Trading fees are one of the biggest cost lines in arbitrage. At 200 trades per month with $3,000 each — total turnover is $600,000. At 0.10% fee, that's $600/month. At 0.08%, it's $480. A $120/month difference — $1,440/year — purely from choosing the right exchange or tier.
This article covers a complete fee comparison across major exchanges, with practical advice on reducing costs.
Maker vs Taker: The Core Difference
Taker — a trader who immediately fills a trade by "taking" liquidity from the order book. Uses market orders or limit orders that execute instantly.
Maker — a trader who adds liquidity by placing a limit order that sits in the book and waits to be filled.
Exchanges incentivize makers (they improve liquidity) with lower fees. Takers pay more.
For arbitrage: most strategies use market orders (taker) for guaranteed fills. Focus primarily on taker fees.
Fee Comparison — Standard Level
| Exchange | Maker | Taker | Token discount |
|---|---|---|---|
| Binance | 0.10% | 0.10% | 0.075% with BNB |
| Bybit | 0.10% | 0.10% | — |
| OKX | 0.08% | 0.10% | Discount with OKB |
| KuCoin | 0.10% | 0.10% | Discount with KCS |
| Gate.io | 0.20% | 0.20% | Discount with GT |
| MEXC | 0% | 0% | (spot, active promo) |
| Kraken | 0.16% | 0.26% | — |
| HTX | 0.20% | 0.20% | Discount with HT |
| Bitget | 0.10% | 0.10% | Discount with BGB |
| Coinbase Advanced | 0.40% | 0.60% | — |
Key takeaways:
- Gate.io, HTX: 0.20% taker — 2× more expensive than Binance/Bybit. Adjust profitability thresholds accordingly
- Kraken and Coinbase: expensive. Justified only for EUR/USD pairs or specific regulatory requirements
- MEXC: zero fees during promotional periods — verify current status before trading
VIP Tiers and Volume Discounts
Binance VIP (30-day spot volume)
| Level | Volume | Maker | Taker |
|---|---|---|---|
| Regular | < $1M | 0.100% | 0.100% |
| VIP1 | ≥ $1M | 0.090% | 0.100% |
| VIP2 | ≥ $5M | 0.080% | 0.100% |
| VIP3 | ≥ $20M | 0.070% | 0.090% |
| VIP4 | ≥ $100M | 0.050% | 0.070% |
BNB discount applies on top: -25% at every level. VIP1 taker with BNB = 0.075%.
Bybit VIP
| Level | Volume (30D) | Maker | Taker |
|---|---|---|---|
| Regular | < $1M | 0.100% | 0.100% |
| VIP1 | ≥ $1M | 0.080% | 0.100% |
| VIP2 | ≥ $5M | 0.060% | 0.090% |
| VIP3 | ≥ $25M | 0.040% | 0.080% |
OKX VIP
| Level | Volume (30D) | Maker | Taker |
|---|---|---|---|
| Regular | < $1M | 0.080% | 0.100% |
| VIP1 | ≥ $5M | 0.070% | 0.090% |
| VIP2 | ≥ $10M | 0.060% | 0.080% |
OKX's default 0.08% maker makes it favorable for limit-order strategies.
How to Reduce Trading Fees: Practical Methods
Method 1: Pay fees with native exchange token
Binance: paying fees in BNB gives a 25% discount.
| Without BNB | With BNB |
|---|---|
| 0.100% taker | 0.075% taker |
| Savings: 0.025% per trade |
At $100,000/month volume — saves $25/month. At $1M — $250/month.
How to enable: Account Settings → Fee Settings → Use BNB.
Method 2: Limit orders instead of market orders
Maker fees are lower. Where speed isn't critical — use limit orders.
Example on Kraken:
- Market order (taker): 0.26%
- Limit order (maker): 0.16%
- Savings: 0.10% per side = 0.20% per round-trip trade
For balance arbitrage where execution isn't urgent — this adds up.
Method 3: Referral program discount
Most exchanges offer a fee discount when using a referral code at registration. Typically 5–20% returned or discounted. A permanent discount requiring no volume.
Method 4: Concentrate volume on fewer exchanges
Splitting volume across 5 exchanges means standard fees everywhere. Concentrating on 2–3 exchanges accelerates VIP tier achievement.
Strategy: route primary volume through Binance + Bybit. At $1–5M/month, VIP1 becomes achievable.
Method 5: Maker strategy (advanced)
Placing limit orders in the book (maker) instead of market orders costs less. Some exchanges (OKX, Bybit) offer zero or negative (rebate) maker fees on select pairs.
Hidden Costs Often Overlooked
Withdrawal fees (flat)
Covered in the network withdrawal guide. For transfer-based arbitrage, these often matter more than trading fees at small position sizes.
Bid-Ask spread in the order book
Not the same as exchange fee — this is the gap between the best buy and sell price in the book. On liquid pairs (BTC, ETH): 0.01–0.05%. On thin pairs: up to 1–3%.
Bid-ask spread adds to trading fees. Always calculate total per-trade cost.
Slippage
Market orders fill at worse-than-displayed prices when order book depth is insufficient.
Exchange Selection by Fee Scenario
| Scenario | Best choice | Reason |
|---|---|---|
| Standard arbitrage | Binance + Bybit | 0.10% taker, deep liquidity |
| With BNB on Binance | Binance | 0.075% taker |
| Limit orders | OKX | 0.08% maker by default |
| High volume ($1M+/month) | Binance VIP1 | 0.09% or 0.06% with BNB |
| EUR pairs | Kraken | Best EUR liquidity despite 0.26% |
| Niche altcoins | Gate.io | But 0.20% — calculate carefully |
Conclusion
Trading fees are a manageable cost. With the right exchange selection and available discounts, you can reduce costs by 20–40% without changing your strategy at all.
Core rules:
- Binance + Bybit — standard choice at 0.10%
- BNB on Binance — 25% savings
- Concentrate volume for VIP status
- Avoid Gate.io/Kraken/Coinbase for high-frequency arbitrage
Monitor spreads with fee calculation in SpreadScan →
Educational purposes only. Fees accurate at time of writing — verify current rates on exchange websites.
FAQ
What matters more for arbitrage — maker or taker fee? Taker, because arbitrage usually requires immediate execution with market orders. Maker fees matter if you use limit orders — for example in balance arbitrage without time pressure.
Is it worth holding BNB for Binance discounts? Yes, if you actively trade on Binance. At $50K/month volume the 25% fee discount saves $12.50. At $500K it saves $125. Weigh the BNB price risk against the savings.
How quickly can I reach VIP status? Most exchanges require $1–5M trading volume in 30 days for VIP1. For an active arbitrageur with $10,000+ capital, this is achievable in 1–2 months.
Can I combine BNB discount with VIP level? Yes — on Binance the discounts stack. VIP2 taker (0.08%) with BNB = 0.06%.
Are there exchanges with zero trading fees? MEXC periodically offers zero spot fees. But these promotions have time limits, and the exchange's lower liquidity may mean slippage offsets the fee savings.