LocalBitcoins Fees and Minimum Deposit - TU Expert review
After considering a crypto exchange’s security, examining its fees is the next crucial step. Lower fees translate to higher potential profits. Newcomers to crypto trading may also want to consider the minimum deposit required to start trading, as they might prefer to begin with a smaller investment.
Traders Union analysts have assessed LocalBitcoins fees and minimum deposit requirements to help prospective crypto traders make informed decisions.
Short introduction of LocalBitcoins
LocalBitcoins Exchange (also LBE) is an international Bitcoin trading platform. The main office is located in Helsinki, Finland. It is one of the old-fashioned worldwide crypto exchanges, founded back in 2012. You can only trade Bitcoins on the LBE site. The exchange supports most options for depositing and withdrawing funds, including Visa / Mastercard debit cards and e-wallets. There is a cold and hot way of storing Bitcoin with the possibility of exchanging fiat funds. Funds in the account can be stored not only in Bitcoins but also in almost any world currency.
👍 Advantages of trading with LocalBitcoins:
•you can buy Bitcoins for almost any worldwide currency;
•full-fledged localization in seven languages;
•the trading application has a simplistic and convenient interface;
•the platform operates under the AML and KYC laws;
•there are webinars guides for newbies and professionals;
•fixed commission 1% for all types of transactions.
👎 Disadvantages of LocalBitcoins:
•only Bitcoin can be traded;
•there have been fraud cases on the exchange in the past;
•registration is limited for some regions.
LocalBitcoins Commissions and Fees
LocalBitcoins does not charge fees for registration, deposits, withdrawals of funds, or transfers between user’s wallets. On top of that, the exchange does not charge a fee for buying and selling Bitcoins. LocalBitcoins charges a commission for creating a trade transaction. This commission is fixed at 1% of the transaction amount. Bear in mind that there is also a fee for transactions with other Bitcoin wallets. The size of this commission is constantly changing, it is displayed in the section labeled "Fees for transactions with Bitcoins" within the user's account.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $1 | No |
A broker is an intermediary between a trader and an exchange. Therefore, brokers charge fees for their services. The fees may have different structure.
There are the following fees in the Crypto market:
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Spread – the difference between the buy and the sell price of an asset.
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Commission per lot.
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Commission per trade.
Broker fees may differ depending on the trading account type. For example, on some accounts spread is used as a trading fee, and on others – commission per lot.
Why is it important to consider the minimum deposit at a cryptocurrency exchange?
Accessibility: The minimum deposit helps traders determine if they can afford to start trading on an exchange.
Risk Management: Exchange-set minimum deposits ensure traders have sufficient funds to cover potential losses and fees, preventing financial overextension.
Platform Suitability: The minimum deposit amount can be an indicator of the exchange’s target audience and trading volume, aiding traders in selecting a platform aligned with their goals.
Cost Considerations: Assessing minimum deposit requirements helps traders account for trading expenses.
Are the fees and minimum deposit requirements at LocalBitcoins suitable for beginners?
Analysis of LocalBitcoins shows that the broker has a rather high minimum deposit. It could pose a problem for traders, who are only starting their path in trading. Nevertheless, the fees are low. Therefore, the broker will be a good choice for professional traders.
FAQs
Can the minimum deposit differ depending on the trading account type?
Yes. Brokers often encourage clients to deposit large amounts to the account by offering better trading conditions.
If the fees are low, how does a broker make money?
As a rule, brokers with low fees earn on the fees thanks to high trading volume and also non-trading fees.
Can the level of the fees change if different accounts imply the use of different platforms?
Yes. Some brokers offer different trading platforms on different types of trading accounts. In this case, the size of the fee may change.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.