4 ms·

There are some 0 fees exchanges, often requires significant volume or occasionally it's for limited periods and/or on a small list of pairs, but I wouldn't be s

by nannal 4y ago

There are some 0 fees exchanges, often requires significant volume or occasionally it's for limited periods and/or on a small list of pairs, but I wouldn't be suprised that someone's running fractional reserve with an exchange and offers 0 fees because they make money elsewhere.

rdtwo 4y ago
You have to be. There is no money to be made at 0 fee exchanges unless you lend the money out or give unfavorable swap rates
- hinkley 4y ago
  Or you're a front for money laundering.
mccorrinall 4y ago
Binance and bybit offer 0% fees on spot, but you usually want some kind of leverage, so you pay interest in your margin loan. If you are not a small retail and want to trade crypto, you usually need to use futures - which are associated with fees - because of liquidity and tighter spreads.
867-5309 4y ago
it costs them money to exchange, and they add profit on top of this. the "0 fees" are therefore the sum of these masked in an inflated exchange rate
- lxgr 4y ago
  That's not how an exchange works, though. Exchanges provide the infrastructure for trades to happen (i.e. they maintain order books, match market orders against these, ensure that settlement will eventually happen etc.), but do not take on financial positions themselves. The "exchange rate" is only determined by the order book, i.e. ultimately by supply and demand. So if an exchange makes money, it needs to charge at least some of its participants for these services. That can happen through transparent fees, or through less obvious mechanisms (like making retail trades free, and charging an exclusive market maker for the privilege of that exclusivity).
  - 867-5309 4y ago
    >The "exchange rate" is only determined by the order book, i.e. ultimately by supply and demand. if that were true then all exchange rates would be uniform across all providers
    - lxgr 4y ago
      What do you mean by "providers"? Different exchanges? Long-standing price differences are usually reflective of market inefficiencies that can't easily be arbitraged away, such as difficulties funding a given exchange account, insufficient volume to make it worth trading there, or many others.

by nannal 4y ago

rdtwo 4y ago

You have to be. There is no money to be made at 0 fee exchanges unless you lend the money out or give unfavorable swap rates

hinkley 4y ago
Or you're a front for money laundering.

mccorrinall 4y ago

Binance and bybit offer 0% fees on spot, but you usually want some kind of leverage, so you pay interest in your margin loan. If you are not a small retail and want to trade crypto, you usually need to use futures - which are associated with fees - because of liquidity and tighter spreads.

867-5309 4y ago

it costs them money to exchange, and they add profit on top of this. the "0 fees" are therefore the sum of these masked in an inflated exchange rate

lxgr 4y ago
That's not how an exchange works, though. Exchanges provide the infrastructure for trades to happen (i.e. they maintain order books, match market orders against these, ensure that settlement will eventually happen etc.), but do not take on financial positions themselves. The "exchange rate" is only determined by the order book, i.e. ultimately by supply and demand. So if an exchange makes money, it needs to charge at least some of its participants for these services. That can happen through transparent fees, or through less obvious mechanisms (like making retail trades free, and charging an exclusive market maker for the privilege of that exclusivity).
- 867-5309 4y ago
  >The "exchange rate" is only determined by the order book, i.e. ultimately by supply and demand. if that were true then all exchange rates would be uniform across all providers
  - lxgr 4y ago
    What do you mean by "providers"? Different exchanges? Long-standing price differences are usually reflective of market inefficiencies that can't easily be arbitraged away, such as difficulties funding a given exchange account, insufficient volume to make it worth trading there, or many others.