Network Fee vs Exchange Withdrawal Fee

There are two distinct costs when moving XRP: the on-chain network fee (10 drops, always) and the exchange withdrawal fee, which varies by platform and covers the exchange's operational costs.

Why Exchange Fees Are Higher Than Network Fees

Centralised exchanges batch transactions internally and periodically settle on-chain. The withdrawal fee you pay (typically 0.25–1 XRP depending on the exchange) covers their internal bookkeeping, compliance checks, and the small on-chain fee they pay on your behalf. The actual XRP Ledger fee is always just 10 drops.

When transferring directly between two XRP Ledger addresses (wallet-to-wallet), you pay only the 10-drop network fee. Exchange-imposed fees are entirely separate and not mandated by the protocol.

Token Transfer Fees (Issued Currencies)

For issued tokens on the XRP Ledger, token issuers may set a TransferRate of up to 100% (though 0–1% is typical). This fee is paid by the sender and destroyed, reducing the issuer's outstanding obligations. The TransferRate does not apply to direct transfers to or from the issuing account itself.

Always check the TransferRate of any issued token before transacting. You can look up any account's TransferRate via the account_info API method.