HitBTC fees — The taker-maker model on HitBTC exchange
HitBTC exchange, which is one of the world’s top 10 cryptocurrency exchanges at the moment according to CoinMarketCap, continues to grow rapidly these days. The exchange offers its users a broad range of available coins and tokens, making it possible to use more than six hundred currencies as trading instruments. Hitbtc fees for using the exchange services include different types of commissions, such as deposit fee, withdrawal fee and trading fee.
One of the most interesting features I’ve found on HitBTC exchange is its taker-maker model, which allows traders to get bonuses from the exchange when trading with limit orders. In this article I’d like to study this model in more detail. Does this model really make it profitable to trade on HitBTC?
First of all, let’s look at different types of HitBTC commissions.
Deposit fee on HitBTC exchange exists only for BTC deposits. It’s 0.0006 BTC for any amount of BTC deposit.
Hitbtc withdrawal fee is different for each currency. It remains constant for one currency and doesn’t depend on the amount of withdrawal. The subject of Hitbtc withdrawal fees is studied more thoroughly in this article, providing real cases and calculations.
The last fee type on Hitbtc exchange is Hitbtc trading fee. The system of Hitbtc trading fees is based on so-called taker-maker model.
If a user creates a market-order for any currency on the exchange, he must pay 0.1% fee for this order being executed. In this case the user is fulfilling the market taker role. On the other hand, if a user creates a buy-limit order which is lower than the current price for the traded coin, he is not charged to pay any fees. Moreover, he gets 0.01% rebates from his trades. This time the user is considered to be a market maker, because his actions add liquidity to the exchange, and that’s the main reason for these bonuses.
Now I want to share with you my own experiences of trading and getting rebates on HitBTC exchange.
Hitbtc fees — Trading cases
Usually I trade using one graphic pattern on liquid instruments, which is the double bottom chart pattern. Let’s study some of the trades I did in the last time and see what HitBTC fees turned out to be in different cases.
My first example is trading with BTC/USDT pair.
For this trade my point of enter was 6935 and my point of exit was 7122. My stop was under the left bottom. So, the profit turned out to be 187 points. You can see it on the picture below.
As I mentioned, HitBTC has 2 types of trading commissions. Fee for “Takers” and fee for “Makers”. I entered trade as a “Taker” and paid 0.1% fee from the volume of trade. I bought 1 BTC, so I paid 6.93 USDT.
I closed my position with limit sell order, so I became a “Maker”. This time I didn’t pay any fee. Moreover, I got 0.01% rebate from the volume of the trade. The rebate turned out to be 0.71 USDT. My risk in this trade was about 45 USDT, and my profit turned out to be 187 USDT. Hitbtc fees turned out to be 6.22 USDT, 30 times less than the sum of the profit.
Next example is trading with ETH/USDT pair.
I entered at 464, I stopped at 461. I bought 10 ETH, so my risk was about 30 USDT and my possible profit would be 300 USDT (My limit sell order was 474). Hitbtc fees in this trade turned out to be zero, as I opened and closed my position using limit orders. The rebates that I got in this trade turned out to be 0.92 USDT. It should be noted that I left 30 USDT in this trade, it was my loss. But I didn’t pay any fee and got rebate for my actions.
Hitbtc fees compared to other exchanges
If we compare HitBTC fees to other exchanges’ fees, HitBTC definitely has as advantage.
For example, let’s compare it to Poloniex:
When you trade on Poloniex, you have to pay fee for each trade. There is no difference between takers and makers. If you use market orders, Poloniex fee is two times more (0.20%) than HitBTC fee (0.10%).
Another exchange, Bittrex, has 0.25% fee for every trade. There is no difference also if you are a taker or a maker. Compared to HitBTC fees, Bittrex fees are also higher.
You should study the amount of exchange fees before you start your trading moves. The good thing about HitBTC is that your trading strategy there may be based entirely on getting the rebates. I’ll explain it in more detail in the next articles.
Remember, If you do not want to pay trading fees on Hitbtc exchange, you should use limit orders every time you open and close your positions. In this case your trading fees will be equal zero and you will be getting rebates from each trade.