Crypto Exchange Fees Compared: Where to Trade for Less

Background

Imagine, back in 2009, you downloaded the Bitcoin software and began to mine.

Back then, the block reward was quite high, the mining difficulty was extremely low, and there were only a handful of miners in the network, so you accumulated a few thousand bitcoins within months of mining. However, you got bored and abandoned the mining and returned to your usual routine.

Fast-forward to 2014. You hear from your friends about a digital currency that has been blowing up in value and has reached over $300. You suddenly remembered having some of that digital currency in some forgotten account.

You get home and fire up your computer, open your account, and your eyes start sparkling. As you start thinking about paying off your mortgage and buying that BMW, you realize something. “Where do I sell this?” Enter Crypto Exchange Platforms.

Introduction to Crypto Exchange Platforms

Crypto exchange platforms serve as a digital marketplace for crypto-related trading where users can buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, Solana, and thousands of other altcoins.

Such exchange platforms not only allow transactions using fiat currencies like the USD or Euro, but they also facilitate crypto-to-crypto pairings.

The first crypto exchange, i.e., BitcoinMarket.com, was launched back in 2010 shortly after the launch of Bitcoin in 2009.

It allowed users to trade their BTC for USD. But, as the crypto world surfaced in the real world, many exchange platforms came to life as well. However, the early platforms were often plagued with fraud, hacking, and many other security risks.

Coming to this day, where digital currency has synchronized with the economy of many nations, the exchange platforms have evolved to be a safe and engaging place and command a total market capitalization of approximately $2.7 trillion. Some well-known platforms include Coinbase, Bitstamp, Robinhood, Binance, Bybit, and more.

Ok. The story so far is quite pleasant. Some people have crypto, and people who want to buy it and exchange platforms have become a medium for that.

However, it is not all sunshine and rainbows, as not all exchanges are created equal. A recent example of that is the infamous FTX scam, when FTX was found to have misused $8 billion of people’s funds and used them at their discretion.

This is an example of a worst-case scenario of what could go wrong if the exchange platform you are choosing is not credible.

But here in this article, we will discuss crypto exchange fees associated with regular trading that you need to be aware of.

Crypto Exchange Fees and Why They Are Important?

Crypto exchange fees can be defined as the charges that users on the platform pay when trading digital assets. Right off the bat, it needs to be understood that there is nothing like “Free crypto trading platforms” or “No-fee crypto trading sites”.

However, some crypto exchanges have user-centric attributes that make them more appealing as cheap crypto exchanges. Some offer zero-maker fees while some give discounts and cashbacks, and there are some crypto exchanges with welcome bonuses, but if you ask, “Which exchange has zero trading fees?”, the answer is none.

Moreover, it should also be noted that it's not about the type of cryptocurrency that you are trading. For example, Bitcoin trading fees and Ethereum trading fees are the same across exchanges and generally depend on the corresponding blockchain transaction fees and the trading fees themselves.

These fees come in various forms and sizes such as trading fees (maker/taker fees) that can slash your gains, withdrawal fees which affect how much crypto you can store in your personal digital wallet, network fees which is basically a service charge for using the platform’s resources, and sometimes inactivity fees as well.

While these fees are often minute, they can accumulate over time and directly impact your profitability, especially if you are a frequent trader.

For example, Bitcoin trading fees combined with blockchain transaction fees (cost incurred when processing transactions on the blockchain network) can have a substantial cumulative impact on the final gains, given the volatility that Bitcoin has experienced throughout this decade..

The primary responsibility of any trader is to maximize their profit using their wits and available resources.

So, whether you are looking to minimize the trading fees, searching for the lowest crypto trading fees, or exploring efficient crypto exchanges, understanding the overall fee structure of various platforms is imperative to preserve and maximize your profits.

In this comprehensive guide, we will take a look at different platforms and analyze the associated fees, and try to answer “Where to Trade for Less?”

Types of Crypto Exchange Fees

Now that the basics are established, let’s discuss the type of fees associated with the exchange platforms. In the previous section, we talked about them through a small mention, but in order to compare the good and bads of different exchange platforms, it is important to know how crypto exchange fees work in more detail.

Trading Fees

Starting with the most obvious one, i.e., the trading fees. Trading fee consists of two other fees: Maker Fees and Taker Fees. When a user places a limit order, they are providing liquidity or creating a trade opportunity, which is beneficial for the trading platform and incurs maker fees (many platforms have a zero maker fee policy as well).

But, when a user places an order that is immediately matched to an existing order, it removes the liquidity from the market, thus incurring a taker fee. Typically, the taker's fees are higher than the maker’s fees.

Let’s understand the maker vs. taker fees through Pokémon cards:

Imagine you bring a rare Charizard card to your Pokémon club at school and say, “I want to trade this for a Bulbasaur card. If anyone wants it, let’s exchange!”- Here, you have created a trading opportunity and become a “maker.”

The club is the trading platform and might charge you some amount for providing a safe platform to sell your Pokémon card (and that too at a school). But, since you are adding trade to their system, it is beneficial for them too. So, as a token of thanks, they charge you $ 1 instead of $ 2.

Now, your friend sees the Charizard and says, “I have a Bulbasaur. Let’s trade!” - Here, your friend becomes a taker who has just met your existing order of Bulbasaur. Now, when you and your friend conduct that trade, it will remove the Charizard and its value from the club’s domain. And, your friend will incur a taker’s fee of $ 2.

Following a simple logic will tell you that the exchange platform should ideally encourage the maker side in the trading fee equation. While this is true, there is more to it. Exchanges are seen to be more generous toward their high-volume traders.

For example, platforms like Binance and Coinbase follow a tier-based fee structure, giving a volume-based discount (on 30-day trading volume) for the makers and takers.

Consider an example: 100 trades of $1,000 each on Coinbase.

Coinbase charges around 0.6% taker for low volumes. So, the total fees = 100 * 0.6% * $1,000 = $600.

But, at high volumes, Coinbase fees drop to the range of 0.05% taker, reducing to $50. Even if you use wire transfers to deposit (incurs $10) and withdraw (incurs $25) in Coinbase, high-volume trades are still significantly profitable.

This holds for Binance as well, where fees can go as low as 0.009% for makers and 0.0018% for takers, of the total amount for high volume traders, but it will charge 0.1% for both makers and traders for a low volume trade.

Deposit and Withdrawal Costs

Besides the obvious trading fees, several platforms impose deposit and withdrawal costs to move crypto or funds from your account to and from your crypto wallet.

Withdrawal fees are quite natural as platforms want to hinder you from taking liquidity out of the system, like they are trying to discourage it. This kind of fee is quite common among exchange platforms such as Coinbase, Kraken, Binance, OKX, etc., but Crypto.com takes it to a whole new level and imposes a very high withdrawal charge (approx. 0.0008 BTC) that impacts users with smaller accounts.

But, deposit fees are usually free, except for the potential blockchain network fees. Plus, you need to use the right medium.

For instance, using credit/debit cards to load up your account can incur a cost ranging from 2% to 5% as the card network uses this opportunity to impose its processing fees. However, using Automated Clearing House (ACH) for deposits in Coinbase is free, while doing the same via wire transfer will cost $10.

Other Charges and Hidden Fees

Beyond all the fees we have discussed, crypto exchange markets may charge some additional fees for outstanding services or account activities.

For example, there is something called “margin trading fees,” which are incurred when a user borrows funds from the exchange to boost their purchasing power. Platforms like Kraken, Poloniex, and Bitfinex offer this service, but the funds are lent with interest. Moreover, it is important to note that the interest rate varies as per the supply and demand for the borrowed funds.

But, the most notable and probably the most annoying charge is the transfer fees, where users are made to pay certain fees to move funds between wallets or even the account within the same exchange. However, this is a rare one.

In terms of hidden fees, some platforms charge an inactivity fee on accounts that remain dormant for an extended period.

Another example of a hidden charge is spread charge, where an exchange, instead of charging a direct trading fee, charges a spread, i.e., the difference between the buy and sell prices. Fidelity Crypto charges a 1% spread, which is a bone of contention for frequent transactions.

Moreover, spreads can be winding to traders when trading high-yield and high-volatility digital assets. For example, Bitcoin trading fees and Ethereum trading fees, when imposed with spreads, can embed extra payable costs to your wallet.

How to Reduce Trading Fees on Exchanges?

Fees related to trading and withdrawal become quite unavoidable when you are an active trader in the exchanges. That being said, there are certain ways one can minimize those costs through strategic usage of available schemes of those exchanges themselves.

As a respected trader, you need to know some standard ways to reduce trading fees on exchanges. Some of them are mentioned below:

Exchange Tokens

Exchange tokens are often referred to as a subset of crypto assets that are produced by exchanges themselves to facilitate trading on their platforms.
The good part about such tokens is that many exchanges will provide discounts on trading fees for using their native tokens. For example, Binance offers a 25% reduction in fees with BNB, OKX provides up to 40% off with OKB, and KuCoin provides up to 60% off with KCS.
However, acquiring such tokens can be quite tricky. One brute force way is to buy them on the exchange using fiat currencies. Other ways involve trading or swapping, searching for exchange loyalty programs that give our tokens as a reward, or participating in promotions.
Exchange tokens are quite favorable for traders, but they were at the heart of the FTX collapse in 2022, where FTX leveraged their FTT (tokens) as collateral assets to withdraw loans and pumped their balance sheet with the help of that loan.
So, traders should be aware of the fact that the tokens derive their value from the exchange platform itself, so if the exchange fails, the token means nothing. Before using fiat currencies to buy those tokens, be sure to check if their value is strongly backed by exchanges.

Increase Trading Volume

We’ve already talked about volume-based discounts offered by exchanges like Coinbase and Binance. In technical terminology, that is called a tiered fee structure, where a larger 30-day trading volume might qualify for lower rates.
So, try to maximize the volume of every trade on exchanges and avoid small transactions as much as possible.

Optimize Order Types

Using limit orders gives you more control over the trading prices and keeps the exchanges in your favor. Instead of just trading immediately at the moment’s price, i.e., market order, you should consider setting a limit order.
This allows you to choose your price, and you might qualify for a lower fee. Also, if the trading amount is high, it is not wise to buy or sell all at once. Since the prices in crypto exchanges fluctuate quite vigorously, sudden price jerks can equate to higher fees and ultimately, lower profits..

Capitalize on Promotions and Welcome Bonuses

As a part of their marketing strategies, crypto exchanges often give out welcome bonuses and other promotional schemes or offers.
Crypto cashback trading discounts allow users to earn back a certain percentage (%) from the trading fees as rebates or some limited-time offer for occasions where exchanges generously offer near-zero or zero fees.
Keep an eye out for the latter and conduct your large-scale trading operations at that time. Use resources like CoinBureau to get information on such promotional schemes. Also, update yourself on the latest and upcoming innovations in crypto technology to have a multi-disciplinary action plan.

How to Choose the Right Crypto Exchange?

Reflecting everything we discussed until now and adding some more fundamental parameters, here are the aspects you need to consider before choosing a platform to conduct your trading:

Fee Transparency

Is the information regarding the fees, tokens, and amenities all crystal clear for that platform? Conduct your own research about these facts and decide if the exchange sits right with you.

Trading Volume and Liquidity

This aspect is often overlooked by beginner traders, but it is quite important to consider.

A higher liquidity typically implies better pricing as there are several pure-bred traders in that platform, and the competition to create limit orders and fulfill market orders will often be vigorous.

Also, a high trading volume and liquidity in a platform often means faster execution of the overall trading process.

User Experience

Customer support is a fundamental aspect to look for when choosing a platform. Moreover, if you are looking to get into the business of full-time trading, the user experience is crucial, as you would want an easy interface to work with.

Promotional Offers

Check for the welcome bonuses and the frequency of limited-time promotional offers offered by the exchange platforms. Profit-hungry platforms or small-scale exchanges will not provide these amenities.

But, if you play it right and choose a good exchange platform, it can greatly reduce your overall cost in the short as well as long term.

Security and Stability

Finally, the most important aspect to consider is the security and stability concerns of exchanges. Before choosing an exchange platform, you need to look at the security measures that are being implemented.

The provision of two-factor authentication is the most elementary measure that a platform needs to have, along with a cold storage mechanism. Through these, you will have more control over your accounts and your keys and passwords will remain safe from online hacking as they are stored in a device that is not connected to the internet, respectively.

However, many exchanges are some steps ahead of the rest in terms of security and stability.

For example, OKX and MEXC insure user funds while Coinbase insures the digital assets. Moreover, exchanges like Coinbase and Gemini have emerged as compliant exchanges under the EU’s MiCA regulation and the US’s policy reform under the Trump administration, thus reducing risks due to regulatory disruptions.

Adding more this, potential traders should also consult the exchange’s history to see whether it has been a victim of cyberattacks and what measures it has taken since then to avoid the repetition of those crises.
For example, Binance was hacked back in 2019, and after the attack, they have been constantly building trust among users, moving 99.5% of the total funds into cold storage and publishing proof-of-reserve reports.

After the FTX fallout in 2022, the concerns regarding the credibility of exchange platforms have become a real issue. So, traders need to validate and verify that the exchanges are operating well under existing laws and do not have anything shady going on in the background.

Forming social groups and conducting forum discussions regarding any potential issue can be a way to rectify any brewing problems beforehand.

Top Crypto Exchanges Comparison Based on Their Fees

Now that we have established all the foundational bases of crypto exchange platforms, associated fees, factors to consider while choosing exchanges, and the rest of the nuances, let’s have a quick overview of some top exchanges and conduct a crypto exchange comparison along with their corresponding offer.

Summary

Exchange	Maker Fee(%)	Taker Fee(%)	Deposit Fees	Withdrawal Fees	Additional Notes
Binance	0.10	0.10	Free for crypto, varies for fiat	Varies by cryptocurrency	20% discount with BNB token; tiered fees for volume
Bybit	0.10	0.10	Free for crypto	Dynamic, based on network status	Tiered VIP levels reduce fees based on volume
Coinbase	0.00	0.15	Free for crypto, varies for fiat	Varies, includes network fees	Maker fee is 0.00% for all volumes; taker fee drops to 0.05% for high-volume
Upbit	0.25	0.25	Free for crypto	Varies, low for most coins	Flat fee for non-KRW pairs; 0.05% for KRW pairs
OKX	0.08	0.10	Free for crypto	Varies, typically low	Tiered based on volume and OKB holdings, VIP levels offer rebates
Bitget	0.10	0.10	Free for crypto	Varies by cryptocurrency	20% discount with BGB token; standard fee for low-volume
MEXC	0.00	0.05	Free for crypto	Varies, typically low	Zero maker fees, one of the lowest taker fees at 0.05%
Gate.io	0.20	0.20	Free for crypto	Varies, charged per transaction	Tiered discounts with GT token; maker fee can be negative for high volume
KuCoin	0.10	0.10	Free for crypto, 3-5% for fiat	Varies, typically low	20% discount with KCS token; tiered fees for volume
Crypto.com Exchange	0.07	0.10	Free for crypto, 2.99% for cards	Varies, includes network fees	Fees are reduced for high volume; staking CRO unlocks lower fees

*Fees are subject to change due to supply-demand fluctuations in exchanges. Research the latest updates at your own discretion.

Major Takeaways

The fee structures have a broad disparity.

If you want to know what the cheapest crypto exchange is, then based on the maker fees (0.00%) and taker fees (0.05%), the most favorable is MEXC, which is the cheapest for both takers and liquidity providers.

It is particularly useful for frequent traders as the zero maker’s fee will serve as an incentive for limit orders, providing liquidity to the market.

Also, other exchanges such as Binance, Bybit, Bitget, and KuCoin each charge a default 0.10% maker and taker fee, along with additional perks of rebates for using their native tokens. This, in the long run, can reduce effective fees for users.

Coinbase offers a unique structure with an appealing 0.00% maker’s fee to liquidity providers but a 0.15% taker fee for low-volume trades. Moreover, OKX and Crypto.com Exchange offer competitive fees at 0.08% and 0.07% for makers, respectively, with 0.10% taker fees, which makes them mid-tier options.

Finally, deposit and withdrawal fees also vary, with most exchanges offering free crypto deposits but charging for fiat methods. Withdrawal fees tend to be dynamic, based on network conditions, and can impact overall trading costs, especially for active traders.

Choosing the Right Exchange for Your Needs

Whether you are a beginner or a seasoned trader, there is a right fit for you out there. However, since exchange platforms are also running a business by profiting from your trade, some compromises should be made based on your profile and trading volume.

But, as a trader, your prime goal must be centered toward optimizing profit, be it short-term or long-term. So, here’s the final verdict of viable exchanges based on your profile and current market trend:

Trader Types	Features
Beginners	Coinbase for user-friendly interfaces, despite higher fees on lower volume trades
Active Traders	Binance and OKX for low fees and advanced tools, and resources
Low-Volume Traders	MEXC for its zero-maker fee and 0.05% taker fees
High-Volume Traders	Kraken and Binance for volume-based discounts
Token Holders	Binance, KuCoin, and OKX for signification discount on fees for users holding native tokens
Privacy-Conscious	Consider exchanges that do not require KYC (but be aware of the higher risk factors)
Institutional Investors	Coinbase and Gemini for compliance and custody solutions

Conclusion

In conclusion, for cost-conscious traders, MEXC is likely the best for the lowest overall fees, especially for immediate trading.

Moreover, Binance and KuCoin are ideal for those using exchange tokens and conducting frequent high-volume trades.

But if you want a start line and are willing to compromise on trading fees, you will find Coinbase more user-friendly and an established forum for support.

But at the end of the day, your choice of exchange should align with your trading style and limits, combined with a regular review and assessment of the fee schedules of respective exchange platforms, as rates can change.

Moreover, as the competition rises, more assets will make their way into exchanges, which, in a healthy system, benefit users with features like zero-fee trading. Also, regulatory blows from MiCA and US policies might bring some transparency and ease to the system, but the increasing assets on the exchanges can potentially incur additional costs for users.

Some common questions

1. Which crypto exchange has the lowest fees?

MEXC stands out as one of the most attractive choices for budget-conscious and low-volume traders with zero maker fees and 0.05% taker fees on the total trading amount.

2. What is a blockchain transaction fee?

A blockchain transaction fee is a small amount paid by users to perform and authenticate transactions on a blockchain network. It is used to compensate miners or validators and prevent network congestion by providing more priority to transactions.

3. What are maker vs. taker fees?

Maker fee is a cost incurred when a user places an order (adding liquidity to the order book of the exchange), while the taker fee is a cost incurred on those orders when they get a match and get traded (removing liquidity from the order book of the exchange).

4. How can I reduce trading fees on crypto exchanges?

Trading fees can be reduced by choosing an exchange with low basic fees, like MEXC, or using native tokens like BNB and CRO for discounts. Also, increasing trading volume to qualify for tiered discounts is an option.

5. Are there hidden crypto trading fees?

Yes. Some crypto exchange platforms may have hidden fees, like inactivity fees and spread charges imposed on dormant accounts and the difference between the buy and sell prices, respectively.

6. Are there fee-free crypto trading platforms or crypto exchanges with no fees?

No major crypto exchanges offer an absolute zero fee. While platforms like MEXC advertise zero maker fees, they still impose a taker fee.

7. Do crypto exchange fees vary for Bitcoin versus Ethereum trading?

The basic fee structure, i.e., maker vs taker fee, is similar across crypto exchanges for BTC and ETH. However, Ethereum transactions often incur a higher “gas” (paid by the user) in the form of blockchain network fees compared to Bitcoin, which has a lower network fee.