Crypto exchanges, like their exchange counterparts, charge a certain fee for using the platform. These can be commissions for trading operations, withdrawal of funds or payment of mandatory fees for using the services of the company.
Sometimes payments to exchanges can be up to 10% of a trader’s income, and if a user trades amounts of $150,000 or more, then only $15,000 to $30,000 per month will be required to pay commissions. In addition, high commissions may well be a signal that the exchange is on the verge of closing and you urgently need to withdraw money.
There are several types of basic commissions on cryptocurrency exchanges: transaction commission, commission for depositing and withdrawing funds, trading commissions, etc. Therefore, when choosing an exchange for trading, it is necessary to familiarize yourself with the existing commission fees in order not to give all the profits to the exchange.
We compared the size and types of commissions on the most popular crypto exchanges.
- EXMO – 0.2% (return of the paid commissions is possible when making a trading turnover).
- Binance 0.1-0.04% for the buyer; 0.1-0.02% for vendor (you can get up to 25% discount for BNB token users)
- Localbitcoin up to 1%. The commission is paid by the person who created the ad.
- KuCoin 0.1-0.03% for the buyer; 0.1-0.0125% for the supplier.
- CEX.IO 0-0.25% depends on the turnover in the last 30 days.
- Huobi 0,2%.
- Bittrix 0,25%.
- Yobit 0,2%.
- BTC-Alpha 0.1%-0.2% depending on turnover.
- Nominex 0.1% – 0.040% for the buyer; 0.1% – 0.020% for the supplier.
- Phemex -0%
You can pay the commission in tokens owned by the project or in cryptocurrencies such as USDT, BTC and others. At the moment, there are not many crypto exchanges on the market with the ability to reduce the commission to 0% due to a special premium account. Such an account allows you to save thousands of dollars, instead of paying a 1% commission.
It is hard to even imagine how much money a trader loses on commissions. For example, the number of registered users of the Binance cryptocurrency exchange was 7.9 million. Thus, if each user of the platform made a transaction, imagine how many transactions actually go through this exchange.