Is Trading Costing Us More Than We Think? - page 3.

justdimin

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Quote from: Alone055 on December 05, 2024, 12:43:46 PM

You are being wholly unreasonable and dramatic here, @OP.

A regular trader in most exchanges pays between 0.02% and 0.1% as maker or taker fees. Maker fees are lower in most exchanges, which makes it even more economical to be a maker, so you should make sure you are trading as a maker if you don't want to pay higher. Even if you are paying 0.1% in fees, it costs you $0.1 for a $100 trade, which is only an example I'm using because most exchanges wouldn't even charge you that much.

Binance charges 0.02% to makers and 0.05% to takers as regular traders, and these fees reduce as you grow higher in VIP levels. So when you say that a large chunk of your profits are taken by the fees charged by centralized exchanges, that is a bit excessive. Paying $0.05 as trading fee for a $100 trade isn't too much, in my opinion. After all, exchanges have to earn money as well for providing the services to you.

Yeah, these type of things will of course be overestimated and will be considered as a big deal, but nobody considers how exchanges become traders just like us as well, what do you think they do with all that crypto, they do hold as much as they can, but they then sell that too, so it is not really like they are any different, plus I would rather an exchange have it than some whale who may just crash the market.

All in all, I believe that we are not really losing that much to fee's, trading is fine and the exchanges should be making some fee considering how much they are putting into this. Think of Binance, they are holding 100+ billion dollars worth of money on their coffers so we can trade, the risk they are taking is huge, I would gladly pay whatever fee they want and that's the truth.

Alone055

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You are being wholly unreasonable and dramatic here, @OP.

A regular trader in most exchanges pays between 0.02% and 0.1% as maker or taker fees. Maker fees are lower in most exchanges, which makes it even more economical to be a maker, so you should make sure you are trading as a maker if you don't want to pay higher. Even if you are paying 0.1% in fees, it costs you $0.1 for a $100 trade, which is only an example I'm using because most exchanges wouldn't even charge you that much.

Binance charges 0.02% to makers and 0.05% to takers as regular traders, and these fees reduce as you grow higher in VIP levels. So when you say that a large chunk of your profits are taken by the fees charged by centralized exchanges, that is a bit excessive. Paying $0.05 as trading fee for a $100 trade isn't too much, in my opinion. After all, exchanges have to earn money as well for providing the services to you.

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Trading can be a huge expense to people who don't understand risk management and those who don't have other sources of income. You can't just rely on trading as the only way to generate income. Before you go into trading you must have a backup because if anything happens to the resources you have without having any other thing to fall back to it might be a problem for you. Trading involves a lot of risks and you are not going to get it right within the first few months of navigating the market, you would incur losses but it all depends on your awareness of risk management.

YOSHIE

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Quote from: MarvieJ on November 28, 2024, 05:08:04 AM

Is Trading Costing Us More Than We Think?

Yes, that's for sure if you don't have an understanding and knowledge about trading in the crypto market, everyone definitely knows that crypto trading is high risk, so it can clearly burden or harm ourselves more than we imagine.

Hopefully if you have knowledge about trading, of course the activities you do will not be a burden for you and you will do it with big profits and not losses, Many of our friends have been involved in trading for more than 1-2 years, they have only just felt the benefits of what they do, some are desperate and some are successful, that's the world of crypto trading that requires patience and knowledge, not imitation.

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Quote from: Jody.Drummer on December 01, 2024, 11:40:29 AM

Quote from: Perfectbaby on December 01, 2024, 03:38:25 AM

Do you think anyone who focused on the profits these companies makes would eventually make progress especially in trading?
To me I don't think anyone should be focusing on the amount they made from people who are using the platform rather, it is better to focused on self development and how to be more productive with their trading to keep earnings and covers up their trading fees. It doesn't make sense to trade and keep losing instead it's better to have a good trading skills to keep one earning good amount from trading not to focused on the amount the company are making.

Sometimes there are things that we don't need to pay attention to. I'm not saying that's wrong, there's nothing wrong with calculating that because maybe it will be useful for us when we start trying to build a business. However, don't let it distract us from focusing on something more important, that's the point. If we can stay focused, then I think it's okay even though it might not have any impact on us. However, when in the trade that we do we still encounter many problems, then it's better to just fix that first by continuing to learn to be even better. For me, that's the point.

Staying focused is one thing that keeps us moving in everything we are doing be it trading or investment we must learned to understand how things works especially that of the trading because when focused it makes it that easier for us to know more things about what we do. As said, except he wanna ventured into such business then fine it's good he knows how the fees are being calculated or even how the exchanger's are making their profits from trading.

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Quote from: Chibaba on December 01, 2024, 11:38:12 PM

Those trading fees can be quite a lot if you cumulatively calculate it and that's why most exchanges often role out trading fees rebate campaigns to subsidize these fees. Exploring the innovative telegram trading mini app could provide rebate opportunities particularly for those using Bitget mini app to trade. Bingx and Gate also have this mini apps but not sure if they allow both spot and futures with a trading fee rebate campaign to onboard users.

All crypto exchanges are indeed continuing to innovate in order to attract more users, but if it lies in the issue of trading fees, I think every trader can also see it clearly even without having to test it first. So far I have not paid much attention to it because I am still quite satisfied with using the Binance exchange which can provide some of the services I want so I don't often use other exchanges if it is only about trading fees. Because when there is one exchange that can provide some of the benefits we want, I think that is more than enough and there is no need to register for more exchanges if the services and fees are not much different.

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Quote from: shinratensei_ on December 01, 2024, 09:56:42 PM

Quote from: tbct_mt2 on December 01, 2024, 04:01:46 AM

Trading is risky and trading with leverage is more dangerous but it isn't only like these. If you use very high leverage like 100x, and very short candle like 1 minute, your trading position will be closed very quickly and mostly closing by exchange liquidation. People trade with high leverage like this can use small capital, but with time, sum it up they will lose very big capital that is hard to imagine at beginning.

honestly in my opinion, leverage means nothing if we can control our risk, when I use 100x, I will set my SL to -$50 with a margin of $5, so I can tolerate 1000% negative PnL and have no problem with it.
people who trade with 100x leverage are usually people who put their limit order at resistance and hoping the market bounce, this strategy works quite well but occasionally as well the strategy might not work when market is impulsive.
as for me, I find 100x to be really good since I already used to it.

so I don't think it's that dangerous if we know what we're doing, the problem with most of people though, they just use 100x leverage without risk management and go all in, as a result, they got a really close margin call price mark.

Greed and lucrativeness over a position with leverage may be the end of some depos, indeed.
So in order to avoid such fate - analysis should be put to work, just like for any position, on the spot or not. Because it's riskier than the usual one.

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Quote from: Saint-loup on December 01, 2024, 01:44:56 PM

Yes usually exchanges like to take fees and not making it much noticeable to customers to let them think, they are making profits or losing less than they are in reality, that's why it's very important when you trade to closely monitor what is spent in those fees and how it affects your profits. Otherwise you won't be able to know how efficient is your strategy if the profits made are not larger than the fees.

All the facts should be known to the trader, and he should work with them accordingly.
Strategy should take shape from them, it's natural for it to be that way.

Chibaba

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Quote from: MarvieJ on November 28, 2024, 05:08:04 AM

A while back, I took a hard look at how much I was spending on trading fees. Futures, spot, perpetuals, it didn’t matter. The total hit me like a punch to the gut. For every trade I carefully planned, a chunk of my profit was quietly eaten away. And the more I traded, the worse it got.

Don’t get me wrong, I’ve had my wins. There’s nothing like the thrill of catching a perfect market move. But when I looked closer, I realized the fees were taking a bigger piece of the pie than I’d like to admit. It got me wondering, why don’t more platforms offer something meaningful to offset these costs?

Sure, I’ve heard about discounts and bonuses here and there, but they often feel temporary or hard to access. What if there was a way to consistently cut fees or even get rewarded for trading? Wouldn’t that make the whole game more sustainable, especially for smaller traders like me trying to scale up?

I’ve heard rumors of platforms offering permanent rebates or incentives tied to certain apps, but I haven’t looked too deeply yet. What about you? Have you come across any tools or events that actually help with fees or rewards? I’d love to hear what’s working

Those trading fees can be quite a lot if you cumulatively calculate it and that's why most exchanges often role out trading fees rebate campaigns to subsidize these fees. Exploring the innovative telegram trading mini app could provide rebate opportunities particularly for those using Bitget mini app to trade. Bingx and Gate also have this mini apps but not sure if they allow both spot and futures with a trading fee rebate campaign to onboard users.

shinratensei_

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Quote from: tbct_mt2 on December 01, 2024, 04:01:46 AM

Trading is risky and trading with leverage is more dangerous but it isn't only like these. If you use very high leverage like 100x, and very short candle like 1 minute, your trading position will be closed very quickly and mostly closing by exchange liquidation. People trade with high leverage like this can use small capital, but with time, sum it up they will lose very big capital that is hard to imagine at beginning.

honestly in my opinion, leverage means nothing if we can control our risk, when I use 100x, I will set my SL to -$50 with a margin of $5, so I can tolerate 1000% negative PnL and have no problem with it.
people who trade with 100x leverage are usually people who put their limit order at resistance and hoping the market bounce, this strategy works quite well but occasionally as well the strategy might not work when market is impulsive.
as for me, I find 100x to be really good since I already used to it.

so I don't think it's that dangerous if we know what we're doing, the problem with most of people though, they just use 100x leverage without risk management and go all in, as a result, they got a really close margin call price mark.

Saint-loup

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Yes usually exchanges like to take fees and not making it much noticeable to customers to let them think, they are making profits or losing less than they are in reality, that's why it's very important when you trade to closely monitor what is spent in those fees and how it affects your profits. Otherwise you won't be able to know how efficient is your strategy if the profits made are not larger than the fees.

Jody.Drummer

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Quote from: Perfectbaby on December 01, 2024, 03:38:25 AM

Quote from: Rruchi man on November 28, 2024, 09:10:02 AM

Quote from: MarvieJ on November 28, 2024, 05:08:04 AM

A while back, I took a hard look at how much I was spending on trading fees.

You are focusing on the wrong thing. These platforms need to make money too to stay in business; the harsh economy is not only affecting individuals but also these companies; they need the fees, else they will collapse.

Focus more on increasing the profit you make, so you don't have to worry about the fees these platforms are getting.

Do you think anyone who focused on the profits these companies makes would eventually make progress especially in trading?
To me I don't think anyone should be focusing on the amount they made from people who are using the platform rather, it is better to focused on self development and how to be more productive with their trading to keep earnings and covers up their trading fees. It doesn't make sense to trade and keep losing instead it's better to have a good trading skills to keep one earning good amount from trading not to focused on the amount the company are making.

Sometimes there are things that we don't need to pay attention to. I'm not saying that's wrong, there's nothing wrong with calculating that because maybe it will be useful for us when we start trying to build a business. However, don't let it distract us from focusing on something more important, that's the point. If we can stay focused, then I think it's okay even though it might not have any impact on us. However, when in the trade that we do we still encounter many problems, then it's better to just fix that first by continuing to learn to be even better. For me, that's the point.

tbct_mt2

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Quote from: shinratensei_ on November 30, 2024, 10:54:38 PM

in my opinion, the fee become painful when we trade on leverage, like 100x leverage just for short 1m chart, we usually charged $2-3 for small margin of $15 which is nuts, I think exchange need make exception of high fee for small trades like this though I understand they charged the fee based on the filled order which with 100x leverage gonna be inflated 100x and also funding fee.

Trading is risky and trading with leverage is more dangerous but it isn't only like these. If you use very high leverage like 100x, and very short candle like 1 minute, your trading position will be closed very quickly and mostly closing by exchange liquidation. People trade with high leverage like this can use small capital, but with time, sum it up they will lose very big capital that is hard to imagine at beginning.

Quote

if it's just spot trading usually I just don't bother the fee is minimal, even more minimal if we open a limit order and not market order.

When trading with spot, it's safer, but when trading with margin, it's more risky and trading fee with this trading type is no longer most important concern. It's about liquidation and your serious loss of capital, trading fee is too small compares to your loss.

Perfectbaby

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Quote from: Rruchi man on November 28, 2024, 09:10:02 AM

Quote from: MarvieJ on November 28, 2024, 05:08:04 AM

A while back, I took a hard look at how much I was spending on trading fees.

You are focusing on the wrong thing. These platforms need to make money too to stay in business; the harsh economy is not only affecting individuals but also these companies; they need the fees, else they will collapse.

Focus more on increasing the profit you make, so you don't have to worry about the fees these platforms are getting.

Do you think anyone who focused on the profits these companies makes would eventually make progress especially in trading?
To me I don't think anyone should be focusing on the amount they made from people who are using the platform rather, it is better to focused on self development and how to be more productive with their trading to keep earnings and covers up their trading fees. It doesn't make sense to trade and keep losing instead it's better to have a good trading skills to keep one earning good amount from trading not to focused on the amount the company are making.

shinratensei_

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Quote from: passwordnow on November 29, 2024, 06:59:17 PM

Fees are not that much to be honest. With those few cents to a buck or two won't be impactful to how much you've sold from that exchange. Just think of it that nothing is free nowadays. That's why the fees that you're paying and automatically deducted once you have trade is just a fee that you have to pay for using their platform. Don't think of it as something that sucks us out because it's not that a lot. While maybe for some reasons those few bucks and cents does really matter to you and it's impactful to you but you need to realize that these services is what we're paying for those fees so that we're convenient in using them and converting our assets into cash.

in my opinion, the fee become painful when we trade on leverage, like 100x leverage just for short 1m chart, we usually charged $2-3 for small margin of $15 which is nuts, I think exchange need make exception of high fee for small trades like this though I understand they charged the fee based on the filled order which with 100x leverage gonna be inflated 100x and also funding fee.

if it's just spot trading usually I just don't bother the fee is minimal, even more minimal if we open a limit order and not market order.

but still it'd be great if there's some kind fee cut for high leverage you know Grin

. because exchange fee is just one thing that we gonna pay, there are a lot more to come.

shield132

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Quote from: MarvieJ on November 28, 2024, 05:08:04 AM

A while back, I took a hard look at how much I was spending on trading fees. Futures, spot, perpetuals, it didn’t matter. The total hit me like a punch to the gut. For every trade I carefully planned, a chunk of my profit was quietly eaten away. And the more I traded, the worse it got.

Don’t get me wrong, I’ve had my wins. There’s nothing like the thrill of catching a perfect market move. But when I looked closer, I realized the fees were taking a bigger piece of the pie than I’d like to admit. It got me wondering, why don’t more platforms offer something meaningful to offset these costs?

Sure, I’ve heard about discounts and bonuses here and there, but they often feel temporary or hard to access. What if there was a way to consistently cut fees or even get rewarded for trading? Wouldn’t that make the whole game more sustainable, especially for smaller traders like me trying to scale up?

I’ve heard rumors of platforms offering permanent rebates or incentives tied to certain apps, but I haven’t looked too deeply yet. What about you? Have you come across any tools or events that actually help with fees or rewards? I’d love to hear what’s working

I use Binance for trading because I actively trade with BNB. There are many people who hate this coin but for investment purposes, it's a really good coin. According to Binance, Taker/Maker fees are 0.1000% / 0.1000% for regular users. When you buy 1 Bitcoin, you pay 0.001 BTC fee. I don't trade with 100k, I usually trade with 10-20K and I have never thought that this is a big fee for me because I trade a few times during the year, maybe 3-4 times a year. If you trade with small amount, this 0.1 fee won't affect you much but if you are a whale, it means a lot and in this case, on Binance, you have to purchase BNBs. In 2020 I luckily bought 25 BNB when price was $20 and I usually hold them but I also trade with them but in the end, if you are not a millionaire, you won't be able to save on fees.

doomloop

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Quote from: yhiaali3 on November 28, 2024, 03:19:14 PM

For me, I don’t care much about fees as long as I’m making profit from my trades, but in the long run you’ll find yourself spending more and more fees that should have been part of your profit.

All centralized and decentralized exchanges have fees, no exchange will operate without fees because that’s what keeps them going. But some of them offer some discounts due to certain events or you can get a discount if you hold the exchange token like BWB on Bitget exchange, where you get a discount on fees if you hold this token.

If huge profit yeah but if it is only small, then we might not help it but to look back on the fees that we pay and say if only the fees are small, my profit would have even become better. Fees won't be called like that for nothing but this is like a compensation for those who regulate the market.

So, we shouldn't calculate them and add to our potential gains at the first place. If you don't want to pay a fee (lots of it) then you better leave, as early as possible. I am only going to assure you that you won't avoid them permanently because they do exist too outside or in the real world. As you said there, there is still a way to lessen the fees now. So, we can now worry less.

passwordnow

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Fees are not that much to be honest. With those few cents to a buck or two won't be impactful to how much you've sold from that exchange. Just think of it that nothing is free nowadays. That's why the fees that you're paying and automatically deducted once you have trade is just a fee that you have to pay for using their platform. Don't think of it as something that sucks us out because it's not that a lot. While maybe for some reasons those few bucks and cents does really matter to you and it's impactful to you but you need to realize that these services is what we're paying for those fees so that we're convenient in using them and converting our assets into cash.

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Quote from: ndutndut on November 29, 2024, 03:58:57 PM

Quote from: Plaguedeath on November 29, 2024, 09:31:22 AM

And don't forget you need to pay tax for every profit you made.

In order to earn in trading, you need to make a lot profit that beat the trading fees and tax in your country.

It's why if you can't earn a lot of money in trading, it's better for you to become investors instead of spent a lot effort and time when you didn't get a good results.

Yes, that's right. All centralized and decentralized exchanges definitely have fees. Because according to the rules and policies of each exchange, licensed crypto asset traders are required to charge a fee for each transaction. I myself don't really think about fees as long as I make a profit, especially if the exchange is comfortable to use, especially in terms of security.

A good suggestion to avoid this is that it is better as you said, being an investor is much better because you don't think too much about fees, don't bother monitoring prices and of course don't spend a lot of time. In addition, with a small capital, trading is not effective, it is better to look for coins that have long-term potential and do dca for the long term. This is certain and profitable without having to think about fees and so on.

You won't worry if you are trading in a reputable trading platform. And usually, they have competitive fees. And if you can't attend your trading activities, better invest on coins or projects which you think will have long term potential of profitability.
Trading capital is also important because if you only have small funds, it is just like you are wasting your effort for pennies. But if you have so much time, you can do the baby steps.

ndutndut

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Quote from: Plaguedeath on November 29, 2024, 09:31:22 AM

And don't forget you need to pay tax for every profit you made.

In order to earn in trading, you need to make a lot profit that beat the trading fees and tax in your country.

It's why if you can't earn a lot of money in trading, it's better for you to become investors instead of spent a lot effort and time when you didn't get a good results.

Yes, that's right. All centralized and decentralized exchanges definitely have fees. Because according to the rules and policies of each exchange, licensed crypto asset traders are required to charge a fee for each transaction. I myself don't really think about fees as long as I make a profit, especially if the exchange is comfortable to use, especially in terms of security.

A good suggestion to avoid this is that it is better as you said, being an investor is much better because you don't think too much about fees, don't bother monitoring prices and of course don't spend a lot of time. In addition, with a small capital, trading is not effective, it is better to look for coins that have long-term potential and do dca for the long term. This is certain and profitable without having to think about fees and so on.

Topic: Is Trading Costing Us More Than We Think? - page 3. (Read 1051 times)