◆ Fee for 1 million won transaction: Stock 150 won, Bitcoin 2500 won
The fees of domestic cryptocurrency exchanges range from about 1,000 won to 2,500 won for a 1 million won transaction. If a brokerage company trades 1 million won in Samsung Electronics stock, the commission is about 150 won. Cryptocurrency fees are 10-15 times higher than stocks.
As stocks and cryptocurrencies have different characteristics, it is impossible to compare the commission level in parallel. However, it is pointed out that overall cryptocurrency transaction fees are high given the market size and investor accessibility.
The market cap of the domestic stock market is 2366 trillion won, and the global market cap of cryptocurrency is 1371 trillion won. As the market capitalization has increased significantly due to the recent rise in the price of cryptocurrencies such as bitcoin, the size of the cryptocurrency market has grown to the level of 60% of the stock market.
It is pointed out that it is reasonable to collect a certain amount of applied fees if there is no decisive difference in the size and accessibility of the two markets for investors.
We looked at the fee policies by major domestic cryptocurrency exchanges.
The transaction fee rate is 0.25%. When you purchase a flat-rate coupon, you get up to 84% off. In this case, the actual fee is 0.04~0.2%. If you use a flat-rate coupon, the fee is returned after the transaction is concluded.
A Bithumb official said, “Previously, we had several discount events for VIP customers, but recently, we are holding events mainly for new members. There is no difference in fees for each market.”
Transaction fees vary by market. The KRW market was 0.139%, but it is now down to 0.05%. An official of Upbit said, “Because most transactions occur in the KRW market, the commission was lowered for customer convenience.”
Bitcoin market is 0.25%, USDT market is 0.25%.
An official of Upbit said, “We know that Upbit is the lowest in terms of fees in won,” and said, “There was a discount event recently for members who are new to beginners.”
◆ Coin One
The level-based fee has been reorganized to a single fee of 0.2%. The growth market (altcoin center) fee is 0.1%. The commission is reduced through market makers, VIP programs, and additional promotions.
Customers who have subscribed to the Market Maker Program have no commission in the case of makers. Taker is 0.01%. A maker is an order that adds the balance of buy/sell in the order book on a condition that is not immediately executed, and a taker refers to an order that immediately executes the balance of buy/sell in the order book.
It provides multi-account (supporting transactions using multiple accounts) and IP whitelist to market maker program subscribers. VIP program subscribers also provide the same benefits, such as a VIP gift.
The fee, which differed by transaction price, was unified at 0.15%. An official from Corbit said, “The lower the fee is to attract more customers.” In fact, as the fee was cut recently, the inflow of individual investors increased.
Fees differ between ordinary users and traders. The maker fee is 0.2% for general users and 0~0.03% for traders. The taker fee is 0.2% for general users and 0.02% to 0.04% for traders.
An official at Gopax explained, “We are changing the fee to benefit more traders,” and “a number of rewards such as friend referrals are provided.”
In the case of withdrawal fees, KRW 1,000 is for KRW and 0.001 BTC for Bitcoin. Ethereum is 0.03ETH, Bitcoin Cash is 0.01BCH, etc. An official at Gopax said, “The reason for the different withdrawal fees for each coin is due to the network.”
The same fee is charged to the entire market at 0.1%. Hanbitco operates a trader fee program.
Traders who have acted as liquidity providers, including other exchanges, offer discounts on fees. On the 30th, when the transaction volume is 3 billion to 100 billion won, it is 0.035%, up to 20 billion won, 0.03%, up to 30 billion won, 0.02%, and above it is 0.015%.
◆ Cryptocurrency fee rationalization required
Jun-nyeong Yee, co-founder of Despread, said, “The main profit model for cryptocurrency exchanges is transaction fees, and the market competition is weak.”
He said, “As the competition between cryptocurrency exchanges intensifies, the fee will be lower, but we also have to consider the relatively lack of trust in the exchange.”
Like some overseas cryptocurrency exchanges, if the fee is abolished, you can think that the exchange has different intentions or that it is not safe.
In addition to the unstructured fees, it is pointed out that unofficial listing fees or marketing costs, and observing abnormal price movements such as’pumping, dumping’, etc., are factors that hinder the growth of the cryptocurrency market.