# How are volume-based fee schedules applied to HFT crypto trading?

I am trying to understand how volume-based fee schedules would work with a high frequency trading algorithm.

Let's say I am trading 1 BTC and I am averaging 1000 trades every 5 minutes.

Does the fee schedule apply to the price of the entire bitcoin traded 1000 times in those 5 minutes?

For example, on Binance the Maker/Taker fee schedule for <50 BTC is: 0.1000% / 0.1000%. Does that mean every one of those 1000 trades in those 5 minutes will rack up 0.1% of the price of a bitcoin?

Let's say for one profitable trade, with one BTC buy @ \$23737.00, and one BTC sell @ \$23751.00, with a presumed profit of \$14, would the fee for the buy = \$23.737, and the fee for the sell = \$23.751, making the total fee for both transactions = \$47.488?

If so, how would it ever make sense to trade with an HFT algo? The fees would seem to outweigh any profits an HFT algo could eek out of trading.

Or am I misunderstanding fee schedules completely?

• It appears that Makers just pay a smaller trading fee than Takers when based on a 30-day volume: binance.com/en/fee/schedule . A Maker puts in a limit order that does not get executed at the immediate market while a Taker puts in an order that does get executed at the immediate market. Dec 23, 2020 at 0:23
• I'm trying to understand how the fee schedule is applied. Is it applied to every trade against the whole amount of the trade? Yes/no? Dec 23, 2020 at 0:26
• Well, if more than 150000 BTC is traded in 30 days then the fee is 0.02% or less for the Maker. I think a round-trip would be two fees. I think the fee is on each trade. Dec 23, 2020 at 0:37
• If I've traded 1 BTC 1000 times in 5 minutes, isn't that 1000 BTC volume in 5 minutes? And if so, my trade volume for 30 days might be 8760 BTC. So, I would be paying 0.0700% (according to the fee schedule) on 8760 BTC, correct? Even though I've really only traded 1 BTC the entire time? Dec 23, 2020 at 0:39
• I think the fee is on each trade of each BTC. Dec 23, 2020 at 1:06