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 exchange like CEX and Coinbase allow 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 is one of those exchanges that charges a taker fee. However, Coinbase does not charge a maker fee. When you place an order, if the order is filled immediately, you are considered a taker. You will be charged a fee, depending on the total volume you trade. If your total volume is between $0m – $10m, you will be charged a fee of 0.30% of the amount you trade. Similarly, a 0.20% fee if your volume is between $10m – $100m and a 0.10% fee for a volume of more than $100m. If your order is not filled automatically, your order will be placed on the order book until order gets filled. When this happens, you are considered a maker. Maker pays no fees. If your order is partially filled when you placed it, you will be charged a taker fee for the amount that is filled. Knowing this can significantly reduce the fees.
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.
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 6000BTC, CEX charges no maker fee and a taker fee of 0.10% which is significantly lower compared to other exchanges. Complete fee schedule here.