- The BinanceUS exchange has removed fees on its platform for trading BTC/USD, BTC/USDT, BTC/USDC, and BTC/BUSD.
- The zero-fee trading model was first introduced by Robinhood, however, unlike this platform, Binance US assured that it will not make money from commission-free transactions.
Binance USthe crypto exchange specially developed for the United States, has decided stop charging fees for buying or selling Bitcoin with US dollars. Yes, just as it reads.
BinanceUS has always been recognized as one of the crypto exchanges that charges the lowest fees. In fact, this has been one of its main attractions along with the diversity of products it offers, but why stop there if you can go further?
Brian Shroder, CEO of Binance US, assured that it is something that the company wants to do because they simply can.
“This will generate positive feelings among users that will bring us new users”, he added.
Controversial decision?
That is how Binance US becomes the first US crypto exchange to remove trading fees on various Bitcoin trading pairs.
It probably sounds far-fetched to eliminate one of the main sources of income for a business, especially when considering the high Bitcoin trading volumes on Binance US. Beyond that, the decision has been made in a particularly bad context of the crypto market.
However, if the crypto exchange has made this decision, it is because it evaluated the opportunity costs and determined that the benefits of eliminating these fees would be greater than the costs.
Following the Robinhood model?
Binance US’s main competitor is coinbaseone of the most relevant crypto exchanges in the US market, and, following the news, Coinbase stock was down roughly 10%. And as? Its main competitor made a decision that makes it more attractive to the public
Although Coinbase is one of Binance’s main competitors, the reality is that they also compete with other online brokers like Robinhood and Fidelity Investments, especially as they have begun to merge the experience of trading traditional stocks and cryptocurrencies.
In fact, the zero fee trading model was first introduced by Robinhood. Nevertheless, Binance US, unlike Robinhood, assured that it will not generate money with transactions without commissions. For its part, Robinhood offers commission-free cryptocurrency trading but earns revenue by receiving rebates for routing merchant orders to different crypto exchanges.
In this sense, Binance US is precisely looking to compete with these online trading platforms that are entering the crypto ecosystem and its plans include adding more tokens to the free trade category.
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