Binance Announces Spot Bitcoin Trading Fees

Binance users can now trade Bitcoin for the USD, USDT, and other stablecoins without spot trading fees. The CEO of Binance.us, Brian Shroder, said the transition makes the company the first U.S. exchange to eliminate spot trading fees for Bitcoin for all users without trading volume requirements. He added that they would not be earning a spread on trades also.

Shroder went on to say, "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."

This news puts rival exchanges in danger and could seriously affect their ability to compete if they do not respond. Shares of U.S. exchange rival Coinbase (COIN) fell nearly 10% on Wednesday, falling to $51.91 per share. Robinhood, already at all-time low prices, saw its shares fare much better, up 3.67% to $7.76 at the time of writing on Thursday. 

FTX.US charges 0% to 0.20% depending on volume, Kraken charges 0% to 0.26%, and Coinbase charges trading fees between 0% and 0.50%

Shroder also claims, "We take no spread because we are not involved in the transaction," and plans to "expand the list of tokens that will offer zero-fee trading."

Robinhood Pioneered the "0 fee trading" model for crypto as far back as 2018, and this is not entirely truthful of Robinhood because they take a spread on every trade. In trading, a spread is the difference between the bid price and the ask price of given a trading pair. In other words, Robinhood takes a fee, but the user can not tell on their end. Binance.US claims to be the first to offer neither spread nor pre-set transaction fees in the U.S. 

Shroder added that the company would also be rolling out a new tiered pricing model, which plans to start this summer. They are splitting the tiered pricing model into three parts. Tier 0 offers free trading on specific cryptocurrencies, including the above mentioned BTC pairs. Tier 1 and Tier 2 will determine trading fees on a "per-asset" basis. According to Twitter, we can expect more information about this in July.

Author: Garrett Meifert

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