crypto markets
Exchange pricing is published, which makes it unusually easy to compare, and unusually easy to compare wrongly. The number most people quote is the entry-tier taker fee, which is one of at least four charges on a round trip.
Published entry-tier spot fees
Taken from the venues own fee pages: Coinbase Exchange charges 0.60 per cent taker and 0.40 per cent maker at the lowest 30-day volume tier. Kraken publishes 0.80 per cent taker and 0.40 per cent maker at tier one, dropping to 0.20 per cent on stablecoin and FX pairs. Binance lists 0.10 per cent maker and taker for a regular user, or 0.075 per cent when fees are paid in BNB. Gemini publishes 1.20 per cent taker and 0.60 per cent maker at the entry tier on its API schedule.
| Venue | Entry maker | Entry taker | Source |
|---|---|---|---|
| Binance | 0.100% | 0.100% | Published fee schedule |
| Kraken | 0.40% | 0.80% | Published fee schedule |
| Coinbase Exchange | 0.40% | 0.60% | Published fee schedule |
| Gemini ActiveTrader | 0.600% | 1.200% | Published API schedule |
Note the units. A 0.60 per cent taker fee on a 10,000 purchase is 60 units of currency, and the same again on the way out. Paying it twice a week for a year is a serious number relative to most realistic returns.
The charges that are not in the headline
- 01Simple buy interfaces often price worse than the exchange order book. Compare the two on the same venue.
- 02Network withdrawal fees, which are set by the venue and are not always the network cost.
- 03Fiat conversion on deposits and withdrawals in a currency the venue does not hold.
- 04Spread on thin pairs, which can dwarf every fee above.
Fee schedules are published so that you compare them. They are structured so that you compare the wrong line.
Written by Aram Latifi. Ex-quant developer, now writing about the plumbing of retail trading. No affiliate links on this site.
