Binance US makes BTC trading free of charge as competitors feel the heat

Binance US makes BTC trading free of charge as competitors feel the heat – Mail Bonus

Binance.US Encryption Trading has removed the Bitcoin (BTC) Instant Trading Trading Fee, following in the footsteps of Robinhood, who pioneered cryptocurrency trading in 2018.

Brian Shroder, CEO of Binance.US, said the move would make the company the first US cryptocurrency exchange to eliminate local transaction fees for Bitcoin for all users and without trade receivables. He added that they would also not get a strain on business.

“We see this as an opportunity to revolutionize the way our industry is charged, increase access to encryption and better support our market and customers in times of need.”

News of increased competition for fees is pushing its competitors to do the same. Shares of rival US stock exchange Coinbase fell 9.71% on Wednesday to $ 51.91 a share. Robinhood (HOOD), which is already at a low price, saw its stock price remain relatively stable (-0.79% at $ 7.49 at the time of writing.)

Coinbase now charges transaction fees between 0% and 0.50%, Kraken charges fees ranging from 0% to 0.26% and FTX.US charges transaction fees between 0% and 0.20%.

The amount charged as a transaction fee usually depends on the currency pair, the 30-day transaction volume and whether the order is a manufacturer or a receipt order.

Shroder told Bloomberg on June 22 that Binance.US would not make a profit on its free trade, and would instead generate revenue from other sources, including new mortgage services.

“We do not take any pressure because we do not participate in the business.”

He said that the zero transaction fee would create a positive user attitude that will “bring us new users”, and said that there were plans to expand the list of tokens that offer free trade in the future. At present, users of the US Stock Exchange can take advantage of free trading on four Bitcoin spot market pairs – BTC / USD, BTC / USDT, BTC / USDC and BTC / BUSD.

Shroder addressed his 8,200 Twitter followers, adding that the company will also launch a new tiered pricing model that will take effect this summer.

The tiered system will be divided into three parts, Tier 0, which offers free trading in certain cryptocurrencies, including the recently announced BTC pairs, Tier 1 and Tier 2, which will have trading fees determined on a “per asset” basis. More information on this is expected in July.

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Binance.US, founded in 2019, is a US partner of cryptocurrency exchange Binance. The exchange only caters to US traders with cryptocurrencies and is managed independently by the parent company.

Robinhood was one of the first pioneers of free stock trading when it was founded in 2014, which led to a number of online brokers following suit in the coming years. No commission trading for encryption began in 2018. Although it does not charge fees, it is able to earn a surcharge on its free transactions. In trading, the spread is the difference between the purchase price (sale) and the sale price (purchase) of a trading pair.

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