Binance US makes BTC trading commission-free

Binance US makes BTC trading commission-free

The cryptocurrency exchange Binance.US has removed trading fees for trading in the bitcoin (BTC) spot market, following in the footsteps of Robinhoodwhich pioneered commission-free cryptocurrency trading in 2018.

Brian Shroder, CEO of Binance.US, said that The move makes the company the first US crypto exchange to eliminate bitcoin spot trading fees for all users and no trading volume requirements.. He added that they won’t earn a spread on trades either.

“We see this as an opportunity to revolutionize the way fees are approached in our industry, increase accessibility to cryptocurrencies, and better support our market and customers in a time of need.”

News of increased commission competition puts pressure on your competitors to do the same. Shares of rival US exchange Coinbase fell 9.71% on Wednesday, dipping to $51.91 a share.. Robinhood, already at all-time lows, saw its price remain relatively flat at -0.79% to $7.49 at the time of writing.

Coinbase currently charges trading fees between 0% and 0.50%, Kraken charges fees between 0% and 0.26%, and FTX.US charges trading fees between 0% and 0.20%.

The amount charged as a trading fee typically depends on the currency pair, the 30-day trading volume, and whether the order is a maker or receiver.

Shroder told Bloomberg on Wednesday that Binance.US would not earn a spread on its commission-free transactions, and would instead generate revenue from other sources, including a new staking service:

“We do not take any spread, because we are not involved in the transaction.”

He stated that zero trading fees would generate positive user sentiment that “will bring us new users,” and said there are plans to expand the list of tokens that will offer zero-fee trading in the future.. Currently, users of the US-licensed exchange can benefit from commission-free trading in four Bitcoin spot market pairs: BTC/USD, BTC/Tether (USDT), BTC/USD Coin (USDC), and BTC/USD. BinanceUSD (BUSD).

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Addressing his 8,200 Twitter followers, Shroder added that the company will also launch a new tiered pricing model, which will take effect in the summer.

The tiered system will be divided into three parts: level 0, which offers the ability to trade certain cryptocurrencies for free, including the recently announced BTC pairs, and level 2, where trading fees will be determined based on each active. More information on this is expected in July.

Formed in 2019, Binance.US is the US subsidiary of Binance. The exchange caters only to US cryptocurrency traders and is run independently by the parent company.

Robinhood was one of the early pioneers of commission-free stock trading when it was founded in 2014, prompting a number of online brokers to follow suit in the years that followed. Commission-free trading for cryptocurrencies began in 2018. Although it does not charge commissions, it is capable of earning a spread on its transactions without commissions. In trading, a spread is the difference between the bid (sell) price and the ask (buy) price of a trade pair.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investments and operations involve risk, so you should do your own research when making a decision.

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