Is Zero Commission Trading Helping Crypto Exchanges? A Realistic Take

Crypto Market
Crypto Market

Is Zero Commission Trading Helping Crypto Exchanges? A Realistic Take

The cryptocurrency trading sphere is slowly warming up to zero-fee trading. The trend first started with exchange-traded funds and then moved up to online stock platforms. The recent exchange to start offering zero-fee trading is Shapeshift. Let us have a look at trading platforms offering zero-fee trading. 

Will ShapeShift See An Increasing In Trading Volume

ShapeShift will now begin offering free perpetual trades. Interestingly, offering zero fees trading brought benefits for Charles Schwab Corp. The latter recently reported opening 142,000 new trading accounts in October- a 31% jump from September after introducing zero trading fees.

“We’ve definitely seen how people often need very simple messages,”

Erik Voorhees, the Denver-based chief executive of ShapeShift, said in a phone interview.

“Everyone understands free. We expect a 30% increase in trade volume.

Execute Free Transactions With Fox Tokens

For executing free transactions, traders will need to use Fox tokens that ShapeShift is rolling out.  Every user ShapeShift.com will get 100 free tokens, and the exchange may sell additional ones. Also, more FOX tokens a customer holds, more fee-free trades can be executed. Furthermore, Voorhees estimates that 90% of the exchange’s users will be able to do all their trades for free.

Exchanges Offering Zero- Fee Trading

Daily-trading volume in crypto exchanges is half of what it was in late October. As per data provided by CoinMarketCap, the percentage of exchanges offering no-free trading is about 10%. Smaller Exchanges are offering zero-fee trading as a part of promotions.  

Robinhood Crypto is also a major provider of zero-fee crypto trading, allowing users to trade seven major cryptocurrencies with no commission fee. In late September 2019, California-based financial firm SoFi launched zero-fee crypto trading on its platform SoFi Invest.

The list further includes Zebpay, which introduced zero-trading fees in February. Also, HitBTC lowered its trading fees in August. While leading crypto exchange Binance doesn’t offer zero- trading fee, it lets users lower their trading fees by investing in its own cryptocurrency. BitMEX is among the leading platforms offering zero trading fees. 

BitMEX

BitMEX offers zero-trading fee exchange for 8 coins and 14 trading pairs. The most active trading pair on Bitmex exchange is XBT/USD. The platform boasts of a 24-hour trading volume of $1,91,58,45,292 

Cobinhood

Cobinhood is a Hong Kong-based crypto exchange. The platform allows 0% trading fees. It also offers initial coin offering (ICO) underwriting services.

Liquid

Another exchange that offers zero-trading fees is Liquid. This  Japan-based exchange has a 24hour trading volume of $8,84,57,664. Presently, the exchange allows, trading of 173 crypto assets. 

While exchanges like Coinbase have reported having made $2 Billion in a span of 1 year only from trading fees. It will be interesting to note, how well in the long run, exchanges offering zero trading fees fare. Let us know what you think in the comments below!

 

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Is Zero Commission Trading Helping Crypto Exchanges? A Realistic Take
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Is Zero Commission Trading Helping Crypto Exchanges? A Realistic Take
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The cryptocurrency trading sphere is slowly warming up to zero-fee trading. The trend first started with exchange-traded funds and then moved up to online stock platforms. The recent exchange to start offering zero-fee trading is Shapeshift. Let us have a look at trading platforms offering zero-fee trading. 
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Author: Supriya Saxena

Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.

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Supriya Saxena 216 Articles

Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.

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