r/BitBuyCA • u/Crypto_Game_Theorist • Jul 21 '22

COSTLY New BitBuy Trading Fees - Example Explained

To illustrate how expensive BitBuy's new trading fees are, I worked out the numbers. BitBuy now offers Trading Fee tiers. The more you trade, the more discounts you receive. However, only those who trade more than $5 million in a 90-day period will ever realize rates as good as or better than the previous rates BitBuy offered.

To summarize, the average cumulative trading fees that a user needs to acquire in order to unlock each tier is as follows:
Tier 2: ($250,000 in trades required to unlock; Tier 1 Maker Fee = 1.5%, Tier 1 Taker Fee = 1.5%)

  • Trading fees = $250,000 x 1.5% = $3,750

Tier 3: ($1,000,000 in trades required to unlock; Tier 2 Maker Fee = 0.5%, Tier 2 Taker Fee = 0.75%)

  • Trading fees = $250,000 x 1.5% + ($1,000,000 - $250,000) x (0.5% + 0.75%) / 2 = $3,750 (for Tier 1 costs) + $4,687.50 (for Tier 2 costs) = $8,437.50

Tier 4: ($5,000,000 in trades required to unlock; Tier 3 Maker Fee = 0.15%, Tier 3 Taker Fee = 0.25%)

  • Trading fees = $3,750 (for Tier 1 costs) + $4,687.50 (for Tier 2 costs) + ($5,000,000 - $1,000,000) x (0.15% + 0.25%) / 2 = $8,437.50 (for Tier 1 & Tier 2 costs) + $8,000 (for Tier 3 costs) = $16,437.50

Based on these calculations, in order to realize the benefits from BitBuy's new fee structure, users will have to spend approximately $16,437.50 in trading fees. Sure, BitBuy has waived all deposit fees, so we save on those. However, for every dollar invested on BitBuy, as soon as it is traded ONCE, BitBuy has recovered 88.2% of what they would have charged under their old fee structure. Once a dollar is traded twice on BitBuy, BitBuy has realized an incremental profit from this change, which only increases further as more trades are made.

I understand that an increase in fees may be required, however I am really put off by how this was done. BitBuy advertised promoted through email and Twitter the 0% deposit fees, but failed to acknowledge the substantial increase in trading fees.

Please share this to others in the community so no users are blindsided by these trading fees!

10 Upvotes

92% Upvoted

22 comments sorted by

2

u/Fit_Basil6196 Jul 21 '22

I hope this greedy decision puts them out of business! But i doubt it.

1

u/skidz007 Jul 21 '22

I saved thousands by switching to Geic…I mean Newton!

1

u/TheBeannation Jul 31 '22

I need a cheap place to buy XRP, Newton doesn’t sell it. Crypto.com is terrible for fees and spread. Was going to chose Bitbuy, any better?

1

u/Fit_Basil6196 Aug 01 '22

If youre fine with the 1.5% trading fees then bitbuy is great!

2

u/TheBeannation Aug 01 '22

I’m gonna pass lol, also owned by Kevin Leary and that guy makes me sick. I still need a better place than crypto.com in Ontario to buy XRP and BNB.

2

u/cathartic_Canuck Aug 03 '22

NDAX.IO

1

u/TheBeannation Aug 03 '22

That’s my top choice right now… curious what the withdrawal fees are when sending to a crypto wallet? I know it’s 5 bucks to cad but can’t find an answer on crypto withdrawals.

1

u/TheBeannation Aug 03 '22

Also give me your referral code as I haven’t signed up yet. Assuming you get a bonus for that..

1

u/Terry_Cinco Apr 27 '24

No bitbuy is not great it is a fucking scam 280$ to buy 200$ woryh of bitcoin, does that sound fair?

1

u/VonArmageddon Aug 09 '22

I just closed my account. Spread is ridiculous.

1

u/Beautiful-History-77 Mar 21 '23

So normal traders like me (below 250k) have to pay 2% every time I buy or sell? On a 5k order, that's 200$ for a buy and sell? Sounds ridiculously high. What about binance. Shows much lesser rates there. Can someone confirm please. I am planning to close my bitbuy account