Hidden costs: exchange fees, spreads, liquidity and slippage

Every trade has costs. Some are shown clearly, others are hidden in the price. For beginners, these costs add up quickly, especially if you trade often.

Most exchanges charge a trading fee, usually a small percentage of each trade. There are often two rates: a maker fee for orders that wait in the order book, and a taker fee for orders that fill immediately. Taker fees are usually higher. There may also be withdrawal fees and fees for card deposits.