Coinhako Fees

Summary: Coinhako stands out for its transparency but leans towards the higher end in fees among Singaporean exchanges, starting at 0.6% and increasing with additional transaction costs. Its wide spreads add to the overall expense, marking it as a pricier option for traders.

In contrast, Independent Reserve emerges as a cost-effective and MAS-regulated alternative, not only offering lower fees starting from 0.5% and potentially dropping to 0.05% for active traders but also providing tighter spreads.

Does Coinhako Have High Fees?

Coinhako, a prominent cryptocurrency exchange in Singapore, is known for its transparent fee structure aimed at providing users with flexibility and cost-effective trading options. Despite its intention to offer affordability, Coinhako's fee schedule is considered high compared to other Singaporean platforms. 

For spot trading with Singapore Dollars (SGD) and crypto pairs, the platform charges a 0.6% fee. Although Recurring Buys and stablecoin-fiat trades like USDC/SGD feature slightly lower fees at 0.5% and 0.3% respectively, the overall cost to the user is augmented by additional charges. Moreover, instant trades via card payments or GrabPay attract a 2.8% fee, further increasing transaction costs.

The high fees at Coinhako are particularly noticeable when compared to the general market, especially given its spreads, which are among the widest in the industry, often adding more than 1% to the costs. This situation raises the total average transaction fee on the platform to about 1.6%, placing Coinhako on the more expensive side of the fee spectrum.

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Coinhako Spreads and Hidden Fees

In our analysis, we observed that Coinhako exhibits a notable spread of over 1%, coupled with prices that surpass industry averages. This insight became particularly evident when comparing Coinhako's pricing with that of other exchanges.

For instance, a direct comparison of the spot price of Bitcoin revealed that Coinhako listed 1 BTC at S$70,656.41, whereas Independent Reserve, another platform, offered it at a lower price of S$70,384.62. 

This discrepancy not only highlights the significant spread but also points towards additional costs that users might incur when trading on Coinhako. Such variances are critical for traders to consider, as they directly impact the overall cost-effectiveness of trading activities on the platform.

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Coinhako’s Other Fees

Coinhako's comprehensive fee schedule extends beyond trading and spreads, covering various aspects of account funding, withdrawals, and cryptocurrency transactions. This structure is tailored to support different user needs, from casual traders to institutional investors.

Here are the details:

• Stablecoins-to-Fiat Trades: A modest fee of 0.3% is applied to trades involving stablecoins and fiat currencies (e.g., USDC/SGD, USDT/USD).
• OTC Trades: For larger volume traders, Coinhako offers a 0% fee on OTC trades, accessible through their institutional services.
• Fiat Deposits: Users can deposit SGD via bank deposits using PayNow and FAST transfers without any fees from Coinhako's side for the transaction process.
• Cryptocurrency Deposit and Withdrawal Fees: Depositing cryptocurrencies is free of charge, encouraging users to fund their accounts without extra costs. Withdrawing cryptocurrencies incurs a small fee, which is necessary to cover the network fee for processing the transaction.

Coinhako's fee structure is designed with the user in mind, offering discounts through the Coinhako Rewards program and providing a variety of payment methods to facilitate easy transactions. This approach allows users to manage their funds efficiently while engaging with the cryptocurrency market.

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Best Alternative to Coinhako on Fees

Independent Reserve stands out as an effective alternative to Coinhako in Singapore, offering a secure, licensed trading environment with access to over 20 cryptocurrencies. Its competitive fee structure, beginning at a base rate of 0.5% per trade, can decrease to as low as 0.05% based on the 30-day trading volume. 

Licensed by the Monetary Authority of Singapore (MAS) and operational since 2013, Independent Reserve is recognized for its stringent security measures, including annual audits and ISO 27001 certification.

Designed for a broad audience, from beginners to institutional investors, the platform supports SGD deposits via FAST bank transfers, provides volume-based fee discounts, and ensures free deposits and withdrawals for transactions above SG$1,000. 

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Bottom Line

Coinhako's fee structure, though transparent, tends to be higher than other Singaporean exchanges, especially when considering its wide spreads and additional charges for certain transactions. This can significantly affect the cost-effectiveness of trading on the platform. Despite this, Coinhako offers benefits like rewards programs and various payment options. 

For those looking for lower fees, Independent Reserve is a viable alternative, offering competitive rates, volume-based discounts, and a secure, regulated trading environment, making it crucial for users to carefully compare the overall value and costs associated with each platform.