HitBTC Fees: Trading case

HitBTC Fees: Trading case This July was definitely an interesting month. The most strange and funny event in my opinion was John McAfee’s accusation of HitBTC for having high fees. Actually it’s a good topic for an article. Are Hitbtc fees really high? To be honest, these accusations seem strange to me. Poor countries’ farmers can not afford to trade on the exchange because of the high fees… Well, have you seen many farmers doing cryptocurrency trading? McAfee is not the only one complaining about HitBTC fees, though. I’ve seen quite a few people complaining about it. Some people say fees are too high and using this exchange is equal throwing your money away. I don’t know what’s the actual reason for these comments. My point of view is, Hitbtc fees are quite acceptable. And with this rebate system Hitbtc has, you can even earn on that. Surely I’d prefer not to pay fees at all. But it’s impossible. Any cryptocurrency exchange wants to have profit for its operations, so in this sense Hitbtc is no better than others. I’d like to share my own experience. I’ve already made a HitBTC review before, so this time I will concentrate on Hitbtc fees only. Please note that all of the following is just my own opinion. If your point of view is different, you have every right for that, my friend. Usually I trade one graphic pattern (double bottom) on liquid instruments. This time I will show you some of my trades and you will see what HitBTC fees turned out to be compared to my profits. My first example is trading with BTC/USDT pair. It was something like double bottom. For this trade my point of enter was 6935 and my point of exit was 7122. My stop was under left bottom. So, the profit turned out to be 187 points. You can see it on the picture. As we know, HitBTC has 2 types of commissions. Fee for “Takers” and fee for “Makers”. I entered trade as a “Taker” and paid 0.1% fee from the volume of trade. I bought 1 BTC, so I paid 6.93 USDT. I closed my position with limit sell order, so I became a “Maker” and didn’t pay any fees. Moreover, I got 0.01% rebate from the trade volume. It turned out to be 0.71 USDT. In this trade my risk was approximately 45 USDT, my profit was 187 USDT and my fee was 6.22 USDT. Is it huge? I wouldn’t say so. Fees are 30 times less than the sum of my profit. Next example is ETH/USDT pair trade. Double bottom, of course. I entered at 464, I exited (stopped) at 461. I bought 10 ETH, so my risk was 30 USDT and my possible profit would be 300 USDT (My limit sell order was 474). My fees in this trade turned out to be zero. Why? Because I opened and closed my position using limit orders. It should also be noted that I got 0.92 USDT as rebates. Of course, I left 30 USDT in this trade, it was my loss. But I didn’t pay any fees and even got some rebate for my actions. Hitbtc fees turned out to be zero in this case and it was nice. If we compare HitBTC fees to other exchanges’ fees, we can see that on many other exchanges fees are much higher. For example, Poloniex: If you trade on Poloniex, you’ll have to pay fee anyway. There is no difference if you are a “Taker” or a “Maker”. If you use market orders, with Poloniex you’ll have to pay two times more (0.20%) than if you trade on HitBTC with its 0.1% fee. Another exchange, Bittrex, has 0.25% fee for every trade. There is no difference also if you are a “Taker” or a “Maker”. Compared to Hitbtc fees, Bittrex fees are higher again. To sum up, in my opinion this is obvious that HitBTC fees are more or less normal. You can see it in my trade examples. Make your trading moves and do not worry about so-called high HitBTC fees. And remember: if you do not want to pay fee, you should use limit orders each time when you open and close your positions. In this case you will get rebates from every trade.