At all financial platforms where securities, national currencies, futures and cryptocurrencies are traded, the trader is forced to put up with various fees. These additional costs include swaps, spreads, all kinds of commissions, etc. If you do not correctly plan trading, then these costs can “absorb” a significant part of the profit or even reduce the profit to zero.
Many traders today are switching from stock markets and foreign exchange markets to cryptocurrency exchanges. Trading virtual currencies is somewhat different from classic trading. First of all, this difference consists in the presence of only 4 options for fees charged on crypto exchanges. Of course, today some exotic fees may come across on new trading floors, but this is just an attempt to stand out and attract attention with unusual trading conditions.
So, let’s consider the options for commission fees that are most often paid by the crypto trader to the trading platform where he speculates or invests.
Trading commissions on crypto-exchanges:
|Stock exchange||Trading commission|
|EXMO||0.2% (cashback of paid fees is possible when performing a trade turnover)|
|Localbitcoins||0% -1% (paid by the person who creates the ad)|
|Binance||0.1% -0.04% for a taker; 0.1% -0.02% for the maker (there is a 25% discount when using BNB)|
|Bitmex||for XBTUSD: 0.075%; -0.25% (taker pays, makers are paid extra)|
|DSX||0.25% -0.1% for a taker; 0.15% -0% for the maker|
|Kucoin||0.1% -0.03% for a taker; 0.1% -0.0125% for maker|
|Crex24||0.1% -0.06% (taker); makers get rebate|
|Livecoin||0.02% -0.18% (depends on turnover over the last 30 days)|
|CEX.IO||0% -0.25% (depends on the turnover for the last 30 days)|
|Currency||0.2% when trading without borrowed funds|
|BTC-Alpha||0.1% -0.2% depending on the turnover|
|Kraken||0.26% -0.1% for the taker; 0.16% -0% for the maker|
|Poloniex||0.20% -0.1% for a taker; 0.08% -0% for the maker|
|Bitfinex||0.2% -0.055% for a taker; 0.10% -0% for the maker|
Commissions on cryptocurrency exchanges
Traders are forced to pay certain commissions for using the services and functionality of the crypto exchange.
- For account replenishment. This is a typical fee that the service charges for crediting funds to a trading deposit. As a rule, the trader does not pay anything if the account is deposited in cryptocurrency. In some cases, this is a tiny percentage. The situation is different with fiat money. Here you have to additionally pay a commission to the payment system, which will be different for each method of replenishing the account. Transactions from little-known systems or some local banks are more expensive. In addition, the percentage is determined by the level of verification passed by the trader. Anonymous speculators, in addition to limiting the functionality on the site, pay a large commission. For example, fees for replenishing an account with cryptocurrency on the popular Exmo platform are 0%, regardless of the type of coin:
- For withdrawing funds from the exchange. Everything is the same as in the previous version, only there is a nuance – traders pay a fee for the withdrawal of any currency. For crypto coins, these amounts are small, and sometimes you have to pay up to 10% for receiving fiat money. Example from the Exmo exchange:
- For a trade. This commission is provided for by each trading platform. It is charged when you open a position or close an order.
The size of the trading commission depends on: the type of exchange (fiat money, cryptocurrency, margin); development and customer acquisition strategies; on the type of order that the maker or taker creates; many exchanges set an individual commission, which depends on the trader’s trading volume over the past 30 days. On average, the fee is 0.1% – 0.2% of the transaction amount.
It has recently become popular to set separate commissions for different types of traders. There are takers and makers on cryptocurrency exchanges. These are two categories of speculators performing different functions on the trading floor:
✅ maker – draws up transactions and puts them up for sale. Such traders bring their assets to the exchange and, so to speak, make the market, increasing activity on it;
✅ taker – buys back open orders created by a maker. These speculators reduce the liquidity of the asset, since it is withdrawn from trading after the purchase.
The size of commissions for different groups of traders is not the same. The maker improves liquidity, therefore, the collection for him is less (usually up to 0.1%). Takers, on the contrary, decrease it, so they pay the exchange a higher percentage of the deal (0.1% – 0.2%).
Examples of trading fees:
- Bitmex margin crypto exchange fees:
- Binance exchange fees:
- For conversion. This is a separate version of the commission fee, which is more offensive to speculators who profit from frequent exchange transactions. Some users successfully use cryptocurrency exchanges exclusively for converting fiat currency into crypto money and vice versa, for example, RUB to Bitcoin or Ethereum. You can also exchange some crypto coins for others – let’s say, Litecoin for Monero or Bitcoin Cash for Cardano. Each such operation is subject to a commission, the size of which is different for each crypto-exchange.
Cryptocurrency exchanges with minimal fees
Among the variety of trading platforms, many crypto-exchanges are distinguished by attractive commissions for traders. Attention should be paid to the sites:
- Binance exchange is a reputable and most popular cryptocurrency exchange with acceptable commission rates ranging from 0.1% and below. When using the on-exchange currency BNB (Binance Coin), this figure is even lower;
- Exmo exchange – on this service, takers and makers give 0.2% from a deal. Depending on the trading activity for the month, a refund of up to 75% of the paid commission is possible;
- Local Bitcoin exchange – on the p2p platform, commission fees are paid only by the person who creates an ad to buy or sell. If you respond to the announcement of other traders, then the commission is not paid;
- Crex24 exchange – there are no fees for makers, and takers pay a commission of 0.1% -0.06% depending on the volume of trading in the last 30 days.
When exchanging cryptocurrencies for fiat money and vice versa, it is often beneficial to use exchangers.
Exchanges without commission interest
I manage to meet cryptocurrency exchanges where most of the commission fees are absent at all. It is necessary to carefully consider the option of switching to such a platform, since a high-quality service on which financial transactions are performed, in principle, cannot function without interest payments from traders or investors. After all, you need to pay the employees of the exchange – developers, marketers, employees of the financial department, consultants, etc. Commissions are mostly intended for this.
If the advertising of the trading platform indicates that there is no commission or there is, say, only on withdrawing funds, then three “surprises” can be expected:
- hidden interest – additional fees are not openly indicated anywhere, for example, on the daily trading volume. Yes, if the trader’s turnover during a trading session exceeds 1 BTC, there will be no commission today, but tomorrow the high tariff will be activated again, etc. Such moments are deeply hidden in the explanations to the rules of the exchange;
- poor quality of the trading platform. The organizers do not develop the project, therefore, in fact, there is nothing to charge a fee from traders. There is a primitive chart, there are no indicators, no Depth of Market – that is, everything is extremely truncated and simplified;
- compensation at the expense of other commissions. This is a tricky move used on many crypto exchanges. They probably don’t have a deposit fee. Perhaps a symbolic percentage is set for trade or exchange operations. But the commission paid by the trader for the withdrawal of cryptocurrency or fiat money will more than cover the amount not received by the service.
You need to carefully study everything and not rush to transfer fiat money or crypto coins to the trade balance. It is better to work with platforms where all commission fees are balanced.
Today, crypto traders have a huge selection of exchange platforms where cryptocurrencies are traded. Some projects are modest, with a focus on a limited market segment. Others are distinguished by separate functionality and reputation. Still others are top giants, excellent in many respects.
A trader, especially a beginner, needs to look through the many cryptocurrency brokers to settle on an acceptable option. It is impossible to rush to transfer the currency. You should study the functionality of a cryptocurrency exchange, commission percentages on it, rules, conditions, etc. Everyone will be able to find the most acceptable platform for comfortable, profitable crypto trading.
In continuation: What is a cryptocurrency exchange?