BitMEX fees explained. Update May 2022
Updated: Apr 25
To explain to you BitMEX fees you need to understand that you will get rebates when selecting limit order! BitMEX fees and commission are currently (since 18sep 2021) very low comparing to Bybit or Binance. BitMEXcommissions are not related to leverage but to quantity. What is the cost of using leverage? Margin trading is free of cost here.
1. BitMEX fees at all instruments are the same.
BitMEX market order fee is 0,05% (you pay)
With our 10% discount it is as low as 0,045%. This is more expensive option to open or close your trades. Investors call this order a taker order. Use a taker order when you want to buy / sell out of hand. Fast I mean ASAP! If you can wait and observe use maker order (limit order) as there is a huge difference in commissions! Look at the bottom!!
To explain this general Bitmex fee this let's analyze the following case study:
You expect that Bitcoin price will explode in a few seconds. You buy quantity 50,000 of USDXBT contracts worth (1$ each) means that you open buy long 1 BTC at price 50,000$. You used market order to buy these contracts ASAP. Fees? 50,000$*0,045% = 22,5$ (fees are deducted in BTC). Before 18AUG 2021 BitMEX charged 37,5$ (0,75%) so they really made huge slash on fees.
Without our a discount coupon it would be 25$. Explained? You saved 10% so 2.5$
Do not be confused as in the Bitmex trade history you will see this fee in BTC as:
fee paid 0,045 BTC (or 0,05 BTC without our link).
Look at black font without minus.
BitMEX limit order fee is: +0,01% (rebate)
This is the cheapest option of open or close trades. Yes, you will receive money for submitting this kind of orders! You can this type of orders you can use when you are not desperate to make trade straight away or ever. Investors call this order as maker order.
Using maker order you can not be sure you will get order at this price. Theoretically you can wait even…years to get fulfilled. You will get fees rebate, but you must wait until somebody else TAKES your limit order from order book by…taker order.
Practically it is not so hard to fulfill order limit so use this as often as possible collect a few dollars instead of paying.
To understand Bimex limit order fees look at this:
You desire to short contracts value 5 Bitcoins @ 10,000$. Last price of BitMEX Bitcoin perpetual contract is 9,997$. You inserted limit sell order offer into order book (quantity = 50,000 of USDXBT contracts) at 10,000$ and you wait until it is fulfilled.
But If Bitcoin price start dropping (without reaching 10,000 price point) you can never get this trade executed. This is not so comfortable that is why you will get paid for your patience.
When somebody "takes" this order, you will receive from Bitmex 5$ (it is hard to call it fee it is rebate!) In the trade history it should display this figures with green font fronted by minus: fee paid -0.00085 BTC.
At Bitmex...when it looks exactly like this it is ok. When it is just like example 1 black font and without minus it means you paid – using market order. This is very confusing, and you must remember this explanation.
If 1 BTC at 50,000$ is traded (one leg):
Taker (by market order) paid 22,5$ (in rush)
Maker (by limit order) got 5$ (no rush)
Bitmex income is 22,5-5= 17,5 USD
2. Bitmex special types of orders explained (you can add it as a part of original orders)
Hidden orders - You can hide your orders at Bitmex but keep in mind that when this trade is executed you pay fee as taker (0.05%) despite the fact you took it into orderbook. Hidden orders are sometimes used by deep pockets investors who place millions of USD per trade but there is no point in using it when you do not own more than 100 BTC. Expensive toy for big boys.
Stops orders - You will usually pay as for maker order (0.05%) as when it hits your set price and you want to execute such trade fast as hell. Use this stop order to defend your trades from liquidation! Cut your losses and control. This is basic and extremely important. To understand it, Ministry recommend: Read more how to set correct stop loss to avoid liquidation.
Post-only – Many traders like us, combine limit order and checked post-only. They often use for “safer” scalping on Bitmex. It reduces Bitmex fees! It protects you from random execution by market order instead of limit order when in the last nanosecond the price changes. It is worth implementing and Ministry of Margin Trading encourages you to use it as often as possible as well. Adding this checked post-only is free and provides you cheaper trades.
Especially, when you add order close to the last price. Sounds good? Execution only by limit order or immediately cancelled – and finally never executed by market order.
3. Bitmex fees for big boys
Currently as we mentioned Bitmex cut its taker fee to 0,05% what is the lowest fee among all exhanges. But there is more... if you trade huge volume like milions (including leverage) you will get addicional disconts on BitMEX fees.
If you trade like a whale and get monthly turnover above $50mln you will pay only 0.025% !! (taker fee). This is a huge difference comapring to Phemex, ByBit or Binance futures. We think it is a game changer for scalpers! They count all their instruments here.
Summary of Bitmex fees and commission.When to use maker order (limit) and when taker order (market)?
It is possible that you will never ever pay any trade fee at Bitmex. It is possible that you will get paid per every single trade. Why it is not so popular? It is how it must be: 50/50.
Somebody pays fee using a market order and another trader gets paid as he did limit order. It is always matching of 2 traders on Bitmex when there is P2P exchange.
Everything depends on your strategy. Let’s consider scalping at Bitmex. A trader who is a scalper often uses a market order to execute a trade ASAP.
Scalpers just observe BTC price at other exchanges and when there is huge price difference comparing to Bitmex they buy/sell immediately using market order to jump and take advantage.
They paid let’s say 40$ commission fee and 3 seconds later close this trade with 200$ profit. In this case it is worth to use a market order.
Advanced traders are fully aware of these above. Sometimes during huge volatility and it is much better to pay and use market order.
You have to constantly consider what is more cost effective for you. Sometimes when you wait 20 seconds to fulfill limit order (to save 30$) and finally you lose at least...100$ as price went in a different way.
Keep in mind this is interesting...
Did you know that: If you sell short 1 BTC at 50,000$ and buy it back at 50,010$ you are not losing if you use limit orders twice? You are even. You lost 10$ at Bitcoin price but you won 10$ at Bitmex fees 😊