Why are CoinSpot Fees so Expensive?

Are CoinSpot Fees High?

Yes, CoinSpot’s fees are considered high compared to other exchanges. Instant trades come with a 1% fee, which is steep for active traders. Additionally, the spread, typically between 1% and 2%, further increases the overall cost of trading. This combination makes CoinSpot more expensive than many alternatives in the market.

For those looking to lower costs, CoinSpot offers a 0.1% fee for Market Orders. However, this feature is limited to just 10 cryptocurrencies and often experiences liquidity issues, making it harder to execute trades at ideal prices. 

Traders should be aware of these factors when evaluating whether CoinSpot is the right platform for them.

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CoinSpot Fee Structure Explained

CoinSpot's fee structure is divided into two main areas: trading fees and deposit/withdrawal fees. Here's a detailed look at how these charges apply.

Trading Fees

• 1% fee on Instant Buy/Sell
• 0.1% fee for Market Orders
• Typical spreads range from 2-3%
• 0.1% fee for OTC trades
• 1% fee for Recurring Buys and Advanced Orders

Deposit/Withdrawal Fees

• No fees for PayID, Poli, or Bank Transfers
• 0.9% for BPAY
• 2.5% for Cash Deposits

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CoinSpot Market vs Instant Orders

CoinSpot offers two main trading options: Instant Orders and Market Orders. Instant Orders are the go-to for most traders, covering more than 490 cryptocurrencies. However, they come with a 1% fee and a spread that usually sits between 2-3%, which can make trades more expensive.

Market Orders, on the other hand, have a lower 0.1% fee and allow you to buy or sell at the best available price at the time of the order. However, they’re limited to a few major coins like Bitcoin and Ethereum and can suffer from liquidity issues, meaning trades may not always execute at the exact price you want.

When deciding between the two, it’s important to weigh the costs against liquidity and how they align with your trading goals.

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Lower Fee Alternative to CoinSpot

If you’re looking for a lower-fee alternative to CoinSpot in Australia, Kraken is a strong contender. With maker fees starting at 0.16% and taker fees at 0.26%, it’s a much more cost-effective option for active traders.

Kraken also supports over 250 cryptocurrencies and has high liquidity, making it ideal for executing large trades, even in amounts over $1 million AUD. This is especially useful for investors looking to scale into large-cap cryptos like BTC, ETH, SOL, and others.

Beyond basic trading, Kraken offers additional features like staking, OTC trading, and margin trading. These tools make it a solid choice for investors wanting more flexibility and lower transaction costs.

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About CoinSpot

Trusted by over 2.5 million users, CoinSpot has been a go-to for Australian crypto traders since 2013. It offers a clean interface, access to over 490 cryptocurrencies, and features like staking, an NFT marketplace, and a Mastercard for spending crypto. 

With best-in-class wallet security protocols and transparent fees, CoinSpot strikes a balance between ease of use and reliability, making it a solid option for both casual and experienced traders.

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Bottom Line

In conclusion, CoinSpot’s higher fees and spreads can make trading costly, especially for active users. While it offers a broad selection of cryptocurrencies and a user-friendly experience, the 1% fee on instant trades and liquidity challenges with Market Orders are important considerations. 

Traders looking for lower costs might find alternatives like Kraken more suitable. Understanding these factors is crucial for selecting the right platform based on your trading needs.