Many traders in the cryptocurrency space make the common mistake of overlooking trading fees, assuming that these small percentages are negligible. However, these costs add up significantly over time, especially when you engage in frequent buying and selling. Every action you take on a platform typically incurs a fee, which collectively contributes to the revenue of exchanges—some even going public, like Coinbase.
Before focusing on profits, it's crucial to understand and minimize unnecessary expenses to improve your overall returns. This guide breaks down the fee structures of popular platforms like Mitrade, MAX, and Binance, and offers practical strategies to reduce your trading costs.
Overview of Cryptocurrency Trading Platforms in Taiwan
In Taiwan, traders can choose between local and international cryptocurrency platforms. The primary local options are MAX and Mitrade, while Binance is the leading global exchange. Each platform caters to different needs, as summarized below:
| Feature | Mitrade | MAX | Binance |
|---|---|---|---|
| Primary Market | Taiwan | Taiwan | Global |
| Main Products | CFDs (crypto, forex, stocks, commodities) | Spot cryptocurrency | Spot, leverage, futures, options |
| Number of Cryptocurrencies | 39 | 32 | 350+ |
| Leverage Trading | Yes (up to 10x) | No | Yes (up to 20x) |
| Traditional Chinese Support | Yes | Yes | No |
| Trading Mechanism | Market Maker | Order Book | Order Book |
| Liquidity | High | Moderate | High |
| Regulatory Bodies | CIMA, AFSL, ASIC, FSC | None | SFC, FCA, FinCEN, others |
| Security Measures | Segregated accounts, trust funds | Bank trust, 2FA, cold storage | SSL, multi-signature, past incidents |
| Best For | Contract traders | Spot investors | Diverse traders |
How Trading Fees Work on Mitrade, MAX, and Binance
Fee structures vary significantly across platforms and even between products on the same exchange. Mitrade offers straightforward, low fees, Binance has a diverse but slightly higher fee schedule, and MAX falls somewhere in between.
Mitrade Fees
Mitrade is a regulated platform ideal for traders interested in cross-asset CFD trading with a focus on compliance.
- Trading Fees: 0.05% for buy positions (overnight fee), 0.02% for sell positions (overnight fee). No deposit or withdrawal fees.
- Payment Methods: Visa, online banking, e-wallets, ATM cards, QR code payments, bank transfers.
- Processing Time: Instant for most methods; bank transfers may take one business day.
- Discounts: New users receive a $10 bonus and up to $90 in trading credits.
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MAX Fees
MAX is a centralized exchange tailored for spot cryptocurrency investors in Taiwan.
- Trading Fees: 0.05% for makers (limit orders), 0.15% for takers (market orders). Free deposits; withdrawal fees apply per coin; TWD withdrawals cost 15 TWD.
- Payment Methods: Bank cards, third-party processors, crypto wallets.
- Processing Time: Deposits are instant; withdrawals take 1-2 business days; crypto transfers depend on network confirmation.
- Discounts: Hold MAX tokens for fee reductions; limited-time promotions offer 20% off fees for new users.
Binance Fees
Binance is a global exchange with extensive coin offerings and advanced products for diversified traders.
- Trading Fees: 0.1% for spot and leverage trading; 0.018%/0.036% for U-based futures (maker/taker); 0.02% for options; 0.9% for NFT trades.
- Payment Methods: Bank cards, third-party services, crypto wallets.
- Processing Time: Most transactions are instant; crypto withdrawals depend on network speed.
- Discounts: Use BNB for 25% off fees; TUSD offers zero maker fees; referral programs provide additional savings.
Step-by-Step Trading Tutorial: Mitrade and Binance
The trading process is similar across platforms and generally involves registration, KYC verification, security setup, funding, and executing trades. Here’s a simplified guide:
Trading on Mitrade
- Visit the official website and click "Open Real Account" to register. Complete identity verification and secure your account with email and phone.
- Deposit funds using a supported method. Ensure the account name matches your registration.
- Select your desired cryptocurrency, set order parameters (buy/sell, order type, quantity, leverage), and confirm the trade.
Trading on Binance
- Sign up using email, phone, or social accounts.
- Complete KYC verification and enable security features like 2FA.
- Deposit funds via crypto or fiat methods. Once processed, navigate to the trading interface for spot or futures markets.
How to Reduce Your Trading Costs
While fees are unavoidable, you can minimize them with a few strategic approaches:
- Mitrade: Avoid overnight fees by closing positions before 5:00 AM UTC or opening trades after this time.
- MAX and Binance: Hold native tokens (MAX or BNB) to qualify for fee discounts. Increase your trading volume to reach higher tiers with lower fees.
- Binance-Specific: Prefer交割合约 (delivery contracts) over永续合约 (perpetual contracts) for BTC, ETH, and other majors to avoid funding rates. Be mindful of expiration dates to avoid forced liquidation.
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Frequently Asked Questions
What is the difference between maker and taker fees?
Maker fees apply when you provide liquidity by placing limit orders, while taker fees occur when you remove liquidity with market orders. Makers generally pay lower fees.
Can I avoid fees entirely?
No, but you can reduce them significantly by using platform tokens, selecting the right order types, and avoiding overnight positions where applicable.
Which platform is best for low fees?
Mitrade offers low, straightforward fees for CFD traders, while Binance and MAX provide discounts for token holders. Your choice depends on trading style and asset preference.
Are there hidden fees?
Most reputable platforms disclose fees transparently. Always check withdrawal costs and network fees for crypto transactions, as these can add up.
How do I calculate fees for a trade?
Multiply the trade value by the fee percentage. For example, a $1,000 trade with a 0.1% fee costs $1.
Is it safe to trade on these platforms?
Mitrade and Binance are regulated and employ security measures, but no platform is immune to risks. Use strong security practices and only invest what you can afford to lose.
Conclusion
Selecting the right platform in Taiwan depends on your trading objectives: Mitrade for leveraged CFDs, MAX for spot trading, and Binance for diversity and advanced products. By understanding fee structures and employing cost-saving strategies, you can enhance your profitability without compromising on safety. Remember, prioritizing extremely low fees on unknown platforms can pose significant risks—always choose reputable, regulated exchanges for your investments.