Binance, Coinbase, and Kraken are among the top crypto exchanges in the world. The three strive to attract customers through their asset offerings and fees. This article compares the fees charged by Binance, Coinbase, and Kraken to help you discover where to trade at low costs.
Types of Fees Imposed by Exchanges
Crypto exchanges aren’t charity organizations. They are businesses that must generate revenue to stay afloat. One of the popular ways that these exchanges use to make money is by charging fees.
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There are various types of fees that crypto exchanges impose. They include:
Trading Fees
When you trade crypto (buy or sell) on an exchange, you are likely to incur a fee. These trading fees are categorized into two:
1. Maker fee: It is charged whenever you place a buy order.
2. Taker fee: It is the opposite of the market fee. Whenever you send a sell order to the market, the exchange facilitating the trade charges a taker fee.
Deposit and Withdrawal Fees
Most exchanges do not charge deposit fees, but some do when funding your account. Withdrawing funds from your exchange account usually attracts some charges.
Network Fees
Also known as gas fees, network fees are the fuel that facilitates transactions on blockchains. They fluctuate depending on traffic in a particular network. To ensure users’ transactions are prioritized by miners or validators, some exchanges provide features that optimize gas fees.
Kraken Fees
Here are the fees to expect on Kraken.
Instant Buy or Sell Fee
If you use Kraken’s Instant Buy/Sell functionality to swap digital currencies, you will be charged a flat fee of 3%.
NFT Fees
As of August 2024, Kraken supports NFTs created on Polygon, Solana, and Ethereum. NFT traders are charged a 2% fee per trade.
Deposit/Withdrawal Fees
Kraken imposes varying fees on deposits and withdrawals. The charges depend on the crypto being transferred and the selected blockchain network. For instance, if you withdraw 0.0004 BTC, you will be charged 0.0002 BTC.
Trading Fees
In the spot market, the maker and taker fees start at 0.15% and 0.26%, respectively. These fees reduce as your 30-day trading volume increases. If your monthly volume crosses $10 million, Kraken will charge you zero maker fee and a 0.10% taker fee.
In the Futures market, the lowest taker and maker fees are 0.02% and 0.05%, respectively. Similarly to the spot market, these fees drop as your monthly trading volume grows. If you attain a 30-day trading volume of $20 million, you will pay a maker fee of 0.01% and a taker fee of 0.015%.
Binance Fees
Instant Buy Fee
Are you looking to buy crypto using a credit or debit card on Binance? Well, prepare to be charged a 3.75% fee.
Deposit/Withdrawal Fees
Like Kraken, Binance charges withdrawal fees depending on the network used. For example, if you withdraw Bitcoin through the BEP2 network, you will only pay a fee of 0.0000046 BTC, while withdrawing BTC using the Bitcoin blockchain costs you 0.0005 BTC. Notably, crypto deposits are free.
Trading Fees
Both maker and taker fees begin at 0.1% in the spot market. If you pay the charges using BNB, you will enjoy a 25% discount. Meanwhile, in the future market, the maker and taker fees start at 0.02% and 0.04%, respectively. If you pay them with BNB, you will receive a 10% discount.
Coinbase Fees
Here are the types of fees to expect on Coinbase.
Lightning Network Processing Fees
Bitcoin enthusiasts on Coinbase can use the exchange’s Lightning Network to transact quickly. The processing fee is 0.1%.
Deposit/Withdrawals
Depositing fiat into your Coinbase account attracts fees that range between 1% and 3.5%. However, crypto deposits are not charged.
Regarding withdrawals, the fees incurred depend on the selected blockchain and the crypto being withdrawn.
Trading Fees
The taker fee at Coinbase begins at 0.05%, while the maker fee starts at 0.40%. These fees decline as your monthly trading volume appreciates.
Staking Fees
After earning staking rewards using Coinbase’s crypto staking program, the exchange deducts a 1.5% commission from your earnings.