In this article, we’ll examine fee structures, the reasons they are charged, and factors that can impact the final price of your transaction.
When do cryptocurrency exchanges charge a fee?
As with your regular bank account, fees can apply to specific transactions within a cryptocurrency exchange.
Cash (fiat) deposits
Most exchanges in Singapore accept Singapore dollar (SGD) deposits through various methods. While some local exchanges offer free deposits, some methods may incur fees based on the chosen exchange and deposit type. Some exchanges like Independent Reserve also accept US dollar (USD) deposits. Find out more about USD deposits.
Deposit methods include:
Withdrawing Money
Crypto exchange users can withdraw SDG directly to their bank account. However, withdrawal fees might be charged by your banks. These include:
- SGD FAST withdrawals
- SGD withdrawals for SGD 200,000 and over
- Withdrawals to an overseas bank account via SWIFT transfer
- Withdrawals that require additional assistance
Withdrawing cryptocurrency assets
While most crypto exchanges have excellent security, some users prefer to have custody of their own cryptocurrency. For this reason, the ability to withdraw crypto to a private (custodial) wallet is enabled.
Moving digital assets on and off a blockchain (either to a private wallet or another service) involves network costs. Often called a “gas” fee, the amount charged will differ depending on the underlying features of the blockchain network, and its level of congestion at the time of transacting.
Exchanges charge a withdrawal fee to cover the cost of moving your crypto from one wallet to another (i.e., network fees).
Independent Reserve offers a fixed withdrawal fee that rarely changes, absorbing the volatility of network fees and enabling customers to plan ahead and avoid unexpected price adjustments or hidden charges.
Trading digital assets
Buying and selling digital assets (trading) incurs a small percentage-based fee on crypto exchanges at the time of trade. This differs from traditional share trading, which might not always carry trading fees but instead charge management fees based on overall portfolio size.
Independent Reserve offers a low trading fee of 0.5%, which is further reduced depending on volume. For example, if you bought $100 of Bitcoin, you’d pay a standard fee of $0.50. While this trading fee starts at 0.5%, it can go as low as 0.02% (i.e. $0.02 per $100 traded) based on your 30-day trading volume.
However, if you are looking to trading more than $50,000, our over-the-counter (OTC) trading desk offers deeper liquidity and a private, more personalised service for those who need to fill large orders that might be too price-disruptive on open markets at exchanges.
