In January 2021, trading crypto without fees isn’t really a thing for the most part anymore.
Thus, this article is now going to be about “how to trade crypto at low fees / minimal fees” and other options.
Many traders today are switching from stock markets and foreign exchange markets to cryptocurrency exchanges. Trading in virtual currencies is somewhat different from classic trading. First of all, this difference consists in the presence of only 4 options for commissions 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 invests.
Trading commissions on crypto exchanges:
- 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 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 for the last 30 days)
- CEX IO: 0% -0.25% (depends on turnover over the last 30 days)
- Yobit: 0,2%
- Currency: 0.2% when trading without borrowed funds
- Bittrex: 0,25%
- Huobi: 0,2%
- BTC-Alpha: 0.1% -0.2% depends on 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.
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 the maker. These speculators reduce the liquidity of the asset, as it is withdrawn from trading after the purchase.
Exchanges without commission
It is possible 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. You have to pay the employees of the exchange – developers, marketers, employees of the financial department, consultants, etc.
If the advertising of the trading platform indicates that there is no commission or there is, for example, only on withdrawing funds, then three “surprises” can be expected:
- hidden % – additional fees are not openly indicated anywhere, for example, on the daily trading volume. Yes, if the trader’s turnover in 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 exchange rules;
- 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 for trade or exchange operations has been set. But the commission paid by the trader for the withdrawal of cryptocurrency or fiat 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 fees are balanced.