Is Trading Costing Us More Than We Think?

[EL MOHA]

IMO, trading fees doesn't take much from the profits while the withdrawal fees does.

But trading fees can become a burden for intra day traders who keeps doing multiple trades all day long which will keep taking a fraction from the total trade amount, let's say if it's 0.1% and with 10 trades 1% of your capital will be gone which is why it's important to choose where the fees are less depending on our trading frequency.

This fees still do not count that much as long as long as you’re winning, imagine the daily trader who spends that 1% on trades in a day, if his trades has like 7 wins he would have very well cover a lot and the fee will be negligible to him. Also there is something some platforms do which is reduce fees for those who uses their platform to trade more or have more trading volume.

As for spot and futures I notice trades are actually less fee cost effective when the trade is a limit order trade, market order charges more. But overall one needs to find the exchange with Lower fees although sadly it is mostly centralized exchanges

[Ziskinberg]

I don't use a lot of sites when it comes to trading, I use Binance,.. one thing I could recommend is this.

https://www.bitdegree.org/crypto/tutorials/binance-fees

For example, by holding a specific amount of BNB, you can unlock up to a 25% discount on Binance maker-taker fees—a handy perk for frequent traders.

You'll get discount when using BNB for your trading pairs, that's already big. However, if you really want to enjoy no trading fees, you'll need to find the right timing and wait for promos like zero trading fees although very rate... I think this is also available on other exchanges, just try to explore.

Never thought about that, sounds like a great initiative.
I mainly do stuff on OKX due to how robust Binance can be sometimes, but I will keep that fact in mind.
Much appreciated!
Though I don't pay this much attention to the fees, it's great to know there are ways out of that too.

You're welcome! That small percentage might seem tiny if you're trading small amounts, but as your trades grow, you'll really notice the impact of those discounts. It adds up and helps maximize your profits. Just think about Binance, they're raking in around $10 million daily from trading fees. That’s a massive amount.

But if we can grab even a small drop of that in our favor through discounts and promos, why not? It’s good to stay aware of these opportunities as they might seem minor, but they can make a big difference over time.

[MarvieJ]

IMO, trading fees doesn't take much from the profits while the withdrawal fees does.

But trading fees can become a burden for intra day traders who keeps doing multiple trades all day long which will keep taking a fraction from the total trade amount, let's say if it's 0.1% and with 10 trades 1% of your capital will be gone which is why it's important to choose where the fees are less depending on our trading frequency.

This fees still do not count that much as long as long as you’re winning, imagine the daily trader who spends that 1% on trades in a day, if his trades has like 7 wins he would have very well cover a lot and the fee will be negligible to him. Also there is something some platforms do which is reduce fees for those who uses their platform to trade more or have more trading volume.

As for spot and futures I notice trades are actually less fee cost effective when the trade is a limit order trade, market order charges more. But overall one needs to find the exchange with Lower fees although sadly it is mostly centralized exchanges

I get what you’re saying, and you’re right. if you’re consistently winning, the fees might not feel like a big deal. But for those of us who have to grind through some losses or trade with smaller volumes, those fees can add up quickly. I’m also all for platforms rewarding higher volume traders, reducing fees for those putting in the work makes sense. As for limit vs. market orders, I agree, limit orders tend to be more fee-friendly, but not all of us have the luxury to wait for the perfect entry. Ultimately, it’s about finding a platform that balances fees, volume, and rewards. Centralized exchanges might be the go-to for now, but hopefully, we’ll see more fee-friendly options popping up across the board.

[MarvieJ]

Sure, I’ve heard about discounts and bonuses here and there, but they often feel temporary or hard to access. What if there was a way to consistently cut fees or even get rewarded for trading? Wouldn’t that make the whole game more sustainable, especially for smaller traders like me trying to scale up?

I’ve heard rumors of platforms offering permanent rebates or incentives tied to certain apps, but I haven’t looked too deeply yet. What about you? Have you come across any tools or events that actually help with fees or rewards? I’d love to hear what’s working

How much could those fees cost for every trade you take that makes it matter that much? I guess they don’t cost a much until you decide to accumulate them altogether to see how much you’ve lost to trading fees. To be honest, they shouldn't matter that much as long as you’re getting your big wins at trading, they’ll always cover up for that. When these fees are slashed or taken away, it’ll make them to have less income out of their total earnings calculated to be gotten from each traders trade taken.

I am not really interested in looking out for platforms that proffer little more discount to trading fees, most of them are on the same tangle level of fees. What matters most is how efficient trading on those platforms can be to me. Trading is very much interesting and a lot more happier when you’ve understood and winning big in them, when it does, the fees may never have you to think about looking for a discount on them.

I get your point, if you’re winning big, the fees don’t really feel like much. But here’s the thing: it’s not just about those occasional wins. Over time, especially for active traders or those starting out, those fees add up. It’s easy to ignore them when you’re focused on the next big trade, but they can eat into profits more than we realize. If platforms can lower fees or offer better deals, it gives us traders more room to work with. Trading efficiently is key, but why not make it easier on yourself by not paying unnecessary fees? Less fee pressure means you can focus more on the trading and less on the cost of getting in and out of positions.

[crwth]

I believe this would matter so much if you are trading such big volumes and then amplifying the amount of fees that you have, which would hurt your additional profits so that you can use them for more trading. Well, I guess it's just a matter of doing limit orders to minimize the fees and also accruing the exchange's coin (if it has one) for the possibility of having discounts and privileges on your exchange.

[shinratensei_]

I've noticed this as well, the higher leverage the higher fee cost but you can minimize by holding exchange token on several exchange that gives benefit to their own token holder but I just think that sometime the cost is too high for no reason at all, I used bybit for future trade and many time the fee eat up significant chunk of my profit which I otherwise want to keep, but because the fee is high, I just gotta learn to move on and accept that their leverage feature comes at high cost. I guess same thing happened to other exchange like binance and so on just small difference between fee but it matters a lot for us the small shrimp trying to trade on futures.

same thing with spot, if we ordered on market price the fee usually become obvious.

[justdimin]

platforms offering permanent rebates or incentives tied to certain apps, but I haven’t looked too deeply yet. What about you? Have you come across any tools or events that actually help with fees or rewards? I’d love to hear what’s working

From my exchange I do get rebate coupons for both spot and futures trading but I do get frequently up to $100 rebate for derivative trading and for spot trading very rarely. The other method, I am aware of is, holding or staking exchange tokens to enjoy discounts on every trade; I remember binance first introduced this and right now almost all the exchanges are following this.

Personally I tried staking exchange tokens for discounts in fees but my conclusion is, the depreciation I faced with those exchange tokens must be massively higher than what I would have paid in fees for my transactions. First I thought this could be a temporary set back in values of exchange token but continuous regulation requirement from governments and hacking incidents are leading exchange tokens to go down in value over time.

[TheUltraElite]

Trading fees will haunt you throughout your trading career.

Often liquidation fees in futures and all will be draining out balances before you know it. That is why I suggest only spot trading over any other type of trading.

You will rarely find rebates in spot, because the exchange has very little to get back from that order. Non-spot trading are all similar to gambling and that is where they make the chunk of money.

[Plaguedeath]

And don't forget you need to pay tax for every profit you made.

In order to earn in trading, you need to make a lot profit that beat the trading fees and tax in your country.

It's why if you can't earn a lot of money in trading, it's better for you to become investors instead of spent a lot effort and time when you didn't get a good results.

[Findingnemo]

IMO, trading fees doesn't take much from the profits while the withdrawal fees does.

But trading fees can become a burden for intra day traders who keeps doing multiple trades all day long which will keep taking a fraction from the total trade amount, let's say if it's 0.1% and with 10 trades 1% of your capital will be gone which is why it's important to choose where the fees are less depending on our trading frequency.

This fees still do not count that much as long as long as you’re winning, imagine the daily trader who spends that 1% on trades in a day, if his trades has like 7 wins he would have very well cover a lot and the fee will be negligible to him. Also there is something some platforms do which is reduce fees for those who uses their platform to trade more or have more trading volume.

As for spot and futures I notice trades are actually less fee cost effective when the trade is a limit order trade, market order charges more. But overall one needs to find the exchange with Lower fees although sadly it is mostly centralized exchanges

First of all, it's not win but profits.

If someone has to pay 1% fees for their trades then it's better don't trade at all and the 1% may looks negligible but it's not if we do the math. Let's say trading of 100 dollars and the fee is 1% means 1 dollar will be deducted instantly irrespective of profit or loss and now assuming you made 5% profit in that trade which means you are effectively paying 20% of what you made as just fees and this is only if you made profits but in case of loss the things will be worse.

[Silberman]

A while back, I took a hard look at how much I was spending on trading fees. Futures, spot, perpetuals, it didn’t matter. The total hit me like a punch to the gut. For every trade I carefully planned, a chunk of my profit was quietly eaten away. And the more I traded, the worse it got.

Don’t get me wrong, I’ve had my wins. There’s nothing like the thrill of catching a perfect market move. But when I looked closer, I realized the fees were taking a bigger piece of the pie than I’d like to admit. It got me wondering, why don’t more platforms offer something meaningful to offset these costs?

Sure, I’ve heard about discounts and bonuses here and there, but they often feel temporary or hard to access. What if there was a way to consistently cut fees or even get rewarded for trading? Wouldn’t that make the whole game more sustainable, especially for smaller traders like me trying to scale up?

I’ve heard rumors of platforms offering permanent rebates or incentives tied to certain apps, but I haven’t looked too deeply yet. What about you? Have you come across any tools or events that actually help with fees or rewards? I’d love to hear what’s working

Exchanges live out of those fees, so no matter what you do you will have to deal with them and there are various ways to do so, one of them is simply to reduce the number of trades that you make, the second is to increase the capital used on each trade so it is easier for you to offset those fees, now it seems you are realizing one of the most important truths of trading, minimizing the fees you have to pay is critical, as if you do not then even if you had a good strategy you will lose money, and by the way, you still forget the highest fees you are supposed to pay, which is the taxation the government charges you, so things are even worse than what you think.

[ndutndut]

And don't forget you need to pay tax for every profit you made.

In order to earn in trading, you need to make a lot profit that beat the trading fees and tax in your country.

It's why if you can't earn a lot of money in trading, it's better for you to become investors instead of spent a lot effort and time when you didn't get a good results.

Yes, that's right. All centralized and decentralized exchanges definitely have fees. Because according to the rules and policies of each exchange, licensed crypto asset traders are required to charge a fee for each transaction. I myself don't really think about fees as long as I make a profit, especially if the exchange is comfortable to use, especially in terms of security.

A good suggestion to avoid this is that it is better as you said, being an investor is much better because you don't think too much about fees, don't bother monitoring prices and of course don't spend a lot of time. In addition, with a small capital, trading is not effective, it is better to look for coins that have long-term potential and do dca for the long term. This is certain and profitable without having to think about fees and so on.

[AmoreJaz]

And don't forget you need to pay tax for every profit you made.

In order to earn in trading, you need to make a lot profit that beat the trading fees and tax in your country.

It's why if you can't earn a lot of money in trading, it's better for you to become investors instead of spent a lot effort and time when you didn't get a good results.

Yes, that's right. All centralized and decentralized exchanges definitely have fees. Because according to the rules and policies of each exchange, licensed crypto asset traders are required to charge a fee for each transaction. I myself don't really think about fees as long as I make a profit, especially if the exchange is comfortable to use, especially in terms of security.

A good suggestion to avoid this is that it is better as you said, being an investor is much better because you don't think too much about fees, don't bother monitoring prices and of course don't spend a lot of time. In addition, with a small capital, trading is not effective, it is better to look for coins that have long-term potential and do dca for the long term. This is certain and profitable without having to think about fees and so on.

You won't worry if you are trading in a reputable trading platform. And usually, they have competitive fees. And if you can't attend your trading activities, better invest on coins or projects which you think will have long term potential of profitability.
Trading capital is also important because if you only have small funds, it is just like you are wasting your effort for pennies. But if you have so much time, you can do the baby steps.

[passwordnow]

Fees are not that much to be honest. With those few cents to a buck or two won't be impactful to how much you've sold from that exchange. Just think of it that nothing is free nowadays. That's why the fees that you're paying and automatically deducted once you have trade is just a fee that you have to pay for using their platform. Don't think of it as something that sucks us out because it's not that a lot. While maybe for some reasons those few bucks and cents does really matter to you and it's impactful to you but you need to realize that these services is what we're paying for those fees so that we're convenient in using them and converting our assets into cash.

[doomloop]

For me, I don’t care much about fees as long as I’m making profit from my trades, but in the long run you’ll find yourself spending more and more fees that should have been part of your profit.

All centralized and decentralized exchanges have fees, no exchange will operate without fees because that’s what keeps them going. But some of them offer some discounts due to certain events or you can get a discount if you hold the exchange token like BWB on Bitget exchange, where you get a discount on fees if you hold this token.

If huge profit yeah but if it is only small, then we might not help it but to look back on the fees that we pay and say if only the fees are small, my profit would have even become better. Fees won't be called like that for nothing but this is like a compensation for those who regulate the market.

So, we shouldn't calculate them and add to our potential gains at the first place. If you don't want to pay a fee (lots of it) then you better leave, as early as possible. I am only going to assure you that you won't avoid them permanently because they do exist too outside or in the real world. As you said there, there is still a way to lessen the fees now. So, we can now worry less.

[shield132]

A while back, I took a hard look at how much I was spending on trading fees. Futures, spot, perpetuals, it didn’t matter. The total hit me like a punch to the gut. For every trade I carefully planned, a chunk of my profit was quietly eaten away. And the more I traded, the worse it got.

Don’t get me wrong, I’ve had my wins. There’s nothing like the thrill of catching a perfect market move. But when I looked closer, I realized the fees were taking a bigger piece of the pie than I’d like to admit. It got me wondering, why don’t more platforms offer something meaningful to offset these costs?

Sure, I’ve heard about discounts and bonuses here and there, but they often feel temporary or hard to access. What if there was a way to consistently cut fees or even get rewarded for trading? Wouldn’t that make the whole game more sustainable, especially for smaller traders like me trying to scale up?

I’ve heard rumors of platforms offering permanent rebates or incentives tied to certain apps, but I haven’t looked too deeply yet. What about you? Have you come across any tools or events that actually help with fees or rewards? I’d love to hear what’s working

I use Binance for trading because I actively trade with BNB. There are many people who hate this coin but for investment purposes, it's a really good coin. According to Binance, Taker/Maker fees are 0.1000% / 0.1000% for regular users. When you buy 1 Bitcoin, you pay 0.001 BTC fee. I don't trade with 100k, I usually trade with 10-20K and I have never thought that this is a big fee for me because I trade a few times during the year, maybe 3-4 times a year. If you trade with small amount, this 0.1 fee won't affect you much but if you are a whale, it means a lot and in this case, on Binance, you have to purchase BNBs. In 2020 I luckily bought 25 BNB when price was $20 and I usually hold them but I also trade with them but in the end, if you are not a millionaire, you won't be able to save on fees.

[shinratensei_]

Fees are not that much to be honest. With those few cents to a buck or two won't be impactful to how much you've sold from that exchange. Just think of it that nothing is free nowadays. That's why the fees that you're paying and automatically deducted once you have trade is just a fee that you have to pay for using their platform. Don't think of it as something that sucks us out because it's not that a lot. While maybe for some reasons those few bucks and cents does really matter to you and it's impactful to you but you need to realize that these services is what we're paying for those fees so that we're convenient in using them and converting our assets into cash.

in my opinion, the fee become painful when we trade on leverage, like 100x leverage just for short 1m chart, we usually charged $2-3 for small margin of $15 which is nuts, I think exchange need make exception of high fee for small trades like this though I understand they charged the fee based on the filled order which with 100x leverage gonna be inflated 100x and also funding fee.

if it's just spot trading usually I just don't bother the fee is minimal, even more minimal if we open a limit order and not market order.

but still it'd be great if there's some kind fee cut for high leverage you know . because exchange fee is just one thing that we gonna pay, there are a lot more to come.

[Perfectbaby]

A while back, I took a hard look at how much I was spending on trading fees.

You are focusing on the wrong thing. These platforms need to make money too to stay in business; the harsh economy is not only affecting individuals but also these companies; they need the fees, else they will collapse.

Focus more on increasing the profit you make, so you don't have to worry about the fees these platforms are getting.

Do you think anyone who focused on the profits these companies makes would eventually make progress especially in trading?
To me I don't think anyone should be focusing on the amount they made from people who are using the platform rather, it is better to focused on self development and how to be more productive with their trading to keep earnings and covers up their trading fees. It doesn't make sense to trade and keep losing instead it's better to have a good trading skills to keep one earning good amount from trading not to focused on the amount the company are making.

[tbct_mt2]

in my opinion, the fee become painful when we trade on leverage, like 100x leverage just for short 1m chart, we usually charged $2-3 for small margin of $15 which is nuts, I think exchange need make exception of high fee for small trades like this though I understand they charged the fee based on the filled order which with 100x leverage gonna be inflated 100x and also funding fee.

Trading is risky and trading with leverage is more dangerous but it isn't only like these. If you use very high leverage like 100x, and very short candle like 1 minute, your trading position will be closed very quickly and mostly closing by exchange liquidation. People trade with high leverage like this can use small capital, but with time, sum it up they will lose very big capital that is hard to imagine at beginning.

if it's just spot trading usually I just don't bother the fee is minimal, even more minimal if we open a limit order and not market order.

When trading with spot, it's safer, but when trading with margin, it's more risky and trading fee with this trading type is no longer most important concern. It's about liquidation and your serious loss of capital, trading fee is too small compares to your loss.

[Jody.Drummer]

A while back, I took a hard look at how much I was spending on trading fees.

You are focusing on the wrong thing. These platforms need to make money too to stay in business; the harsh economy is not only affecting individuals but also these companies; they need the fees, else they will collapse.

Focus more on increasing the profit you make, so you don't have to worry about the fees these platforms are getting.

Do you think anyone who focused on the profits these companies makes would eventually make progress especially in trading?
To me I don't think anyone should be focusing on the amount they made from people who are using the platform rather, it is better to focused on self development and how to be more productive with their trading to keep earnings and covers up their trading fees. It doesn't make sense to trade and keep losing instead it's better to have a good trading skills to keep one earning good amount from trading not to focused on the amount the company are making.

Sometimes there are things that we don't need to pay attention to. I'm not saying that's wrong, there's nothing wrong with calculating that because maybe it will be useful for us when we start trying to build a business. However, don't let it distract us from focusing on something more important, that's the point. If we can stay focused, then I think it's okay even though it might not have any impact on us. However, when in the trade that we do we still encounter many problems, then it's better to just fix that first by continuing to learn to be even better. For me, that's the point.