Have you ever dreamed of zero-fee cryptocurrency trading? Is this thing possible? Anyone who has tried to trade crypto knows that commission fees will eat a small fraction of profit. However, the industry provides exchange platforms for efficient yet commission-free trading. The crypto industry is moving forward by adopting advanced features from the conventional finance system. There is a number of zero-fee investment and trading platforms in the world of centralized finance. Today, we’ve collected the top-5 cryptocurrency exchanges that allow for zero-fee crypto trading.
Is It Possible to Trade Crypto Without Fees
First things first. Before going deeper into the crypto trading, it is important to do your research about a crypto trading spot. You have to learn all the pitfalls, mainly regarding the security features of a trading platform and commission fees that can be charged during your crypto trading. Even if an exchange claims to enable ‘fee-free crypto trading’, one should examine all the conditions and disclaimers provided.
Basically, there aren’t any cryptocurrency exchanges with no commission fees at all. Crypto exchanges may charge fees for different actions like depositing/withdrawing, etc. We’ve gathered the most common types of commission fees.
|Deposit/Withdrawal Fees||Crypto exchanges encourage traders to trade one digital asset against another. Most of the time, when depositing fiat money on an exchange, a trader should pay a commission. The same rule works for withdrawals.|
|Network Fees||Since we talk about cryptocurrency trading, one should keep a blockchain factor in mind. Trading on decentralized exchanges (DEXs) requires users to pay network fees or gas. Digital assets that operate on blockchains built upon Proof-of-Work consensus algorithm (ETH, BTC, LTC, etc.) need to be mined. Therefore, there is a certain fee that should be paid for miner’s reward.|
|Exchange Fees||When trading on a centralized crypto exchange, the latter plays a role of intermediary between traders. Therefore cryptocurrency exchanges charge some fees for the trades made on their platforms.|
Two important definitions in this context that should be considered: makers and takers.
Makers, or as they often called liquidity providers, are traders who place an order that can’t be matched right away. On the contrary, takers take liquidity from the order book. They place a market order that can be immediately executed.
Crypto exchanges value market makers a lot. Consequently, market makers have lower exchange fees, while market takers have to pay higher commission fees.
Some giant centralized crypto exchanges like Binance, Huobi, and others have their native tokens. To attract more liquidity to their inner cryptocurrency, crypto exchanges encourage traders to trade crypto assets against their tokens while promising lower trading fees and sometimes no fees at all. If you are seeking for new ways of zero-fee crypto trading, such a strategy might be handy.
Top 5 Crypto Exchanges with Lowest Fees
A true veteran of the crypto industry, HitBTC has been enabling a flawless trading experience since 2013. At the dawn of crypto and blockchain worlds, HitBTC was among the first crypto trading spots to trade BTC.
HitBTC offers one of the most competitive exchange fees. The exchange offer 0.1% maker and 0.25% taker fees. If you are a proud owner of an upgraded account, then you’ll get access to the Trading Fee Tier program. The program’s mechanism is quite straightforward: the more you trade, the lower your trading fees. Professional traders (or traders with high-volume trades) can discuss a personalized fee structure. The exchange does not support fiat deposits.
Please note that the exchange charges withdrawal fees depending on the cryptocurrency you want to withdraw.
KuCoin has been operating in the crypto market since 2017. As of October 2020, the exchange provides access to over 380 crypto markets. The crypto exchange suits those who just have started to take steps in the field of cryptocurrency trading.
KuCoin charges market makers and takers with the same trading fees of 0.1%, which in crypto reality, is quite low. There are some withdrawal fees that depend on the cryptocurrency you want to withdraw.
Phemex is a relatively young cryptocurrency platform for crypto and futures trading. The exchange is built by experienced Wall Steet traders so that they try to provide every user with essential trading tools. Phemex exchange went live in 2019 and, since then it has been engaging almost 300,000 users worldwide.
Despite the fact that the platform is built by traders for traders, crypto newcomers will also feel comfortable while trading on Phemex. The UX/UI are quite native, so there will no problem getting involved in the platform’s features.
Users with trading accounts on Phemex can enjoy withdrawing BTC with zero-fee and bitcoin depositing with no limits. It is also worth mentioning that only full Premium and Premium Trial users can start zero-fee spot trading. Regular users have to pay 0.1% in transaction fees (works for both makers and takers).
Digitex is a well-known cryptocurrency futures exchange. The platform suits for more advanced traders who know how to deal with futures contracts in general. Nevertheless, those willing to buy bitcoin futures without fees are very welcome to Digitex. The exchange doesn’t require you to go under complicated KYC procedures but offers high liquidity.
Digitex website does not provide any information about additional commission fees that can be charged. Before you get into zero-fee bitcoin futures trading, it is vital to learn more about futures contracts trading and other trading fees that might be involved.
Probably one of those crypto exchanges that allow for free bitcoin trading and provides zero-fee crypto trading for the rest of the cryptocurrencies. Be prepared to meet no fees for trading and cryptocurrency deposits.
However, pay close attention to withdrawal operations that have certain fees and minimum limits. For example, the minimum withdrawal amount of BTC is 0.000027 BTC. In this case, a withdrawal transaction fee will be 0.0005 bitcoin. Also, a deposit transaction fee (if you use payment systems and credit cards) is 3.9%. Withdrawals directly to your credit card are not allowed.
As can be seen, there are no trading spots that will provide you with an absolutely zero-fee trading environment. If someone offers you cryptocurrency trading with no commission fees included, it is highly recommended to do your own research. Deposit your funds on trustworthy cryptocurrency exchanges.
If you need to exchange, sell, or buy BTC or any other digital asset swiftly, Changelly will provide you with an excellent service with only 0.25% fees. All commission fees are transparent and can be seen before the transaction execution. Trade safe and subscribe to our blog for new educational articles!