The Hidden Cost of Trading: Impact of Exchange Fees
High-frequency traders know a secret: fees are the silent killer of portfolios. A 0.1% fee sounds small, but if you trade 10 times a day, that's 1% of your portfolio gone—every single day.
Fee Types
- Maker Fee: Charged when you add liquidity (place a limit order). Often lower.
- Taker Fee: Charged when you take liquidity (market buy/sell). Often higher.
How to Reduce Fees
- Use Limit Orders: Be a "maker" whenever possible.
- Hold Exchange Tokens: owning BNB on Binance or KCS on KuCoin often gives receiving fee discounts.
- Volume Tiers: Trade more to unlock lower fee tiers (risky if you overtrade).
Calculate the impact on your specific trades with the Trading Fees Calculator.