While playing my favorite real-time fantasy game (stakingnex.io) I toy with the 3rd slider ‘average fee of 0.XX%’ and wonder what is realistic. I know it’s impossible to predict, because if I recall the white paper correctly, there will be bulk discounts on trading fees. Like guys who trade a TON end up getting lower percentages. Anyway if someone smarter/more in the know than me has a confident guess, I’ll use your number on my slider calculations.
This is from the Whitepaper:
3.7 Fee Structure
NEX follows the maker/taker fee structure common to other exchanges. Market makers who place
new limit orders on the order books will pay no fee, while takers who place an order at market place,
or a limit order below the current market price will pay a small fee (Table 2). Fees will be deducted
from the taker in the token denomination of their trade. NEX computes a user’s 30 days moving
Table 2: NEX initial fee structure
User 30 days volume/ Taker fee/ Maker fee
0% / 0.25% / 0%
1% / 0.22% / 0%
2.5% / 0.19% / 0%
5% / 0.19% / 0%
10% / 0.16% / 0%
20% / 0.13% / 0%
average volume using the volume of trades associated with their public key, as a percentage of total
Thanks for posting all that - I basically already knew it but handy to have it on the relevant thread. The question remains - where between 0.13 and 0.25% do you think the ‘average’ will fall? It’s strictly speculation, but I guess you’d be closer to 0.13 if you feel many people will use bots and the exchange volume will be centered around a few, high volume users, whereas if you think the exchange will have millions of infrequent users, then it’s closer to 0.25%.
Only time will tell But I believe the goal of NEX is to attract as many users as possible. They don’t want the volume to be dependent on a few high volume users. If that is indeed the case the average will be closer to 0.25% I think.
I’m loving these shoutouts Thanks @alexh.
My guess was 0.22%, that’s why I set it as the calculator’s default. But time will tell honestly. If we hit that mass adoption, I think most volume will come from ‘regulars’ that just do a couple of trades (without them even knowing because of dApp API integrations), so being responsible for less than 1% of the entire volume (if you think about it, 1% is already a lot!) means 0.25%…
Not to complain of course Cheers
What did get me thinking lately though… If there is only a taker fee and 0% for the maker, that means only X% of the taker’s side of the trade fill collect fees, and not of the entire volume of the trade.
Sooooo, I’m not sure anymore if my calculator is correct, since it might be just half of that since the calculator is taking the percentage of the entire volume.
@canesin can you maybe correct me if I’m wrong?
@Nick there is two parameters that are guesses: how much of the volume is due to maker positions (zero fee) and what is the average fee of the users. You could have those as options in the site, with settings for the same exchanges you list ? Not sure if this information is public.
It’s really hard to predict without having some data to base it on.
Average is around 0.2% which is typically biased towards low category.
Don’t forget that all payment service interaction will be Market orders meaning they are Takers so this will help keep the overall fees spread higher. My personal calculations had a 0.75 filter to account for this. No way to know the exact split but if the payment service picks up the pace it would raise it from 0.5 and closer to 0.75 Taker-Maker Split.
I feel that nearly all of retail investors and traders would not bother with being market makers. And will just want instant trades. I believe those trading with huge amounts may consider a 0% trading fee. So although I’m not giving you a figure, I believe the majority of people will be market takers.
I for one, when looking to purchase a crypto, will buy at market price as I just want to have the trade finished quickly and be on my way