Binance U.S. Introduces Zero-Trading Fees For Four BTC Pairs

Binance.US has introduced a zero-fee trading option for Americans as part of its competitive strategy. The company is following the footsteps of a popular company, Robinhood. Robinhood introduced a no-fee cryptocurrency trading option in 2018.

As stated by Binance.US CEO Brian Shroder, this move would attract more users. Also, it is the first U.S. cryptocurrency firm to remove BTC spot trading charges. Also, he noted the firm would not earn from the spread made on charges.

Meanwhile, this recent move mounts more pressure on other crypto firms in the U.S. On Wednesday, the shares of Coinbase fell by 9.71% after the news to $51.91/share.

Presently, the trading fee of Coinbase ranges from 0% to 0.50%. Kraken exchange charges between 0% and 0.26% while FTX.US, 0% to 0.20%. Usually, the charges are based on the currency pair and the trading volume.

Binance.US To Generate Revenue From Alternative Sources 

On the 22nd of June, Shroder informed Bloomberg that Binance.US had decided. It would no longer earn a spread for its free-free transactions. Instead, it would generate revenue from alternative sources like its staking service. 

According to Shroder, zero fees would create positive reviews and attract more customers. Also, Binance.US plans to add more tokens to the list later on. 

Currently, only four BTC trading pairs offer the zero-fee trading option. American assets are free to use the zero-fee on BTC/BUSD, BTC/USD, BTC/USDC, and BTC/USDT.

Binance.US To Release A Tier Pricing Model

Additionally, the firm will be releasing a new pricing model soon. The report says that this model would launch fully in summer. This tier system would have three parts – tiers 0, 1, and 2.

Tier 0 offers free-fee trading on some digital currencies, including BTC pairs. However, tiers 1 and 2 have trading charges based on the asset type.

Furthermore, Binance.US was created in 2019. It is the U.S. arm of the crypto exchange, Binance. It caters mainly to American traders and is independent of the mother company. 

It is noteworthy to say that Robinhood was among the earlier founders of zero-fee trading. After Robinhood commenced operation in 2014, this was its major strategy.

Consequently, other online brokerage firms followed suit as more users trooped to Robinhood. Meanwhile, the removal of commission on crypto trading started in 2018. 

Although Robinhood does not charge fees, it receives a spread on all transactions. A spread refers to the difference between the sell and buy price for a trading pair. 

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