Gemini has the highest trading fees for retail, and its competitors aren't even close


Crypto exchanges have long been the big money makers in the nascent digital asset market, charging hefty fees on making a trade relative to exchanges and brokers in U.S. equities. 

But one market player is charging its retail clients dramatically more than the competition, as per research by The Block's Research Editor Larry Cermak. Looking at the lowest tier, which includes the vast majority of retail customers, Gemini has the least favorable combined fees for retail customers, Cermak wrote. Gemini's fees come in at a whopping 2%, or 200 basis points. 

Meanwhile, Binance has the lowest combined trading fees; followed by KuCoin and bitFlyer US. The average combined fee of the lowest tier is 0.44%.

itBit is the only exchange in the lowest tier that offers a negative maker fee, which means that traders actually get a rebate by posting liquidity to the order book. The average maker fee of the lowest tier is 0.19%.
As The Block previously reported, industry insiders expect fees to compress as competition continues to heat up in the crowded industry.
“Compression will come from supply and demand. I fully expect crypto to trend toward Equity and FX commission models in the next decade,” David Mercer, CEO of crypto trading platform LMAX Digital, said. “Current retail led fee schedules are not sustainable in an institutional capital market. Investors and real money clients will expect added value for high fees not just simple matching of orders and access to liquidity," he added.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC