Crypto exchange Binance.US has removed trading fees for spot market trades in Bitcoin (BTC), following in the footsteps of Robinhood, which pioneered commission-free cryptocurrency trading in 2018.
Brian Shroder, CEO of Binance.US, said the move makes the company the first US crypto exchange to eliminate bitcoin spot trading fees for all users and without trading volume requirements. He added that they will also not earn a difference on trades.
“We see this as an opportunity to revolutionize the way fees are handled in our industry, increase access to crypto, and better support our market and our customers in their time of need.”
3/ We hope that our pricing model will see wider industry adoption over time, as this will have a positive impact on the ecosystem and market participants in general. We are thrilled to lead the race to zero everywhere.
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—Brian Schroder June 22 2022
News of increased competition for fees is putting pressure on its competitors to do the same. Shares on rival US exchange Coinbase fell 9.71% Wednesday, to $51.91 a share. Robinhood, which is already all-time low, has seen its share price relatively flat at -0.79% to $7.49 at the time of writing.
Coinbase currently charges 0%-0.50% trading fees, Kraken 0%-0.26% trading fees, and FTX.US charges 0%-0.20% trading fees.
The amount charged as trading fees usually depends on the currency pair, the 30 day trading volume and whether the order is a maker or take order.
Shroder told Bloomberg on Wednesday that Binance.US will not earn a difference from its zero-fee transactions, and will instead generate revenue from other sources including the new staking service:
“We don’t take spreads, because we don’t participate in the deal.”
He said that the zero trading fee will generate positive user sentiment that will “bring new users to us,” and he said there are plans to expand the list of tokens that will offer fee-free trading in the future. Currently, users of the US-licensed exchange can benefit from no-fee trading on four pairs of the Bitcoin spot market – BTC/USD, BTC/Tether (USDT), BTC/USD Coin (USDC), and BTC/BinanceUSD (BUSD) ).
Addressing his 8,200 Twitter followers, Schroeder added that the company will also roll out a new tiered pricing model, which will come into effect in the summer.
The tiered system will be divided into three parts, Level 0, which offers free trading on some cryptocurrencies, including the recently announced Level 1 and Level 2 BTC pairs, which will have a set trading fee on a “per-asset” basis. More information on this matter is expected in July.
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Founded in 2019, Binance.US is the US subsidiary of crypto-exchange giant Binance. The exchange offers its services to US cryptocurrency traders only and is independently managed by the main company.
Robinhood was one of the first pioneers in no-fee stock trading when it was founded in 2014, which prompted a number of online brokerages to follow suit in the following years. There is no commission in cryptocurrency trading in 2018. Although they do not charge fees, they are able to earn the price difference on their transactions without fees. The spread in a trade is the difference between the bid (sell) and ask (buy) price of a trading pair.
Better # encrypt Low fee platform just got better. #BinanceUS It is the first major platform to offer free of charge # bitcoin Trades the spot currency pairs BTC/USD, BTC/USDT, BTC/USDC and BTC/BUSD for all users without trading volume requirements.
Read: https://t.co/UYvNNvael2 pic.twitter.com/YDV0x3dfcJ
– Binance.US (BinanceUS) June 22 2022
#Binance #Bitcoin #Trading #FeeFree #Competitors #Feel #Heat