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Author: Admin | 2025-04-27
Local stablecoin pair USDT/KRW. Its standard fee of 25bp and average daily spread of 50bp put it in the middle of the pack of ranked peers.BITPANDAVienna-based Bitpanda is regulated as a payments firm, e-money provider and virtual-asset provider in Austria and France, allowing it to offer its services to all of continental Europe. It combines crypto services with traditional brokerage of stocks, ETFs, indexes, precious metals and other commodities. It charges a stiff 1.5% in commissions or fees plus spread, but it has developed partnerships with major German banks like Deutsche Bank and Landesbank Baden-Wuerttemberg to let its users convert crypto to fiat and vice versa via the German IBAN rails.Crypto Trading Fees & SpreadsMany investors prioritize low fees when deciding where to trade crypto. Most exchanges post their prices for sellers or purchasers online, respectively known as “maker” and “taker” fees; but they do not tell the whole story. Traders also need to be aware of a term called spread, which is the difference between a quoted buying and selling prices in an orderbook. The size of the spread varies by exchange and trading pair, but a general rule of thumb is that platforms with high volume have lower spreads. And vice versa.Our research revealed that the weighted cost of execution in the crypto market among ranked firms today, and inclusive of spread, is 80 basis points. To do this analysis we used the cost of trading reported by crypto providers to us or via their website, plus average spread information from CoinGecko. The specific test looked at what it would cost to purchase $25,000 of crypto without any volume discounts or other promotions.While trading fees can be relatively easily controlled, spread is a function of a provider’s overall liquidity. Among ranked firms, the average spread was 64 basis points (bp), with Upbit, Coincheck, and Bitstamp averaging 241bp, 181bp, and 143bp, respectively, as the costliest firms.[ One hundred basis points is the equivalent of one percentage point.] Coinbase’s 19bp spread was among the lowest and slightly bested Binance’s 21bp. There is a lot of variance among firm, if a trader wants to know the cheapest place to buy or sell crypto, it is important to evanluate both the posted fees and spread together.Trading Costs Relation to Share of Trading VolumeSource: Forbes, CoinGecko, company websitesThe chart above shows both fees and spreads and demonstrates that the biggest exchanges by market share tend to have the lowest trading cost, with the exception of Coinbase. Robinhood, which caters to retail traders, has a zero-fee trading model but the numbers above fail to incorporate the spreads,which in Robinhood’s case are a core part of their business model since they sell order flow.U.S. exchanges with more than a decade of crypto service such as Coinbase and Kraken continue to enjoy high demand despite higher trading costs. Eventually fee compression from competition from firms like Robinhood could drive fees down.There are several firms that have both expensive and cheap alternatives for heavy users, and Coinbase
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