Binance U.S. makes BTC trading fee-free as competitors feel the heat
Brian Shroder, CEO of Binance.US, said the zero-trading fees would generate positive user sentiment and said there are plans to expand the list of tokens that will offer zero-fee trading in the future.
Crypto exchange Binance.US has removed trading fees for Bitcoin (BTC) spot market trades, following in the footsteps of Robinhood, which pioneered no-commission crypto trading in 2018.
Brian Shroder, CEO of Binance.US, said the move makes the company the first United States crypto exchange to eliminate spot trading fees for Bitcoin for all users and without trading volume requirements. He added that they would also not be earning a spread on trades.
“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.
Shroder told Bloomberg on Wednesday that Binance.US would not be earning a spread from its no-fee transactions, and would instead be generating revenue from other sources including a new staking service: