How to invest in overseas BTC reserve strategy company? Is it better to open an overseas securities account or a discretionary account?

The U.S. listed company, Strategy (, which has transformed from a software company to a BTC development company, originally known as MicroStrategy), is encouraging many companies to purchase BTC as reserves to boost their weak stock prices. Currently, 78 listed companies globally, including mining companies, pharmaceutical companies, and advertisers, are buying BTC to replace their cash reserves. Many companies have seen their stock prices increase several tens to several hundreds of times after implementing a BTC reserve strategy. How should Taiwanese investors invest in these companies? Do they need to open overseas securities accounts or use domestic securities firms' 'sub-custody accounts'?

Open an overseas securities account?

There are two ways to invest in overseas listed companies, one is to open an overseas securities account directly, if investors who need normal trading suggest that they can directly open an overseas account, at present, many overseas brokerages have provided an online account opening process, American brokerages such as Firstrade, Charles Schwab Schwab Schwab Securities, Interactive Brokers IB Interactive Brokers, are popular options commonly used by Taiwanese, as long as you fill in the information online and upload your documents, you can quickly open an overseas securities account.

The disadvantage of opening an overseas securities account is that funds need to be remitted overseas, and the remittance fee is usually around 1000 TWD each time, depending on the handling fee of each bank. When remitting back, the broker will also charge a fee, which is not suitable for frequent deposits and withdrawals. This method is suitable for investors who wish to diversify some of their assets overseas.

For a complete tutorial on opening a US stock account, the author recommends Mr. Market's special article. Interested readers are encouraged to refer to it themselves. Chain News does not charge any commission and assumes no responsibility for any recommendations.

What is a batch order trading?

A more convenient way is to trade through delegated trading, directly place orders through Taiwanese securities firms, keep funds in Taiwan's banks, and in case of any unexpected situations, Taiwanese operators can assist in communication.

The formal name of the sub-brokerage (Sub-brokerage) is "Entrusted Trading of Foreign Securities", allowing investors to trade foreign stocks using a "sub-brokerage account" opened by domestic securities firms with overseas securities sub-brokerage qualifications, instead of opening a securities account overseas. After receiving the order, domestic securities firms place orders with foreign securities firms. As the order goes through two actions of domestic and foreign securities firms, it is called "sub-brokerage".

How to open a joint account? Is it better to settle in New Taiwan Dollars or foreign currency?

Taiwan investors can directly open a re-entrusted account through a broker-dealer, and if they already have a Taiwan stock securities account, most of them can directly open a re-entrusted account on the brokerage platform. However, due to the re-entrustment transaction adopts the circle deposit system, investors need to ensure that there is a sufficient amount of delivery money in the agreed delivery account ( transaction price plus handling fees and miscellaneous fees ) before they can place pending orders.

The delivery account can choose a foreign currency account or a Taiwan dollar account, if it is an investor who does not trade often, the author recommends trading with a Taiwan dollar account first, which can avoid the process of converting foreign exchange by yourself and calculating the handling fee first; However, if you are an investor who regularly trades U.S. stocks or the stock markets of other countries, you can first exchange the currency in your account when the exchange rate is low, which may save some costs on the exchange rate difference.

It is also important to note that composite order transactions usually have a minimum fee limit. For example, the handling fee for Hong Kong stocks at Cathay Pacific Bank is 0.25%, with a minimum charge of 40 Hong Kong dollars per transaction. In other words, if the order amount does not exceed 16,000 Hong Kong dollars, a fee of 40 Hong Kong dollars will still be charged.

Taiwan securities firms mostly provide US stocks, Japanese stocks, Hong Kong stocks, Shanghai-Hong Kong Stock Connect and other multi-entrusted transactions, opening an account can invest in multiple countries and markets at the same time, which is a convenient investment channel for investors who do not need to buy and sell frequently.

In addition to overseas individual stocks, Taiwan has also opened up foreign virtual asset ETF's delegated trading.

How to invest in overseas BTC reserve strategy companies? Is it better to open an overseas securities account or a sub-trust account? Originally appeared in Chain News ABMedia.