The recent surge in the number of Bitcoin traders has led to the emergence of a variety of different platforms that allow traders to use margin and other trading tools to enhance their profits and fees. Trading is one of the main factors that users use to choose their trading platform.
Trading fees, are easy to understand, but there is another factor – known as the bid/ask spread – that can have a big impact on a trader's profitability, and this is the starting factor. It is imperative to know when determining which broker you want to trade with.
How are trading fees on top margin brokers calculated? Due to the emergence of countless platforms with margin functionality for Bitcoin trading, fees have dropped significantly in recent times.
Looking at some of the most popular platforms on the market, we see similar fees for Bitcoin perpetual contracts (XBT), with BitMEX, Deribit, and Bybit all charging matchers 0.075%.
Users on the Binance margin platform have to pay a matcher fee of 0.1%, but by using the Binance BNB digital currency as the main trading pair, users can get a discount on trading fees. down 0.075%.
Furthermore, Binance has different fee policies based on user trading revenue, with matcher fees decreasing slightly as users increase their 30-day BTC trading volume.
PrimeXBT, another popular margin trading platform, currently has the lowest fees of all the aforementioned platforms, offering a 0.05% transaction fee on all Bitcoin transactions. The service PrimeXBT also offers regular promotional offers that can further reduce these fees and recently introduced a new fee structure that allows active traders on the platform to receive discounts. depth based on their 30 day BTC turnover.
More stories: Beware of arbitrage While trading fees can help you decide on the choice of trading platform, another imperative factor that needs to be considered is the bid/ask spread. sell (bid/ask spread) on these platforms, which can significantly affect your bottom line profits.
The terms “bid” and “ask” refer to the best price at which Bitcoin can be bought or sold on a particular platform. The difference between the bid and ask prices is called the spread.
Smaller spreads typically indicate more liquidity, while larger spreads signal that a particular asset – or a particular platform – lacks liquidity. Some platforms also use spreads as a way to increase their profits by acting as order makers, with the spread between bid and ask prices acting as another revenue driver for the platform. .
While considering the fees you will have to pay on a given platform, you must also consider what the spread looks like, as a larger spread means a lower profit per trade. a little.
It is important to note that spreads are not necessarily fixed and can vary significantly on a platform depending on market conditions and liquidity surrounding Bitcoin.
Even so, spreads on crypto margin exchanges are often constant from platform to platform and should be a factor to consider when determining where you want to trade.
The percentage spread on the following platforms is determined by finding the difference between the bid and ask prices, divide that price by the price on the particular platform, and multiply that by 100.
Currently, Binance has the largest spread of all the aforementioned platforms at 0.02%. Both ByBit and Deribit have a spread of 0.0066%, while the BitMEX spread is 0.0067%.
PrimeXBT, using over 12 built-in liquidity providers, offers traders the smallest spreads of 0.0053%.
Conclusion Trading fees on major margin exchanges have become increasingly competitive over the past year, but it is important for users to look further, and determine the spread on specific exchanges when choosing trading platform.
When taking into account trading fees and spreads, PrimeXBT emerges as a clear winner due to its low trading fees, 0.05%, and small spread.
Users will also appreciate a platform with a clean interface, popular referral program, advanced security and the richness of features PrimeXBT has to offer, all of which are behind the development. its remarkable growth in the past year.
MULTIPLE ORDER TYPES
Execute a variety of advanced order types such as market, limit, and stop orders, as well as take profit, stop loss, and OCO orders (one cancels the other).
EASY TO USE
The user-friendly graphical interface and tutorials makes PrimeXBT easy to use for anyone, new or experienced.
LIVE TRANSPARENT PORTFOLIO REPORTING
Access real-time portfolio metrics and position performance data right at your fingertips, from anywhere in the world.