Binance.US CEO Brian Shroder stated that the zero-fee trading will generate positive user sentiment and that there are plans to expand the list of tokens that will offer zero-fee trading in the future.
Binance is a cryptocurrency exchange. Trading fees for Bitcoin (BTC) spot market trades have been eliminated in the United States, following in the footsteps of Robinhood, which pioneered no-commission crypto trading in 2018.
Binance.US CEO Brian Shroder stated that the company is the first in the United States to eliminate spot trading fees for Bitcoin for all users with no trading volume requirements. He also stated that they would not earn 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.”
Pressure Mounts on Competitors to Follow Suit
The news of increased fee competition pressures its competitors to do the same. On Wednesday, shares of rival US exchange Coinbase fell 9.71 percent to $51.91 per share. Robinhood’s share price, which is already at an all-time low, remained relatively stable at -0.79 percent to $7.49 at the time of writing.
Coinbase currently charges trading fees ranging from 0% to 0.50 percent, Kraken charges fees ranging from 0% to 0.26 percent, and FTX.US charges fees ranging from 0% to 0.20 percent.
The trading fee is typically calculated based 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 earn a spread on its no-fee transactions, instead will be generating revenue from other sources such as a new staking service:
“We don’t take a spread because we’re not in the transaction.”
He stated that the zero-fee trading will generate positive user sentiment and “bring us, new users” and that there are plans to expand the list of tokens offering zero-fee trading in the future.
Users of the US-licensed exchange can currently trade for free on four Bitcoin spot market pairs: BTC/USD, BTC/Tether (USDT), BTC/USD Coin (USDC), and BTC/BinanceUSD (BUSD).