Commissions on cryptocurrency exchanges: looking for a profitable one
A trader in any market, be it the stock market, foreign exchange market or the now popular cryptocurrency market, is surrounded by a huge number of additional costs. These are all sorts of commissions, spreads, swaps, etc. And if you do not plan your trading correctly, these costs can "eat up" the lion's share of your profits or reduce them to zero.
More and more of our readers are switching from the foreign exchange market to trading cryptocurrencies. Therefore, especially for you, we have selected cryptocurrency exchanges where additional costs are minimized.
Commissions on cryptocurrency exchanges
Using the services of a cryptocurrency exchange, a trader has to pay a number of commissions. The most common types of them on trading platforms are:
Fee for transaction operation
This is the most common commission for depositing or withdrawing funds from the exchange.
If a cryptocurrency exchange supports the deposit or withdrawal of only cryptocurrencies, then in such transactions the trader will pay only the commission charged by the miners. The size of the commission in this case is usually insignificant.
For transactions with fiat currencies, you will have to pay the commission of the payment system. In this case, depending on the chosen system (bank transfer or something else) the size of the commission will differ. In addition, the amount of commission is affected by the level of verification passed for the trader's account.
Commission per trade transaction
This commission on cryptocurrency exchanges is charged directly during trading, when placing an order. As a rule, its size ranges from 0.1-0.25%, but on some platforms it can reach 1% of the trading volume.
In addition, on some cryptocurrency exchanges, the amount of commission per trade depends on whether the trader is a maker or a taker.
- A maker is a trader who opens sell trades. This name comes from the English word make. It is considered that a maker brings his assets to the exchange, i.e. "makes the market".
- Taker (from the English word take) - that a trader who buys. It is believed that the taker reduces the liquidity of the asset on the exchange, because after the purchase he withdraws it to an external account.
Since the maker gives liquidity and the taker takes it away, as a rule, commission sizes for the maker are smaller than for the taker.
However, there are cryptocurrency exchanges where there are no commissions for placing orders. Such platforms are gaining popularity, but the liquidity of their trading leaves much to be desired. In addition, as compensation for the lack of trading commissions, such platforms often overcharge transaction fees.
Crypto exchanges with minimal transaction fees
It is worth noting right away that most cryptocurrency exchanges do not support fiat money transactions, and offer only cryptocurrencies for deposit or withdrawal.
The reason for this is simple. a payment from a bank card can be canceled, while a cryptocurrency payment cannot be canceled in principle. That is why those cryptocurrency platforms that provide the service of depositing or withdrawing money by credit card or bank transfer take a commission as protection.
Cex.io - lowest commission
Among the most popular trading platforms, Cex.io has the lowest deposit and withdrawal fees. The commission for depositing funds from a bank card is 3,5%and for the conclusion - 1,2%. In addition, the Cex.io exchange makes it possible to conduct transactions with ruble bank cards. It should be noted that the commission fee will be higher for transactions in rubles.
KuCoin - exchange with favorable tariffs
When depositing a trading deposit with cryptocurrency, most platforms do not charge any commissions. However, when withdrawing funds, sometimes even in cryptocurrency, some commission will have to be paid. In this regard, KuCoin exchange has favorable rates, and if you use your own tokens of the exchange, the size of this commission can be reduced even more.
Coinbase and Kraken - no fees for banking services
In addition, the size of commissions depends on the geographical location of the trader and the site itself. If it is the EU or the USA, the size of commissions will be small or they will be absent at all:
- Coinbase, which is based in the U.S., does not charge commissions when depositing money by bank transfer, and when withdrawing money to a bank account, you need to pay only 15 cents.
- on the American crypto exchange Kraken there is no commission for bank deposits.
YoBit - commission-free EPSs
Unfortunately, not many cryptocurrency platforms are available to Russian traders, so the choice of an exchange with optimal commission rates is somewhat limited.
If transactions with bank cards or transfers are not suitable for you for some reason, please consider cryptocurrency exchange YoBit. Here there are no commissions when replenishing the trading account in dollars via Perfect Money and in rubles via Payeer. In general, this exchange works with a huge number of payment systems. The only "BUT" is the reputation of a very unreliable trading platform, which YoBit exchange has among domestic traders. Nevertheless, if you use it for transit, it is quite suitable.
Cryptocurrency exchanges with no transaction fees
Whaleclub.co. - is not exactly a cryptocurrency exchange, but rather a specific broker that provides its clients with the opportunity to trade on financial markets using cryptocurrencies BTC, ETH, LTC, and DASH. Order execution is free of charge, commission is charged only for leveraged trading and withdrawals.
Cobinhood Exchange - is a trading platform that announced itself as the first cryptocurrency exchange with zero trading commission. As we have already noted, the lack of commission for placing orders resulted in quite high withdrawal fees: for bitcoin - 0.001 BTC, for ether - 0.007 ETH, for tether - 20 dollars. For other tokens, this commission is equivalent to the amount of 8.4 dollars.
Cobinhood is not the only marketplace that positions itself as a zero commission exchange. However, on some such exchanges, zero trading commission is compensated either by an inflated withdrawal fee, or an inflated cryptocurrency exchange rate (up to 20% compared to other platforms), or simply a non-transparent scheme of forming commission fees.
Cryptocurrency marketplaces with minimal commissions
Of the crypto exchanges with minimal commissions, we can highlight the following sites:
- Binance has the lowest commission fees among the most popular platforms - 0.1%, and if you use your own tokens of the exchange, it will be even less.
- On the site HitBTC commission for placing an order for both maker and taker is 0.1%.
- At Bitfinex trading commission for the maker is 0.1% and 0.2% for the taker.
- At io for placing an order the maker will pay from 0% to 0.16%, for the taker the commission will be from 0.1% to 0.2%.
- At the sites GDAX и itBit for makers there is no trading commission. For takers it will be 0.25%.
- On the stock exchange Livecoin it is possible to find an option with replenishment of the account with fiat currency with zero commission (through the Capitalist system). In addition, if trading volumes are small, the trading commission will be 0.18%.
In conclusion
In conclusion, we must say that this article does not pursue any advertising purposes, and the cryptocurrency exchanges mentioned in it are, by no means, the truth in the last instance.
There are a great number of cryptocurrency exchanges offering trading in digital assets - from modest exchanges focused on the local segment of the market, with different reputations, to top giants, which are analogues of the NYSE, LME or NASDAQ in the cryptocurrency world. Therefore, each trader can choose an exchange with acceptable commission fees. We can only wish you good luck in such an exciting business as cryptocurrency trading.