Comprehensive Comparison of Overseas Brokers: How to Choose Among 8 Platforms to Save Money

More and more people are investing in U.S. stocks, but many beginners are kept out by account opening procedures, fee comparisons, language barriers, and other issues. In fact, choosing a suitable overseas broker is much simpler than you think. This article will help you thoroughly understand the core differences among overseas brokers and quickly find the investment platform that best suits you.

Why Choose an Overseas Broker to Invest in U.S. Stocks

Compared to domestic multi-authorization models, opening an account directly with an overseas broker offers significant advantages.

U.S. stocks like Amazon, Google, Apple, and the S&P 500 are always the focus of global investors, offering high returns and liquidity. But investing in U.S. stocks through domestic brokers’ multi-authorization methods presents two problems: higher fees than direct investment and trading decisions controlled by intermediaries.

With overseas brokers, the situation is completely different. You can trade 24/7 in real-time, independently control every order, and enjoy highly competitive rates. This is especially advantageous for high-frequency traders and investors with large capital, saving considerable costs.

Complete Breakdown of Overseas Broker Fee Structures

Overseas brokers no longer rely solely on trading commissions for profit. Most mainstream platforms have announced commission-free trading, but that doesn’t mean there are no costs at all.

Key fee items include:

Trading costs: Most overseas brokers have achieved zero commission on stock trades, replaced by bid-ask spreads. For example, Interactive Brokers claims a fee of $0.005 per share, but accounts with less than $100,000 balance pay a $10 monthly fee; Fidelity waives account maintenance fees entirely, making it more friendly to ordinary investors.

Currency exchange and withdrawals: Often overlooked, cross-border remittances involve foreign exchange losses. Withdrawal fees typically range from $10 to $45—Mitrade and eToro are relatively cheap (first 1-2 withdrawals free or only $5), while Firstrade and Charles Schwab charge $35.

Other hidden costs: Platform usage fees, data subscription fees, financing interest, etc. These vary by platform and account type, but overall, the fee structure of overseas brokers is vastly different from domestic multi-authorization models.

In-Depth Comparison of 8 Overseas Brokers

Interactive Brokers — The Most International Platform

Founded in 1978, Interactive Brokers is the top choice for professional traders. It offers the broadest range of investment products, trading in 135 international markets with daily transaction volumes reaching millions.

Core advantages: The most comprehensive product selection (stocks, options, bonds, futures, forex, cryptocurrencies, etc.), over 60 order types, making it a trader’s toolbox. For programmers, its API supports automation.

Main disadvantages: Account opening thresholds vary (accounts under $100,000 require monthly fees), Chinese customer support is limited, and the learning curve is steep.

Suitable for: Professional traders, high-frequency operators, experienced investors.

Fidelity — The Fund Investment Expert

Founded in 1946, Fidelity is one of the oldest financial institutions in the U.S. and the largest provider of 401(k) retirement plans. It has a dominant position in mutual funds and ETFs.

Core advantages: Zero account maintenance fees, zero stock trading commissions, supports PayPal deposits/withdrawals, very friendly to beginner investors. Its fund library is extensive with many options.

Main disadvantages: High withdrawal fees ($3%), options trading is not its focus.

Suitable for: Fund investors, long-term conservative investors.

TD Ameritrade — The Most Product-Rich

Merged with Charles Schwab in 2019, TD Ameritrade inherited strengths from both, becoming one of the most popular U.S. brokers. Its Thinkorswim platform is powerful and favored by many long-term investors.

Core advantages: The most comprehensive trading varieties, over 100 no-commission funds, excellent demo account features, good Chinese support.

Main disadvantages: Account opening process is relatively complicated, $25 withdrawal fee.

Suitable for: Long-term low-frequency investors, users valuing trading tools.

Firstrade — Pioneer in Chinese-language Service

Founded in 1985 by Chinese-American Liu Jinhang, it was one of the earliest overseas brokers to offer Chinese-language services for Chinese investors. Fast account opening and very low trading costs are its hallmarks.

Core advantages: Zero commissions on stocks, ETFs, options; no minimum account balance; comprehensive Chinese support; quick account opening.

Main disadvantages: High withdrawal fee ($35 per time), past issues with online customer service.

Suitable for: Chinese-speaking users, cost-sensitive investors.

Charles Schwab — The Benchmark for Physical Brokers

Founded in 1971, as the largest physical stock broker in the U.S., Schwab is listed on NASDAQ, with assets exceeding $3 trillion, offering absolute security.

Core advantages: Zero fees for U.S. stocks, ETFs, and government bonds; VISA card value-added services; stronger market position after merging with TD Ameritrade.

Main disadvantages: High account minimum ($25,000), $25 withdrawal fee, incomplete Chinese pages.

Suitable for: High-net-worth investors, low-risk institutional investors.

Futu — Mobile Trading Preferred

Regulated in Hong Kong, Futu is an international broker with a top-rated app, offering a simple and intuitive trading experience. Note that fee policies differ for U.S. and non-U.S. users.

Core advantages: Zero fees for U.S. users, excellent app design, supports trading U.S. and Hong Kong stocks simultaneously.

Main disadvantages: Non-U.S. users pay 0.2% fee, high withdrawal fee ($45), minimum account opening requirements.

Suitable for: U.S. residents, investors prioritizing mobile trading.

Mitrade — The Cost King of CFD Trading

Founded in Australia in 2011, Mitrade specializes in derivatives trading. Its biggest feature is extremely low trading costs and flexible leverage.

Core advantages: Fees as low as 0.01-0.015% (industry lowest), very low minimum deposit ($50), demo account without deposit, 1-2 free withdrawals per month, supports short selling.

Main disadvantages: Only offers U.S. stock CFDs, not actual shares; involves leverage risk.

Suitable for: Short-term traders, cost-conscious investors, those with high risk tolerance.

eToro — The Social Trading Pioneer

Founded in 2007, eToro is known for copy trading and social features. You can observe other investors’ operations and follow them with one click, but this convenience comes with high risk.

Core advantages: Community interaction, innovative copy trading, very low spreads (0.09%), comprehensive demo account.

Main disadvantages: $200 minimum deposit, $10 monthly inactivity fee, success rate of copy trading not guaranteed, product descriptions mainly in English.

Suitable for: Social investors, beginners willing to learn from others.

Choosing an Overseas Broker Based on Your Investment Style

I am a high-frequency trader, how should I choose?

First choice: Interactive Brokers, with over 60 order types and strong API support to meet your needs. Alternatively, Mitrade’s ultra-low fees (0.01-0.015%) are friendly for high-frequency operations.

I am a long-term, stable investor, how should I choose?

Charles Schwab or Fidelity are ideal. Schwab offers a full range of stocks and bonds; Fidelity dominates in funds. Both have zero maintenance fees, especially suitable for long-term holdings.

I am extremely cost-sensitive, how should I choose?

Mitrade is a “cost slaughterer,” with fees as low as 0.01-0.015% and free withdrawals, making it the most aggressive pricing in the market. Remember, you are trading CFDs on U.S. stocks, not actual shares.

I am a Chinese speaker, how should I choose?

Firstrade and Futu both offer comprehensive Chinese support. Firstrade has lower trading costs but higher withdrawal fees; Futu’s fee policies depend on your residence.

The Three Main Forms of U.S. Stock Investment

Actual Stock Trading — True Ownership

Buying through traditional brokers like Schwab or Fidelity gives you real shares. You hold shareholder rights, including dividends and voting. However, account opening thresholds are usually high (e.g., Schwab requires $25,000).

U.S. Stock ETFs — Diversification Tool

ETFs track index performance and require opening accounts with traditional brokers. They offer diversified risk but also face high minimums.

U.S. Stock CFDs — Flexible but High Risk

Platforms like Mitrade and eToro offer contracts tracking real-time U.S. stock prices, but you do not own actual shares. Advantages include very low minimum deposits (a few dozen dollars), leverage, and short selling.

Real Risks of Investing via Overseas Brokers

Liquidity and Account Security Risks

While mainstream overseas brokers are regulated by authorities like FINRA and SIPC, extreme events (e.g., Lehman Brothers in 2008) can still pose risks. Choosing large, strictly regulated platforms (e.g., Schwab, Fidelity) can significantly reduce these risks.

Exchange Rate and Legal Risks

Cross-border investments involve foreign exchange risks. Additionally, if the account owner passes away or disputes arise, handling inheritance or legal issues with overseas brokers can be time-consuming. This is an implicit cost compared to domestic investing.

Information Asymmetry Risks

Many investors, due to language barriers and lack of legal knowledge, are easily misled by false investment information or social media rumors. Especially CFD platforms filled with “copy trading,” which seem convenient but carry high risks—you can never guarantee the judgment of the trader you follow.

Leverage Risks (Unique to CFDs)

Platforms like Mitrade and eToro’s leverage mechanisms can amplify gains but also losses. Accounts can be liquidated instantly, even resulting in negative balances. Improper use of risk management tools like stop-loss and take-profit can worsen losses.

Summary and Recommendations

Choosing an overseas broker boils down to matching your investment style and budget.

• Professional traders should choose Interactive Brokers for the most comprehensive tools.
• Long-term, stable investors should consider Schwab or Fidelity for zero-fee policies.
• Extremely cost-sensitive investors can opt for Mitrade, but must understand CFD risks.
• Chinese speakers should consider Firstrade or Futu, balancing fee rates and usability.

Regardless of your choice, follow these three principles: first, use demo accounts to familiarize yourself; second, start with small amounts; third, learn to use risk management tools. The opportunities in the U.S. stock market are vast, but success depends on choosing the right tools and understanding the risks involved.