Dominant Trading Platforms Charge Traders Up to 13 Times More Than CPH Crypto
Recent calculations clearly document that the dominant crypto trading platforms are up to 13 times more expensive for active crypto traders to use than the new Scandinavian exchange CPH Crypto.
Every swing trader, day trader and scalper in the crypto market knows the importance of trading fees and how those fees often make it extremely difficult to pursue trading strategies based on high-frequency trading. It’s commonly known among traders that cost simply kills profit.
Lack of competition and transparency prevents traders to profit. The problem is simple: Up until now, the competition on fees in the crypto trading market has been virtually absent, and the dominant trading platforms have been able to charge exorbitant transaction fees and get away with opaque pricing structures, which has made it extremely difficult for customers to figure out what they are actually paying in total for the services they are using.
The reason for the problem is immaturity in the crypto market. Going back twenty years, the traditional stock, bond and FX market was on the same stage of development as the crypto market is today, and similar to the crypto market, the traditional market was dominated by few very big players that were able to charge very high prices because of lack of competition and transparency.
Immediate Disruption of Fee Structures
“Eventually new players entered the market and started to disrupt the dominant players’ pricing models and drive down prices. And today, trading fees on traditional products are only fractions of the level we see in the current crypto market,”
says CEO Jan Andersen, CPH Crypto, and continues:
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“Our team knows this because we have our roots in the old trading world. And our declared mission is to disrupt the dominant crypto players by offering our clients fees that are way below the fees of these players. The history evidently repeats itself, only this time traders should not have to wait twenty years before the fees are down to a reasonable level. CPH Crypto has decided to drive down the fees immediately.”
Watch out for Hidden Fees
To obtain a complete view of a particular broker’s or exchange’s trading fees, you need to take both commissions and spread into consideration. Traders tend to forget the impact of the spread on the total costs, even though the spread is often where the most significant part of the total fees is hidden, especially when trading on so-called commission-free brokers or exchanges.
Typically these brokers/exchanges tend to compensate for the lack of fee on commission by heavily increasing the spread – the difference between the bid price and the sales price – which enables them to earn their margin on the spread instead. On top of this, traders should not forget that high fees on money management – like deposits and withdrawal – is also added to the total costs.
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