Binance US has announced that it has expanded its “zero fee price model” to Ether (ETH) effective immediately.
According to the announcement, users are now able to freely trade four Ether spot market pairs: ETH/USD, ETH/Tether (USDT), ETH/USD Coin (USDC) and ETH/Binance USD (BUSD).
Effective immediately, the United States exchange has also eliminated gas fees on all Ethereum transactions made through the “Buy & Sell” feature on its website.
In June, Binance US followed in the footsteps of Robinhood, which pioneered no-commission crypto trading in 2018, by removing all Bitcoin (BTC)spot market trading fees for BTC/USD, BTC/USDT, BTC/USDC, and BTC/BUSD.
Binance US operates as an independent entity in the United States but still bears the same name and logo as the global Binance crypto exchange. As the name implies, Binance US caters primarily to American crypto traders.
According to Binance US president and CEO Brian Shroder, eliminating fees on both BTC and ETH cements the company's position “as the low fee leader in crypto.” He added that “now, more than ever, it is critical that platforms operate with users’ interests first.”
Related: Why the battle for low or no transaction fees really matters
Exchanges play a crucial role in crypto adoption. Facilitating zero-fee transfers encourages users to transact more with digital assets. If sending funds from one point to another is expensive, millions of potential users would avoid or limit their use of the technology.
Exchanges that avoid charging fees can still earn on no-fee transactions through spreads. In trading, a spread is known as the difference between the bid (sell) price and the ask (buy) price of a trading pair.