Cryptocurrency exchange fees can vary dramatically from platform to platform, and it isn't always easy to see what you'll be charged. For example, Binance has an easy-to-use convert function that lets you exchange one crypto for another. However, the fees don't work in the same way as with spot trading.
Bear in mind that trading fees are not the only costs -- you may also have to pay to deposit money on a platform. It's usually free to deposit fiat money (traditional currency like U.S. dollars) via a bank transfer, but other methods can be costly.
Robinhood fees
At first glance, Robinhood's zero commission fee structure puts it ahead in terms of trading fees. Robinhood, which pioneered commission-free stock trading, doesn't charge trading fees on crypto transactions. However, be aware that all platforms make money somewhere. Robinhood charges a spread, which is essentially the difference between the current market price and the price you pay. The broker is not transparent about the size of its spread, so investors might not get the best exchange rate.
Here's a quick overview of Robinhood's fees:
- Robinhood offers zero commission trading, but customers will pay a spread, so it's a good idea to compare the rate against other platforms.
- It's free to deposit money via bank transfer or debit card with Robinhood.
- Robinhood Wallet users don't have to pay a fee for token swaps, but other transactions (such as withdrawing to an external wallet) may incur blockchain transaction fees.
READ MORE: Full Robinhood Review
Binance fees
Binance has built a reputation as a low-fee trading platform. Binance users can reduce fees by paying with its utility token, Binance Coin (BNB). High-volume traders can also access lower fees.
Here's a quick overview of Binance fees:
- Binance charges a maximum maker/taker fee of 0.1% on spot trading.
- Fees to deposit via debit card, credit card, or other options vary depending on payment method and country.
- Like Robinhood, customers in most countries can deposit money via bank transfer for free.
- Binance offers zero-fee trading for certain Bitcoin and TUSD pairs
READ MORE: Full Binance Review
Binance.US fees
As with the main Binance platform, reduced trading fees are available for BNB payments and high volume traders. Binance.US also offers 0% trading on a handful of Bitcoin and Ethereum pairs.
Here's a quick overview of Binance.US fees:
- The maximum spot trading fee is 0.45%, with reductions for BNB payments and high volume traders.
- Investors who use the instant buy or convert function will pay a variable trading fee.
- Binance.US is becoming a crypto-only exchange, meaning it will not accept U.S. dollar deposits or withdrawals.
READ MORE: Full Binance.US Review