This article is an in-depth look at cryptocurrency broker account fees. Head on over to our guide on broker fees here!
What are Account Fees?
Account fees are linked to your trading account. These fees will be applied regardless of taking a trade. There are a few different fees that we classify as account fees:
- Withdrawal fees
- Deposit fees
- Inactivity fees
With cryptocurrency, there’s also the blockchain fee that you have to think about.
How do Account Fees Work??
Each of these fees are only applied in specific circumstances and usually their name gives it away.
Withdrawal fees are charged when withdrawing funds from your trading account.
Deposit fees are charged when depositing funds into your trading account.
Inactivity fees are charged after not using the account after a certain amount of time.
You incur the blockchain fee when you transfer cryptoccurencies to your wallet or to your trading accounts. This completely depends on how you are trading cryptocurrencies.
If you are actively buying and selling cryptocurrencies and constantly moving them around, this will be a fee you will regularly deal with.
If you are using CFDs to trade cryptocurrencies then you can ignore this fee. It only comes into play when transferring the coins from one wallet to another.
None of these fees are applied to demo accounts. Demo accounts are free to use!
How much will you pay?
This depends on the broker you are using. Some brokers will charge a flat fee of let’s say $25 per withdrawal, others might charge you a percentage.
It also depends on your payment method. You will need to seek out the FAQ section of your broker to find out exactly how much your account charges will be.
The blockchain fee also changes. Depending on how many transactions are happening, the fee might be higher or lower.
Who Uses Account Fees?
Every broker has account fees. The only difference will be the amount you’re charged.
Can I Have Any Impact on the Fee?
Yes, a little! If you are charged a flat fee per withdrawal, you are better off withdrawing larger amounts. Your fee won’t change based on your withdrawal amount, so you’ll be saving money this way.
It is also a good idea to check which payment method is charged the least. If possible, use that one.
If you don’t want to incur any inactivity fees then simply make sure to close down your account if you aren’t using it. Don’t keep it open because “I will get back into it soon”. You can always open up a new account when you need one.
Other than these tips, you cannot change these fees.