Phemex’s New Trading Fee Adjustment Can Help You Save More 

Place/Date: - August 24th, 2022 at 8:25 am UTC · 3 min read
Source: Phemex

Phemex's New Trading Fee Adjustment Can Help You Save More 

Every trader’s greatest nightmare is fees. They are charged on every trade, no matter how big or small, and they are the main source of income for exchanges. Both centralized and decentralized (DEX) exchanges impose trading fees, and the problems are made worse by high gas fees for DEX trades. Centralized exchanges fare better in this regard by charging a fixed percentage fee.

Trading Fees on CEXs

  • Market maker fee – a market maker is essentially someone who puts a limit order on sell or buy transactions. For example, Alice buys Ethereum at $20,000, which she plans to sell for $25,000. For this, Alice places an order at the limit price of $25,000, which is stored in the order book and executed when the price hits the limit target. Alice is a market maker by creating a market where Ethereum could be sold at $25,000.
  • Market taker fee – a market taker is the one who sells or buys assets at the market price. Quite intuitively, they “take” the price the market gives them. For example, Jason bought some Bitcoin at $20,000, but instead of placing a limit order, he waits for prices to go up. When Bitcoin’s price hits $25,000, Jason places a sell order at market price, which instantaneously matches the closest buy order.

Market makers generally face lower trading fees than takers to incentivize liquidity in order books. Without makers, takers have no market prices to take. Different CEXs ask for different trading fees, ranging from 0 to 1%. Choosing an exchange with low trading fees is important to ensure maximum gains and minimize losses.

Fees on Phemex

Phemex is a next-generation trading platform that offers instantaneous trades and some of the lowest trading fees on the market. Recently, the exchange has reduced its contract trading fees to:

  • 0.06% for market takers
  • 0.01% for market makers.

These numbers contrast with other trading platforms that charge 5-10 times the fees. If a few decimal points don’t seem like a lot for you to bother, let’s see the effects through an example.

Because the compounding savings from each trade snowball into bigger capital and profits in each subsequent trade, every penny saved when it comes to trading costs is quite literally a penny earned.

Phemex vs The Competition

Exchange Maker Fees Taker Fees
FTX 0.02% 0.07%
OKX 0.08% 0.1%
Kucoin 0.02% 0.06%
Phemex 0.01% 0.06%

Join Phemex for More Rewards

It’s important never to disregard the value of even a single penny saved. Phemex lets you get everything out of your trades and maximize your profits. For a limited time, Phemex is offering  the Fee Slasher event in which users can enjoy the updated fee structure and also get a 50% rebate on all contract trading fees. All this, topped with instantaneous trades through its lightweight trading engine, state-of-the-art security measures, and ever-available customer services, makes Phemex one of the best platforms to trade digital assets.

Disclaimer: Coinspeaker is not responsible for the trustworthiness, quality, accuracy of any materials on this page. We recommend you conduct research on your own before taking any decisions related to the products/companies presented in this article. Coinspeaker is not liable for any loss that can be caused due to your use of any services or goods presented in the press release.