Crypto Trading Fees Explained: The Hidden Cost Killing Your Returns
2026-02-15
Fees are the silent killer of crypto trading returns. A strategy that looks profitable on paper becomes a net loss after accounting for the fees you pay on every single trade. Here’s everything you need to know.
Why Fees Matter More Than You Think
Consider a simple scenario:
- You make 100 futures trades per month
- Average position: $500
- Round-trip fee: 0.08% (Binance standard)
- Monthly fee cost: $500 × 0.08% × 100 = $40/month = $480/year
That’s $480 in fees alone — before slippage, funding rates, or any actual trading losses.
Now imagine you’re using a referral code for 20% off:
- Monthly fee: $32/month = $384/year
- Annual savings: $96
For active traders doing 500+ trades/month, the numbers are even more dramatic.
Types of Crypto Trading Fees
1. Maker vs Taker Fees
The most important distinction in exchange fees:
- Maker: You place a limit order that adds liquidity to the order book. Lower fee.
- Taker: You place a market order that removes liquidity. Higher fee.
| Exchange | Maker Fee | Taker Fee |
|---|---|---|
| Binance Futures | 0.0200% | 0.0500% |
| Bybit | 0.0200% | 0.0550% |
| OKX | 0.0200% | 0.0500% |
| MEXC | 0.0000% | 0.0300% |
| Bitget | 0.0200% | 0.0600% |
Key insight: MEXC offers 0% maker fees. If your strategy can use limit orders, you pay nothing on one side of the trade.
2. Funding Rates
Unique to perpetual futures. Paid every 8 hours between longs and shorts.
- Typical rate: 0.01% per 8 hours
- Annualized: ~10.95% (if always on one side)
- Who pays: When funding is positive, longs pay shorts. When negative, shorts pay longs.
Impact on strategies:
- SHORT strategy (like ours): In bullish markets, we receive funding from longs. In bearish markets, we pay.
- Holding period matters: A 48-hour position pays/receives funding 6 times.
3. Withdrawal Fees
Moving crypto off exchanges costs:
| Network | Typical BTC Fee | Typical USDT Fee |
|---|---|---|
| Bitcoin (BTC) | N/A | |
| Ethereum (ERC20) | N/A | ~$3-10 |
| Tron (TRC20) | N/A | ~$1 |
| Arbitrum | N/A | ~$0.50 |
| Solana | N/A | ~$0.50 |
Pro tip: Always withdraw USDT via TRC20 or Arbitrum for minimal fees.
4. Spread (Hidden Fee)
The difference between the best buy and sell price. For liquid pairs like BTC/USDT, spread is negligible. For small altcoins, it can be 0.1-0.5%.
Why it matters for algo traders: If your strategy trades 500+ coins (like ours), some positions will have significant spread costs on low-liquidity pairs.
How to Reduce Your Fees
Method 1: Use Referral Codes (Easiest)
Most exchanges offer 10-20% fee discounts through referral codes:
| Exchange | Referral Discount | Duration |
|---|---|---|
| Binance | 20% | 12 months |
| Bybit | 20% | Lifetime |
| OKX | 20% | Lifetime |
| Bitget | 20% | Performance-based |
| MEXC | 10% | Lifetime |
See our complete fee comparison with referral links.
Method 2: Pay Fees in Exchange Token
- Binance: Pay fees with BNB for 10% discount
- OKX: Pay with OKB for similar discount
- Stacking: Referral discount + token discount = up to 30% off
Method 3: Increase Your VIP Tier
Higher trading volume = lower fees. But this only matters at very high volumes:
| Binance VIP | 30d Volume | Maker | Taker |
|---|---|---|---|
| VIP 0 | < $15M | 0.0200% | 0.0500% |
| VIP 1 | $15-50M | 0.0160% | 0.0400% |
| VIP 2 | $50-100M | 0.0140% | 0.0350% |
For most retail traders, referral + BNB payment gives the best cost reduction.
Method 4: Use Limit Orders
Switching from market orders (taker) to limit orders (maker) saves:
- Binance: 0.03% per trade (0.05% taker → 0.02% maker)
- On 100 trades at $500: $15/month = $180/year
Trade-off: Limit orders may not fill, causing missed trades. Our bot uses LIMIT IOC (Immediate or Cancel) for exits — attempting limit first, falling back to market if needed. Success rate: 63%.
Fee Comparison: The Complete Picture
For a trader making 200 round-trip futures trades per month at $500 average:
| Exchange | Monthly Fee (No Discount) | With 20% Referral | Annual Savings |
|---|---|---|---|
| Binance | $140 | $112 | $336 |
| Bybit | $150 | $120 | $360 |
| OKX | $140 | $112 | $336 |
| MEXC | $60 | $54 | $72 |
| Bitget | $160 | $128 | $384 |
MEXC wins on raw fees (0% maker), but Binance offers the most coins, highest liquidity, and best API reliability.
DEX vs CEX Fees
Decentralized exchanges have different fee structures:
| Platform | Maker | Taker | Notes |
|---|---|---|---|
| dYdX | 0.020% | 0.050% | Similar to CEX |
| Hyperliquid | 0.010% | 0.035% | Lowest DEX fees |
| GMX | 0.050-0.070% | 0.050-0.070% | Plus price impact |
DEX advantages: No KYC, self-custody, transparent order book DEX disadvantages: Higher gas fees, lower liquidity, fewer pairs
Our Fee Stack
Here’s exactly what we pay on Binance Futures:
- Base taker fee: 0.0500%
- After referral (-20%): 0.0400%
- After BNB (-10%): 0.0360%
- Effective round-trip cost: ~0.072%
On ~200 trades/month at $300 average position:
- Monthly fee: ~$43
- Annual fee: ~$518
- Without optimization: ~$720/year
- Savings: $202/year (28% reduction)
PRUVIQ publishes every trade including fees. See our exchange fee comparison for referral codes that save 20% on every exchange. See all articles for more trading education.