In this paper, the hysteretic behaviors of channel and C-section cold-formed steel members (CFSMs) under cyclic axial loading were simulated with the finite element method. Geometric and material nonlinearities, Bauschinger effect, strain hardening and strength improvement at corner zones were taken into account. Extensive numerical results indicated that, as the width-to-thickness ratio increases, local buckling occurs prematurely. As a result, the hysteretic behavior of the CFSMs degrades and their energy dissipation capability decreases. Due to the presence of lips, the hysteretic behavior of a C-section steel member is superior to that of its corresponding channel section. The intermediate stiffeners in a C-section steel member postpone the occurrence of local buckling and change its shapes, which can greatly improve its hysteretic behavior and energy dissipation capability. Therefore, the CFSMs with a large width-to-thickness ratio can be improved by adding lips and intermediate stiffeners, and can be used more extensively in residential buildings located in seismic areas.