In recent years, an increasing number of global corporations have begun shifting their cash reserves into Bitcoin as a long-term treasury strategy. A key driver of this trend is Strategy (formerly MicroStrategy), a U.S.-listed company that transitioned from a software business to a Bitcoin-focused enterprise. By aggressively acquiring Bitcoin, Strategy has not only transformed its financial outlook but also inspired over 78 publicly traded companies worldwide—including mining firms, pharmaceutical companies, and advertising agencies—to adopt similar Bitcoin reserve strategies.
Many of these companies have seen their valuations surge by tens or even hundreds of times after allocating capital to Bitcoin. For Taiwanese investors seeking exposure to this growing movement, the critical question arises: Should you open an overseas brokerage account or use a local sub-brokerage (複委託) service? This guide breaks down both options, helping you make an informed decision based on cost, convenience, and investment goals.
Opening an Overseas Brokerage Account: Pros and Cons
For investors aiming to trade frequently on international markets—especially U.S. stocks like Strategy (MSTR)—opening a direct overseas brokerage account is a viable option. Platforms such as Firstrade, Charles Schwab, and Interactive Brokers (IBKR) are popular among Taiwanese investors due to their user-friendly interfaces, low fees, and robust trading tools.
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The process is straightforward: complete an online application, upload identification documents, and verify your identity. Most brokers offer full English support and mobile apps, making it accessible even for first-time international traders.
Advantages:
- Full control over your investments and trading schedule.
- Access to real-time market data, advanced order types, and margin trading (where available).
- Potentially lower per-trade commissions for high-volume investors.
Drawbacks:
- High international wire fees: Transferring funds from Taiwan typically incurs a fee of around 1,000 TWD per transaction, depending on your bank.
- Additional charges when withdrawing funds back to Taiwan.
- Currency conversion spreads may reduce returns.
- Less regulatory protection compared to domestic accounts.
This method suits investors who plan to diversify assets internationally and engage in regular trading activity. However, if you're a passive investor or prefer simplicity, there’s a more convenient alternative.
What Is Sub-Brokerage (複委託) Trading?
A more accessible route for Taiwanese investors is sub-brokerage trading, officially known as “Agency Trading of Foreign Securities.” This service allows local investors to buy foreign stocks—such as U.S.-listed Bitcoin companies—through domestic brokers without needing to open an overseas account.
Here’s how it works: You place an order through your Taiwanese securities firm, which then forwards the trade request to its international partner broker. Because the transaction involves two intermediaries (domestic and foreign), it's called "sub-brokerage."
This method offers several advantages:
- Funds remain in Taiwanese banks, reducing cross-border risks.
- Local customer support handles disputes or technical issues.
- Simplified tax reporting and compliance with local regulations.
- No need to manage foreign bank transfers or worry about SWIFT codes.
Many major Taiwanese brokers—including Cathay Securities, Fubon Securities, and Yuanta Securities—offer sub-brokerage services for U.S., Japanese, Hong Kong stocks, and even沪股通 (Shanghai-Hong Kong Stock Connect).
How to Open a Sub-Brokerage Account: Step-by-Step
If you already have a local stock trading account, adding a sub-brokerage feature is usually simple. Most brokers allow you to apply online via their trading platform or mobile app.
Key Requirements:
- A verified local securities account.
- A linked bank account for fund settlement.
- Completion of risk disclosure forms (especially for foreign securities).
Once approved, you can begin placing orders for overseas equities. However, keep in mind that sub-brokerage operates under a blocked-fund system (圈存制): Your broker will reserve the required amount—purchase price plus fees—from your designated settlement account before executing the trade.
Settlement Currency: TWD vs. Foreign Currency
You can choose between using a TWD settlement account or a foreign currency account (e.g., USD):
| Option | Best For | Considerations |
|---|---|---|
| TWD Account | Occasional traders | Automatic FX conversion at broker’s rate; slightly higher spread |
| USD Account | Frequent traders | Save on conversion costs by pre-loading USD during favorable exchange rates |
👉 Learn how to time your currency conversions for maximum efficiency when investing abroad.
Pro tip: Monitor USD/TWD exchange trends. If you anticipate ongoing investments in U.S. markets, consider converting funds gradually when the dollar is weak.
Fees and Minimum Charges in Sub-Brokerage Trading
One often overlooked aspect is minimum commission thresholds. For example:
- Cathay Securities charges 0.25% for Hong Kong stock trades with a minimum fee of 40 HKD per order.
- This means if your trade value is below ~16,000 HKD, you’ll still pay the full 40 HKD—effectively increasing your cost basis.
Similarly, U.S. stock trades typically carry a flat fee (e.g., $10–$20 per trade) regardless of size, making small purchases inefficient.
Therefore, investors should:
- Consolidate smaller investments into larger, less frequent trades.
- Compare fee structures across brokers before choosing one.
- Factor in all costs—including FX spreads—when calculating potential returns.
Accessing Bitcoin ETFs Through Sub-Brokerage
Beyond individual stocks like Strategy (MSTR), Taiwanese investors can now gain exposure to Bitcoin through foreign-listed crypto ETFs via sub-brokerage accounts. These include:
- Purpose Bitcoin ETF (BTCC) – Listed in Canada
- ARK 21Shares Bitcoin ETF (ARKB) – Listed in the U.S.
- iShares Bitcoin Trust (IBIT) – BlackRock’s spot Bitcoin ETF
These products offer indirect exposure to Bitcoin price movements without holding the actual asset—ideal for risk-averse or compliance-conscious investors.
Sub-brokerage makes it possible to invest in these innovative financial instruments while staying within the regulated framework of Taiwan’s financial system.
Frequently Asked Questions (FAQ)
Q1: Is it safe to invest in overseas stocks through sub-brokerage?
Yes. Since transactions go through licensed domestic brokers regulated by Taiwan’s Financial Supervisory Commission (FSC), investor protections are stronger than direct overseas accounts.
Q2: Can I short sell foreign stocks via sub-brokerage?
Generally no. Most Taiwanese brokers do not support short selling or derivatives trading for foreign securities through sub-brokerage accounts.
Q3: Are dividends from U.S. stocks taxable in Taiwan?
Yes. Dividend income from U.S. stocks is subject to U.S. withholding tax (usually 30%, reduced to 15% under tax treaties) and must be reported in Taiwan’s annual comprehensive income tax filing.
Q4: How long does a sub-brokerage trade take to settle?
U.S. stocks follow T+2 settlement. After placing an order, expect 2–3 business days for execution and confirmation.
Q5: Can I transfer shares between brokers internationally?
Not easily. Direct share transfers between overseas and Taiwanese brokers are generally not supported. To switch platforms, you’d need to sell first, then repurchase.
Q6: Does Strategy (MSTR) offer shareholder benefits?
While MSTR doesn’t offer traditional shareholder perks like dividends or coupons, its value is tied directly to its growing Bitcoin holdings—making it a pure-play proxy for institutional Bitcoin adoption.
Final Thoughts: Which Option Should You Choose?
For passive or occasional investors, sub-brokerage offers a secure, convenient way to access global Bitcoin-centric companies without leaving Taiwan’s regulated financial ecosystem.
For active traders or those seeking advanced tools, opening an overseas brokerage account provides greater flexibility and control—despite higher transaction costs and complexity.
Regardless of your choice, investing in companies embracing Bitcoin reserve strategies represents a forward-looking approach to capital preservation in an era of monetary uncertainty.
👉 Start building your global Bitcoin investment portfolio now with confidence.
As institutional adoption accelerates and more corporations follow Strategy’s lead, early investors stand to benefit from both equity growth and indirect exposure to one of the most transformative digital assets of our time—Bitcoin.