Crypto Exchange with the Lowest Trading Fees for Spot and Derivatives

Crypto Exchange with the Lowest Trading Fees for Spot Markets

In this guide, we cover the crypto exchanges with the lowest trading fees for the spot markets.

We go through the top Bitcoin trading sites for cryptocurrencies and compare them with regards to their expenses. 

 

What are trading fees?

Every crypto exchange and trading platform need to cover the expenses for their services and therefor they charges trading fees. 

However, different crypto exchanges charges different trading fees and sometime it can be hard to compare because they also gives rebate and discounts in different ways.

We will help you to understand and compare trading fees among different crypto exchanges.

Why are trading fees important to compare?

Trading fees are probably the most important single factor to compare when it comes to compare different crypto exchanges. 

Why?

Well, it might seems to be negligible to pay 0.1% or 0.05% in trading fees but if you make 100 trades, or 1.000 trades or maybe even 10.000 trades in a year it adds up and makes it absolute most important thing to compare. 

Crypto Exchanges with the lowest spot trading fee

In the graph below, we have compared the two best crypto exchange with the lowest spot trading fees available on the market, Kucoin and Binance. In addition, we have added Bybit for reference since it is a popular crypto trading platform.

Crypto Exchanges with the lowest spot trading fee​ - Bybit, Kucoin, Binance

Note: Both Binance and Kucoin spot trading fees are calculated when you are using their native coin BNB/KCS to pay the trading fees. Also, it’s presumed that you are using are referral link which will give you an additional -20% on all fess from Kucoin and Binance. It’s worth mention that Kucoin have 3 different trading classes for different cryptocurrencies and this is class A (there is also B and C with higher fees for smaller coins).

Binance Spot Trading Fees

Binance crypto exchange is offering among the lowest spot trading fees of all exchanges. 

However, to reach the lowest trading fees you must

  • Opt in to pay the Binance trading fees with the Binance Coin BNB. This will reduce your trading fees with -25%
  • Use our referral link which will give you -20% on the already discounted trading fees

On top of this, you can reduce your trading fees even further by reaching a higher VIP level

This can be done in either one of the following

  • Have large 30 day trading volume (as you can see in the graph above
  • Keep  a high balance of BNB coins on your Binance account

Kucoin Spot Trading Fees

Kucoin trading fees are very similar to Binance trading fees. This is also true about how you can reduce your trading fees with referral code, native coin and trading volume or holding KCS.

Here is the deal

  • You can get -20% on all trading fees by opt in to pay the trading fees with the native Kucoin KCS.
  • Get additional -20% on all fees by using our referral link

In addition, you can reduce your fees by reaching a higher VIP level. Like Binance, this can be done in two different ways

  • By having a 30 day average trading volume over a certain treshold (see graph above)
  • By holding the KCS coin in your Kucoin account

Bybit Spot Trading Fees

Bybit spot trading fees are high if you are a low volume trader because they don’t have the trading fee discount opportunities you find with Binance and Kucoin.

Also, they don’t have the number of listed cryptocurrencies you find on Kucoin and Binance.

Finally, they are not close to offering the trading volume Kucoin and Binance are doing in the spot market. However, for the derivative market, Bybit is a great crypto trading platform.

Conclusion: Bybit is not a good crypto exchange for spot trading but for derivative trading.

Crypto Trading Fees VS Spreads on Platforms

All trading platforms have two choices to charge their cut 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.

Crypto Trading Deposit Fees

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.

Crypto leverage trading 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.

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