Binance US, the US arm of Binance† is now self the out of ten largest crypto exchange in the world, but apparently there is still plenty of room for more. The trading platform has set the commissions for bitcoin (BTC) trading to zero. The crypto exchange is making this decision to attract new customers.
No bitcoin fees for (almost) all customers
The company is responding to this on the fear of more inflation and a recession, this is how the company itself writes in a press release† By helping customers cut costs, Binance US hopes to attract new users. In addition to the BTC/USD trading pair, the measure also applies to BTC/USDT, BTC/USDC and BTC/BUSD.
We must emphasize that this is Binance.US, the American version of Binance. Due to regulation, Binance started this subsidiary in 2019 to serve traders in the United States. The regular Binance exchange also has a euro trading pair, but on Binance.US you don’t have one. However, the regular costs still apply on the exchange for non-Americans.
The measure only applies to bitcoin, but the exchange has also reduced commissions for other tokens. For this, Binance.US uses a model with three ‘tiers’ where you are based on your monthly trading volume and which assets you buy. The exchange says it will post more details in July about when you fall into which class. This also shows that the maker-fees are also zero in some cases if you trade more than USD 20 million per month. You can reduce the costs by an extra 25% by paying the costs with BNB tokens.
Chain reaction for crypto exchanges on the way?
Binance.US is very ambitious with this action, following in the footsteps of, for example, Robinhood. Other exchanges may also feel compelled to make such a decision, but are already making less sales in this bear market and may not have the capital that Binance has access to. The big question, of course, is whether Binance, the parent company, will also opt for this strategy.