Research: The Average Amount of Commission Costs on Leading Cryptocurrency Exchanges Is 0.44%

April 1, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

According to a study conducted by The Block, the average amount of commission costs on leading cryptocurrency exchanges for retail investors is 0.44%.

The American platform Gemini, which charges 2% of its users, stands out in particular. The second and third place in terms of commission costs are Bitstamp and Bittrex, respectively.

Least of all, its users charge the Binance cryptocurrency exchange, followed by KuCoin and BitFlyer, which, on average, charge 0.44% per transaction.

In this rating, there is also the itBit, which offers makers a negative commission rate. The exchange does this in order to encourage traders to create additional liquidity on the platform.

LMAX Digital CEO David Mercer believes that increasing competition in the industry will encourage a gradual reduction in commission costs.

“The reduction of this indicator will depend on supply and demand. I believe that in the next 10 years, the cryptocurrency model of collecting commissions will gradually move towards the model that is inherent in traditional financial markets,” he said.

It should be noted that a couple of months ago, Huobi Group CEO Li Lin announced that last year the company earned $500 million on commission, and Huobi Global CEO Livio Weng noted that the exchange business brings the company 70% of revenue, in this connection, it can remain profitable even during a market decline.

Author: Marko Vidrih

Image credit: theblockcrypto.com