Crypto App Fees: Spread Instead of Fee-Free

Cryptocurrency investors in Germany are often misled by apps that advertise 'fee-free' trading. However, as seen in a comparison of five popular apps - Bitvavo, Kraken, Bison, Bitpanda, and Trade Republic - the real price lies in the spread, which ranges from 0.15 to 2.49 percent per purchase.

The study found that for every 100 euros invested, the mark-up can be as low as 15 cents or as high as 2.49 euros, depending on the app used. Over a year of savings-plan instalments, this difference can add up to several dozen euros.

For instance, using Bison's average spread of 1.25 percent, an investor would receive around 98.75 euros in Bitcoin for every 100 euros invested. In contrast, Kraken's instant buy feature at 1 percent would yield roughly 99 euros.

Custody is another crucial aspect to consider when choosing a crypto app. Most providers hold the coins on behalf of their users, with Trade Republic naming BitGo Europe GmbH as its custodian and Bison offering insurance cover against theft and hacking attacks.