What are the fees associated with crypto OTC trading and how do they compare to regular exchanges?

3 answers

• Nov 27, 2021 · 3 years ago
  Sure! When it comes to OTC trading in the crypto market, fees can vary depending on the platform or service you use. OTC trades are typically conducted off-exchange, meaning they are not executed on a public order book. As a result, OTC trades often involve higher fees compared to regular exchanges. This is because OTC trades usually involve larger volumes and require personalized service and support from brokers or OTC desks. These additional services and the convenience of executing large trades without impacting the market price come at a cost. However, the exact fees can differ between OTC providers, so it's important to compare and choose the one that offers competitive rates and suits your trading needs.
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• Nov 27, 2021 · 3 years ago
  OTC trading fees in the crypto market can be quite different from regular exchange fees. While regular exchanges often charge a percentage-based fee for each trade, OTC trading fees are usually negotiated on a case-by-case basis. This means that the fees for OTC trades can vary depending on factors such as the size of the trade, the liquidity provider, and the level of service required. It's important to note that OTC trading is typically more suitable for institutional investors or high-net-worth individuals who trade in large volumes. For retail traders or those who trade smaller amounts, regular exchanges may offer more cost-effective options with lower fees.
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• Nov 27, 2021 · 3 years ago
  From BYDFi's perspective, OTC trading fees can differ significantly from regular exchange fees. While regular exchanges often have transparent fee structures, OTC trading fees can be more flexible and negotiable. OTC desks or brokers may charge a percentage-based fee, a fixed fee, or a combination of both. Additionally, OTC trading fees can vary based on factors such as the size of the trade, the level of service required, and the relationship with the OTC provider. It's important to carefully consider the fees associated with OTC trading and compare them to regular exchanges to determine the most cost-effective option for your trading needs.
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