Crypto trading fees can add up to a hefty sum. Cryptocurrency exchanges charge trading fees in order to make a profit and stay in business, and the trading fees charged can vary significantly based on which exchange you use. In some cases, fees can be so high they eat away at a large chunk of your profits.

That’s why when you choose an exchange to trade on, you should always compare the fees charged by different exchanges. In this article, we will take a look at the various fees charged by cryptocurrency exchanges, how they can impact your trading, and how Phemex is leading the way in low-fee trading.

The 2 Kinds of Fees Charged by Cryptocurrency Exchanges

In general,  orders to buy or sell cryptocurrencies on an exchange are subject to two types of fees:

The “maker” fee

A maker fee is charged when you add liquidity to the market by placing a limit order – one that is not immediately matched until the market reaches a specific price. For example,  if you place a buy order for 1 BTC at $10,000 and immediately place a limit order to sell 1 BTC at $12,000, your order remains there until another user agrees to buy your BTC for $12,000, or until market prices rise to that level. In this case, you are considered the “maker” of the trade because you were willing to buy 1 BTC at $10,000 and create a market for selling it at $12,000.

The “taker” fee

A taker fee is charged when you “take” liquidity from the market by placing an order that is immediately matched by an existing order. This is called placing a ‘market order’. For instance, if you placed a buy market order for 1 BTC, your order would be matched immediately, but at market price. In this case, you are considered the “taker” of the trade because you were willing to buy 1 BTC at market value.

Most exchanges charge lower fees for “makers” than for “takers.” The reason for this is that makers add liquidity to the market while takers remove liquidity. By encouraging makers with lower fees, exchanges can help to ensure that their order books remain liquid.

Phemex: Lowest Trading Fees on Any Crypto Exchange

Phemex is a cryptocurrency exchange that offers the lowest trading fees in the industry, helping you save money on every trade you make. Fees on the exchange are as follows:

0.06% for market takers

0.01% for market makers

Let's understand these numbers with an example. 

Let's say you buy 1 BTC at a limit order of $10,000. You will be charged a maker fee of 0.06%, or $6.

Now let's say you sell 1 BTC at market price. You will be charged a taker fee of 0.01% on the value of your sell order. If the market price of Bitcoin was at $20,000, this fee would be $2.

Fees: How does Phemex compare to other exchanges?

To put things into perspective, let’s take a look at the fees charged by some of the most popular cryptocurrency exchanges:

As you can see, Phemex offers much lower fees than all of these exchanges, making it the clear choice for traders who want to save money on fees.

In addition to offering the lowest fees in the industry, Phemex also offers a number of other features that make it the ideal exchange for both beginner and experienced traders. These include:

• A user-friendly interface that is easy to use
• Advanced trading features such as margin trading and futures contracts
• 24/7 customer support from our team of experts

If you’re looking for an exchange with low fees and plenty of features, Phemex wants to help both beginners looking to dip their toes in the digital asset waters, as well as experienced traders who want more granularity and control over their trading and portfolio management.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.