Fees are one of the fastest ways to turn an apparent opportunity into a loss. A scanner shows raw spread, but the trader must think in net terms. The key question is simple: what remains after all costs?
Maker fees and taker fees
Market orders usually pay taker fees; limit orders may pay lower maker fees.
Spot trading costs
For spot arbitrage, costs can include trading fees, withdrawal fees, network fees and sometimes conversion costs.
Futures trading costs and funding
For futures arbitrage, costs include opening and closing both legs plus funding, which can be positive or negative.
Why conservative assumptions are safer
Compare a spread with taker fees on both exchanges, expected slippage, funding and the likely closing cost.
Market orders usually pay taker fees; limit orders may pay lower maker fees. Fast arbitrage often uses taker execution for certainty, but that certainty has a cost on both legs.
For spot arbitrage, costs can include trading fees, withdrawal fees, network fees and sometimes conversion costs. Transfers add network friction that a pure price gap does not show.
For futures arbitrage, costs include opening and closing both legs plus funding, which can be positive or negative. Even when you receive funding, entry and exit costs can consume the expected payment.
Compare a spread with taker fees on both exchanges, expected slippage, funding and the likely closing cost. Net profit is not the same as raw spread, and the best trades still look good under conservative numbers.
Turn every raw spread into a net number before you decide to trade it.
Maker fees apply when your limit order adds liquidity to the book; taker fees apply when your order removes liquidity, such as a market order. Taker fees are usually higher.
Funding can be income or a cost depending on your side. Even when you receive it, the entry and exit fees can be larger, so it must be counted in the net.
Use conservative assumptions: taker fees on both legs, expected slippage, funding and the likely closing cost. If the net still looks good, the trade is more robust.
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