Trading
Trading Fees
Charges applied by cryptocurrency exchanges when you buy, sell, or trade digital assets. Trading fees are typically calculated as a percentage of the transaction and vary based on trading volume and maker/taker status.
Last updated: January 5, 2025
What Are Trading Fees?
Trading fees are the charges cryptocurrency exchanges apply when you execute a trade. These fees are typically a percentage of your trade value and represent the exchange’s primary revenue source. Understanding fees is crucial for profitable trading.
Types of Trading Fees
Maker Fees
- Paid when you add liquidity (limit orders that don’t fill immediately)
- Generally lower than taker fees
- You’re “making” the market
Taker Fees
- Paid when you remove liquidity (market orders or limit orders that fill immediately)
- Generally higher than maker fees
- You’re “taking” from the order book
Spread
- Difference between buy and sell price
- Hidden fee on some platforms
- Can be significant on low-liquidity pairs
Exchange Fee Comparison
| Exchange | Maker Fee | Taker Fee | Fee Model |
|---|---|---|---|
| Binance | 0.10% | 0.10% | Tiered + BNB discount |
| Coinbase | 0.40% | 0.60% | Tiered |
| Kraken | 0.16% | 0.26% | Tiered |
| Bybit | 0.10% | 0.10% | Tiered |
| OKX | 0.08% | 0.10% | Tiered |
Fee Tier Examples (Binance)
| 30-Day Volume | Maker | Taker |
|---|---|---|
| < $1M | 0.10% | 0.10% |
| $1M - $5M | 0.09% | 0.10% |
| $5M - $10M | 0.08% | 0.10% |
| $10M+ | Lower | Lower |
Calculating Trading Fees
Simple Calculation
Fee = Trade Value × Fee RateExample
- Buy $1,000 of Bitcoin
- Taker fee: 0.10%
- Fee: $1.00
Round Trip (Buy + Sell)
- Buy $1,000 at 0.10%: $1.00
- Sell $1,000 at 0.10%: $1.00
- Total fees: $2.00
Ways to Reduce Fees
1. Increase Volume
- Higher tiers = lower fees
- Consider consolidating on one exchange
2. Use Native Tokens
- BNB on Binance (25% discount)
- KCS on KuCoin (20% discount)
- OKB on OKX (discount)
3. Use Limit Orders
- Pay maker instead of taker
- Often 0.02-0.10% cheaper
4. Choose Low-Fee Exchanges
- Compare before trading
- Small differences add up
5. Referral Programs
- Fee discounts for referrals
- Kickbacks on referred users’ trades
Fee Impact on Returns
| Trades/Month | Fee Rate | Annual Cost on $10K |
|---|---|---|
| 10 | 0.10% | $100 |
| 50 | 0.10% | $500 |
| 100 | 0.10% | $1,000 |
| 100 | 0.05% | $500 |
High-frequency traders should prioritize low fees.
Hidden Fees to Watch
- Spread: Wider on some platforms
- Conversion fees: Fiat to crypto
- Withdrawal fees: Moving crypto out
- Inactivity fees: Some exchanges charge
Best Practices
- Calculate total costs - Including spread
- Use limit orders - Lower fees
- Consolidate trading - Reach higher tiers
- Compare exchanges - For your volume level
- Hold native tokens - For discounts
Check our fee comparison pages for detailed exchange fee breakdowns.
Ready to Start Trading?
Now that you understand trading fees, explore the best exchanges to begin your crypto journey.