Is Trading Costing Us More Than We Think?

[hero_the_bossman]

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.

Truly a mystery.
Didn't try it or any other token in fact, to grab the discounts for trades (they are not that big for me to consider the option), but still - I think it would be much appreciated by people who are interested more in such thing.

[betswift]

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.

You may be right - it's only a concern if the depo is such a big pile of funds or a trader does trades very, veryyyy often.
Otherwise - it may not be such a big problem.

[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.

You may be right - it's only a concern if the depo is such a big pile of funds or a trader does trades very, veryyyy often.
Otherwise - it may not be such a big problem.

But even if as a trader I had to trade very veryyy often, and it happens that am winning more trades 3x more than an making losses in my total number of trading times it still won't be anything to go by in crossing my mind about the fees that goes with each trade. I can only make a big deal about that when the losses becomes to numerous to bear.

[retreat]

From what I've learned the exchanges don't really care about what you experience, what they think is from their business side, not from your side, if you feel that the trading fees on the platform are high and you think it's not fair, then you can switch to another platform that offers lower fees compared to what they offer. It's as simple as that. And I think, some of the popular exchanges nowadays have reasonable fees and various programs and rewards that are very helpful for traders - and if you feel that it's not enough, then what you need is how you can get more profit from your trading, because if you profit hundreds of dollars, paying fees is not a big problem.

[alastantiger]

From what I've learned the exchanges don't really care about what you experience, what they think is from their business side, not from your side, if you feel that the trading fees on the platform are high and you think it's not fair, then you can switch to another platform that offers lower fees compared to what they offer. It's as simple as that. And I think, some of the popular exchanges nowadays have reasonable fees and various programs and rewards that are very helpful for traders.

Switching exchanges isn't that easy because you don't know what the fate of that new exchange holds for you. You might've been receiving successful transaction on present exchange and when you switch, you start to decline. You'll also get introduced to new tokens that mightn't give you the victories that you use to get when trading in the other exchange. You also have to consider what the different exchanges offer in trading experience and that's why I do not switch between exchange that frequently when trading.

The fees as you have said aren't that high or possible I haven't traded that large sum to get billed more so I can't relate but for my trading, I consider the fees I get charged as alright. But for the general assumption that trading is profitable, I think it's not and we have people losing more than they're being victorious.

[Familian]

From what I've learned the exchanges don't really care about what you experience, what they think is from their business side, not from your side, if you feel that the trading fees on the platform are high and you think it's not fair, then you can switch to another platform that offers lower fees compared to what they offer. It's as simple as that. And I think, some of the popular exchanges nowadays have reasonable fees and various programs and rewards that are very helpful for traders.

Switching exchanges isn't that easy because you don't know what the fate of that new exchange holds for you. You might've been receiving successful transaction on present exchange and when you switch, you start to decline. You'll also get introduced to new tokens that mightn't give you the victories that you use to get when trading in the other exchange. You also have to consider what the different exchanges offer in trading experience and that's why I do not switch between exchange that frequently when trading.

These exchanges are out for business and they all will want to set competitive trading fees for users and that's what makes it's a choice for users to choose which platform with favourable fees for them but I'm doing so they ought to remember not choosing an exchange because it's with a very low fees without considering it's reputation and longtime standing in the industry to avoid losing our funds to scam exchanges.

[Faisal2202]

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.
-cut-
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 don't trade in futures or in margin trading but only in spot so fees are not that much in spot yeah if I would add fee from all of the trades they would be a big number but still If I am not wrong they won't be more than even a $1. As in Spot I don't make that much trades. Speaking of futures AFAIK they have to pay the commission fee every for every 8 hours (On Binance) and other exchanges can have their own parameter.

Can you give us an exact number of how much fee collectively they have deducted from you, I think you could only calculate the data of the past 6 months (max) as most of the exchanges don't provide historical data beyond this. Using the native token of the CEX can help reduce the fee like BNB for Binance, and BGB is I think native for Bitgetwallet and Gate has their own token.

[mirakal]

From what I've learned the exchanges don't really care about what you experience, what they think is from their business side, not from your side, if you feel that the trading fees on the platform are high and you think it's not fair, then you can switch to another platform that offers lower fees compared to what they offer. It's as simple as that. And I think, some of the popular exchanges nowadays have reasonable fees and various programs and rewards that are very helpful for traders - and if you feel that it's not enough, then what you need is how you can get more profit from your trading, because if you profit hundreds of dollars, paying fees is not a big problem.

We always have the option to switch, but from what I see, major exchanges generally have similar fees. Maybe we noticed that smaller exchanges might offer lower fees, but we need to be cautious because some of them could be scam sites. For me, fees don’t matter much as long as they are manageable; it is better than risking our money on untrustworthy platforms.

In my opinion, fees only become an issue if we’re constantly depositing and withdrawing our money. As many traders practice, they don’t completely empty their wallets. They leave some funds for future trades, which helps minimize transaction costs over time.

[CageMabok]

These exchanges are out for business and they all will want to set competitive trading fees for users and that's what makes it's a choice for users to choose which platform with favourable fees for them but I'm doing so they ought to remember not choosing an exchange because it's with a very low fees without considering it's reputation and longtime standing in the industry to avoid losing our funds to scam exchanges.

Consideration of trading fees and any transaction fees on a particular exchange is the second option after knowing about the value and rating of the exchange. Because the level of security and also the level of good reputation on an exchange must be the main benchmark for every user and especially for all traders who often put a certain amount of money into the exchange in order to facilitate their work as traders. Moreover, after seeing the level of fees on an exchange and comparing it with other exchanges, the difference itself is not that big or not that striking. So this should not be a serious problem for every user because the most important thing here is the level of security and also the speed of an exchange in serving every transaction from its own users.

[Iranus]

We always have the option to switch, but from what I see, major exchanges generally have similar fees. Maybe we noticed that smaller exchanges might offer lower fees, but we need to be cautious because some of them could be scam sites. For me, fees don’t matter much as long as they are manageable; it is better than risking our money on untrustworthy platforms.

Yes, if OP or anyone takes the time to compare, it can be seen that the fees of reputable exchanges will not have too big and insignificant differences.

Besides, everything has its price and with the choice of low-fee exchanges. In addition to the possibility of being scammed, we may encounter problems such as low liquidity or poor customer service and especially information security, assets will not be more guaranteed than with reputable exchanges. So don't just because of a small fee and make decisions that get us into bigger unnecessary troubles.

[Woodie]

It's not every trading platform that will charge you the likes of commissions and the alike, and also asset being traded matters especially if you trade forex...but for the likes of commodities,  indices, crypto these shouldn't attract unnecessary fees unless you take it up with your broker!!

Btw, lot size will also matter...so if you are over leveraging your account expect to pay more of these fees.

Otherwise, where I trade crypto is commission free and whatever profits you see, that's pretty much what you get.

[el kaka22]

We haven't seen an exact number or figure from OP so we do not know what they think is a lot. If you trade every single day, and I mean literally every single day, and then at the end of the year you just spent a thousand or two, then that's normal isn't it? I mean we are talking about tens of thousands even hundreds of thousands of dollars worth of trading going on from a single source, and paying a bit for that isn't really that big.

I mean we are talking about just 0.1 right? That's what they take, 0.1% from maker and taker, that means if you are trading 100k dollars, that's literally hundred thousand dollars, that is just 100 dollars for the action. I am not sure if that's a lot, and if you end up using BNB to pay, that means you are going to end up with even less, like 75 bucks. That's nothing.

[JeffBrad12]

But even if as a trader I had to trade very veryyy often, and it happens that am winning more trades 3x more than an making losses in my total number of trading times it still won't be anything to go by in crossing my mind about the fees that goes with each trade. I can only make a big deal about that when the losses becomes to numerous to bear.

the only time where the fee might seem painful is when we're so unsure of the market, always doing a massive buy by market price and then trying to rotate to other coin quite often just for the sake of fitting in into the narrative.

I can see the exchange getting 2-3 USD everytime i rotate for each grand that I exchange LOL .

but yeah, it's actually nothing at all when we're making literal thousands of dollars from a good trade, after all, these exchanges got something to take care and their platform has been such a big help.

[Cookdata]

These exchanges are out for business and they all will want to set competitive trading fees for users and that's what makes it's a choice for users to choose which platform with favourable fees for them but I'm doing so they ought to remember not choosing an exchange because it's with a very low fees without considering it's reputation and longtime standing in the industry to avoid losing our funds to scam exchanges.

I will choose reputation before any other things an exchange offer, most of the problems that we have from exchanges are result of bad reputations from the team. Look at Mt gox, FTX and Hotbit, the team carelessness lead the exchange to where it is today, things that are cheap can be very dangerous, it's better you look out for reputation before any other things. If this exchanges that collapse were able to refund the affect customers, crypto space will be stronger than the way it's right now.

Mt gox recently distributed their Bitcoin to the affected customers, catastrophe event that happens more than 10 years ago, only lord knows when FTX will give back to their customers. I don't like centralized exchanges but some of them are better than each other regardless of their trading fees.

[iBaba]

But even if as a trader I had to trade very veryyy often, and it happens that am winning more trades 3x more than an making losses in my total number of trading times it still won't be anything to go by in crossing my mind about the fees that goes with each trade. I can only make a big deal about that when the losses becomes to numerous to bear.

Trading is all about money and one's ability to nuture his/her psychology. It matters a lot in gaining a stronger chances of making more profit when trading. Trading is not easy to be honest, it requires mental maturity and stamina. Ultimately, it requires one's ability to be consistent.  Losses happen in trading, it's a normal thing however, it also gives birth to winning and immediately you get an edge over the market, it gives the trader a balance, giving you the capacity to trade more and more.

[JiiBs]

Trading could only be costly if you ain’t making a significant profit of it.
Think about it: why is it that most people want to be traders?
That’s simply because, it’s a profitable space where you have the opportunity to make a lot of money or the commodity for which you trade on. If you’re actually winning in your trades and making a lot of money from it, then you would see it to be worth whatever effort you put into trading. When it’s otherwise, you might want to rest it but, rest it and then you’ve truly lost.

[tottong]

Trading is all about money and one's ability to nuture his/her psychology. It matters a lot in gaining a stronger chances of making more profit when trading. Trading is not easy to be honest, it requires mental maturity and stamina. Ultimately, it requires one's ability to be consistent.  Losses happen in trading, it's a normal thing however, it also gives birth to winning and immediately you get an edge over the market, it gives the trader a balance, giving you the capacity to trade more and more.

It is really related to psychology and if not handled properly it will actually give birth to extraordinary panic and can be even more biased.
Trading must be carried out if someone is ready to face the risk because even though we have knowledge, if we are not able to control the risk it will end up worse.
Losses are a natural thing but steps need to be taken to minimize them because it is impossible to be involved in trading by experiencing losses all the time.
I believe that knowledge and experience will provide an overview for people involved in trading and in that way people will be much easier to recognize the impact of the risks generated and we also cannot guarantee that trading can provide consistent profits.

[Alphakilo]

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

Fees are important because from a little experience, they are different from one trading platform to another. As a trader just on the exchange, your goal is to make the most profit and minimize any loss that can be avoided. The knowledge of different trading fees on each of the platforms will decide whether to move there or remain where you are.

MEXC has just increased their spot trading fee to 0.05% for market makers and takers. But their future trading fee still remains as 0.02% for takers while 0% for makers. I prefer the exchange if I want to trade futures. You can even set the close position order TP with limit order so that no fee would be deducted if the order is filled.

Do you know how these maker and taker fees on these cryptocurrency trading platforms are calculated? My observation is that whenever I don't use any leverage and I try to trade $100 in futures market, the fee I get charged is above $50 which is high.

[fuguebtc]

These exchanges are out for business and they all will want to set competitive trading fees for users and that's what makes it's a choice for users to choose which platform with favourable fees for them but I'm doing so they ought to remember not choosing an exchange because it's with a very low fees without considering it's reputation and longtime standing in the industry to avoid losing our funds to scam exchanges.

I will choose reputation before any other things an exchange offer, most of the problems that we have from exchanges are result of bad reputations from the team. Look at Mt gox, FTX and Hotbit, the team carelessness lead the exchange to where it is today, things that are cheap can be very dangerous, it's better you look out for reputation before any other things. If this exchanges that collapse were able to refund the affect customers, crypto space will be stronger than the way it's right now.

Mt gox recently distributed their Bitcoin to the affected customers, catastrophe event that happens more than 10 years ago, only lord knows when FTX will give back to their customers. I don't like centralized exchanges but some of them are better than each other regardless of their trading fees.

Reputation is a factor that should be prioritized over any other factor to ensure our safety, but their reputation will not bring us absolute safety. Before its collapse, Mt.gox was the largest exchange at the time while FTX was the 3rd exchange on the chart and considered Binance's biggest competitor. But both collapsed, causing severe damage to investors and markets. So, it's not wrong to prioritize reputation when choosing an exchange, but don't be subjective because it doesn't guarantee anything .

Centralized exchanges are not trustworthy but the problem is that for traders we have almost no other choice, only centralized exchanges provide trading services.

[alastantiger]

These exchanges are out for business and they all will want to set competitive trading fees for users and that's what makes it's a choice for users to choose which platform with favourable fees for them but I'm doing so they ought to remember not choosing an exchange because it's with a very low fees without considering it's reputation and longtime standing in the industry to avoid losing our funds to scam exchanges.

The fees are all similar with only a few being different, I have looked at most exchange charges and the new ones aren't making theirs any cheaper but almost similar to those of already existing exchange. What newer exchange work on is their marketing through partnership because they believe that when they do their marketing right, that they'll be able to get their own customers and too, steal from their counterparts. Having zero withdrawal charges are some other ways they use to bring customers to their own exchanges. More traders are getting recruited on some of the popular exchanges and leaving no room for the newly launched ones. The reputation of an exchange is always important before anything else so we don't get scammed trying to look for a cheaper exchange to trade on.