In the world of crypto trading, finding a reliable exchange with low spreads can be the key to maximizing your profits. In this guide, we highlight the cryptocurrency exchanges that provide the best opportunities for low-spread trading, ensuring you make the most of market volatility. Here are our top choices in 2024.
What are spreads in crypto trading?
Spreads are a fundamental concept in cryptocurrency trading. They represent the difference between the buying price (the “bid”) and the selling price (the “ask”) of a particular cryptocurrency.
In practical terms, the bid price represents the maximum price a buyer is willing to pay for a coin, while the asking price is the minimum price at which a seller is willing to part with their cryptocurrency.
When you execute a trade on a cryptocurrency exchange, you pay a fee based on the spread. This fee is typically a percentage of the spread, and it’s charged on both the buy and sell sides of the trade. The exchange keeps this fee as revenue. The wider the spread, the more fees you will pay for a given trade.
Did you know? A pip is the smallest whole unit measurement of the difference between the bid and ask spread. A pip equals 1/100 of 1%, or .0001.
Top crypto exchange with the lowest spreads
FXGT.com
For those looking to navigate the complexities of the digital market, FXGT.com emerges as the best overall platform for low spread fees. The platform comes across as particularly enticing to seasoned traders who can take advantage of advanced offerings including high leverage and negative balance protection.
The platform’s spreads are exceptionally competitive, starting from as low as 0.00014 pips. To top it off, FXGT.com does not charge any commissions on trades from PRO accounts.
Moreover, FXGT.com ensures traders can access its services with minimal financial barriers. The minimum deposit required to open a live account is only $5 or its currency equivalent. This entry point is significantly lower than many other brokers’ demand and positions FXGT.com among the few platforms that make trading accessible to a broader range of individuals, despite catering to an advanced audience.
Additionally, the FXGT MT 5 account, the platform’s standard account, provides traders with access to maximum leverage up to 1:1000 based on volume, along with negative account balance protection and tight spreads, creating an ideal environment for various trading strategies.
It’s worth noting that the spreads offered by FXGT.com may vary based on specific financial instruments and market conditions.
- Competitive spread fees
- Access to 1,000+ trading instruments
- Exclusive GTi12 Index
- User-friendly trading platforms
- Fee-free deposit and withdrawal
- 24/7 multilingual customer support
- Well-suited to medium and advanced level traders
- Limited geographic presence
- No phone support
Coinbase
Coinbase is a an easy-to-use crypto exchange, whether you’re new to trading or an expert. The original Coinbase platform offers a straightforward interface that enables users to purchase cryptocurrency using U.S. dollars. Meanwhile, Coinbase Advanced Trade provides advanced charting functions and supports crypto-to-crypto transactions, as well as market, limit, and stop orders.
Coinbase offers Coinbase One, a subscription service for no-fee trades at around $30 per month, and a unique “learn to earn” initiative for cryptocurrency education and rewards. In addition, the platform enables quick withdrawals, allowing immediate access to purchased cryptocurrencies for use in decentralized applications and external services.
When it comes to fees, Coinbase’s fee structure can be complex, with various elements influencing the cost of trading. The platform charges a spread, which can vary based on market fluctuations and is approximately 0.5%. The company also applies fees based on factors like the chosen payment method, order size, and market conditions. Also, Coinbase charges fees to cover transaction execution costs on external blockchain networks supporting the traded cryptocurrencies.
- User-friendly for beginners
- Rewarding educational program
- Quick withdrawals
- Multiple trading platforms
- Complex fee structure
- Comparatively high fees
Paybis
Paybis is a reputable cryptocurrency exchange known for its exceptional customer support. The company, established in 2014 and headquartered in the United Kingdom, prioritizes user satisfaction and offers a comprehensive customer support system.
In terms of fees and charging, Paybis operates with a competitive fee structure that ranges from 0.49% to 2.49%, depending on the specific transaction and payment methods used. Notably, Paybis offers users their first transaction without any fees, making it a cost-effective option for newcomers.
The platform supports 40 + fiat currencies, enabling users to access a broad range of crypto assets. Paybis is available in 180+ countries but may have restrictions in certain U.S. states due to regulatory concerns.
- Exceptional customer support
- Competitive fee structure
- Wide range of fiat currencies
- Instant payout
- Intuitive user interface
- Temporarily suspended in the U.K.
- Limited cryptocurrency variety
YouHodler
Another prominent player in the crypto trading arena is YouHodler. The platform caters to both beginners and seasoned users and is a great choice for those seeking crypto loans — offers one of the industry’s highest (High Loan-to-Value LTV) ratios, allowing borrowers to access up to 90% of their collateral’s value — while bridging the gap between traditional fiat and the crypto world.
The platform’s fee structure includes interest rates, allowing users to earn from their holdings through crypto savings accounts. For those interested in crypto loans, the platform provides a unique “Turbocharge” loans that enable leveraged positions in cryptocurrency markets, potentially amplifying returns. The platform also offers multi-HODL, which lets users manage their exposure to cryptocurrency markets. YouHodler does not determine spreads and notably does not make any money from spreads.
YouHodler’s global clientele includes 2.2 million users across 110 countries. Note that certain regions, such as the United States and Canada, are restricted due to issues with regulatory compliance.
- Wide range of supported assets
- One of the highest LTV ratios in the industry
- Earning interest opportunities
- User-friendly exchange services
- Relatively high interest rates
- No financial reports publicly available
Kraken
Kraken, a well-established cryptocurrency exchange, is a top choice for experienced traders due to its wide array of advanced tools. It provides a range of customizable interfaces and comprehensive chart analysis features, making it the preferred platform for traders with a wealth of experience in the crypto market. The platform’s extensive offering of trading options, including spot, margin, and futures trading, empowers users to diversify their strategies.
Kraken’s fee structure is tailored to users’ trading volume, with varying rates for makers and takers. The exchange charges a spread fee for buying, selling, or converting assets using Instant Buy. This fee may differ based on factors such as transaction size, asset, payment method, and market conditions. As trading volume increases, fees decrease significantly, incentivizing higher-volume traders to use the platform.
The company emphasizes adhering to regulatory requirements, strong security, and maintaining transparency and has thus earned widespread user trust in the crypto trading community.
Customer support concerns
Geographical restrictions in some states of the U.S.
- Strong emphasis on security
- Diverse trading options
- Advanced trading tools
- Responsive mobile app
- Regulatory compliance
- Customer support receives mixed reviews
OKX
Renowned for offering a user-friendly experience that caters to both novice and experienced traders, OKX, formerly OKEx, is one of the crypto exchange leaders on the market. The platform is an excellent choice for traders seeking low overall fees.
OKX is known for its transparent fee structure, ensuring users enjoy cost-effective trading. It stands out by offering a hassle-free experience without any conversion fees, processing fees, or spreads. In addition, the platform offers competitive fees, including maker and taker fees for various trades. Spot trading fees typically range from 0.10% to 0.15%, lower than the industry average. The platform, however, also charges a spread, which may not be displayed when making a purchase.
For futures contracts, fees are between 0.02% and 0.05%. Margin trading fees are based on spot rates, with additional charges for fund borrowing. While fiat-based deposits and withdrawals are free, crypto withdrawals are subject to fees based on the specific cryptocurrency and chain.
The platform supports almost 350 cryptocurrencies. Its user-friendly interface, P2P trading, low fees, and diverse wealth generation options, such as staking and project investments, make it a versatile choice for traders of all experience levels.
- Extensive cryptocurrency support
- User-friendly platform
- Lower fees
- Strong security framework
- Multi-lingual and responsive customer support
- Numerous trading options may be overwhelming for beginners
- Service not available in certain countries
BYDFi
BYDFi, formerly BitYard, is an up-and-coming cryptocurrency exchange that originated in 2020 and has since gained popularity. It is a solid choice for frequent traders due to its robust features and offerings. The exchange caters to both beginners and experienced traders, offering spot trading support, perpetual contracts with leverage of up to 100x, leveraged tokens, copy trading functionality and token listing support.
Spreads on the BYDFi exchange are subject to change as they are variable. Typically, the spread tends to be narrower for more liquid cryptocurrencies. For instance, spreads could be as tight as 0.020% for BTC pairs, while some highly volatile altcoins exhibited wider spreads of approximately 0.050%.
Other than that, BYDFi maintains competitive trading fees. For spot trading, the fees range from 0.1% to 0.3% and vary between makers (limit order) and takers (market order) depending on liquidity. The “Convert” feature, used for crypto-to-USDT conversions, charges between 0.1% to 0.15%. Perpetual contracts come with fees ranging from 0.02% for makers to 0.06% for takers. Leveraged tokens incur a flat transaction fee of 0.2%.
BYDFi has a massive user base of 500,000 traders and a 24-hour trading volume of nearly $213 million. The exchange supports 228 cryptocurrencies and close to 400 trading pairs.
- Rigorous security measures
- Copy trading functionality
- Extensive trading options
- Intuitive interface
- Trading available in 150+ countries
- Limited educational resources
- Liquidity issue for less common trading pairs
How to choose the right crypto exchange with low spreads
Selecting a crypto exchange with low spreads is a critical decision that can significantly impact your trading strategy and profitability. Before deciding which platform is the best choice for you, there are some key factors to consider.
1. Assess your trading experience
We’ve listed platforms that cater to both beginners and experienced traders. That said, your level of trading experience can help you select the right exchange. If you’re a seasoned trader comfortable with advanced tools and features, exchanges like FXGT.com and Kraken, which cater to experienced traders, might be your best bet. On the other hand, newcomers may find user-friendly platforms like Coinbase or Paybis more suitable.
2. Consider your geographic location
The availability of certain exchanges can vary based on your geographic location. For instance, some platforms, like FXGT.com and YouHodler, have broader global coverage, while others may have restrictions in specific countries or states. It’s essential to ensure that your chosen exchange operates in your region.
3. Evaluate fee structures
While low spreads are a priority, it’s crucial to understand the complete fee structure of an exchange. Some platforms may charge additional fees, such as withdrawal fees, conversion fees, or maker-taker fees. Be aware of these costs to calculate your overall trading expenses accurately. In addition, some platforms might be less transparent around fees. For instance, if a platform advertises zero-fee trading, remember that they may charge a spread instead.
4. Analyze security measures
The safety of your funds and personal information is paramount. Look for platforms that implement rigorous security measures, such as two-factor authentication, encryption, and cold storage of funds.
5. Consider your trading goals
Your trading goals should align with the features and offerings of the exchange you select. For the lowest and most competitive spreads and all-around performance, FXGT.com takes the cake. If you’re interested in crypto loans and earning interest on your holdings, a platform like YouHodler may be the right choice. Conversely, if you’re focused on frequent trading and leveraging your positions, BYDFi could be more suitable.
Small spreads equal low trading costs
Each featured platform offers unique platform advantages, ensuring this list caters to a diverse range of traders. By weighing factors including trading experience, fee structure, and trading goals, you can confidently select an exchange or platform that aligns with your strategy and empowers you to harness the benefits of low spreads. While low spreads can ultimately help you succeed in the dynamic cryptocurrency market,
Frequently asked questions
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