Just do a simple experiment. Sell 1 BTC and immediately buy it back. What you just lost, over $60 on Vircurex for example, IS PROFIT for the exchange.
If you can not sell and buy at the exact same price at the same time, that is a spread and that is profit for the exchange well beyond any fees.
Topic: Exchange profit question... (btc-e, cryptsy, etc) (Read 481 times)
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How much money are they making? It seems to me they are charging a whole lot to do business on the exchanges. Many of them list fees of around 0.2% but this is very misleading. They charge 0.2% on the buy and the sell which is 0.4%. But that's not all... not even close. They also appear to be charging a spread as well. For some pairs I have seen over 10% in the spread. Is this not also profit for them? For lower-end alt coins they are netting at least 10% per transaction unless I am missing something here? I am used to trading FOREX where the spread is all the exchanges profit (usually much less than the spread as larger banks charge them as well) And this is always a tiny amount - generally 1-5/100ths of a cent per dollar.
Why we just See abou the money they are making? Why we dont see there services? Nest thing you are not forced to use the same trading platform where charges are higher you can choose other exchange platform who are still offering 0% so which will be 0 which in your words less then FOREX.
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I guess my question is, which exchange is the least expensive to trade on? Are there any existing which are remotely fair to the traders or is the entire crypto-exchange a giant (and very profitable) scam? I've seen an analysis of Mt. Gox suggesting they have made around 400,000BTC from transaction fees, but do they not also profit from the spread? That could put them over 1 million BTC in profit... If the buy is $815 and the sell is $817 they pocket the $2 difference and still take their 0.2% from both ends of the transaction. It seems like they are taxing you twice and most people are ignorant of this... Maybe that is why these exchanges are never US based? US regulators would dissolve their veil and reveal what is really going on.
In Bitcoin platform Fee is Fee ans Spread is actually not valued here here spread could different from the Orders and its not just like FOREX where we can use thousands of dollars just investing a few hundreds its not the market of making profit in spread like FOREX here are order book of selling and buying so when i am buying i will either i will direct buy from the sell order so seller will get my payment anf i will pay or i will just hold my buy order in some price when that order will execute i will be paying that price with commission (If there is any %) so here company's are not making Millions in spread. Straight Language Forex Market is spread marketing you can gain or loss your spread value but Bitcoin Trading is you are paying whole amount what you buy or you are getting whole amount what you are selling
How much money are they making? It seems to me they are charging a whole lot to do business on the exchanges. Many of them list fees of around 0.2% but this is very misleading. They charge 0.2% on the buy and the sell which is 0.4%. But that's not all... not even close. They also appear to be charging a spread as well. For some pairs I have seen over 10% in the spread. Is this not also profit for them? For lower-end alt coins they are netting at least 10% per transaction unless I am missing something here? I am used to trading FOREX where the spread is all the exchanges profit (usually much less than the spread as larger banks charge them as well) And this is always a tiny amount - generally 1-5/100ths of a cent per dollar.
I guess my question is, which exchange is the least expensive to trade on? Are there any existing which are remotely fair to the traders or is the entire crypto-exchange a giant (and very profitable) scam? I've seen an analysis of Mt. Gox suggesting they have made around 400,000BTC from transaction fees, but do they not also profit from the spread? That could put them over 1 million BTC in profit... If the buy is $815 and the sell is $817 they pocket the $2 difference and still take their 0.2% from both ends of the transaction. It seems like they are taxing you twice and most people are ignorant of this... Maybe that is why these exchanges are never US based? US regulators would dissolve their veil and reveal what is really going on.
I guess my question is, which exchange is the least expensive to trade on? Are there any existing which are remotely fair to the traders or is the entire crypto-exchange a giant (and very profitable) scam? I've seen an analysis of Mt. Gox suggesting they have made around 400,000BTC from transaction fees, but do they not also profit from the spread? That could put them over 1 million BTC in profit... If the buy is $815 and the sell is $817 they pocket the $2 difference and still take their 0.2% from both ends of the transaction. It seems like they are taxing you twice and most people are ignorant of this... Maybe that is why these exchanges are never US based? US regulators would dissolve their veil and reveal what is really going on.
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