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According to a notable crypto analyst and trader, Coinbase’s trading fees are 48x more expensive than traditional foreign exchanges, but the notable crypto broker isn’t the only exchange ramping up their commission…
Alex Kruger, the analyst in question, revealed his findings within a Tweetstorm, posing the question: Are crypto exchanges overcharging customers?
The answer to this appears to be, judging by Kruger’s analysis at least, a resounding yes.
Kruger starts by relaying that the average fee for crypto spot exchanges is around 0.33%:
1/ Are crypto exchanges overcharging customers?
— Alex Krüger (@krugermacro) March 28, 2019
The average "Maker Fee + Taker Fee" in crypto SPOT exchanges (excluding Gemini) for the lowest volume tier (where most users fall into) stands at 0.33%. pic.twitter.com/tZOmGSsAzO
He compares this taker/maker commission with the notable stock broker Fidelity, who’s taker fee amounts to just 0.02%:
2/ Compare with stocks, where brokers like Fidelity charge $4.95 flat per trade. That puts the "Maker Fee + Taker Fee" at 0.02% for a $50,000 trade, and at 0.33% for a $2,900 trade. Traders can lowers fees by using brokers that charge per share rather than per trade (e.g. IB).
— Alex Krüger (@krugermacro) March 28, 2019
Continuing the comparison, and in contrast with foreign exchanges (FX), trading on Coinbase is 48x more expensive. Kruger uses Oanda FX as an example, who’s trading fee sits at just 0.008%.
Coinbase isn’t the only offender, the analyst points out that trading on Bitmex is 6x more expensive than the afromentioned FX.
3/ Compare now with foreign exchange. An FX trader at Oanda would pay 0.008% for a round trip (i.e. in and out of a position) => trading on Coinbase is 48x more expensive, while trading on Bitmex is 6x more expensive.
— Alex Krüger (@krugermacro) March 28, 2019
as reported Coinbase pro recently announced a change to their fee structure, in order to foster a “more efficient market.”
One notable change included a new fee system which is now based on thetrading volume of the precious 30 days:
https://i.gyazo.com/8389a474ee4acc3da1f998190a6c22c2.png
read more:
Coinbase Pro announces new fee structure, other changes