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Comment by FabHK

4 months ago

Note that Coinbase (like most exchanges) charges retail clients outrageously high fees (orders of magnitude more than you would pay at a competitive FX or equity broker), but institutional and whales that trade a lot very small fees.

Yet another way crypto moves money from poor suckers to insiders.

5 comments

FabHK

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alberth  4 months ago

You just described volume-based discounts.

What’s so wrong with that?

It’s the same reason why buying a single soda at a convenience store cost more (per unit) than buying a large pack at Costco.

  • _factor  4 months ago

    Try to become an insider at one of these exchanges even with a couple million dollars. See how it goes.

    This is like Coke ONLY giving discounts to Costco instead of anywhere else so that Costco can reap the rewards. Walmart, Target, they can all pay full price.

    The convenience store spends more money to package individual items. A crypto transaction is the difference of a keystroke. They are not comparable on many fronts.

    • alberth  4 months ago

      Just curious, do you have concerns/issues with progressive discounts?

        Tier        Taker Fee   Maker Fee
  ----------  ---------   ---------
  $0K-$10K    60bps       40bps
  $10K-$50K   40bps       25bps
  $50K-$100K  25bps       15bps

      Everyone is still paying the same full price (for the volume tier they are in).

      Only those transactions at the higher volume tier get the higher discount (and everyone is eligible for that same discount).

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