Binance.US Lures Traders by Waving Off Bitcoin Spot Trading Fee

Bitcoin Price Enters Consolidation Phase, Positive Outcome Likely
  • The United States claims to have some of the lowest fees in the business.
  •  A seed round valuing the firm at $4.5 billion was completed in April.

According to Binance.US, all clients will no longer be charged fees while trading bitcoins on the spot market. Spot trading fees will no longer be required for clients to trade spot bitcoin for USD, tether, USD Coin, and Binance USD—or vice versa—on Binance’s US affiliate, Binance.US.

The United States claims to have some of the lowest fees in the business. Trades with less than $50,000 in the volume are now subject to a 0.1 percent spot trading fee. According to the company’s website, it charges lesser costs to customers who trade more often.

According to Binance.US CEO Brian Shroder in a statement:

“We see this as an opportunity to revolutionize the way fees are approached in our industry, increase accessibility to crypto, and help our market and customers in a time of need.”

Routing Client Orders to Electronic Trading Businesses

To entice individual investors, firms of all stripes—traditional brokerages and online upstarts—are reducing or eliminating costs. Some brokerages have shifted idle customer funds from brokerage accounts into banking products to compensate for decreased transaction costs. Payment for order flow refers to routing client orders to electronic trading businesses known as market makers.

Binance.US, which started in September 2019, is one of the leading cryptocurrency exchanges in terms of the trading volume. A seed round valuing the firm at $4.5 billion was completed in April. The fundraising round was supported by venture capital companies such as RRE Ventures, Foundation Capital, Original Capital, VanEck, and Circle Ventures.

The announcement comes as bitcoin and other cryptocurrencies have fallen into bear markets since the beginning of the year. Investors have dumped speculative assets like cryptocurrency as the Federal Reserve raises interest rates to curb inflation. Some exchanges have been taken off guard by waning investor interest and a decline in trade activity.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.