How much does it cost to trade bulk futures? Breakdown of futures transaction fees and platform rate tips

Looking to make a fortune in the futures market but overwhelmed by the myriad of futures commission fees? How to choose a platform that ensures costs don’t eat into your profits? This article will comprehensively analyze the cost structure of trading futures in Taiwan and overseas, compare the fee rates across major futures trading platforms, and help you find the most cost-effective way to enter the market.

What expenses are included in futures commission fees? How are they calculated?

What are the two components that make up the costs of trading futures in Taiwan?

When trading large-volume futures in Taiwan, most investors do so through domestic futures brokers or international futures firms. Taiwan’s local futures contracts are limited, mainly focusing on gold futures and Brent crude oil futures.

The fee structure of Taiwanese futures brokers includes transaction handling fees, settlement fees, delivery fees, and trading taxes. These costs are generally divided into two parts:

Part 1: Futures brokerage commissions
Different brokers have varying commission standards depending on the product, trading volume, and transaction type, and most are not publicly disclosed. Investors need to inquire directly with each broker’s sales team to learn the specific rates. Both buying and selling transactions incur this fee.

Part 2: Government regulatory taxes and fees (collected by the broker)
This is a fixed trading cost paid during both buying and selling, including transaction handling fees, settlement fees, delivery fees, and futures trading tax rates:

Therefore, the cost calculation logic for trading futures in Taiwan is:

Buy Cost = Brokerage Commission + Government Regulatory Taxes and Fees
Sell (Close Position) Cost = Brokerage Commission + Government Regulatory Taxes and Fees
where,
Government Regulatory Taxes and Fees = Transaction Handling Fee + Settlement Fee + Delivery Fee + Futures Trading Tax Rate

How do overseas futures trading costs differ?

What is the difference in fee structure for overseas futures brokers (mainly US stock brokers)?

Overseas futures brokers (focusing on US stock brokers) support international large-volume futures trading, with the following cost structure:

Buy Cost = Broker Commission + Exchange Fees + Regulatory Fees
Sell (Close Position) Cost = Broker Commission + Exchange Fees + Regulatory Fees + Trading Tax

Note: Some platforms charge investors for exchange fees, regulatory fees, and overnight interest, while investors only pay commissions and taxes.

Why is CFD trading the most cost-effective for large-volume futures?

Contracts for Difference (CFD) are derivative contracts without fixed expiration dates, allowing investors to profit from price differences, similar to low-buy-high stock trading. CFD platforms typically cover stocks, indices, forex, and commodities, offering flexible leverage from 1 to hundreds of times, enabling small capital to achieve large gains.

The biggest advantage of trading large-volume futures via CFD platforms is zero commission:

Buy or Sell Cost = 0 USD commission + 0 USD trading tax + 0 USD withdrawal fee + spread

CFD costs mainly come from two parts:

Spread: The difference between buy and sell prices, representing floating costs at order placement;
Overnight Fees: Interest costs for holding positions overnight, incurred only when positions are held overnight.

If you are a day trader, your costs are only the spread, with no overnight fee burden.

Practical comparison of futures commission fees: which platform is most cost-effective?

Below is a fee comparison among Taiwanese futures brokers, overseas futures brokers, and CFD platforms:

Given the limited product options and non-transparent fee disclosures of Taiwanese futures brokers, personal recommendations lean towards overseas futures brokers and CFD platforms. Here are two mainstream options:

Option 1: For diverse product selection → TD Ameritrade

Founded in 1975, acquired by Charles Schwab in 2019. Supports account opening in Taiwan, Hong Kong, Singapore, etc., with trading coverage including US stocks, options, futures, ETFs, and bonds. Futures investment threshold starts at $1,000 USD, with a per-trade commission of $2.25 USD, offers Chinese customer service, and margin trading requires $2,000 USD. Suitable for investors with substantial capital.

Core advantages of TD Ameritrade:

1. Transparent fee structure with relatively low commissions
2. Provides Chinese customer service team tailored for Taiwanese investors
3. Richer futures contract varieties compared to local brokers

Option 2: For low entry barriers and short-term opportunities → Mitrade

Mitrade is an ASIC-regulated CFD broker covering stocks, forex, cryptocurrencies, and commodities (oil, gold, etc.). Supports two-way trading, offers leverage from 1 to 200 times, zero commissions, zero withdrawal fees, with a minimum trading unit of 0.01 lot. Especially suitable for small investors, ultra-short-term traders, and leverage enthusiasts.

Core advantages of Mitrade:

1. Ultra-low entry threshold, opening trades at $50 USD, more affordable than competitors
2. Zero commission design, only low spreads and overnight fees, no overnight costs for intraday trading
3. Rich financial information and analysis tools integrated into the trading software, user-friendly interface

Ultimate comparison of three trading methods

Why is CFD the lowest-cost option?

CFD trading centers on price difference trading with high leverage flexibility, allowing investors to buy mini contracts to amplify gains. Therefore, CFD platforms only charge low spreads and overnight interest. For intraday traders, costs are only the spread, with no overnight fees, making it far cheaper than traditional futures trading.

By trading large-volume futures through CFD providers, you enjoy the benefits of zero commissions, zero trading taxes, and zero withdrawal fees, especially suitable for short-term trading strategies. Note that each CFD platform has different spread standards, and regional applicability varies; comparing multiple providers remains essential.

Common questions about futures commission fees

Q: How is the calculation of futures commission fees in Taiwan?
A: Taiwan futures commission fees consist of two parts: the broker’s commission (usually inquired individually, approximately 20%–60% discount) and government levied regulatory taxes and fees (fixed cost about NT$20 per trade).

Q: What is the standard rate for futures trading tax?
A: The futures trading tax rate regulated by Taiwan’s exchange ranges from 0.0000025 to 0.000005; check the Taiwan Futures Exchange official website for the latest standards.

Q: How large are the discounts on commissions offered by different brokers?
A: Commission discounts depend on each broker’s pricing policies, typically ranging from 20% to 60%, varying by broker and product type.

Q: Is opening an overseas futures account complicated?
A: Opening accounts with overseas brokers is relatively straightforward. For US stock brokers, comprehensive beginner guides are available in related investment tutorials.

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