Anyone intending to buy or sell cryptocurrencies will pay fees in the process. These fees include network fees and deposit fees to fees charged by exchanges to buy, sell, and trade assets. How much you’ll pay varies between exchanges.
It can be a bit confusing, though, because some exchanges are brokers that operate with a different model. Unfortunately, I know how confusing it can be since I’ve spent hours reviewing them for Finty’s exchange comparison page.
So if you’ve ever questioned the fees, this is the guide for you.
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It's unlikely that an exchange or broker would charge all of the following fees.
Brokerage fees
- One-off: Yes
- Typical fee: 4%-6%
- Incurred when: Submitting an order
These are the fees you can expect from almost every broker. This fee is how they make most of their operating profits and is typically reduced with increased trading volume.
Credit card processing fees
- One-off: Yes
- Typical fee: 2%-6%
- Incurred when: Depositing funds with a credit card
Most exchanges charge a fee to process deposits made using a credit card. This fee can vary significantly between exchanges and can be as high as 6%, which is an amount that can affect the short-term profitability of a trade.
Crypto deposit/withdrawal fees
- One-off: Yes
- Typical fee: 0%-2%
- Incurred when: Depositing or withdrawing funds from a platform to a bank account
Just as there are fees for depositing and withdrawing fiat currencies, there are also fees to deposit and withdraw cryptocurrencies. Some exchanges do not charge this fee, but many do.
Fiat deposit/withdrawal fees
- One-off: Yes
- Typical fee: A couple of dollars
- Incurred when: Depositing or withdrawing fiat (e.g. USD)
Many exchanges charge a fee to deposit or withdraw fiat currencies using any method (card, bank transfer, etc.). The fee for the deposit may be higher than that for a withdrawal and vice versa. Some exchanges do not charge these fees, but they remain stubbornly widespread.
Inactivity fees
- One-off: No
- Typical fee: $5-$10 / month
- Incurred when: After not trading with your account for a period of time
If your account remains inactive for a certain period, inactivity fees may apply. The duration varies between platforms. Most crypto exchanges don’t charge an inactivity fee, but some brokers — especially legacy brokers — still charge it.
Maker/taker fees
- One-off: Yes
- Typical fee: 0%-0.5%
- Incurred when: Submitting an order
A maker creates an order to be filled while the taker fills the order. Makers are charged maker fees while takers are charged taker fees. Some exchanges may charge one and not the other, neither, or both.
To further complicate matters, maker/taker fees are often tiered, so the more you trade, the lower the fee. Furthermore, tiers are often scoped to the last 30 days.
Spread
- One-off: Yes
- Typical fee: Varies
- Incurred when: Submitting an order
This is the difference between the buy and the sell price quoted for an asset, i.e. the current market price at which you buy the asset and the price at which you sell it later.
Exchanges such as Coinbase include a spread in asset prices when you buy and sell, or in the exchange rate as you convert from one currency to another.
The following fees relating to the means of payment are not charged by the trading platform.
Cash advance fees (when using a credit card)
- One-off: Yes
- Typical fee: 20%+
- Incurred when: Using a credit card to deposit funds into a trading account
Many credit card issuers treat crypto-related transactions as a cash equivalent, meaning they attract interest at the cash advance rate from the transaction date until you have repaid it. Additionally, there may be a one-off cash advance fee.
Currency conversion fees (when using a credit or debit card)
- One-off: Yes
- Typical fee: 2%-3%
- Incurred when: Using a card to transact in a foreign currency
Currency conversion fees are incurred when you use a credit or debit card to purchase crypto — or anything else — in an overseas currency. Some credit cards waive this fee, but many still charge it.
