Does trading fees really matter ?

[pawanjain]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

[adroitful_one]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

It depends on how tight the profits are on the trade. At 2%, 0.25% is actually quite a lot. Anything you can do to save money on trades will increase your profits over the long run. Thing of it as buying something from the store. Let's say Kroger has a gallon of milk for $4.50 and Wal-Mart has it for $4.25. Would you not prefer to buy the milk from Wal-Mart and save the extra $.25? It's the same concept. Doesn't really matter how much profit you're making on the trade, you could be making more if you didn't pay as much in fees.

[teosanru]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Actually the thing is trading fees don't matter to people in Cryptocurrencies is because leverage trading is practiced pretty less in this world. Majorly we talk so much about trading fees in forex it's because suppose you have 100$. And you make a trade with 100x leverage the total amount of trade becomes $10000 and the trading fees on this as you said 0.25% becomes a hefty $25 which is almost quarter of your capital. So this is why difference in fees makes a huge difference generally break even is a bit more in pips for such traders. Cryptocurrencies Don't have that large markets for leverage trading because there is high volatility making it too risky

[Quidat]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

0.25% does really matter for 2% earning but if you do able to get higher than that the most likely some traders doesnt
really care that much and even there are benefits where big traders do have lesser fees as they trade up on an exchange
but for typical or small capital traders would really mind off anytime with fees.Good examples or illustrations is already mentioned
above which i do agree on.

[jmigdlc99]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Given lets say your profit is 2%, that means that 0.25% eats up to 12% of your profit. If you think about it that way, thats quite a large amount of your profit taken away. Although, if you're not trading thousands of dollars and are just beginning to trade, i wouldn't worry about it.

The trading fees are felt by those with huge volumes mostly.

[mk4]

If you're just making a very few trades a month, basically just if you want to buy a certain coin/token, you really wouldn't notice the fees that much. If you're a trader though? And if you're buying/selling huge amounts of bitcoin or any other cryptocurrency, the difference between 0.25% and 2% is HUGE.

[avikz]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Yes it does matter! Usually traders don't always make huge profit.  So for such trades where profits percentage is minuscule, trading fee matters to maintain trading profitability! It applies to real world stock market as well especially in my country where the competition is really high! I have seen broking houses offering as low as 0.1% fees for both day and delivery trade!

Same thing also applies for gambling platform. People always look for gambling websites with lowest house edge! Fees is indeed one of the most important deciding factor for many traders/players!

[actmyname]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Given lets say your profit is 2%, that means that 0.25% eats up to 12% of your profit. If you think about it that way, thats quite a large amount of your profit taken away. Although, if you're not trading thousands of dollars and are just beginning to trade, i wouldn't worry about it.

The trading fees are felt by those with huge volumes mostly.

It's not 12% of the profit, it's 0.25% of whatever the trading volume is.

And if the volume is the same as the profit, then you'll have 0.25% * 2% = 0.005% of your volume.If your trading volume is NBTC then you have to have a profit of at least N * 0.25% BTC to ensure that you break even or profit.

That is, a trading volume of 10BTC (not very high) requires a profit of at least 0.025BTC.

[ashmodeus]

yes.
if u trading with 10btc funds, of course that a huge profit for exchanges.
that why big exchange such binance have a discount for trading fee, because mostly users using bots for trading, and u know exactly how bots works.
and, 0.25% trading fee its a big fees category.

[Polar91]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

It does of course specially if you're trading huge amount of value or you're trading serveral times per day. As much as possible, choose the best trading site which has the best service and has low trading fee at the same time. On the other hand if no other exchanges can satisfy the way they are able to satisfy you, then you should stay and never mind the trading fee and make your trade more profitable as much as possible.

[leowonderful]

Fees also matter a lot if your trading strategy involves trading with relatively high frequency (day trading or scalping). Fees pile up very quickly over time, even if you're not trading high volumes, especially if you're trading using leverage.

Some sites also offer zero fees for maker trades (orders that sit on the orderbook and are filled) or even maker rebates on leveraged sites such as Bitmex or Deribit. This varies by exchange, but you'll generally save money by using limit orders instead of market orders.

[asyakashi]

After several exchanges close, such as coinexchange, fees must be an important part so that the exchange can continue.
But traders prefer low fees in their exchanges, the same as mine. 0.1% of the trade costs are very rational to me.

[harizen]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

It does matter especially for those who trade regularly. They are paying fees regularly so every inch counts.

If you are a casual trader, you won't notice these fees.

And 2% of earnings might be an easy thing to achieved for others but always remember there are times that the wind is not always heading to the way we want.

[bering]

Yes it does matter for me and everytime you trade the fee will cutted from your funds automatically and in a month those fees will pretty high because it accumulated so you can counted how much money to spend for the fee itself moreover not all of traders have huge amount of money as their capital to trading and the fee will kill the profit from low budget traders

[dimonstration]

It matters big time, the amount it can accumulate in a trade we will do in a month might be equals to our capital or half of earnings, depending on how much we trade and how many times we trade. Any percentage when used oftenly will result to a big amount. But that's how it goes fees are needed to complete the transaction and to keep the exchange operating. We just hope they provide better service and support everytime so the fees will be worth it.

[clickerz]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Yes it does matter! Usually traders don't always make huge profit.  So for such trades where profits percentage is minuscule, trading fee matters to maintain trading profitability! It applies to real world stock market as well especially in my country where the competition is really high! I have seen broking houses offering as low as 0.1% fees for both day and delivery trade!

Same thing also applies for gambling platform. People always look for gambling websites with lowest house edge! Fees is indeed one of the most important deciding factor for many traders/players!

Of course, trading fees really matter.The lower the fees, the better. Though, these fees goes to site maintenance and staffs salary and other expenses traders also wants to maximize their profit. Mostly, exchanges charge less than 1%  per  successful trades.

Fees by exchange : https://medium.com/cointracker/2019-cryptocurrency-exchange-fee-survey-49db9b38cb5b

[Yamifoud]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

I don't know how a certain exchange could think about the good of the trader's side, it actually big enough just for trading fees, it supposedly must be free as what the other exchanges do and only they consider fees during withdrawal.
I don't consider this exchange if they tried to collect that, maybe 0.1% is fair for the traders but 0.25% is actually eating our profit.

Trading fees are very important to look by, cause we did not just do the trading for fees but to make money. 

[kynaz]

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

I don't know how a certain exchange could think about the good of the trader's side, it actually big enough just for trading fees, it supposedly must be free as what the other exchanges do and only they consider fees during withdrawal.
I don't consider this exchange if they tried to collect that, maybe 0.1% is fair for the traders but 0.25% is actually eating our profit.

Trading fees are very important to look by, cause we did not just do the trading for fees but to make money. 

Exchanges with a 0.1% fee are very few in the market and that makes a lot of recent large exchanges tend to increase the fee to 0.25%. I think any exchange doing this will greatly affect other investors and they will tend to leave that exchange more. Currently Coinbase is the first exchange that has raised fees up to 0.5% and that is really bad for the participants in this exchange. I personally recommend joining Okex or Huobi because these are two exchanges that allow customers to reduce fees if they are loyal investors.

[pooya87]

there are some special strategies that some people use which require very high frequency trades and in a very small price space, you could find it in bots that are being sold! although i believe this strategy a terrible one but it is being used by many, in this strategy having a fee like 0.25% is going to eat up into their profit and they have to widen their price range which makes the strategy harder to perform successfully so they want a lower fee.
i can't think of any other reason for wanting lower fee except just a competitive one.

[Goodvalony]

Trading fee are means by which exchanges make their money. exchanges depends on trading fee to run their business. it matters because it promote business growth and also trading availability. this fee might affect traders of low volume. people that trade very little on the exchange might be affected because the profit made from sales is little.