Let the crypto price war begin, as Robinhood touts ‘commission-free’ trading against Coinbase rivals
Is a commission-free war about to erupt in the crypto arena?
Robinhood Markets may have delivered the first boost in virtual asset trading on Thursday, pointing out that buying and selling bitcoin assets like BTCUSD,
does not bear any transaction fees on its site, showing fees that exist at competitors Coinbase Global COIN,
and the PYPL of Gemini and PayPal,
Coinbase explains its transaction fee structure here, noting that it also varies by region.
Robinhood argues that the fees are not insignificant in its promotion of its services, claiming that “if you invest $ 100 you will pay around $ 3 in fees on other platforms and could lose unrealized gains.”
“With Robinhood Crypto, you get everything you pay for,” writes the platform led by CEO Vladimir Tenev.
The media campaign focused on its commission-free crypto offerings comes as Robinhood is set to go public as early as this month and sees crypto as a major growth area for the investment app that has emerged. touted as a trading platform committed to democratizing investing for ordinary people.
Meanwhile, Coinbase reported some 56 million verified users and 6.1 million monthly active users, and $ 223 billion in assets. Coinbase went public in mid-April and is expected to face stiff competition in crypto that could lead to fee cuts for the largest crypto platform in the United States.
Coinbase shares have fallen almost 28% since it was listed on the Nasdaq on April 14.
Calls and emails to brokerage houses were not immediately returned.
In 2019, shares of discount brokerage firms plunged after Charles Schwab Corp. ditched commissions on US stocks, exchange-traded funds and options, effectively starting a price war in retail investing.
Robinhood’s focus on pricing can also put pressure on its competitors.
However, Robinhood has at times been shunned by industry participants for accepting payments for its order flow, in order to maintain its commission-free structure.
“We receive consistent volume-based discounts from trading venues, but never take the discounts into account when deciding where to route your order,” Robinhood said in his blog Thursday about his trading. of crypto at no cost.