2. Count Both Sides of a Trade

Buying and later selling an asset creates a round trip.

Where fees apply to both transactions, assessing only the purchase fee understates the total cost.

Check These Details

• Purchase transaction value.
  • Purchase fee rate and amount.
  • Sale transaction value.
  • Sale fee rate and amount.
  • Minimum charges.
  • Currency in which fees are paid.
  • Whether fees are deducted from cash or crypto.

Percentage-based sale fees can differ from purchase fees in dollar terms because the transaction values may differ.

A quoted fee “per trade” should therefore be interpreted carefully.

3. Understand How Repeated Fees Accumulate

The total value traded can be much larger than the portfolio balance when the same funds are used repeatedly.

Fees generally relate to the transactions performed under the provider’s pricing rules, rather than only the money originally deposited.

Hypothetical Monthly Example

Assume a provider charges 0.5% on each executed transaction, with no minimum charge.

The example assumes every purchase and sale has the same A$1,000 value.

It excludes price gains or losses, spreads, slippage, other charges and tax. It does not describe OptimCoins’ actual pricing.

4. Review the Bid–Ask Spread

The bid is a price available to sellers, while the ask is a price available to buyers.

The difference between them is commonly called the bid–ask spread.

An investor who buys and immediately sells may receive less than the purchase outlay even if the broader market has barely moved.

Hypothetical Example

• Available purchase quote: A$100 per unit.
  • Available sale quote at the same moment: A$99 per unit.
  • Difference: A$1 per unit before separate fees.

The example illustrates why an unchanged reference price does not guarantee a cost-free round trip.

A spread is often reflected in execution prices. Avoid adding the full quoted spread as another expense after calculating profit from actual purchases and sales.

5. Account for Slippage and Liquidity

Slippage is the difference between an expected execution price and the price actually obtained.

It can occur when prices move or when insufficient liquidity is available at the expected price.

Factors That Can Affect Execution

• Order size.
  • Available market depth.
  • Market volatility.
  • Trading pair.
  • Order type.
  • Time between viewing a quote and execution.
  • Whether an order fills across several prices.

Frequent trading creates more occasions on which execution differences can affect results. However, slippage is not always adverse and should be measured against a stated reference.

A limit order can control the acceptable execution price, but it may remain unfilled. It does not automatically eliminate fees or other costs.

6. Calculate the Price Increase Needed to Cover Fees

An asset generally needs to rise enough to cover applicable entry and exit costs before a trade produces a positive net result.

Simply adding two percentage fee rates gives an approximation rather than an exact break-even calculation.

Hypothetical Break-Even Example

Assume:

• The asset purchase value is A$1,000.
  • A 0.5% purchase fee is paid separately.
  • The total acquisition outlay is A$1,005.
  • The sale fee is 0.5% of gross sale proceeds.
  • No other costs apply.

To recover the A$1,005 outlay:

Required gross sale proceeds = A$1,005 ÷ 0.995

Required gross sale proceeds ≈ A$1,010.05

The holding therefore needs to increase by approximately 1.005% from its A$1,000 purchase value to cover those fees.

Spreads, adverse slippage or other charges would increase the required improvement under these assumptions.

7. Check Minimum Charges on Smaller Orders

A minimum fee can make smaller transactions more expensive as a percentage of their value.

Hypothetical Example

Assume a minimum charge of A$2 applies to each order.

This example illustrates the effect of a minimum charge only. It is not a provider fee quotation.

Splitting a transaction into several smaller orders may increase explicit costs where each order attracts a minimum fee. The result depends on the provider’s charging rules.

8. Review Currency Conversions and Trading Routes

Moving between assets can involve more than one transaction.

For example, a provider may offer a direct trading pair or require an intermediate conversion. The route can affect fees and execution.

Questions to Ask

• Is the conversion direct?
  • How many transactions are involved?
  • Which exchange rates apply?
  • Is a conversion margin included in the quote?
  • Are separate trading charges added?
  • Are results reported consistently in Australian dollars?
  • Does the confirmation show the amount actually received?

Do not assume that every crypto-to-crypto exchange has the same cost as a single Australian-dollar purchase.

Compare the actual route and final quantities received.

9. Separate Trading Fees From Transfer Costs

A trade recorded within a provider’s system does not necessarily create an on-chain transaction.

Moving crypto to an external wallet is a separate activity that may involve a provider withdrawal charge, a blockchain network fee or both, depending on the arrangement.

Review These Separately

• Trading fees.
  • Crypto withdrawal charges.
  • Network fees.
  • Fiat withdrawal charges.
  • Currency conversion costs.

Avoid applying a network fee to every trade unless the transaction actually involves that charge.

Likewise, check whether a provider’s withdrawal charge already incorporates the relevant network cost before adding another amount.

10. Consider the Effect on Capital Available

Trading costs reduce the funds or asset units remaining in the portfolio.

Repeated deductions can leave less capital exposed to subsequent gains. Losses and costs can also occur together.

Hypothetical Example

• Starting portfolio value: A$5,000.
  • Cumulative trading costs: A$150.
  • Trading result before those costs: A$0.
  • Remaining value: A$4,850.

Recovering from A$4,850 to A$5,000 requires a gain of approximately 3.09%, before any further costs.

This simplified example assumes no deposits, withdrawals, rewards or other changes.

Lower trading costs alone do not establish that a strategy is suitable. ASIC’s Moneysmart describes most crypto assets as high-risk investments with substantial price volatility. Moneysmart.gov.au

A Practical Monthly Trading Cost Review

Use a consistent Australian-dollar valuation method when combining costs paid in different currencies or crypto assets.

Keep Tax Assessment Separate From Performance Tracking

A net trading result on a dashboard is not automatically the amount reportable for tax.

Australian tax treatment depends on the activities and circumstances involved. Frequent transactions also create more records to reconcile.

For crypto assets held as investments, a crypto-to-crypto exchange can have capital gains tax consequences even when no Australian dollars are withdrawn. ato.gov.au

Records to Retain

• Transaction dates and times.
  • Assets bought or disposed of.
  • Quantities.
  • Australian-dollar values.
  • Transaction fees and the assets used to pay them.
  • Exchange confirmations.
  • Wallet transaction references.
  • Relevant acquisition history.

The ATO recommends retaining transaction and exchange records, including Australian-dollar values, and exporting transaction histories regularly. Australian Taxation Office

Use the applicable tax rules and professional advice where needed rather than applying a dashboard percentage directly to a tax return.

What OptimCoins Users Should Confirm

Ask OptimCoins how its current charges and reporting apply to the transactions you intend to perform.

Do not assume that a particular fee structure, order type or reporting feature is available.

Useful Questions Include

• What charges apply to purchases and sales?
  • Are there minimum transaction fees?
  • Is a spread or margin included in quoted prices?
  • Do charges differ between trading pairs or order types?
  • Are conversions performed through intermediate assets?
  • What withdrawal charges apply?
  • How are fees paid in crypto recorded?
  • Does reported performance include closed positions?
  • Are fees already included in displayed gains?
  • Can complete transaction and fee records be exported?

Compare the published terms with transaction confirmations and investigate unexplained differences.