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Why are CoinSpot Fees so Expensive?

Why are CoinSpot Fees so Expensive?

Explore CoinSpot's fee structure in detail, comparing its instant and market order costs with insights for Australian crypto investors.

Summary: CoinSpot has a relatively high fee structure, with 1% on instant trades and 2-3% spreads on transactions. Its 'Market Order' feature offers lower fees (0.1%) but is limited in cryptocurrency options and liquidity. For those seeking alternatives, Kraken is a notable option, providing competitive fees, a broad selection of over 200 cryptocurrencies, and strong liquidity for large-volume trades, making it a comprehensive choice for Australian crypto investors.

Best Alternative to CoinSpot
5.0 out of 5.0 by Datawallet
Kraken is the best alternative to CoinSpot with its competitive fee structure starting at 0.16% for maker orders and 0.26% for taker orders, along with a vast selection of over 200 cryptocurrencies and high liquidity.
Licenses
ASIC, AUSTRAC, FinCEN, the FCA and more.
Available Assets
200+ Cryptocurrencies (Trade + Stake).
AUD Deposit Methods
PayID/Osko, Bank Transfer, Debit Card, Credit Card and more.

Kraken (Bit Trade Pty Ltd) is a licensed and registered Digital Currency Exchange (DCE) under AUSTRAC's regulatory framework.

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Are CoinSpot Fees High?

CoinSpot, an Australian cryptocurrency exchange, is known for its relatively high fee structure. The platform imposes a 1% fee on instant trades, a rate that is substantial, especially for frequent traders. Moreover, the spread, or the difference between buying and selling prices of digital assets, can reach up to 2-3%. This spread is a critical factor as it directly affects the transaction cost, making CoinSpot one of the more expensive exchanges in the region.

While CoinSpot advertises a lower 0.1% fee through its 'Market Order' feature, it's important to note the limitations of this option. It supports only 10 cryptocurrencies and often faces liquidity issues, potentially hindering the execution of orders at desired prices. This is particularly relevant for those trading in less common digital assets or large volumes. Understanding these fee structures and limitations is crucial for users in making informed decisions when selecting a cryptocurrency exchange platform.

CoinSpot Fees

CoinSpot Fees Explained

CoinSpot adopts a straightforward fee structure categorised into two main sections: trading fees and deposit/withdrawal fees. Our in-depth analysis provides a detailed breakdown of these fees.

  • Trading Fees: CoinSpot charges a range of fees for different types of trades and services, including 1% for Instant Orders, 0.1% for Market Orders, an average of 2% for Spreads, 0.1% for OTC (Over-The-Counter) Trades, 1% for Recurring Buys, and 1% for Advanced Order Fees.
  • Deposit/Withdrawal Fees: The platform's fees for deposits and withdrawals vary by method, with 0% for PayID/Poli/Bank Transfers, 0.9% for BPAY, 2.5% for Cash Deposits, and 2.58% for Card Transactions.

This variable fee structure of CoinSpot is crucial for users to understand to manage their trading and transaction costs effectively.

Market Orders vs Instant Orders on CoinSpot

CoinSpot's Instant Orders and Market Orders serve distinct trading preferences. Instant Orders, preferred by most of CoinSpot's 2.5 million users in Australia, allow trading in over 370 crypto assets but incur a 1% trade fee and a 2-3% price spread. This cost factor is crucial for traders to consider.

In contrast, Market Orders feature a lower 0.1% fee but are limited to a few cryptocurrencies like BTC and ETH, and suffer from wide spreads and illiquidity, exemplified by a 3.24% spread in Bitcoin markets. This makes Market Orders less viable for some trading strategies. Users should consider these aspects when selecting their trading option on CoinSpot.

What is the Best Alternative to CoinSpot?

As an alternative to CoinSpot in Australia, Kraken is a strong contender. It offers a competitive fee structure, with maker orders starting at 0.16% and taker orders at 0.26%. This pricing is advantageous for active traders seeking lower costs. Kraken's platform includes over 200 cryptocurrencies, providing a diverse range of investment options.

Notably, Kraken is renowned for its high liquidity, an essential feature for large-volume trading. This allows for easy purchasing of significant amounts of digital assets like Bitcoin and Ethereum, often over $1 million AUD. Additionally, Kraken enriches the trading experience with services like staking, over-the-counter (OTC) trading, and margin trading, making it a versatile choice for Australian crypto investors.

Bottom Line

In conclusion, CoinSpot, with its varied fee structure, caters to different trading needs but may be costly for frequent traders due to its higher spreads and fees. While it offers a range of services, including lower fees through Market Orders, liquidity issues and limited cryptocurrency options are notable constraints. For those seeking alternatives, Kraken presents a competitive and versatile platform, offering lower fees, a wide range of cryptocurrencies, and high liquidity for large-volume trades.

Frequently Asked Questions

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