Fees can make or break your margin trading profitability. A seemingly small difference of 0.01% adds up significantly when you're trading with leverage. This guide breaks down every type of margin trading fee and compares them across major platforms.
Types of Margin Trading Fees
1. Trading Fees (Maker/Taker)
Charged every time you open or close a position.
- Maker fee: Charged when your order adds liquidity (limit orders)
- Taker fee: Charged when your order removes liquidity (market orders)
- On leveraged positions: Fees are charged on the full position size, not just your margin
Important: Fee Multiplier Effect
With 10x leverage, a 0.05% fee on your position is effectively 0.5% of your margin. This matters!
Example: $1,000 margin, 10x leverage = $10,000 position
- Taker fee: 0.05% × $10,000 = $5 (0.5% of your margin)
- Opening + closing: $10 total (1% of your margin, just in fees!)
2. Funding Rates (Perpetual Futures)
Periodic payments between longs and shorts.
- Typically every 8 hours
- Can be positive or negative
- Range: -0.1% to +0.5% per 8 hours in extreme markets
- Normal: ~0.01% per 8 hours (~11% annualized)
3. Margin Interest (Spot Margin)
Daily interest charged on borrowed funds.
- Range: 0.01% - 0.06% daily
- Annualized: 3.65% - 21.9%
- Charged regardless of profit or loss
- Varies by asset and demand
4. Liquidation Fees
Charged when your position is forcefully closed.
- Typically 0.5% - 1.5% of position value
- Added insult to injury — you pay fees even when losing everything
- Avoid by using stop-losses before liquidation
5. Hidden Costs
- Spread: Difference between bid and ask price (wider = more expensive)
- Slippage: Difference between expected and executed price
- Withdrawal fees: Charged when moving funds off exchange
- Conversion fees: If trading in non-native currency
Exchange Fee Comparison
Crypto Futures Fees
| Exchange | Maker Fee | Taker Fee | Max Leverage | Notes |
|---|
| MEXC | 0.000% | 0.020% | 200x | Lowest cost overall |
| Binance | 0.020% | 0.040% | 125x | BNB discount available |
| Bybit | 0.020% | 0.055% | 100x | VIP tiers available |
| OKX | 0.020% | 0.050% | 125x | Volume discounts |
| Kraken | 0.020% | 0.050% | 50x | US available |
| Bitget | 0.020% | 0.060% | 125x | BGB discount |
| KuCoin | 0.020% | 0.060% | 100x | KCS discount |
| Gate.io | 0.015% | 0.050% | 100x | GT discount |
| Phemex | 0.010% | 0.060% | 100x | Premium membership |
| BingX | 0.020% | 0.050% | 150x | Standard rates |
Annual Cost of a $100,000 Position
| Fee Component | MEXC | Binance | Bybit | Kraken |
|---|
| Open + Close (maker) | $0 | $40 | $40 | $40 |
| Open + Close (taker) | $40 | $80 | $110 | $100 |
| Funding (avg 0.01%/8h) | $10,950 | $10,950 | $10,950 | N/A |
| Total (maker) | $10,950 | $10,990 | $10,990 | $40 |
| Total (taker) | $10,990 | $11,030 | $11,060 | $100 |
Note: Kraken futures don't use the same funding rate model, making direct comparison complex.
Traditional Margin Rates
| Broker | Margin Rate | Based On | Notes |
|---|
| IBKR | 5.33% - 6.83% | Fed Funds + 0.5-1.5% | Lowest in industry |
| Fidelity | 8.25% - 13.33% | Base rate + margin | Mid-range |
| Schwab | 8.50% - 13.58% | Base rate + margin | Standard |
| eToro | Varies | Overnight CFD fees | Can be expensive long-term |
| IG Markets | Varies | Tom-next + fee | Competitive for CFDs |
How to Minimize Fees
Use limit orders — Pay maker fees instead of higher taker fees
Choose low-fee exchanges — MEXC for zero maker fees
Hold exchange tokens — BNB, KCS, GT for fee discounts
Increase VIP tier — Higher volume = lower fees
Monitor funding rates — Avoid holding during extreme funding
Use shorter holding periods — Reduce cumulative funding costs
Compare before trading — Check fees on multiple platforms*Disclaimer: Fees are subject to change. Always verify current rates on exchange websites.*