In this guide, we provide our readers an answer to what crypto trading platform offers lowest trading fees. We go through popular trading platforms for cryptocurrencies in terms of their expenses. We also provide a short description of spreads and differences these have against trading costs.
Fees vs. Spreads
Different trading platforms have two choices to reap revenues from your investments. Some use trading fees while others opt for spreads. Fees are classic expenses for your trades, where you pay to put a percentage of the total value your order has. Their level usually depends on monthly activity (volumes achieved) or the expense might fix itself regardless of the trade value.
Spreads, on the other hand, define the buy and sell price of the cryptocurrency before one can even create an order. Traders pay a part of the bitcoin’s value and need to earn above the mentioned difference to make a profit.
In many cases, trading with platforms that implement fees transparently is a lot cheaper way to make money trading cryptocurrencies.
Account for Other Costs
Apart from trading expenses, no matter if they are spreads or regular fees, investors should take a look at deposits/withdrawals. Funding your account through fiat or crypto does come with own set of fees that can be expensive. Thus, we made a review that you should check out for those websites that offer lowest deposit fees.
Additionally, investors should understand that exchange rates also account as fees. The difference from industry average can be quite large, in some cases over 5% at some platforms. If doing a margin trading, make sure you account for interest rates while lending from the platform.
Leverage is borrowing from the market and to understand the cost structure and function itself better, read our guide about it. Lastly, traders should always account for taxes if their country implemented crypto regulations.
Platforms with Lowest Fees
The platforms that offer the lowest fees for cryptocurrency trade can be found below.
Robinhood – It is by far the cheapest of the lot, offering a commission-free platform to trade cryptos. The only costs you are paying are SEC-related, accounting for $13 per $1 million. Why is it so cheap? The company invests in other projects and companies through money deposited into the account. Since the customer base is large enough, Robinhood is free to make profits from own trading, attracting clients through “no-fee” policy.
BitMEX – Apart from regular maker/taker structure, the platform offers reimbursements for short funding. When short leveraging bitcoin, account for a rebate of -0.0111% while Ethereum shorting has -0.1753%. BitMEX also has leverage rate of 100x as its highest point, used for bitcoin. You can read more about leverage trading in our separate guide.
Binance – Next in the line of low-fee websites is Binance, offering from 0.02% to 0.1% if BNB is used for payment. If not, the fee structure changes slightly into 0.015% to 0.075%.
CEX.IO, Bitstamp, and Kraken are all similar in terms of costs and are almost the same as the top choices. Their fees range from 0% to 0.25%, with Kraken being the most “expensive” with 0.26% for takers.
Other cheap platforms are:
- Coinbase (0% to 0.3%)
- CoinEX (0.1%)
- EXMO (0.2%).
In this guide, we answered what crypto trading platform offers the lowest trading fees. As a result of our investigation, many platforms compete closely for the top spot, including Robinhood, BitMEX, Binance, Bitfinex, and Poloniex. Read more about these platforms in our trading reviews.
Others trail very short of these marketplaces, meaning that traders do have a choice when crypto trading is in question.