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U.S. Stock Investment Pipeline 2026: My Real Choice After Using Multiple Entrustment, IB, and Firstrade

The complete process of investing in US stocks from scratch. Comprehensive comparison of re-entrustment vs. overseas securities firms, account opening steps, deposit methods, tax considerations, and actual measurement of trading fees.

US stocks Firstrade IB Re-delegation Overseas brokerage 2026
· last updated 2026-06-21 · last review 2026-06-21

💡 This article is my true experience of using 3 methods to invest in US stocks for 5 years. For Taiwanese investors who “want to invest in US stocks but don’t know where to start”.

1. Complete comparison of 3 pipelines

There are three ways to invest in U.S. stocks: domestic brokerage re-entrustment, overseas brokerage, and ETF. Full comparison below.
  • My real usage process

    In 2020, I started using re-entrustment to try → In 2022, I opened Firstrade (a lot of handling fees were saved) → In 2023, I tried IB (there are too many functions to use) → Now I am mainly using Firstrade.

  • Hidden costs of three paths

    Re-entrustment: Handling fee 0.15% (minimum NT$ 39) + remittance fee. Firstrade: No commission, but withdrawal is $35 (all withdrawals will be returned to Taiwan). IB: Commission-free but $20 monthly fee (if trading volume is low).

pipeline handling fee Chinese interface tax Suitable
Recommissioned (Yongfeng/Yanta) 0.15-0.35% Domestic income 1-3 years newbie
Firstrade 0% overseas income ✅ Mainstream choice
IB Interactive Brokers 0-0.005% overseas income professional player
Domestic ETF related to buying US stocks 0.1% within the territory Complete novice / don’t want to open a US stock account

2. Firstrade complete account opening process (the mainstream choice I recommend)

Firstrade is a long-established American brokerage established in 1985. After 2014, it supports a Chinese interface, zero commission, and is used by the most people in Taiwan. Below is the complete account opening process.
  • Step 1: Apply online (10 minutes)

    https://www.firstrade.com → Chinese version → Open an account → Fill in basic information + upload passport photo + second ID.

  • Step 2: Wait for review (3-5 working days)

    Firstrade will confirm the account activation via email. During this period, you may be asked to provide additional information (career/investment experience).

  • Step 3: Deposit (wire transfer is most commonly used)

    Wire transfer from a Taiwanese bank to Firstrade's account at BMO Harris Bank. The remittance fee is about NT$800 and will arrive in your account in 2-3 working days. Minimum deposit $1000.

  • Step 4: Start buying and selling

    Web/APP/desktop software can be used. Place an order → Select a stock code → Enter the quantity → Confirm. You can buy one share of U.S. stocks (there is no concept of "whole stock").

  • Step 5: Form W-8BEN (reissued every 3 years)

    Prove that you are a non-U.S. resident → 30% will be withheld from U.S. stock dividends (31% will be withheld if you do not sign). This is handled automatically when you open an account with Firstrade.

Tip

  • Firstrade cannot use "Yushan e-USD" to transfer directly, you must use wire transfer
  • Withdrawals back to Taiwan cost 35 USD per transaction (regardless of the amount), so withdraw more at one time to save on handling fees.

Important Notes

Overseas securities firms are foreign financial institutions and are not protected by the Taiwan Financial Supervisory Commission. Please evaluate the risks before making your decision.

3. Which ETF is the most stable for a novice to buy in the first year?

There are 6,000+ stocks in the US stock market, how do novices choose? The answer is "Don't pick individual stocks yet, buy ETFs." Here are my recommended 3 ETF allocations for beginners.
  • My recommended 1 year configuration for beginners

    70% VT (Global Dispersion) + 20% VOO (US Representative) + 10% QQQ (Technology Bonus). Fixed DCA buy-in every month, re-adjusted after 1 year.

  • Why VT is not VOO

    VT includes Taiwan/China/Europe/Japan and other global companies, which is more dispersed. If the US weakens in 1-2 years (like 2022), VT is more resilient than VOO.

  • Advanced configuration (after 2 years)

    Join ARKK (disruptive innovation), SCHD (high dividend), TLT (long-term debt) to do risk parity. But don’t touch too much in 1 year.

ETF code name expense ratio shareholding Suitable
global stocks VT 0.07% 9000+ global companies ✅ Most scattered
All U.S. markets VTI 0.03% 4000+ US companies The U.S. economy is optimistic
S&P 500 VOO 0.03% 500 major companies Robust representation
technology stocks QQQ 0.20% Nasdaq 100 Optimistic about technology

4. Tax + declaration practice

It is easy to make mistakes about the taxation of U.S. stock investment in Taiwan. Here are 4 key points.
  • 1. 30% withholding on U.S. stock dividends

    When Firstrade receives dividends from U.S. companies, it automatically withholds 30%, and the remaining 70% is credited to your account. The United States has withheld this part, and Taiwan will no longer teach it.

  • 2. Capital gains (differences in buying and selling prices) - not taxed in the United States, but considered "overseas income" in Taiwan

    Profits from selling U.S. stocks are not taxable in the United States, but they are "overseas income" and are included in "basic income." Annual income up to RMB 6.7 million is exempt from comprehensive income tax, but income over RMB 7.5 million is subject to 20% AMT.

  • 3. Prepare Form 1099-DIV / 1099-B when filing taxes

    Firstrade sends Form 1099 (dividends + transaction records) in January-February every year. Fill in the "Overseas Income" column when reporting in Taiwan in May.

  • 4. Spouses filing jointly to save taxes

    If your annual income is high, placing some U.S. stocks in your spouse’s name can reduce your tax rate. But you need to actually operate the transaction on that account.

Important Notes

Tax regulations may change, please consult a qualified accountant for important decisions. This article is only about sharing personal experience.

5. What signals to watch after the U.S. stock market opens?

Spend 15 minutes watching the following 3 signals every day after the U.S. stock market opens (morning in Taiwan).
  • 1. I ran it myself us-stock.9niche.com Top 30

    200+ daily technical scores for US stocks + market breadth + theme heat map. See which files have high scores + popular topics.

  • 2. Three major indices SP500/Nasdaq/Dow

    Determine the overall direction of the market. 3 all red = strong, all green = weak, inconsistent = sector rotation.

  • 3. VIX panic index

    VIX > 30 indicates market panic → possible overweight opportunity. VIX < 15 indicates an overheated market → possible time to reduce your position.

Tip

  • U.S. stock market morning after-hours analysis <a href="https://us-stock.9niche.com/">us-stock.9niche.com</a>
  • Pay special attention to the stocks corresponding to next week’s financial report calendar

Key Takeaways

  • 1 Multi-delegation is suitable for novices with 1-3 years of practice + small investments, but the long-term handling fee is too expensive
  • 2 Firstrade is the most popular overseas brokerage in Taiwan: zero commission, Chinese interface, and withdrawals of US$35
  • 3 IB (Interactive Brokers) has the most powerful functions but complicated interface, and is only used by professional players.
  • 4 For after-hours analysis of U.S. stocks, visit us-stock.9niche.com
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General Disclaimer

The information provided on this site is for reference only. We do not guarantee its completeness or accuracy. Users should determine the applicability of the information on their own.

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