Germany's Crypto Apps Hiding Hidden Fees in Spreads

The hidden costs of buying cryptocurrency in Germany are revealed in a new comparison of five popular apps. Fees that are not immediately apparent, such as spreads, can range from 0.15 to 2.49 percent per purchase, making a big difference over time.

The study, conducted by cryptoticker.io, analyzed the costs and custody of the Bitvavo, Kraken, Bison, Bitpanda, and Trade Republic apps. The apps were examined on four points: cost per purchase, custody, transfer option, and regulatory authorisation.

One of the key findings was that 'fee-free' trading is rarely truly free, as the spread is built into the quote and can be significant. The study found that the spread can range from 0.15 to 2.49 percent per purchase, with Bison's average spread being 1.25 percent.

The study also highlighted the importance of understanding who owns the coins after the purchase. In most cases, the provider holds the coins, and the user does not have direct access to them. However, some apps, such as Trade Republic, offer custody and insurance cover.