The popular crypto exchange Binance US no longer charges a trading fee for Bitcoin spot market trades. Binance is following in the footsteps of Robinhood, which introduced no-commission crypto trading in 2018.
The CEO of Binance, Brian Shroder, stands proud of this decision. He mentioned that they are now the first US crypto exchange that doesn’t require a fee for spot trading bitcoin. Along with no trading volume requirement and no earning spreads on trades. In Shroder’s words, “We see this as an opportunity to revolutionize the way fees are approached in our industry, increase accessibility to crypto, and better support our market and customers in a time of need.”
The no trading fee Binance is offering, can potentially increase competition for the other exchanges. Coinbase experienced a share fall of 9.71% on Wednesday. It is now down to $51.91 per share. Robinhood, which happens to be already at its lowest, was able to stay at a reasonable price of $7.49.
Coinbase charges trading fees from 0% to 0.50%. Another exchange, Kraken charges from 0% to 0.26% and FTX.US charges from 0% to 0.20%.
The trading fee depends on a few variables. For one, it varies depending on the currency pair, the 30-day trading volume, and the type of order, whether a maker or taker.
Shroder told Bloomberg, “We take no spread because we are not involved in the transaction.” He hopes the new initiative of no transaction fees will “bring us, new users.” For now, the no transaction fee stands on four bitcoin spot market pairs, but they’re hoping to expand the options in the future. The four are BTC/USD, BTC/ Tether, BTC/USD Coin, and BTC/BinanceUSD.
Shroder, who has 8,200 Twitter followers, also announced that the firm would be implementing a new tiered pricing model this summer. It’ll be in three parts Tier 0, 1, and 2. Tier 0 will offer to trade free on certain currencies. Tier 1 and 2 will have fees based on a per asset basis. The details will be more clear in July.
Binance US is the American unit of the crypto-exchange giant Binance. The exchange solely is for American bitcoin traders and is run separately.
When Robinhood was formed in 2014, it was one of the early pioneers of zero-fee stock trading, encouraging several online brokerages to follow suit. Crypto trading with no commissions began in 2018. Despite not charging fees, it can generate a spread on no-fee transactions. A spread in trading is the difference between a trading pair’s bid (sell) and ask (buy) prices.
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