The trading fees from cryptocurrency brokerages vary. And like any shopper, cryptocurrency traders are trying to find the lowest prices for the goods and services they desire.
Trading fees play a significant role when it comes to choosing a brokerage because trading fees directly affect your trading profits. Let’s take a closer look at some of the most popular brokerages and their trading fees.
Brokerages and Their Fees
Coinbase takes a small fee of just .5% per transaction. However, they also charge a flat fee on the amount you are trading, and a fee when users deposit fiat. Coinbase is often seen as the most accessible brokerage for crypto newcomers. But the multiple points in their service where fees are charged can quickly add up and take away from what should be your total trading proceeds.
Robinhood Crypto markets itself as a no-fee platform, but the reality behind the cost of trading on its platform is a little more complicated. Although traders don’t pay a per-transaction fee, they do have to accept a collar on buy and sell order. The collar can be thought of like a window in which your trade can execute. However, the collar creates uncertainty about the price your trade will execute at. Although these practices help Robinhood reduce their internal costs, they make buying and selling crypto less predictable for the average crypto trader.
Etoro’s fees vary significantly depending on the cryptocurrency you are trading. While the .75% spread they offer for Bitcoin transactions might sound like a good deal, the 5% they charge for Tezos or IOTA is less appealing. In addition, Etoro traders need to stay cautious of the platforms the inactivity fee. This fee is something you are going to want to be aware of at all times–especially if you do not trade frequently.
Amplify has adopted the “National Best Bid and Offer” principle that legally regulates traditional securities brokers registered with the SEC. The NBBO ensures that brokers offer traders the best possible prices available across multiple trading venues. Furthermore, traders can use AMPX tokens to reduce their trading fees by 50%. You can sign up to get AMPX right now by pre-registering on our website.
Reduce your Expenses to Maximum your Returns
While the difference between a 1% charge and a 1.5% charge may not sound significant, if you trade frequently, then you know that those fees can add up fast, diminishing or even wiping out trading profits. And it’s not just up-front commissions that traders need to worry about–hidden fees can do the same damage to a trader’s bottom line. Minimizing costs to maximize transaction revenue is key to optimizing your trading returns. This is why it is essential to shop around for a cryptocurrency brokerage that has the lowest fees available!