Academic Study Reveals Crypto Trading Cost Disparities

An academic study by the Frankfurt School of Finance & Management found significant discrepancies in crypto trading costs among six providers. Conducted as part of a larger research initiative, the study focused on 'round trip' costs for buying and selling crypto assets. The costs for these transactions were examined with providers including flatex, Bison, Bitpanda, N26, Smartbroker+, and Trade Republic. Flatex emerged as the most cost-effective option, boasting a significant average price edge of 50 euros over competitors.

For Bitcoin and Ethereum, flatex's round trip costs were capped at 1.2%, and for Dogecoin, at 1.3%. Other providers' costs ranged from 2.1% to over 4 times higher. The study aims to highlight hidden costs in crypto trading, providing investors with detailed cost insights. Flatex emphasizes transparency in fees, adopting a model with fixed spreads in trading. The findings indicate flatex's potential advantage for customers in comparative cost efficiency.