Binance Eliminates All Bitcoin Trading FeesJune 26, 2022 5:34 pm
When it comes to crypto exchanges and their current moves during this crypto market, Binance just announced that it would eliminate all trading fees for Bitcoin.
In addition, it plans to expand the list of digital assets that will have zero-fees trading in the future which certainly puts much pressure on other crypto exchanges.
The recent move from Binance follows the moves of Robinhood which first provided no commission trading for crypto back in the year 2018.
As a result of this, Binance is now the first crypto exchange to remove all spot Bitcoin trading fees and will likely entice all other exchanges to follow the same path.
Some "0 fee" platforms use spreads or hidden clearing fees. This is NOT that.
— CZ 🔶 Binance (@cz_binance) June 23, 2022
“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 news of increased competition on fees puts pressure on its competitors to do likewise. Shares in rival U.S. exchange Coinbase fell 9.71% on Wednesday, going down to $51.91 per share.
Robinhood, which is already at all-time low prices, saw its share price stay relatively stable at -0.79% to $7.49 at the time of writing.
Coinbase currently charges trading fees of between 0% and 0.50%, Kraken charges fees between 0% to 0.26%, and FTX.US charges trading fees of between 0% and 0.20%.
The amount charged as a trading fee typically depends on the currency pair, 30-day trading volume and whether the order is a maker or taker order.
The goals of eliminating the user fees is to supposedly gather more positive user sentiment and to help out during this current bear market which has affected a lot of investors.
Due to this change, it is likely that there will be increased trading volume on the exchange due to the absence of fees.
Investors are now looking at other major exchanges like Coinbase and FTX to see if they will do anything similar in the future.
In addition to eliminating fees for BTCUSD trades, the change will also eliminate fees for other stable coin pairs such as BTCUSDT, BTCUSDC, and BTCBUSD.
— Cointelegraph (@Cointelegraph) June 23, 2022
Binance CEO Changpeng Zhao claims to have built up a “war chest” after choosing to end U.S. ad spots during the bull market.
Indeed, while Binance is the largest crypto exchange worldwide, Coinbase has it beat for popularity in the U.S. That said, a bold move like eliminating Bitcoin trading fees could attract more investors.
“We see this as the first fee change of many for Binance.US. Bitcoin will serve as a test for the model, which could potentially be rolled out across other tokens and pairs down the line,” company spokesman Sam Fisher told Decrypt in an email.
The race to zero on trade fees didn't take as long as some predicted. Binance also said “We take no spread because we are not involved in the transaction.” Interested to see how the rest of the industry responds. https://t.co/G37Diia16j
— Craig Uhlenkott (@Craiguhlen) June 26, 2022
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