cross-border transfers, higher fees

Market Insight: The fixed fee structure of the Taiwanese stock market is simple and clear, but the overall costs are relatively high; the US stock market has seen transaction fees approach zero in recent years, but investors need to weigh convenience against the safety of their funds. When choosing a trading market, in addition to considering fees, factors such as market liquidity and the diversity of investment products should also be evaluated.

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