Noticias de EXMO

Is Premium Cashback profitable? The Calculation method

On May 1st 2020, a new tariff policy was initiated on the EXMO exchange. As a result, we adjusted trading commissions, the Cashback tariff grid, and also improved the Premium Cashback packages. Today, let us figure out how to calculate the profitability of the Premium Cashback plan based on your trading volume.

1. How to look up your trading volume for the last 30 days

You can find your 30-day trading volume on the Trade page in the widget, which also displays your current Cashback level.

2. How to look up your effective commission

The easiest way to find your effective fee is to look at the "Fees" widget located in the Orders block. 

3. How to calculate how much commission you have paid based on your trading volume 

Take for example, your trading volume was $96,000, while your effective commission is 0.14% for Maker- and 0.22% for Taker-deals. 

Fee = Trading Volume ($) x Effective Commission (%)

Consider three trading options:

  • You trade 100% on the Maker deals. The commission will be $134.4:

$96,000 x 0.14% = $134.4

  • You trade 100% on the Taker deals. The commission will be $211.2:

$96,000 x 0.22% = $211.2

  • You trade equally on the Taker- and Maker-deals. The commission will be $172.8:

($134.4 + $211.2) / 2 = $172.8

4. How to calculate how much commission you would pay with Premium Cashback

In the April 2020 announcement, we published a table recommending the appropriate Premium Cashback package for each trading level.

With a $96,000 trading volume, the Standard tariff plan for $10 is recommended. This will give a 70% discount on Maker- and a 50% discount on Taker-deals. Thus, the effective fee will be 0.12% for Taker- and 0.20% for Maker-transactions.

Let us calculate how much commission you will pay in three trading options:

  • You trade 100% on the Maker deals. The commission will be $115.2:

$96,000 x 0.12% = $115.2

You will save: 

$134.4 - $115.2 = $19.2, where $9.2 is a net profit

  • You trade 100% on the Taker deals. The commission will be $192:

$96,000 x 0.20% = $192

You will save:

$211.2 - $192 = $19.2, where $9.2 is a net profit

  • You trade equally on the Taker- and Maker-deals. The commission will be $153.6:

($115.2 + $192) / 2 = $153.6

You will save: 

 $172.8 - $153.6 = $19.2, where $9.2 is a net profit

Thus, according to the ROI calculation formula, the return on investment of the Standard package based on the $96,000 trading volume for the last 30 days is 92%.

Use this simple formula for calculating the profitability based on your trading volume to see for yourself how Premium Cashback will minimize your transaction fees.

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