Coinbase is a primarily retail crypto exchange in the US. While it’s highly efficient and trusted by many, it is among the most costly ways to access digital assets markets.
Coinbases imposes a 1% fee for each trade, although it can be up to 4% when buying cryptocurrency with a Credit Card or Debit Card. Therefore, it’s crucial to understand the best method to trade with Coinbase to save as much cash as possible on trading fees.
Is Coinbase Costly?
Coinbase is extremely expensive compared to other major crypto exchanges in the US. The platform charges over 1% or 100 basic points more than other crypto exchanges such as eToro, which doesn’t charge any fee to sell or buy digital assets.
Coinbase’s expensive charges are that they’re a large, well-known retail brand that onboards new investors that haven’t done enough competitor research.
Its Wallet, DEX conversion fee, is comparatively high-priced, costing 0.5% for each swap.
Other well-known Decentralized Exchanges such as Uniswap and SushiSwap only charge 0.1 to 0.2%. Additionally, it’s difficult to find pricing information on the Coinbase website unless you comb through the terms and conditions thoroughly.
Types of Fees That Coinbase Charge
Coinbases applies many fees to transactions — spread or margin fees and the Coinbase fee. Below is an outline of the types of fees Coinbase charges:
- Spread or margin fees: Coinbase explains this as a service charge as high as 2.00% included in the exchange rate on Coinbase Pro, which is a Coinbase-owned exchange that processes all transactions
- Coinbase fee: This fee tends to get confusing since several factors are at play. The client pays either a flat charge or a variable percentage of the transaction, based on the payment method, product, and region
What’s Coinbase Pro?
Coinbase Pro, formerly called GDAX, is the preferred trading platform used to fulfil clients’ orders through Coinbase. The platform is designed for cryptocurrency enthusiasts and provides a detailed analysis of the crypto markets, allowing traders to make informed decisions.
Since Coinbase owns both, transfers between the two platforms (Coinbase and Coinbase Pro) are free and instant. This is important since the fees assessed for similar actions are lower on Coinbase Pro than on Coinbase.
These transactions’ breakdown is slightly more technical. They follow the maker-taker model. Below is an overview of the transaction types users might make:
- Taker orders: Orders made at the market price and instantly fulfilled whose fees range from 0.04% to 0.50%.
- Maker orders: These orders aren’t fulfilled instantly. Instead, they are placed on the books and named “maker” orders, which come with charges ranging from 0.00% to 0.50%
- Partial orders: In this type of order, a portion of the order is fulfilled instantly, whereas the remaining portion is left on the books to be fulfilled later on. The first part is usually assessed on the “taker” side, while the rest will be fulfilled as a “maker” order
Coinbase Pro Charges
Coinbase also provides an advanced trading platform known as Coinbase Pro. This order book style exchange enables clients to trade more than 50 varying cryptocurrency pairs against the USD.
Coinbase Pro fees are considerably cheaper than the retail Coinbase App and begin from 0.5% for each trade.
Below is a table that summarises Coinbase Pro vs Coinbase fees.
| Coinbase | Coinbase Pro | |
| Trading Fees | 1% for each transaction (sell or buy) | 0.5% for each transaction (sell or buy) |
| ACH Deposit | Free | Free |
| USD Wire Deposit | $10 | $10 |
| Debit Card Deposit or
Credit Card |
3.99% | Unavailable |
| PayPal Deposit | 2.5% | Unavailable |
| ACH Withdrawal | Free | Free |
| USD Wire Withdrawal | USD 25 | USD 25 |
| Other Hidden Fees | None | None |
| Website | Visit Coinbase | Visit Coinbase Pro |
How You Can Use Coinbase Pro To Reduce Coinbase Fees
Coinbase Pro’s appeal as a trading platform should be obvious now that you know what it is and how the charges work. Below are steps to help you minimise Coinbase fees by using Coinbase Pro:
- Sign in to Coinbase Pro using your Coinbase credentials
- Choose “deposit” below the wallet balance segment
- Select the currency type you want to transfer (BTC, USD, etc.)
- Choose the Coinbase.com option.
You’ll see the available balance in your Coinbase wallet for your selected currency. Transfers between the platforms are instant and free, and there are no limits on digital asset deposits.
The trades done with Coinbase Pro are not as intuitive as they’re on Coinbase. You’ll have to use exact amounts instead of trading equivalent USD volume. However, the trade-off is that Coinbase Pro fees are significantly lower.
The procedure for withdrawing assets to Coinbase is similar, except you’ll choose “withdraw” below the wallet balance segment instead of “deposit”. Transfers are immediate, but there’s a $250,000 default daily limit. You can request to increase limits through the limits page on your profile if you need to withdraw more than the default limit regularly.
Additionally, you can use a debit card to make purchases on Coinbase. Nevertheless, you’ll incur some charges for that convenience. The charge for making purchases on Coinbase using debit cards is 3.99%. This brings the total fee to $76.74 for a purchase worth $2,000.
What Are The Available Cheaper Alternatives?
eToro is the cheapest FINRA and SEC regulated crypto exchange in the US. eToro’s platform provides $0 fees on all trades for stocks, cryptocurrencies, ETFs and commodities listed on the platform.
1. iTrustCapital
This platform provides both VaultChain Precious Metal and Digital Assets inside your IRA, granting you the ability to sell and buy tax-free. You can place trades via iTrust’s interface and execute through Kitco, the precious metals leader.
Crypto assets are stored with Curv, a multi-authorization crypto wallet management solution that allows financial establishments to keep clients’ funds with unmatched security.
2. Voyager
If you trade cryptocurrencies on the go, you require a powerful and secure app to stay updated on the latest news and developments in the dynamic crypto market. Voyager provides a suitable and advanced solution for crypto traders and investors who love commission-free app-based trading.
This crypto trading app features a good number of major names in crypto. More than 50 digital assets and counting imply that you’ll get more options than Coinbase. You can easily track, chart, and manage your portfolio using Voyager’s wide range of in-app tools. Furthermore, you can earn as high as 9.5% interest APR on seventeen top digital assets on the trading app.
3. Coinmama
Coinmama is a large-scale crypto trading platform that hosts more than 1.5 million users globally. It operates in 190 nations and is among the most appealing trading platforms for foreign investors. Coinmama allows you to use any currency to purchase coins on the platform, although prices are indicated in EUR or USD.
The platform features low fees and high spending limits, making it an appealing alternative for advanced traders and beginners. Additionally, you can use a credit card to purchase Ethereum or BTC on Coinmama.
4. Gemini
This is a crypto exchange and custodian offering investors access to twenty-six coins and tokens. Gemini was founded in the United States and expanded globally, particularly into Asia and Europe. Gemini’s offerings include major crypto assets such as Ethereum and BTC and smaller altcoins such as 0x and Orchid.
The crypto exchange is one of the only brokers with several platform alternatives based on skill level. New investors, in particular, will enjoy Gemini’s web and mobile app interface, whereas advanced investors will love all Active Trader tools that Gemini offers.
Additionally, users can access insured hot wallets to store tokens without worrying about digital asset theft.
5. Crypto.com
This crypto platform enables clients to store, exchange, and transfer over 90 cryptocurrencies. Crypto.com also provides its Visa Card, allowing you to spend your cryptocurrency in any place that accepts Visa and earn a maximum of 8% back.
You can get verification on Crypto.com in under five minutes, and you can open an account free of charge. This platform provides round-the-clock customer service.
Besides the Crpto.com Visa card, other products include the Crypto.com Exchange and DeFi Wallet, Crypto Credit, Crypto Earn, Crypto Pay, and its app. The platform wants to accelerate the globe’s transition to crypto, and its broad range of products can assist clients in starting their crypto journey.
6. Robinhood
This is the ideal broker platform for investors who want a simple, easy-to-use layout without the complex bells and whistles that other broker sites offer. Although Robinhood has limited cryptocurrency trading options and account types, they have an intuitive and streamlined platform that even absolute beginners can master quickly.
The platform’s biggest strength is its easy-to-use mobile application. Users can quickly access their tax documents and account statements via the app. It takes less than 10 minutes to set up an account and start trading. Placing a trade is also a very straightforward process. There are short descriptions of each buy and sell order beside every option to help you learn — an excellent feature for newbies.
7. Webull
This trading platform serves active traders, experienced self-directed and intermediate investors. Webull’s commission-free structure is for short-term and active traders who would save a significant amount on commissions compared to other online brokers.
Even though the platform’s intuitive features and design may be advanced for beginner traders, they can still learn how it works with a little dedication.
Webull provides a trading simulator, a series of trading courses, or a demo trading account with real-time data and advanced charting abilities for the United States listed stocks. These features are suitable for beginner traders who wish to learn about the market and develop a trading plan.
8. eToro
eToro is a digital currency broker that provides access to the top 15 digital assets globally and some special education and useability tools. Investors can start trading both major digital assets such as Ethereum or Bitcoin and smaller names like Stellar Lumens and Tron Coin in as little as ten minutes.
The platform has a unique CopyTrader feature that lets new traders copy the trade orders of professional investors. eToro also has a new eToro club feature that offers traders various additional educational resources and tools. Even though the platform doesn’t have a vast range of digital assets, it remains one of the easy-to-use trading sites for experienced and beginner investors.
Are Coinbase Charges Worth It?
The price may be worth it for individuals who have a casual interest in digital currency or those who are just starting. This is because it offers the convenience of trading a fiat currency using an intuitive interface.
Minimising charges using the Coinbase network is easy; it takes some expertise. For most beginner investors, the limits set on your Coinbase Pro account will be more than enough to get you going. While it may seem intimidating at first, using Coinbase Pro is an excellent way to gain more knowledge of the digital currency sphere and get experience as a trader.
Frequently Asked Questions
How much does Coinbase charge for every transaction?
The fees you’ll incur while using Coinbase differs depending on the payment method and transaction type.
Does Coinbase have high fees?
Coinbase’s charges are somewhat higher than other trading platforms. This is why most investors look for ways to minimise or avoid them.
What are Coinbase charges for?
When you use the Coinbase platform for trading, you pay for the ease of trading without requiring a real exchange. Users can also trade in USD, which is more straightforward to conceive than the raw decimal number that digital currencies are broken down into.
Does One Require Coinbase Pro?
Coinbase Pro is a cutting-edge site that’s not optimised for casual users. Anyone can learn to use the platform. However, investors making high-volume trades will get the most out of the platform.
