Are there any fees?
Pocket charges an industry-standard service fee of 1.5%. This fee includes all our costs, so that there are no additional fees hidden in the exchange rate. We always pass the most current exchange rate (Kraken) to you.
As usual in the bitcoin network, an additional network fee is deducted from each payout. Due to the nature of the bitcoin network, it may vary over time and it's unrelated to the purchased amount. Because Pocket combines as many payouts as possible into one single bitcoin transaction, this network fee is divided among several customers and averages at around 500–1000 satoshis per payout, or around 10–25 cents.
If you make multiple purchases to the same Bitcoin address in one day, you might only pay the Bitcoin network fee once.
At Pocket, we take transparency very seriously. We do not apply any hidden spread on top of the fees we charge and you can easily verify that by checking the rate applied at order execution time (bitcoin are purchased on Kraken).
Let's break it down to clarify how fees are applied:
- The user sends 100 EUR.
- 1.5% fee rate is applied and 98.5 EUR worth of bitcoin are purchased for the user.
- The order gets executed on Wednesday 22 December 2021 15:24. At that time bitcoin was trading on Kraken at the price of 43.097,03 EUR.
- 98.5 EUR / 43.097,03 EUR = 0.00228554 BTC. This is the amount of bitcoin purchased for the user.
- The purchased bitcoin are sent to the user with the lowest possible bitcoin network fee. In that case the network fee is 0.00000039 BTC.
- 0.00228554 BTC - 0.00000039 BTC = 0.00228515 BTC. This is the amount of bitcoin the user will receive into their wallet.
Still have a question? Do not hesitate to contact us.