A List of the Top 7 Cryptocurrency Exchanges with Lowest Fees
The primary reason for trading or investing in cryptocurrencies is to make profits when the price of the coin increases. However, that doesn’t come cheap. Depending on the cryptocurrency exchange you used and the volume of your orders, the trading fees can either be higher or lower.
As a cryptocurrency investor, you are looking to maximize as much profit as you can. We, therefore, made a list of the top seven (7) cryptocurrency exchanges with the lowest trading fees.
What is Cryptocurrency Trading Fee?
It is the specific amount of money traders pay for their orders to be executed. It is expedient to mention that the trading fee differs by the volume of the orders and other factors.
Ideally, the cryptocurrency exchange has different trading fee structures for the different types of trading options it offers. For example, the trading fee for Spot trading differs from that of the Futures or Derivatives market.
What is a Cryptocurrency Exchange?
Let us start by understanding what an exchange means, as a term. It means the transaction process where one buys and the other sells. Therefore, the function of the cryptocurrency exchange is to help cryptocurrency buyers and sellers to use the platform for cryptocurrency transactions.
There are two major types of cryptocurrency exchanges – the Centralized Exchange, which is under the control of a few persons and the Decentralized Exchange (DEX), under the control of the entire community.
For the purpose of this article, we will focus on the CEX. Here is a list of the top 7 centralized cryptocurrency exchanges that don’t charge an arm and leg to execute your transactions.
1. Binance
This is the leading cryptocurrency exchange, in terms of volume, number of coins listed on the platform, management process and liquidity. Little wonder it has become the favorite for cryptocurrency investors not just in Asia but also from other parts of the world.
Here is an overview of the trading fee structure on Binance:
Specific Deductions
Binance has a dedicated coin called the Binance Coin (BNB). It is the platform-based coin or native currency of the Binance exchange. Traders can enjoy considerable deductions in the trading fee if they are trading with the BNB pair.
The following are some of the deductions:
- Up to 10% off on the USB-M Futures/Derivates trading fee
- Zero trading fee for specific stablecoin, BTC and fiat pairs on the Spot market
- Up to 25% BNB deduction on the Spot trading fee
- Zero Maker fees on the Binance USD (BUSD) trading pairs.
2. Bybit
Bybit is another cryptocurrency exchange with very low fees. On this exchange, the trading fee is dependent on the users’ VIP status. Users who have attained certain VIP levels would enjoy a significant fee reduction than the others who have not.
The following is an idea of the current trading fee structure of the exchange:
Non-VIP
As a non-VIP, you are required to pay 0.1% for the Maker and Taker fee for Spot trades. For the USDC Options Trading, the Maker and Taker fee rate is 0.03%. However, the Taker fee increases to 0.06% if you are engaging in either the USDT & Inverse Contracts Trading or the USDC Perpetual Trading.
VIP Levels
The following is the fee structure for the VIP 1 to VIP levels on Bybit:
- VIP 1: Pays 0.06% Taker fee and 0.04% Maker fee for Spot Trading; 0.05% Taker fee and 0.006% Maker fee for USDC Perpetual Trading; and 0.05% Taker and 0.006% Maker fee for USDT & Inverse Contracts Trading.
- VIP 2: Pays 0.05%, 0.045% and 0.045% Taker fee rates for the Spot Trading, USDT & Inverse Contracts Trading and USDC Perpetual Trading, respectively. The Maker fee rates for the same are 0.02%, 0.004% and 0.04%.
- VIP 3: Pays 0.04%, 0.0425% and 0.0425% Taker fee rates for Spot, Inverse Trading and Perpetual Trading. The Maker fee rates for the same is 0.01%, 0.002% and 0.002%, respectively.
3. Crypto.com
Crypto.com’s trading fee is analyzed over a certain period, usually in a month. The amount of trading volume within that period can influence the trading fee. For example, traders who executed less than $250,000 of trades in 30 days will pay a Maker and a Taker fee of 0.0750%.
If the trading volume is more than $250,000 within the same time, the traders will pay a Maker fee of 0.0700% and a Taker fee of 0.0720%.
Large-volume orders up to $10 million wouldn’t be charged a Maker fee but will pay a Taker fee of 0.0500%.
4. Kraken
Kraken is a cryptocurrency with another low-fee structure. The trading fees differ by the assets being traded. Below is a breakdown:
- Spot Trading: trades of $50,000 maximum attract a Maker and a Taker fee rate of 0.16% and 0.26%, respectively.
- Futures: if you are trading the Futures or the Derivatives market with a maximum trading volume of $100,000 in 30 days, the Maker and Taker fee rates are 0.0200% and 0.0500%, respectively.
- Stablecoins and Pegged Tokens: if up to $50,000 trading volumes were actualized in a month (30 days), the exchange charges 0.20% both for the Maker and Taker fees.
Also read: What is NFT?
5. eToro
eToro is a “social investment network” that aims to “revolutionise the way people invest, and enhance investors’ financial education.”
eToro is known for charging “overnight” and “weekend” fees on CFDs to keep those positions for the holders over the night and during the weekends.
The exchange also charges the following fees:
- Zero commissions on stocks and ETFs
- No management fees
- 1% fee for buying and selling crypto coins
- $10 inactivity fee to manage the accounts that haven’t been active for a year.
6. Uphold
Uphold assures the users of a “complete crypto trading experience.” The exchange charges between 0.9% and 1.2% spread on Ethereum (ETH) and Bitcoin (BTC) transactions in Europe, the United States and the United Kingdom.
It also charges between 1.4% and 1.95% for Cryptocurrencies, Environmental Assets & Equities, as well as a 2% spread on precious metals.
7. CoinMama
CoinMama is one of the top cryptocurrency trading platforms with users from 120 countries. Customers can trade BTC, ETH, and other top digital currencies. Users can fund their accounts through bank transfers or credit and debit cards whether master or visa.
CoinMama also prides itself as one of the cryptocurrency exchanges with the lowest trading fees. CoinMama is safe and provides fast and personalized transactions. With a Maker fee and Taker fee of 3.9%. To deposit, users pay a 2.93% fee and a 3.9% withdrawal fee.
Final Words
Trading fees are one of the major sources of income for cryptocurrency exchanges. While some exchanges charge higher, others are considerate and charge lower. If you are looking for the cryptocurrency exchanges that charge less, sign up at any of the ones we reviewed in this article.
