Stock investors need to know the 2025 broker fee system and how to choose wisely

Broker fees are a significant factor that erodes investors’ profits. If you choose a broker that charges high fees, the calculated profit will be deducted accordingly. Conversely, selecting a broker with the lowest and most suitable fee system for your trading style will clearly increase your net profit.

Understanding the Broker Fee System as the First Step

Before deciding on a broker, you need to understand where broker fees come from and why they exist.

The Stock Exchange of Thailand is a marketplace for demand and supply of stocks nationwide. To maintain system stability and reduce risk, individual investors cannot buy and sell stocks directly but must go through a registered intermediary, which is a “broker.” Brokers collect orders and facilitate trading for investors.

As intermediaries, brokers need income to provide services, maintain systems, and staff. Therefore, broker fees are part of the costs investors must bear, with each broker having different fee policies. Some charge a percentage rate, while others have a minimum fee per day.

Broker Fees Vary by Account Type

Investors who choose a Cash Balance account (Full Cash Account) must deposit the full amount before purchasing stocks, limiting trading capacity to the available funds. The advantage is that broker fees are the lowest, generally ranging from 0.06% to 0.15% of the trading value.

Meanwhile, Cash Account (Regular Cash Account) offers more flexibility. Investors can buy stocks today and pay tomorrow, similar to using a credit card system, called “T+1 credit.” The trade-off is that broker fees are higher, around 0.10% to 0.20% of the trading value.

There are also minimum daily fees, with some brokers setting 30 THB, some 50 THB, and some with no minimum fee at all. This is very important for investors trading in small amounts, as minimum fees can significantly cut into profits.

Which Broker Charges the Lowest Fees?

If you are a patient investor who prefers low risk and gradually accumulates small quantities of stocks, consider:

SBI Thai Online (SBITO) is a leader in low fees. The Cash Balance account charges only 0.075%, which is well below market rates. The Cash Account charges 0.10% with a minimum fee of 50 THB, making it suitable for those with limited capital.

Bualuang (BLS), under Bangkok Bank Group, offers 0.15% for Cash Balance and 0.20% for Cash Account, with no minimum fee. Using E-Confirmation is a big advantage for small traders.

InnoVest X (SCBX) charges 0.15% for Cash Balance and 0.20% for Cash Account, with no minimum fee when using E-Statement.

Krungthai XSpring charges standard rates of 0.15% and 0.20%, with no minimum fee. If you are already a Krungthai customer, opening a trading account here is a convenient option.

For Investors Trading in Large Volumes

If you trade large quantities, minimum fees are less of an issue. In this case, look for brokers with good analysis systems, quality customer service, and positive reviews from other investors.

Phillip Capital (Phillip Capital) charges 0.15% and 0.20% with a minimum fee of only 30 THB, and has a long-standing and popular analysis system, making it a good choice for those needing advanced analytical tools.

Kasikornbank and TMB charge standard rates of 0.15% and 0.20%, with a minimum fee of 50 THB. Both are bank subsidiaries offering special deposit services and reliable service.

Comparison Table of Broker Fees 2568

*If using E-Confirmation, no minimum fee; otherwise, 100 THB per day.

Tiered Fee System for High Trading Volumes

Liberator (Krungsri Securities) uses a tiered fee system where the higher the trading volume, the lower the fee rate:

• Up to 5 million THB: 0.15%
• 5 - 10 million THB: 0.13%
• 10 - 20 million THB: 0.11%
• Over 20 million THB: 0.11%

Plus a 50 THB transaction fee per trade. This system is suitable for large investors who trade frequently in large amounts.

Total Fees: Not Just Broker Fees

It’s important to remember that the actual costs you pay are more than just broker fees. Other expenses include:

1. Stock Exchange Fee (SET Fee) approximately 0.007% of the trading value.
2. 7% VAT applied to the total broker fees.
3. Settlement fee, depending on the account type.

For example, if you buy stocks worth 100,000 THB through a Cash Balance account with SBI Thai Online:

• Broker fee: 100,000 × 0.075% = 75 THB
• Market fee: 100,000 × 0.007% = 7 THB
• VAT: (75 + 7) × 7% ≈ 5.74 THB, rounded up to 6 THB
• Total costs: 88 THB, or 0.088% of the trading value.

How to Choose a Broker Suitable for Your Trading Style

If you are a patient trader with small trades: Prioritize (1) no minimum fee (2) low fee rates. Consider SBI Thai Online or Bualuang.

If you trade large volumes and need analytical tools: Fee rates are less critical. Choose brokers with good analysis systems, such as Phillip or those with quality customer service.

If you are already a bank customer: Opening a trading account with your bank may be more convenient. For example, Krungthai customers can choose Bualuang; SCBX customers can choose InnoVest X.

Summary

Broker fees may seem like a small detail in investing, but in reality, they are costs that chip away at your profits every time you trade. Whether the market is good or bad, fees are expenses you must pay. Therefore, choosing a broker with a fee system that matches your trading style is crucial.

You don’t always need to pick the lowest fee rate, but rather adopt a strategic approach by calculating the total fee rate + services received + convenience to maximize your investment returns.