Best Exchanges for Funding Rate Arbitrage
In funding rate arbitrage, choosing the exchanges matters as much as choosing the coin. You need at least two, and they need to combine liquidity, a stable API and rules that let both legs stay open safely.
What a good exchange needs to have
- USDT perpetual contracts with a good variety of coins.
- Volume and liquidity to get in and out without slippage, as we saw in order book.
- A stable, documented futures API, with orders, positions, stops and funding rate queries.
- Isolated margin and the ability to set leverage per coin.
- Competitive fees and a funding rate that differs from the others, which is what creates the opportunity. See maker and taker fees.
- Security: 2FA and IP restriction on the API.
Which ones Multi Arbitrage monitors
The dashboard cards show data from 14 exchanges: Binance, Gate, Bitget, BingX, XT, MEXC, OKX, KuCoin, WEEX, Hyperliquid, Paradex, Phemex, FameEX and Tapbit. Automated trading works on the exchanges already validated for customers: today Binance, Gate, Bitget, BingX, XT and Phemex. The others are in testing or integration and are being released gradually.
The list of exchanges with automated trading changes over time. Check the dashboard before opening accounts just to use the bot.
Combining two exchanges
The opportunity comes from the difference between the two. So the ideal is to have accounts on more than two: the more combinations, the better your chances of finding a favorable funding rate. Keep a balanced amount on each, because both legs need margin at the same time.
Opening an account through the referral links
You can open an account on any exchange through its official website. If you would like to support Multi Arbitrage, use our referral links: Bitget, XT.com, BingX, Phemex and MEXC. The referral terms are set by the exchanges, and you pay nothing extra for using them.
After opening the accounts, follow the guide on how to create an API key without withdrawal permission and start with a small amount.
Building your pairs
A good practice is to start with two or three exchanges that are already validated and add more over time. For example: Bitget and XT; then BingX; then Phemex. The more pairs, the more funding rate combinations show up. But every new exchange needs a balance, a key and monitoring, so add them gradually.
- Keep a balanced amount across the exchanges in the same pair.
- Review each one’s API keys periodically.
- Test each new exchange with a small trade before scaling up.
Mistakes when choosing exchanges
- Choosing only for a bonus promotion, without looking at liquidity and the API.
- Opening accounts on exchanges without clear API documentation.
- Leaving too much balance sitting on a single exchange.
- Forgetting to check the rules in your country.
Related guide: what the funding rate is. See also all the crypto arbitrage guides.
Frequently asked questions
Can I use just two exchanges?
Yes, but having more lets you find more favorable funding rate combinations.
Do I need to deposit on both?
Yes, both legs require margin. The amount depends on the position size and the leverage.
Do I need to open an account on all 14?
No. Start with two or three validated ones and add more as you need.
Start with $30 in credits
Connect your exchanges with keys that can't withdraw and let the bot work. You pay 30% of the profit, and only when there is a profit.
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This content is for information only and is not investment advice. Trading crypto derivatives involves a high risk, including the total loss of your capital. Past results do not guarantee future results, and the figures mentioned are examples. Before trading, check whether trading crypto derivatives is allowed in your country and what your tax obligations are. Assess whether the product suits your profile before investing.