Does trading fees really matter ? - page 9.

avikz

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Quote from: pawanjain on October 10, 2019, 12:00:19 PM

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Yes it does matter! Usually traders don't always make huge profit. So for such trades where profits percentage is minuscule, trading fee matters to maintain trading profitability! It applies to real world stock market as well especially in my country where the competition is really high! I have seen broking houses offering as low as 0.1% fees for both day and delivery trade!

Same thing also applies for gambling platform. People always look for gambling websites with lowest house edge! Fees is indeed one of the most important deciding factor for many traders/players!

mk4

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If you're just making a very few trades a month, basically just if you want to buy a certain coin/token, you really wouldn't notice the fees that much. If you're a trader though? And if you're buying/selling huge amounts of bitcoin or any other cryptocurrency, the difference between 0.25% and 2% is HUGE.

jmigdlc99

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Quote from: pawanjain on October 10, 2019, 12:00:19 PM

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Given lets say your profit is 2%, that means that 0.25% eats up to 12% of your profit. If you think about it that way, thats quite a large amount of your profit taken away. Although, if you're not trading thousands of dollars and are just beginning to trade, i wouldn't worry about it.

The trading fees are felt by those with huge volumes mostly.

Quidat

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Quote from: pawanjain on October 10, 2019, 12:00:19 PM

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

0.25% does really matter for 2% earning but if you do able to get higher than that the most likely some traders doesnt
really care that much and even there are benefits where big traders do have lesser fees as they trade up on an exchange
but for typical or small capital traders would really mind off anytime with fees.Good examples or illustrations is already mentioned
above which i do agree on.

teosanru

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Quote from: pawanjain on October 10, 2019, 12:00:19 PM

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

Actually the thing is trading fees don't matter to people in Cryptocurrencies is because leverage trading is practiced pretty less in this world. Majorly we talk so much about trading fees in forex it's because suppose you have 100$. And you make a trade with 100x leverage the total amount of trade becomes $10000 and the trading fees on this as you said 0.25% becomes a hefty $25 which is almost quarter of your capital. So this is why difference in fees makes a huge difference generally break even is a bit more in pips for such traders. Cryptocurrencies Don't have that large markets for leverage trading because there is high volatility making it too risky

adroitful_one

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Quote from: pawanjain on October 10, 2019, 12:00:19 PM

Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

It depends on how tight the profits are on the trade. At 2%, 0.25% is actually quite a lot. Anything you can do to save money on trades will increase your profits over the long run. Thing of it as buying something from the store. Let's say Kroger has a gallon of milk for $4.50 and Wal-Mart has it for $4.25. Would you not prefer to buy the milk from Wal-Mart and save the extra $.25? It's the same concept. Doesn't really matter how much profit you're making on the trade, you could be making more if you didn't pay as much in fees.

pawanjain

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Most of the exchanges have a minimal trading fees of about 0.25%
I see many people discussing trading fees here and there and that how high the trading fees is.
Does 0.25% really make a huge difference if you are earning at least more than 2% ?

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