Complete Analysis of Foreign Futures Commission Fees | Comparing Costs Across Three Major Trading Methods, Choosing the Wrong Platform Can Eat Up All Profits

Futures trading may seem simple, but the fee structure is so complex that it can give new investors a headache. For the same large-scale futures transaction, using a domestic broker might cost a fixed fee of 20 yuan plus commission, while an overseas futures broker only charges 2-3 USD, and CFD platforms essentially have zero commission—making the difference significant enough to determine whether you make a profit or not.

Three Types of Trading Methods: How Big Is the Difference in Fees?

Currently, Taiwanese investors mainly have three options for trading large-scale futures: domestic futures brokers, overseas futures brokers, and CFD platforms. The fee structures of these three methods are entirely different.

Domestic futures brokers charge a combination of brokerage commission plus government transaction tax. The gold futures exchange fee starts at 6 yuan, plus a futures transaction tax rate of 0.0000025. Buying and selling one contract results in a fixed cost of over 20 yuan, plus the broker’s hidden commission (usually 20-60% of the visible fee, but not publicly disclosed).

Overseas futures brokers adopt a transparent fee model, typically charging a fixed 2-3 USD per order, plus exchange fees and regulatory charges. Overall, the foreign futures transaction costs are actually lower. However, the minimum investment threshold is also high, starting at 1,000 USD.

CFD platforms are the most unique—they have no trading commissions at all, only charging spreads (buy-sell price difference of 0.2-0.3 points) and overnight fees (about 0.02%). For intraday trading without holding positions overnight, the cost is only the spread.

Domestic vs. Overseas Futures Fees: Numbers Speak

A real-world example: trading 1 gold futures contract (100 ounces), a domestic broker might charge 30-50 yuan, while an overseas futures fee is just 2-3 USD (about 60-90 TWD), and CFD platforms have zero trading fees as long as you can handle the spread cost of 0.2-0.3 points.

Why Are Overseas Futures Fees Actually Cheaper?

This involves the fundamental difference in trading logic.

Domestic futures brokers act as intermediaries between you and the futures exchange, layering various government taxes and their own commissions. Overseas futures brokers connect directly to international futures exchanges, eliminating the Taiwan government’s tax component. Foreign futures fees are more transparent and lower.

CFD platforms are more aggressive—they are not real futures trading but a contract for difference (CFD) mode that bets against clients. They only charge spreads and overnight fees, with no traditional fee structure. For very short-term traders, entering and exiting within the same day can cut trading costs by half.

How to Choose Between Small Capital and Large Capital?

Small investors (capital of 50-500 USD)
Can only choose CFD platforms, as the threshold is very low, and the spread cost is not high (0.2-0.3 points). For example, earning only 5-10 points on a gold contract can break even.

Medium investors (1,000-10,000 USD)
Can opt for overseas futures brokers with more transparent fee structures or use mini contracts on CFD platforms, with more flexible leverage.

Large investors (over 10,000 USD)
Domestic futures brokers may have room for negotiation (usually 20-30% of the standard fee), but honestly, using overseas brokers directly is more convenient. The savings on commissions can accumulate into significant profits over multiple trades.

Besides Fees, What Else Should You Pay Attention To?

Hidden costs such as spreads, overnight fees, and financing interest are often more painful than surface-level commissions.

Spread costs: CFD platforms’ gold spreads usually start at 0.3, and intraday trading can eat up 0.6 points per round trip. To make a profit, the price must move at least 3-5 points to break even.

Overnight fees: Holding positions overnight incurs interest, about 0.02% on CFD platforms, and some domestic futures brokers also have inventory fees. Short-term traders should try to avoid overnight positions.

Investment threshold restrictions: Domestic brokers may require an additional deposit of 2,000 USD for margin trading, which are hidden costs.

Common Q&A

Q: Can I negotiate the fee with overseas futures brokers?
A: Overseas futures brokers generally have fixed fees, but some platforms offer discounts for high-volume traders. CFD platforms do not negotiate commissions but may lower spreads. Domestic brokers have the most room for negotiation, provided you have a certain trading volume.

Q: How many trades per month make it worthwhile to open an account with an overseas broker?
A: More than 10 trades per month, and the overseas futures fees can save you a lot compared to domestic brokers. If you are a day trading expert, CFD platforms are definitely worth it.

Q: Will the overnight fees on CFD platforms be very high?
A: Not really, usually around 0.02%, fluctuating with position size. For example, holding one gold contract overnight might only cost 5-10 USD. However, holding highly leveraged positions overnight is not cost-effective.

Important reminder: When choosing a trading platform, don’t just look at the commission fee. The overall cost (fees + spread + overnight fee + slippage) is the key factor. Also, verify the platform’s regulatory status and ease of deposits and withdrawals. No matter how cheap the fee, if you can’t withdraw your funds, it’s useless.