Spot Fees: Top Crypto Exchange Rates, What to Know

A spot trade takes place whenever a financial instrument changes hands and is paid for immediately. If you buy or sell cryptocurrency through a spot trade, you’ll pay a spot fee to the exchange for facilitating the transaction. Spot trading isn’t just for cryptocurrencies: You can spot trade stocks and bonds, too. And not all cryptocurrency transactions are spot trades: Margin trading and futures trading, for example, are different.

For crypto investors planning to make frequent trades, finding an exchange with low or no spot fees is important because it could add up to significant savings. But if you plan to hold investments long term and make minimal trades, it might be less of a deciding factor for you.

Spot fees have largely disappeared from major brokerages when trading equities, like stock and mutual funds, but most crypto exchanges still charge them. These fees are typically a percentage of the value of each trade. A 0.5% fee on a $100 transaction would result in you…

Continue Reading →

This article was written by Kurt Woock and originally published on www.nerdwallet.com