One of the leading exchanges in the cryptocurrency community or market, Coinbase or properly named Coinbase Pro announced that the exchange is executing a higher the fee structure for the smaller trader. Certainly, the traders in the community are not pleased with the news. The high fee will eligible for the small trader and the traders who trade beneath the $10,000 value virtual currency on the platform. They explained that it is for “increase the depth and liquidity of our markets.”
The traders struck with surprise that the news is not for relaxing them with the decreased fee value for the numerous clients of the platform. The platform will implement these charges from the next week on 07th October at 22:00 UTC. The rumours these increase will be implemented on a range of $10,000 to $50,000 also. On Thursday, the exchange shared the news rates in its blog post.
The new update by exchange will surge the fees for trading for the small-volume traders and also will decrease the fees for the traders who trade with the cryptocurrencies than others on the platform. The traders who do trade above $50,000 will be able to see the decrease or maybe nothing at all. The traders of monthly volume value $0 to $10,000 have to pay the fees of 0.5% or 50 basis points. The volume will be calculated on the basis of 30-day trading as per the Coinbase.
On the other hand, the traders who trader more than $50 million of monthly volume value will pay no fees for “maker” and some fees for “taker”. For retail traders or investors, this update will make the Coinbase Pro as the highest pricing exchange which collaborated with Bitstamp. It is a big margin of the Bitcoin community.
The famous crypto analyst and expert, Alex Krüger said that this update will bring around increase of around 150% in the fees for small-trade, while the exchange Coinbase Pro is trying to describe it as the ‘slight increase’. Many retail traders in the community are definitely hating he decision and expressing it too on social media platforms.
Discount brokers in traditional markets are moving towards zero trading fees for customers.
Coinbase listened carefully, and decided to do the exact opposite: increase fees by 150%, for a total increase since March of 233%.
These guys rock, they must be great businessmen. https://t.co/5vBFgKRc2l pic.twitter.com/EqKOZgFVpJ
— Alex Krüger (@krugermacro) October 3, 2019
Joe McCann, trader and the commentator said in his tweet the main reason behind the high fees that the exchange wants to gain benefit even when the volume of trading is even low. Many of the users also show their anger against the decision on Reddit too.
15. Now, imagine an exchange adopts the @CreditKarma business model where they give away trading for free (CK gives away free access to your credit reports) but sell your data and/or serve you offers (e.g. Credit Card) where they share in the revenue and/or collect referral fees.
— Joe McCann (@joemccann) October 3, 2019