By James Davis
In crypto, finding an exchange with relatively low spreads is key to boosting your trading profits. This guide takes a look at some of the crypto exchanges that offer the lowest spreads. Keep reading to learn more.
Spreads Defined
So what are spreads? Simply put, they are the difference between the bid (buying) price and the asking (selling) price of a certain crypto asset. The bid price is the maximum amount a buyer is prepared to pay for a cryptocurrency, while the selling price represents the minimum amount a seller is prepared to sell their crypto asset.
When you open positions on a crypto exchange, the trading fees you pay are based on the spreads. The wider the spreads, the higher the fees to be paid. Exchanges collect these fees as their revenue.
Leading Exchanges with Lowest Spreads
FXGT.com
Not many exchanges come near FXGT.com in terms of offering low spreads. When you start trading cryptocurrencies on this platform, you will enjoy low fees of 0.2%. Moreover, the platform offers negative balance protection and high leverage that allows seasoned traders to maximize their profits.
Note that you do not incur trading fees if you open a PRO account. FXGT.com has also lowered the entry barrier for beginners by allowing them to start their crypto trading journey with as low as $5.
Advantages and Disadvantages
- FXGT.com offers low spreads.
- Gives access to over 1,000 trading instruments.
- Its platform is user-friendly.
- Users can deposit and withdraw funds free of charge.
- FXGT.com offers customer support in several languages.
Disadvantages
- FXGT.com does not provide phone support
- The exchange is not available in multiple countries.
Coinbase
Whether a newbie or an experienced trader, you can seamlessly trade crypto assets on Coinbase. The US-based platform provides an easy-to-use interface, allowing users to buy cryptocurrencies using USD. Although the spreads charged on Coinbase vary depending on a number of factors, such as market conditions and the order size, they usually range between 0.3% and 0.5%.
It is worth highlighting that you can enjoy no-fee trading by subscribing to Coinbase One. You only have to pay $30 monthly.
Advantages and Disadvantages
Advantages
- Coinbase is easy to use for both expert and beginner traders.
- It has a Learn to Earn program, letting beginners gain knowledge about crypto while accumulating digital assets.
- Coinbase processes withdrawals quickly.
Disadvantages
- Coinbase is unavailable in several regions.
- Offers access to a limited pool of trading instruments.
Paybis
Paybis, a UK-based crypto exchange, is known for offering excellent customer support. You can communicate with the platform’s customer service team via phone calls, emails, and through the live chat feature.
Paybis charges spreads ranging between 0.5% and 0.8%, depending on the crypto asset you want to trade and the payment methods used. Note that you do not incur any trading fees when executing your first transaction.
Advantages and Disadvantages
Advantages
- Great customer support
- Supports over 35 fiat currencies.
- Payouts are instant.
- The platform’s user interface is easy to navigate.
- Paybis has a significant geographical presence. It is available in more than 180 countries.
Disadvantages
- It only supports 60 cryptocurrencies
- Paybis is temporarily blocked from operating in the United Kingdom.
YouHodler
With YouHodler, instead of withdrawing your trading profits, you can lend them to earn passive income. In addition, you can borrow a “Turbocharge” loan, which allows you to open leveraged positions, thus amplifying your returns. In terms of spreads, YouHodler doesn’t determine them or rely on them to generate revenue like many of its competitors. Still, spreads on this trading platform are relatively low.
Advantages and Disadvantages
Advantages
- Supports several crypto assets
- It provides traders with an opportunity to earn passively.
- Support multiple payment methods.
Disadvantages
- YouHodler is not available in the United States.
- The exchange has yet to release a financial report.
Conclusion
The goal of every crypto trader is to maximize their profits. One of the ways to achieve this involves trading on an exchange that offers low spreads. Be sure to research the four exchanges discussed above to determine which one suits your trading needs.