Binance.US is pushing away popular platforms like Coinbase and Robinhood with its zero-fee approach to take the biggest share of the crypto trading market pie.
Brian Shroder, Binance.US CEO, highlighted that there’s a big difference between the zero Bitcoin trading fees it charges and other firms that advertise zero fees. The platform launched a zero-fee Bitcoin trading on its platform last week to attract more users to Binance.US. Like Robinhood, Binance.US doesn’t charge a trading commission for Bitcoin. It doesn’t participate in payment for order flow either. But payment for order flow (PFOF) is Robinhood’s main revenue driver. It represents more than 75% of its revenue in the first quarter of 2022. Through the PFOF, Robinhood directs users’ trade orders to preferred market makers that execute the trade on the platform’s behalf.
Shroder believes that most people don’t realize that there’s a hidden fee in the spread itself. He pointed out that Binance.US is making a difference with its approach. Binance.US is doing zero fees on its actual spot order book itself. This means that Binance.US users are directly trading Bitcoin with other users. Shroder pointed out that there is no hidden revenue and no spread for Binance.US, and there are no fees on it. He touted that Binance.US’s approach is unique. Over time, the platform could roll out its zero-trading fees to other coins.
Binance.US will see how its customer base and new users respond. The platform will also look for feedback from institutional traders. Shroder said Binance.US will explore other areas based on the response it gets.