A must-read for spot traders! Retail investors, institutional giants, which exchange is the most cost-effective?

According to research conducted by the overseas media The Block, Binance US, FTX, OKCoin, and Poloniex are the cryptocurrency spot exchanges with the lowest fees for both retail and institutional investors.

Comparison of Fees Among Major Exchanges

According to a study conducted by Larry Cermak, Research Director at the overseas media outlet The Block, analyzing Maker and Taker fees of 20 globally renowned cryptocurrency spot exchanges, the fees were ranked based on different levels of trading volume. The research results are as shown in the following chart:

The Maker and Taker fees for each level are rated from 1 to 20, with higher numbers indicating higher fees compared to other exchanges. From the chart above, it is evident that Binance US, FTX, and Poloniex offer the lowest fees for both retail and large traders. It is speculated that these exchanges, compared to others, are relatively new and therefore must compete with lower fees. Although Poloniex, as an established exchange, had relatively high fees in the past (Maker 0.15%, Taker 0.25%), it adjusted its fee structure in January 2020 after being acquired by Justin Sun.

On the other hand, Coinbase, bitFlyer EU, Bitstamp, and Gemini are among the most expensive cryptocurrency spot exchanges. These exchanges, originating from Europe and the United States, incur higher compliance costs compared to other exchanges, resulting in higher fees.

Understanding Each Platform's Target Audience Through Fees

The fee comparison chart also reveals the target audience and operational strategies of each exchange. Taking Binance as an example, while it used to be one of the cheapest cryptocurrency exchanges, its current overall fee ranking positions the platform as relatively expensive, especially for large traders. However, for retail investors (Binance's largest customer base), the fees remain affordable, indicating that Binance has positioned itself as a trading platform tailored for the general public.

In contrast, the fee structures of Gemini and Bitstamp are the opposite, suggesting that these exchanges primarily cater to institutional investors and large traders.

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