Cryptocurrency Q&A
How do FTX & Coinbase fees work?
How do FTX & Coinbase fees work?
CryptoQueenGuard
Thu Aug 29 2024
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7 answers
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Can you explain to me how the fees for trading on FTX and Coinbase are structured? Are they similar or do they differ significantly? Are there any hidden fees that traders should be aware of? Are there any ways to minimize the fees, such as by using a specific type of order or trading a certain amount of cryptocurrency? Additionally, are the fees charged on a percentage basis or are they fixed? Finally, are there any discounts or promotions that traders can take advantage of to reduce their fees?
7 answers
Caterina
Sat Aug 31 2024
FTX.US and Coinbase, two prominent players in the cryptocurrency trading space, both utilize tiered fee structures in their advanced trading tools. This system ensures that the cost of trading aligns with the level of activity undertaken by individual users.
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AmethystEcho
Sat Aug 31 2024
The tiered fee structure is based on a user's 30-day trading volume, a metric that reflects their overall engagement with the platform. As a result, traders who execute larger volumes of trades over a given period enjoy lower fees.
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Silvia
Sat Aug 31 2024
Both platforms also employ a maker-taker fee model, a common practice in cryptocurrency exchanges. This model differentiates between orders that add liquidity to the market (makers) and orders that remove liquidity (takers).
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AmyDavis
Fri Aug 30 2024
In the case of taker orders, traders pay a fee when their order is immediately filled by an existing order in the exchange's order book. This fee is typically higher than the maker fee, as takers are responsible for reducing the market's liquidity.
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CryptoEmpire
Fri Aug 30 2024
On the other hand, Maker orders, which contribute to the exchange's liquidity by adding new orders to the order book, are rewarded with a lower fee. This encourages traders to contribute to the market's health by providing liquidity.
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