Hey everyone,
I’ve been digging into trading expenses and stumbled upon something that might be obvious to some, but is pretty much overlooked by active traders.
A lot of folks are all about profit and loss, but they totally underestimate how much they’re actually losing to trading fees over time.
If you’re in the game as an active trader, especially if you're doing a ton of spot or derivatives trades, those fees really add up.
Like, even a tiny 0.1% fee per trade can turn into a big expense when you’re trading at high volumes.
I recently found out about a fee optimization model called “fee cashback.” It’s a pretty straightforward concept: instead of just dishing out fees, you get some of that money back.
Take FainEra, for instance. They provide up to 45% cashback on trading fees through partner platforms.
They also have this tier system (Bronze, Silver, Gold, Diamond) where the cashback rates go up based on how much you trade.
Plus, there’s a referral system and a cool calculator tool to help figure out how much you could get back.
What stands out to me is that this isn't about making “extra profit,” but more about trimming down costs that traders are already paying.
Anyone here have experience with similar fee rebate systems?
Traders are certainly accustomed to these trading fees and have taken them into account. However, since they trade on the platform, they are required to pay them. 0.1% is a reasonable figure.
Because of this, some exchange platforms also offer several offerings to entice users to stay with the exchange, such as discounts or fee reductions with certain terms and conditions. Sometimes, they even offer attractive fee-free offers for a certain period.
While it may seem daunting to pay such a large fee when trading volumes are substantial, these fees are often underestimated. That is hwy when there are some ways for fee reduction, the traders will be very helped. Such as using BNB for lower fee transaction
In business, cashback and rebate system is normal thing to do, especially if there is tier/level system. This offer is a part of business strategy to increase customer retention, so the existent exchange user will not leave to another. Anyway, exchange competition right now is getting stronger, customer loyalty service become important thing to apply. Because the fee that return back to user, even the value is not much, will give satisfaction effect to user, especially if he is a user with high trading volume.
They don't increase by percentage, so don't overcomplicate it. I don't understand the business model of the platform you're trying to promote here. A 45% cashback fee is quite tempting. However, it's impossible if you don't also profit from trading activities to justify the 45% offer.
45% cashback fee means nothing if you can get fee reduction by becoming VIP and holding some asset in exchanges like Binance, cashback is just fee reduction with extra steps.
Something that people often overlook is maker and taker fee. By becoming taker you reduce liquidity off market and by becoming maker you add liquidity into the market and you will be incentivized.
I never encountered problem with fee myself because of that so if you want cheap fee you shouldn't become a taker. Try to be a maker, make limit order and you will get half of the fee.
There is a fee to everything we are doing in the market whether you are trying to swap coin from Bitcoin to USDT or you are trying to buy a coin, you have a fee you must pay whether hidden fee or visible fees. For traders that know that they are trading to make profits will never bother about the hidden fees which is well known to them. There is nothing free at all and that is why you need to pay a fee for everything you are doing to make money for yourself. Those that are in the market to trade for a longer period of time are the ones that will have to pay more on everyday their trades keep running in the market.
Smart and experienced traders will try to look for best exchanges in fees from taker fee, maker fee, withdrawal fee and more.
https://www.cryptowisser.com/exchanges/
https://exchangewar.info/
Certainly they must take into account exchange reputation as fee is not most important, if they lose their money on a scam exchange, how good fees there are non sense but dangerous.
Reading till this point, I wonder is this thread a sponsored-advertisement for FainEra which I don't know so far.
Yes, the fee could kill you if you're a scalper with razor-thin profit I mean, like really scalping profit. If you have a 0.1% fee and you flip your position just 5 times a week, you are effectively paying 52% of your initial capital in fees over a single year *compounded. Even if your strategy is "winning," you are starting every year with a massive handicap.'
That why some exchange offering "VIP" access for high volume trader and high net worth individual or they offering some less fee if you hold certain token and pay the fee using it.
So you wrote this thread to promote FainEra? Either you're owner of it or you've been paid to promote it. But, I don't think anyone will use such a service even if you promote it everyday. 0.1% trading fee is nothing when you make 1-5% return, and I believe it's more than okay to sacrifice 0.2% in buy/sell fees in order to make good profit.
To be sincere with you, no trader will care about trading fees if they're making money from their trades because those fees are usually negligible. You only become bothered when you aren't making trades to cover for them. By the way, shouldn't trading platforms make money from the services they provide? Definitely, they should. It's business.
So, that's the service you're shilling for? It's not a bad thing to shill but I've a problem with newbies doing that. There's no vouch that something can't go wrong. I'm always skeptical about services advertised by such accounts. You can open an ANN thread or get a reputable user in the forum to run this for you if you're one of FainEra's team members.
It only starts to matter when you've got volume. I don't have numbers but I never reached 1 million in annual, barely half that in my most active trading days. So for 0.1% fees that's just $500. I know most start of at 0.2% or so (and usually lower for maker so that's me) but you quickly get to 0.1% with a bit of volume.
You also generally get free airdrops or so of whatever token to lower fees, I did regret using all my BNB which would have made me a lot more if I just kept them lol.
Point here is, its not enough to really matter to me personally, and if you just stick to your trading, you'll get the boosts or discounts anyway and save more than half by just being active.
And if you're a typical starting trader in a country like me, you're lucky if you have even 100k volume. That's just $100 like more like a week signature campaign.
Is it really so important?
Edit: @dansus021 said the important thing also, this affects scalpers who trade so fast and so much for that quick profit. So these are the high volume guys.
Personally, I often take advantage of rebate vouchers or free trading fee vouchers, whether in the form of cashback or similar offers. I frequently receive them on Binance, both for spot trading and futures trading. However, most of them are indeed trading fee cashback vouchers. Yet my friend, who is more active in trading, seems to rarely receive the same offers that I often get, even though we both use the same platform.
But from this, I understand that exchanges are trying to attract more people to trade. And the target is usually traders who arent very active, like me. I only trade on weekends or at specific times. So I often get cashback voucher offers in the rewards section on Binance. Meanwhile, my friend says he rarely gets them. Its just that he often receives rewards in other forms.
On Mexc, I even remember a similar promo regarding trading fee cashback, it seemed even larger. It was just limited to the futures market.