Is Trading Costing Us More Than We Think?

[Saint-loup]

Yes usually exchanges like to take fees and not making it much noticeable to customers to let them think, they are making profits or losing less than they are in reality, that's why it's very important when you trade to closely monitor what is spent in those fees and how it affects your profits. Otherwise you won't be able to know how efficient is your strategy if the profits made are not larger than the fees.

[shinratensei_]

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.

honestly in my opinion, leverage means nothing if we can control our risk, when I use 100x, I will set my SL to -$50 with a margin of $5, so I can tolerate 1000% negative PnL and have no problem with it.
people who trade with 100x leverage are usually people who put their limit order at resistance and hoping the market bounce, this strategy works quite well but occasionally as well the strategy might not work when market is impulsive.
as for me, I find 100x to be really good since I already used to it.

so I don't think it's that dangerous if we know what we're doing, the problem with most of people though, they just use 100x leverage without risk management and go all in, as a result, they got a really close margin call price mark.

[Chibaba]

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

Those trading fees can be quite a lot if you cumulatively calculate it and that's why most exchanges often role out trading fees rebate campaigns to subsidize these fees. Exploring the innovative telegram trading mini app could provide rebate opportunities particularly for those using Bitget mini app to trade. Bingx and Gate also have this mini apps but not sure if they allow both spot and futures with a trading fee rebate campaign to onboard users.

[john_egbert]

Yes usually exchanges like to take fees and not making it much noticeable to customers to let them think, they are making profits or losing less than they are in reality, that's why it's very important when you trade to closely monitor what is spent in those fees and how it affects your profits. Otherwise you won't be able to know how efficient is your strategy if the profits made are not larger than the fees.

All the facts should be known to the trader, and he should work with them accordingly.
Strategy should take shape from them, it's natural for it to be that way.

[FortuneFollower]

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.

honestly in my opinion, leverage means nothing if we can control our risk, when I use 100x, I will set my SL to -$50 with a margin of $5, so I can tolerate 1000% negative PnL and have no problem with it.
people who trade with 100x leverage are usually people who put their limit order at resistance and hoping the market bounce, this strategy works quite well but occasionally as well the strategy might not work when market is impulsive.
as for me, I find 100x to be really good since I already used to it.

so I don't think it's that dangerous if we know what we're doing, the problem with most of people though, they just use 100x leverage without risk management and go all in, as a result, they got a really close margin call price mark.

Greed and lucrativeness over a position with leverage may be the end of some depos, indeed.
So in order to avoid such fate - analysis should be put to work, just like for any position, on the spot or not. Because it's riskier than the usual one.

[Fara Chan]

Those trading fees can be quite a lot if you cumulatively calculate it and that's why most exchanges often role out trading fees rebate campaigns to subsidize these fees. Exploring the innovative telegram trading mini app could provide rebate opportunities particularly for those using Bitget mini app to trade. Bingx and Gate also have this mini apps but not sure if they allow both spot and futures with a trading fee rebate campaign to onboard users.

All crypto exchanges are indeed continuing to innovate in order to attract more users, but if it lies in the issue of trading fees, I think every trader can also see it clearly even without having to test it first. So far I have not paid much attention to it because I am still quite satisfied with using the Binance exchange which can provide some of the services I want so I don't often use other exchanges if it is only about trading fees. Because when there is one exchange that can provide some of the benefits we want, I think that is more than enough and there is no need to register for more exchanges if the services and fees are not much different.

[Perfectbaby]

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.

Staying focused is one thing that keeps us moving in everything we are doing be it trading or investment we must learned to understand how things works especially that of the trading because when focused it makes it that easier for us to know more things about what we do. As said, except he wanna ventured into such business then fine it's good he knows how the fees are being calculated or even how the exchanger's are making their profits from trading.

[YOSHIE]

Is Trading Costing Us More Than We Think?

Yes, that's for sure if you don't have an understanding and knowledge about trading in the crypto market, everyone definitely knows that crypto trading is high risk, so it can clearly burden or harm ourselves more than we imagine.

Hopefully if you have knowledge about trading, of course the activities you do will not be a burden for you and you will do it with big profits and not losses, Many of our friends have been involved in trading for more than 1-2 years, they have only just felt the benefits of what they do, some are desperate and some are successful, that's the world of crypto trading that requires patience and knowledge, not imitation.

[Jaycoinz]

Trading can be a huge expense to people who don't understand risk management and those who don't have other sources of income. You  can't just rely on trading as the only way to generate income. Before you go into trading you must have a backup because if anything happens to the resources you have without having any other thing to fall back to it might be a problem for you. Trading involves a lot of risks and you are not going to get it right within the first few months of navigating the market, you would incur losses but it all depends on your awareness of risk management.

[Alone055]

You are being wholly unreasonable and dramatic here, @OP.

A regular trader in most exchanges pays between 0.02% and 0.1% as maker or taker fees. Maker fees are lower in most exchanges, which makes it even more economical to be a maker, so you should make sure you are trading as a maker if you don't want to pay higher. Even if you are paying 0.1% in fees, it costs you $0.1 for a $100 trade, which is only an example I'm using because most exchanges wouldn't even charge you that much.

Binance charges 0.02% to makers and 0.05% to takers as regular traders, and these fees reduce as you grow higher in VIP levels. So when you say that a large chunk of your profits are taken by the fees charged by centralized exchanges, that is a bit excessive. Paying $0.05 as trading fee for a $100 trade isn't too much, in my opinion. After all, exchanges have to earn money as well for providing the services to you.

[justdimin]

You are being wholly unreasonable and dramatic here, @OP.

A regular trader in most exchanges pays between 0.02% and 0.1% as maker or taker fees. Maker fees are lower in most exchanges, which makes it even more economical to be a maker, so you should make sure you are trading as a maker if you don't want to pay higher. Even if you are paying 0.1% in fees, it costs you $0.1 for a $100 trade, which is only an example I'm using because most exchanges wouldn't even charge you that much.

Binance charges 0.02% to makers and 0.05% to takers as regular traders, and these fees reduce as you grow higher in VIP levels. So when you say that a large chunk of your profits are taken by the fees charged by centralized exchanges, that is a bit excessive. Paying $0.05 as trading fee for a $100 trade isn't too much, in my opinion. After all, exchanges have to earn money as well for providing the services to you.

Yeah, these type of things will of course be overestimated and will be considered as a big deal, but nobody considers how exchanges become traders just like us as well, what do you think they do with all that crypto, they do hold as much as they can, but they then sell that too, so it is not really like they are any different, plus I would rather an exchange have it than some whale who may just crash the market.

All in all, I believe that we are not really losing that much to fee's, trading is fine and the exchanges should be making some fee considering how much they are putting into this. Think of Binance, they are holding 100+ billion dollars worth of money on their coffers so we can trade, the risk they are taking is huge, I would gladly pay whatever fee they want and that's the truth.

[MarjorieZimmermanGinger]

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.

If done excessively and not supported by good skills, I can say that the trades made will never be successful and instead we will see continuous losses. This is why most beginners come into trading just because they are motivated to make money but they don’t understand how to do it properly so as not to lose money.

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?

If you enter into spot trading then any reward will be much more balanced, except when trading in futures because it will be very detrimental when you experience a loss based on one trade. In conclusion you understand better how to trade where forcing yourself to trade with poor skills will actually harm you. If you do not have the knowledge and experience then you should learn spot trading because there it will be much easier by taking a trading approach to more fundamental coins.

[slaman29]

I always tell people one fact. You are at a loss as soon as you open your trade.

First because of the spread. As soon as you buy or sell, you already have to close at a better price.

Second the fee/commission. Small, but if you open 10 trades, the 0.05% becomes 0.5%. 100 trades and you are out 5%.

Then people forget about deposit and withdrawal costs

Trading is not for the weak or the lazy.

[Synchronice]

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

There are many things that you have to consider during trading. First of all, everything depends on which platform you choose for trading and how big trader you are. The bigger the trader you are (I mean capital), the better the fees are for you.

For example, Coinbase charges users high fees, which sometimes can go up to 0.6%, which is a huge fee to my mind but there are things that you can do to avoid paying such a high fee and there are some tricks written in this article: https://help.coinbase.com/en/exchange/trading-and-funding/exchange-fees

Binance trading fees for regular users are up to 0.1% but if you hold some BNB and your 30-day trade volume is more than 1 million USD, you can save yourself from paying a significant portion of fees, here is the table: https://www.binance.com/en/fee/schedule

Fees on Kraken can go up to 0.4%, check this: https://www.kraken.com/features/fee-schedule#spot-crypto

I won't include every trading platform but you can google fees of each of them. Overall, Binance is the best option for an average user but for advanced users, depends on their capital range, there is a competitive market.

[john_egbert]

I always tell people one fact. You are at a loss as soon as you open your trade.

First because of the spread. As soon as you buy or sell, you already have to close at a better price.

Second the fee/commission. Small, but if you open 10 trades, the 0.05% becomes 0.5%. 100 trades and you are out 5%.

Then people forget about deposit and withdrawal costs

Trading is not for the weak or the lazy.

It's for the resourceful and determined people.
You either understand this or lose your depo trying.

[Altryist]

You can use the native token of the exchange to pay the fees, this will allow you to save a little on fees, but you can't get rid of fees because that's what the exchanges make money on. If I trade, then mostly it's spot trading, I know how much I enter the deal with and I know how much I need to exit with so I don't worry about how much I spend on fees, I just take it for granted that I can't get rid of.

[slaman29]

Trading is not for the weak or the lazy.

It's for the resourceful and determined people.
You either understand this or lose your depo trying.

Actually most things in life are, but crypto, gambling, trading, especially needs people to be determined to know everything, to inform themselves, and to realize they are at disadvantage as soon as they start.

Too many people waste time on gaining free things. Short roads have bad endings

You can use the native token of the exchange to pay the fees, this will allow you to save a little on fees,

Only if you high volume trader. You will end up losing money buying shit tokens going down in price over time.

[tvplus006]

You can use the native token of the exchange to pay the fees, this will allow you to save a little on fees, but you can't get rid of fees because that's what the exchanges make money on...

Even now, it remains a mystery to me why an exchange like Bybit did not introduce discounts on payment with the MNT token, at a time when even new exchanges provide such a service. Such a discount when paying with an exchange token strengthens not only the coin itself, but also allows traders to slightly reduce costs.

[tottong]

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.

I never calculated how much it cost to trade and maybe each exchange has different fees.
Exchanges are also part of the business so it is impossible for them not to charge a fee for every trade we make because in essence they already provide a service so that fees will definitely be charged for everyone who uses the exchange.
But what needs to be thought about is not the issue of costs but the need to improve skills so that every trade made can be profitable.

If the issue of costs is the problem, should we stop trading or make transactions and I think the trading costs are not too big because the exchange have have adjusted.

[Lida93]

The exchanges we use for trading do use those fees in running their day to day services of the platform and also to the welfare of their employees and paying of taxes to the authority. With all of these considered I don't find it as anything to worry about. What should be of immense concern to a trader is how he can maximise his trading skills and strategies to making huge profits than losses because what those trading platforms take as fees is nothing compared to what most of us loss on a bad trade.