In accordance with the objectives of Binance to ensure trading is made easy and seamless for its customers, the cryptocurrency exchange has eliminated all trading fees for Ethereum (ETH) exclusive to Binance U.S.
Just in time for the holidays, the best #crypto platform for low fees just got even better.#BinanceUS is pleased to offer zero-fees when you buy #Ethereum or trade ETH/USD, ETH/USDT, ETH/BUSD & ETH/USDC, for all users with no trading volume requirements.
— Binance.US 🇺🇸 (@BinanceUS) December 7, 2022
The latest announcement corroborated the recent decision of Binance months ago to eliminate all trading fees for Bitcoin transactions. Binance US maintained that the zero trading fees on ETH will commence with immediate effect.
In view of the decision, Binance U.S. users will be able to freely trade four ETH spot pairs namely; ETH/USD, ETH/USDC, ETH/USDT, ETH/BUSD.
In the same vein, Binance US exchange has also ended gas fees pertaining to ETH transactions initiated through the “Buy & Sell” option on its website.
It would be recalled that the zero-trading fee policy was first initiated by Robinhood crypto exchange in June, 2018, when all trading fees applicable to Bitcoin were removed. That applied to BTC/USD, BTC/USDT, BTC/USDC, and BTC/BUSD.
It should be noted that Binance US operates as an independent entity in the United States but has an inseparable relation with the global Binance crypto exchange. Meanwhile, Binance US only offers services for American crypto traders.
Reacting to the development, Binance US president and CEO Brian Shroder asserted that the company will continue to pride itself as a low fee leader in the crypto space. He further added that the exchange will continue to prioritise the interest of users.
By eliminating these fees, we continue to cement our position as the low fee leader in crypto, bringing greater pricing competition & helping to restore trust in the broader ecosystem.
Now, more than ever, it's critical that platforms operate with users’ interests first.
— Brian Shroder (@BrianShroder) December 7, 2022
Effects of Binance US Zero Trading Fees
It would be recalled that Binance US execution of zero trading fee for Bitcoin in June inversely led to the surge in its spot trading. Meanwhile, the exchange also disclosed plans to eliminate the charges for more tokens in the future.
No doubt, extending this privilege to ETH will boost the user base of the crypto exchange in the U.S. as individuals and institutions struggle to withstand the bear market storm.
However, exchanges that operate zero trading fees can still earn on no-fee transactions through spreads. A spread is described as the difference between the bid (sell) price and the ask (buy) price of a trading pair.