Considered one of the largest cryptocurrency exchanges and brokers globally, Coinbase features three products.
These include Coinbase crypto brokerage services, Coinbase – a professional trading platform, and Coinbase Prime for organizations all of which operate separately.
The broker’s user-friendly platform is for buying and selling cryptocurrencies while Coinbase Pro is designed for frequent crypto traders.
Finally, Coinbase Prime is designed for institutions since they need access to large liquidity pools.
Trading on Coinbase is quite expensive when compared to its competitors.
However, their user-friendly platform and convenience are unmatched making it a great option for amateurs looking to trade cryptocurrencies.
The brokerage firm has a complex charging system that is costly. The reason its fees and pricing are obscure is that the platform offers a variety of products and services to its users, each having its own pricing model.
Trading and Transaction Fees
The digital crypto brokerage fee structure depends on two factors:
1. The platform charges a spread of approximately 0.5% for crypto sales and purchases; rates may be high or low depending on market fluctuations.
2. There is also a fee, the higher of either a standard fee or a variable charge dependent on the amount purchased and the type of payment.
Coinbase Fees Review
Exchange charges vary depending on the mode of payment and your location.
The fee is based on the value of the transaction, type of payment (debit/credit), and the area where you make the transaction. Consequently, the broker charges relatively high fees in comparison to other brokerage services.
Rates vary from $0.99 for transaction below $10 and $2.99 for transactions below $200 or currency equivalent. The platform charges about 0.50% for transactions below $10,000 in value.
Coinbase Pro Fees
Coinbase Pro fees are less expensive and complicated than the standard brokerage platform. This product uses a maker-taker fee model in determining its exchange fees.
Maker orders (orders that provide liquidity) are charged different fees than taker orders (orders that take liquidity).
The fees are calculated based on the pricing tier you are in when placing the order. The fee is then recalculated hourly based on the volume of your trades.
With this product, digital assets and bank-to-bank transfers processed through Automated Clearing House Network are free to transact.
Wire transfers however charge $10 on deposits and $25 on withdrawals. Transactions above $200 attract a fee of 1.49% for standard modes of payment and 3.99% for payments made through credit or debit cards.
Worth noting is that:
• Crypto transfers between Coinbase accounts are free;
• External transfers have a network fee;
• For cryptocurrency conversions, the broker deducts up to 2% in spread margins;
• Paypal transactions attract a 2.5% fee.
Coinbase Prime Fees
Coinbase Prime services include trading, custody, and data analytic among others. With this product, you can store and exchange your cryptocurrencies for free.
The company then deducts a monthly fee based on the trades that occurred on the cryptos.
Just like Coinbase Pro, the platform uses a marker model for determining its trading fees.
The maker program allows customers who deliver large amounts of liquidity benefits to enjoy reduced charges that are more competitive than the standard rates.
With the market maker program, you pay a maker fee and a taker fee for each maker order and taker order placed on the order book respectively.
The Prime services calculate the fees as a percentage of the order quantity and are included in the quote asset. The fee is automatically debited from the trader’s available balance when a client places the order.
The digital crypto brokerage will always notify you of all Coinbase Fees as well as any other service fee that applies to any transaction before the transaction is confirmed.