Summary: CoinSpot is considered one of the most expensive crypto platforms in Australia due to its 1% instant trading fee and wide spreads of up to 2% on digital assets. Despite many CoinSpot Reviews on Australian crypto blogs arguing to the contrary, it has one of the most egregious fee structures when compared to other local & global platforms.
For investors looking for a quick alternative, we recommend eToro which is widely regarded for its zero-commission trading and 1% spread on digital assets. eToro offers over 3,000 cryptocurrencies, stocks, ETFs, commodities and more making it a better and more versatile alternative for Aussie investors.
Are CoinSpot Fees High?
Yes, CoinSpot fees are considered high, with a 1% instant trading fee and wide spreads of up to 2-3% on digital assets, making it one of the most expensive crypto exchanges in Australia. The platform advertises fees as low as 0.1% on their 'Market Order' feature, however, it is pertinent to note that this feature is completely illiquid and only offers 10 crypto assets.
CoinSpot Fees Explained
CoinSpot's fee structure is relatively simple and can be compartmentalized into two categories, trading fees and deposit fees. Based on our research, this is a comprehensive overview of the full fee schedule of CoinSpot:
- Trading Fees: 1% Instant Order, 0.1% Market Order, 2% Spreads (Average), 0.1% OTC Fees, 1% Recurring Buy Fees and 1% Advanced Order Fees.
- Deposit/Withdrawal Fees: PayID/Poli/Bank Transfers 0%, BPAY 0.9%, Cash 2.5% and Card 2.58%.
Market Orders vs Instant Orders on CoinSpot
Instant Orders are the most popular feature on the CoinSpot platform and is used by a vast majority of their 2.5 million users in Australia. This feature gives investors access to over 370 crypto assets, but at the expensive fee of 1% per trade and an additional 2-3% charge in the spread of the buy and sell price.
The Market Order product is the feature advertised by CoinSpot as the option that charges industry-leading fees at 0.1%. However, this feature only offers BTC, ETH, DOGE, ADA, XRP and a few other relatively unpopular coins. Another downside of Market Orders are the wide spreads and illiquidity which makes it completely ineffective to use. As you can see in the image below, the Bid/Ask spread on their Bitcoin market is $43,777 to $42,400 which represents a 3.24% spread.
What is the Best Alternative to CoinSpot?
Based on our analysis of the Australian market, eToro is recommended as the best alternative to CoinSpot for investors. eToro is widely known for its zero-commission trading and 1% spread on digital assets. It offers over 3,000 cryptocurrencies, stocks, ETFs, commodities, and more, making it a more versatile and cost-effective option for Aussie investors.
In conclusion, CoinSpot's high fees and wide spreads make it one of the most expensive crypto platforms in Australia, despite claims to the contrary. With a 1% instant trading fee, up to 2-3% spreads on digital assets, and limited liquidity on their Market Order feature, many investors may find CoinSpot's fee structure unfavourable. As an alternative, eToro stands out for its zero-commission trading, 1% spread on digital assets, and diverse offerings, making it a more cost-effective and versatile option for Aussie crypto enthusiasts.