Cryptocurrency exchanges charge fees for trading bitcoin and other cryptocurrencies. If you trade cryptocurrency with a big volume, fees are an important factor to consider. No exchange is free and fees vary from exchange to exchange. Mainly, fees are charged when you deposit, withdraw and trade cryptocurrency. Some exchanges like CEX and Coinbase allows users to deposit funds to account using a credit card or a bank transfer. These can incur additional fees. The low fee associated with bitcoin and cryptocurrency is what got me into crypto. When you send someone money from a bank account, you pay a fee. Then you have to wait a few days for the money to clear. Additionally, you pay a fee for just having money sit in your bank account. All this hassle can be avoided with cryptocurrency. A handful of exchanges do not charge a fee when you deposit or withdraw. These exchanges only charge a network fee. This fee goes straight to the network, not to the exchange. Out of many exchanges, I have compiled a list of best exchanges with the lowest fees.
This is a service provided by Coinbase for professional traders. Initially, Coinbase Pro was called Gdax. Unfortunately, Coinbase Pro doesn’t have many cryptocurrencies to trade. But, you can trade some of the major cryptocurrencies available today. Coinbase also has another service called Coinbase Prime for institutions. The fee structure is similar in both Coinbase Pro and Coinbase Prime.
Coinbase Pro has the lowest fee from all exchanges listed on this article. Coinbase Pro uses the maker-taker module to charge fees from customers using their exchange.
When you place an order at Coinbase, you will either be a market maker or a market taker. If your order gets filled automatically, you are considered a market taker. If the order doesn’t get filled automatically, it goes in the order book until it gets filled. In this case you are considered a market maker.
At Coinbase Pro, market maker pays a considerably lower fee. Although, if your trading volume is less than $50K over the trailing 30-day period, maker and taker pays the same fee. Above $50K, maker and taker fees vary. These fees are updated regularly. You can check out Coinbase Pro fees here.
Although it is important to mention that if you want to buy Bitcoin with the lowest fee at Coinbase Pro, you need to deposit funds to your Coinbase Pro account using ACH (bank transfer). Bank transfers to Coinbase Pro accounts are free. All withdrawals and deposits of digital assets are also free.
Coinbase and Coinbase Pro are owned by the same company. At Coinbase, fees are slightly higher than Coinbase Pro. Although, Coinbase still ranks in top cryptocurrency exchanges with lowest fees. Just like Coinbase Pro, Coinbase charges no fee when you deposit or withdraw using ACH (bank transfer).
You are charged a spread of up to 2% for digital currency conversions. That is when you trade crypto with crypto.
If you only buy or sell cryptocurrency, the fees are lower. Coinbase fees are constantly being updated. You can check out the breakdown of their fee structure here.
Square Cash App
This is an app that allows sending and receiving funds between friends, family or businesses. Although this app is not a cryptocurrency exchange, you do have the option to buy, sell and hold bitcoin. You are not charged a fee for buying and selling bitcoin. Unfortunately, as of now, this app is only available for people living in the U.S. You can deposit bitcoin to Square Cash but sending payments with bitcoin is not supported. You are allowed to buy and sell up to $10,000 worth of bitcoin every week. Square Cash is not a bitcoin wallet. Bitcoin you buy is attached to your account. This sure has its risks but makes it easier for newcomers to get into bitcoin.
Binance is one of the most popular cryptocurrency exchanges right now. This exchange has grown to be one of the largest exchanges, thanks to its easy to use interface, the variety of coins available to trade and low fees. If you are an average user, you can trade up to a volume of 100 BTC every month. You are charged a fee of 0.1% of the total amount of your order. This fee of 0.1% is low compared to similar cryptocurrency exchanges. Additionally, having Binance coin will further lower your fee from 0.1% to 0.75%. If you own Binance coin, you are given a 25% discount from the fee. The fee will be taken from your Binance coin holdings. And, if you are a high volume trader (more than 100 BTC every month), you are given an even higher discount. Fees can be low as 0.015% depending on your trading volume. Unlike many other exchanges, Binance does not charge a fee when you deposit coins. Fees for withdrawals depend on the cryptocurrency you are withdrawing. This exchange has all the major coins with significant volume compared to other exchanges. Withdrawals and deposits are delivered promptly.
LocalBitcoins is a peer-to-peer exchange. Paxful and Bitquick are similar services. You buy directly from sellers. LocalBitcoins charges no fee for buyers but sellers are charged 1%. The advantage of P2P exchanges like LocalBitcoins is that you get to buy and sell bitcoin using multiple payment methods. Sending bitcoin directly to another LocalBitcoins wallet is completely free but sending to a third party wallet charges a fee of 0.0001 BTC to 0.0010 BTC depending on the traffic of the bitcoin network.
Update: WhaleClub is no longer an exchange.
This is an exchange based in Hong Kong. Remarkably, WhaleClub does not charge a fee when you deposit, execute orders or for inactivity. For withdrawals, WhaleClub takes a fee of 0.001BTC which is just the network fee. The only fee they do charge is for margin trading. Full details of fees for margin trading with leverage here . Currently, WhaleClub allows trading the big 4 cryptocurrencies. Bitcoin, Ethereum, Litecoin, and Dash. WhaleClub has one of the easiest to use user interfaces allowing you to trade easily from a mobile phone. Additionally, you can earn cashback bonuses based on your trading activity. If you are a beginner, you are able to create a demo account to practice trading.
CEX is similar to Coinbase. Just like Coinbase, CEX allows deposits from Credit/Debit cards and bank transfers. CEX takes a fee of 2.99% for credit/debit card deposits and a 0% fee for bank transfers. The maker-taker fee schedule depends on your 30-day trading volume. If your 30-day volume is lower than 5 BTC, you will be charged a maker fee of 0.16% and a taker fee of 0.25%. For a volume greater than 6000 BTC, CEX charges no maker fee but charges a taker fee of 0.10% which is significantly lower compared to other exchanges. Complete fee schedule here.