How Much Trading Fees Do I Pay?

Ann intends to enter a BTCUSD long position and she wants to have an estimate of the trading fee before placing the order. 

Trading fees have a great impact on profit and loss. Let us recap on the principles of trading fees as previously discussed in maker taker fees explained.

  • Trading fees on Bybit are determined by the order status. Takers pay 0.075% while makers earn a 0.025% rebate.
  • Market orders are always executed as taker orders. Limit orders may be executed as maker orders or taker orders. If a limit order is filled immediately at a price equal to or better than the limit price, it is executed as a taker order. You may enable the post-only feature to ensure that limit orders are executed as maker orders.

Ann enters a long position of 100,000 BTCUSD contracts at $9,500 and closes it at $9,600. The table below shows the trading fees that Ann pays or earns under different scenarios.

*Fee to Open = (Contract Qty / Entry Price) x Trading Fee Rate
  Fee to Close = (Contract Qty / Exit Price) x Trading Fee Rate
  Trading Fee Rate: Maker fee is -0.025%; Taker fee is 0.075%

From the table above, we can see that Ann pays the highest fees of 0.0157 BTC if her entry and exit orders are both executed as taker orders. If both orders are executed as maker orders, she will earn a rebate of 0.00523 BTC instead.

Who collects the trading fee and who pays the fee rebate?

There are always two parties in every transaction, where one is maker and the other is taker. Bybit collects 0.075% from the taker, and rebates 0.025% to the maker simultaneously. In other words, Bybit makes a net trading fee of 0.05% in every transaction. 

Bybit provides maker rebates to encourage more market making activities and better market depth as a result. A net fee of 0.05% is very competitive in the crypto derivatives market, and significantly lower than that of the crypto spot market.

Source: Official figures from each exchanges as of July 19, 2020
* Trading fees for entry level accounts

Based on the table above, Bybit’s trading fee rate is in the lowest band. Trading fees of perpetual contracts are generally below 0.1%.

Source: Official figures from each exchanges as of July 19, 2020
* Trading fees for entry level accounts

The fee rates of spot trading are 3 to 15 times higher than that of perpetual contract trading. It’s generally not less than 0.2% across spot trading platforms.