Trading fees can eat into your profits significantly, especially if you're an active trader. Here are five proven strategies to minimize your trading costs.
1. Use a Cashback Platform
The easiest way to reduce fees is to sign up through a cashback platform like TradeGetPaid. You can get up to 70% of your fees returned automatically.
2. Use Limit Orders (Be a Maker)
Most exchanges charge lower fees for "maker" orders (limit orders that add liquidity) compared to "taker" orders (market orders that remove liquidity). The difference can be significant - often 0.02% vs 0.06%.
3. Hold Exchange Tokens
Many exchanges offer fee discounts if you hold their native token. This can provide an additional 10-25% discount on top of other savings.
4. Increase Your VIP Tier
Higher trading volumes often unlock VIP tiers with reduced fees. Check your exchange's fee structure and plan accordingly.
5. Compare Exchanges
Fee structures vary significantly between exchanges. Don't assume all exchanges charge the same - compare and choose the most cost-effective option for your trading style.
Combining Strategies
The best approach is to combine multiple strategies. For example, using limit orders on an exchange with cashback can reduce your effective fees by 80% or more compared to market orders without cashback.