OTC Desk Comparison: Average Global Transaction Fees
Summary
OTC-compare.com, a new OTC crypto desk comparison site, has released the results of its recent trading desk cost analysis, revealing that the average transaction cost across over 60 OTC desks is 0.92%. The study aims to assist consumers in selecting the most suitable OTC platforms by summarizing transaction costs and considering other factors such as currency support, ease of use, and geographic location.
Introduction
OTC-compare.com has conducted a comprehensive analysis of over-the-counter (OTC) trading, going beyond mere statistics to explore various elements of OTC trading and provide insights to users. The study considers factors like supported currencies, fee structures, and cryptocurrency offerings to evaluate the transaction costs of OTC desks.
Main Points
The research reveals that the global average transaction cost for OTC trading is 0.92%. Europe and North America have average costs of 0.92% and 0.86% respectively, while the Oceanic region matches the global average. Surprisingly, Asia offers the lowest rates, averaging at 0.85%. The study also ranks the top cryptocurrencies offered by OTC desks, with Bitcoin and Ether taking the first and second positions, followed by XRP and USDT.
The analysis highlights the complex dynamics of OTC fees, showing that lower fees are associated with larger transactions, while higher fees are linked to smaller transaction quantities. The liquidity of traded assets also affects transaction costs, with more liquid assets incurring reduced fees. The study emphasizes the impact of trading tactics and order types on the financial dynamics of OTC transactions, particularly the distinction between “makers” and “takers”. Makers, who place limit orders, generally pay lower fees, while takers, who execute market orders, face increased costs.
Conclusion
OTC desks cater to the specialized demands of individuals involved in large trades, offering a more discreet and personalized trading experience compared to traditional exchanges. The privacy and customization provided by OTC desks attract investors and traders seeking a more confidential way to trade cryptocurrencies. Additionally, OTC trading is seen as a safer option for those complying with regulatory norms. OTC-compare.com’s research provides valuable insights into average global transaction fees for OTC desks, aiding users in making informed decisions about their OTC platform choices.