Cryptocurrency exchanges, like their traditional counterparts, charge a certain fee for using their platform. These fees can include trading fees, withdrawal fees, or mandatory fees for using the company's services. Sometimes fees on exchanges can account
for up to 10% of a trader's income, and if a user is trading amounts of $150,000 or more, they may need to spend between $15,000 to $30,000 per month just on fees. Additionally, high fees could be a signal that the exchange is on the verge of closing and that you need to urgently withdraw your funds.
Types and sizes of commissions
There are several types of basic fees on cryptocurrency exchanges: transaction fees, deposit and withdrawal fees, trading fees, etc. Therefore, when choosing an exchange for trading, it is necessary to familiarize oneself with the existing commission charges in order not to give all the profit to the exchange.
We have compared the size and types of commissions on the most popular crypto exchanges.
EXMO - 0.2% (refund of paid fees is possible with a trading turnover).
Binance 0.1-0.04% for buyers; 0.1-0.02% for suppliers (you can get up to a 25% discount for BNB token users)
Localbitcoin up to 1%. The fee is paid by the person who created the ad.
KuCoin 0.1-0.03% for buyers; 0.1-0.0125% for suppliers.
CEX.IO 0-0.25% depending on turnover in the last 30 days.
Phemex - 0%
You can pay the commission in tokens belonging to the project or in cryptocurrencies such as USDT, BTC, and others. Currently, there are not many crypto exchanges on the market that offer the ability to reduce the commission to 0% through a special premium account. Such an account allows you to save thousands of dollars instead of paying a 1% commission.
Losses on commissions
It is hard to imagine how much a trader loses on fees. For example, the number of registered users on the Binance crypto exchange was 7.9 million. Thus, if every platform user made a transaction, imagine how many transactions actually pass through this exchange.
At the moment, commission-free trading is gaining more and more popularity on the crypto market. One of the bright representatives is Phemex. Phemex offers its users the lowest commission fees on the market, as well as the ability to reduce them to 0% thanks to the premium account. Let's take a closer look at this offer.
Phemex.com was founded in 2019 by experienced Wall Street investors Jack Tao and his team. Phemex was created with the goal of simplifying and increasing the accessibility of trading tools for people around the world. It was also built with the goal of becoming the most reliable platform for trading cryptocurrencies and using financial instruments.
Thanks to the experience, discipline, and knowledge of the leaders (specialists from Morgan Stanley), Phemex not only provides top-class financial instruments but also ensures peace of mind for all its clients. Overall, Phemex has created an excellent trading platform characterized by user-friendliness, reliability, and useful innovations.
For contracts, Phemex charges a commission of -0.025% from market makers and 0.075% from market takers. The negative commission essentially means that Phemex actually pays its users as an incentive to add liquidity to the order book. With a premium account, the user is exempt from the commission and can trade to their heart's content