Leverage trading platforms fee comparison
Knowing your fees
Knowing your fees on leverage trading platforms is one of the most important things a trader can do. It does not only come down to UI, stability or security, but fees also play a big role when you decide on a leverage platform. In this article, we will compare the fees on Deribit, Bitmex, PrimeXBT, and Bybit. Having a clear comparison and non-biased opinion on those platforms can help you tremendously. Being the leaders in the crypto industry for leverage trading those four platforms implement high-security standards. Combined with new and innovative products. Some even have a different take on leverage.
The fee effect on leverage trading platforms
Fees may look insignificant but consider that in the long term lower fees may have a significant effect on your capital. Of course, we cannot expect to have a platform of this type without any fee. We don’t want to have compromises on the platforms because of lower fees. A balance between fee that will not compromise our capital in the long term, good UI, high security and stability. Those four exchanges have that balance, and each out of the four is better in different areas. Setting out to find the best out of them is hard, as you have different instruments on the platforms. One offers 100x on all of its crypto pairs + traditional markets, others have highly liquid internal books, etc… There are many features to dive in, maybe you will find superiority in one of them. Or maybe you will find a balance in all of them.
You are definitely going to search for the lower fee if you are one of the traders that trade with a large amount of capital. Besides the other important points – security and stability. Nevertheless, all of the four platforms offer a good environment for trading depending on your preferences. In the end, it will come down to personal preferences and decisions made by the main points – UI, security, stability, and fees. Knowing the fee of the platform of your choice can also help you calculate your profits, for example on PrimeXBT you can read here. Sometimes the fees are significant in the long term as it can save you a lot of money especially when you trade with high leverage.
Comparing fees on the leverage trading platforms will help you in choosing the right one for your strategy. Therefore you will be able to make the best long hour sessions being calm. Making the ultimate profit while paying a low fee. Many new traders forget to do research the fees on the exchanges and end up paying for their trading more. As we mentioned in the article above you need to choose the exchange which will have the best balance between UI, security, stability, and good fees.
What are Taker/Maker fees?
When you execute a market buy/sell you are taker as you take out of the order book. When you want to realize profit and take it immediately you are paying the taker fee. With a market order, you are basically wiping out the order book liquidity.
When you place an order through a limit order, you are helping fill the order book. This way you are adding to the depth of the market. With a limit order, you are filling the order book liquidity.
As you can see the market makers’ fee is low and being the same on all of the 4 platforms, you don’t have to worry on that front. But on the taker fee, you have a clear winner here – PrimeXBT. This slight difference in the long term may become a significant one, especially if you trade with a large amount of capital and consistently. Don’t get excited yet to jump to one platform as there is still more to the fees as on the leverage trading platforms you have a funding fee.
What is a funding fee
A funding fee is a fee that occurs when they take a percentage from your funds because they lend you the money with whom you trade on leverage. Here is where we will see the difference between the trading platforms.
20.6$ for long per 1 BTC
10.3$ for short per 1 BTC
Here you see the big difference between the four platforms. PrimeXBT is taking a different approach as it sets a flat rate on the funding fee design. Having a flat rate will be good when the value of BTC is high. Deribit has the highest funding fee here, more than double compared to Bybit and Bitmex which have almost the same funding fee.
The loser here is clearly Deribit with its fee of 0.025%. Therefore if this fee is important for you if you take long term trades you have to choose one of the other platforms. Bybit and Bitmex are very close to leverage design overall. So you can say that they are very close competitors with Bybit taking it up a bit. Even this small difference can make a big impact in the long term strategies saving you quite a lot. Therefore choosing the lower fee exchange may be the better choice.
Which one should I choose?
Choosing by only judging by the fees is not enough, as you have more to look for. Be it UI, security, stability or options, out of the four leverage exchanges, each one of them exceeds in different areas. Therefore choosing one if you plan to trade seriously should be done after the appropriate research. We at bitcoinbuyersguide will help you choose the best one according to your preferences. First of all, you need to understand what kind of trader you are and what kind of strategy you have. As different strategies are suited for a different exchange.
For example, PrimeXBT is best suited for day to day trading mostly with its fast executions and flat funding fee. Which is best if you trade with a large number of funds, as you will know that no matter the price of BTC you will pay the same funding fee.
For security and best-proven practices, you would like to turn to Deribit. As since it was founded there have been no breaches as this exchange regards itself with very high security.
What more should I look for?
After doing research on the fees, UI, security, and stability you should look also at the options of leverage trading platform that they offer. From this article, out of the four platforms the most highly packed one is Primexbt – as you have crypto/commodities/stock indices and forex as an option to trade with high leverage. It also has the highest leverage offering on most assets compared to the others. The least packed is Deribit with only two options BTC and ETH, besides perpetual contracts, it also offers futures and options trading.
As pointed out in this article there is a lot to look for when choosing a trading platform. They all have something unique to offer, similar but at the same time different. You will not make a mistake with any of those platforms, of course, in the end, it will come down to your preferences and your type of trading. We are aiming to show you that even the small difference may be a big one in the long term.
Trading with leverage can be exciting and very profitable, there is a lot to learn here. Making the right choices from the start is difficult. Therefore trying the platforms for your self would be the best thing you can do. See the difference directly and decide after that on which one you would trade long term.
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