NewsletterCoinbase, Robinhood Shares Plummet After Binance.US Does This
Binance.US has decided to eliminate any fees on spot trading of several popular crypto assets. The US branch of the major exchange decided that it will no longer charge any fees for the spot trade of BTC to US dollars and three major stable coins: Tether, USDC and Binance USD.
In response, the shares of Robinhood are currently down while those of Coinbase are down by as much as 5%.
Binance.US Powerplay To Gain More Users
Binance.US CEO Brian Shroder told Bloomberg that he believes that this news will generate positive user sentiment and will bring them more users.
Binance.US already has a low spot and general trading fees. Forbes Advisor ranked Binance.US number 1 amongst all crypto exchanges in the US, citing its industry-low fees.
Binance.US has confirmed that it will not make any money on zero fees crypto trading.
How This Compares To Robinhood, Coinbase
Robinhood also offers commission-free crypto trading, however, traders do have to pay the spread. Moreover, while Binance.US will not make on free crypto trading, Robinhood makes a lucrative sum by getting rebates from market makers.
In a strategy known as payment for order flow, instead of routing users’ orders to major exchanges, Robinhood routes them to partner market maker firms, which offer rebates to Robinhood. This strategy was heavily criticized by Gary Gensler, the chairperson of the Security and Exchanges Commission as a major conflict of interest.
Meanwhile, Coinbase fees for crypto trades range anywhere from 1% per trade for Coinbase Wallets to 4% for purchases with credit/debit cards. It has some of the highest fees of any crypto exchange. However, Coinbase CFO Alesia Haas told CNN that it does not get paid through order flow like Robinhood and that its fees are transparent.
As Binance.US competes for users through zero fees, how Coinbase, Robinhood, and other exchanges respond, only time will tell.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto ETF News: Vanguard to Enable Trading of BTC, XRP, SOL ETF on Its Platform
- Operation Choke Point: House Republicans Spotlight Biden Administration’s ‘Attack on Crypto’
- Polymarket Rival Kalshi Moves On-Chain With Launch of Tokenized Prediction Markets on Solana
- Tom Lee Says Bitcoin Could Hit New ATH In January As Hassett Becomes Favorite For Fed Chair
- 8 Best Crypto Exchanges That Accept PayPal Deposits and Withdrawals
- XRP Price Prediction as Ripple Gets MAS Licence in Singapore
- Ethereum Price Crashes Below $3,000 as $500M Longs Liquidated: What’s Next?
- Pi Network Price Prediction Ahead of December’s 190M Scheduled Unlock
- Dogecoin Price Below $0.15 as Crypto Market Crashes: Will $0.10 Hold?
- Will the Binance Coin Price Rebound as a Key RWA Metric Jumps 99%
- AVAX Price Prediction After Bitwise Files for a Staking ETF — A Rebound Coming?
