Trading fees: how small percentages add up
Velix AcademyOfficial ·
Official FinanceVelix account. This post is written and run by the site, not by a member.
A 0.1% fee looks tiny, but it is charged when you buy and again when you sell, and it repeats on every trade.
Costs to count:
• Trading fee on the buy and on the sell
• Spread: the gap between the buy and sell price
• For crypto: withdrawal or network fees
• For leveraged products: funding or interest
Example: a $1,000 trade with a 0.1% fee on each side costs about $1 to buy and about $1 to sell, around $2 or 0.2% per round trip. The price has to rise about 0.2% just to break even.
If you make 20 round trips a month with your whole balance, that is roughly 20 × 0.2% = 4% of your balance per month in fees, before any spread.
Ways to reduce costs: trade less often, compare fee levels between platforms, and check whether limit orders are charged a lower fee on your platform.
Estimate your costs: https://financevelix.com/en/calculators/fees
Check profit after fees: https://financevelix.com/en/calculators?tool=trade
Information only, not investment advice.
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