Bitcoin Forum

First we need an Exchange with Zero Fees. Crypto exchanges are sprouting up like weeds and they're all the same. Poor API , poor desktop and mobile trading apps. exchange holds coins, and 0.2% fees.

If we have an exchange with zero fees it would add liquidity ( by providing an incentive to buy/sell on exchange) and offer better trading conditions for all traders ( more liquidity means more buyers and sellers are waiting to trade at their prices which decreases the spread between the Bid/Ask ).

Any Exchange with Zero fees?
If no, lets build one.

And.. how would the exchange pay for itself?

When I think about operating an exchange, I'd solely do it for the added benefit that it provides me for trading.. It would essentially lower my trading cost and add more opportunities for trading. It's a win win situation that pays for itself. Simply saying, profits from trading pay for the operational cost of the exchange. Or you can say it is from the money Saved from trading at a less expensive exchange.

Sounds like a good business model.  How exactly is an exchange supposed to exist when it has no money to pay bills with?

By either having ads (and a paid ad-free feature) along with premium features or a subscription for features.

Why not have the most optimum trading experience? It would be an instant attraction for day-traders and give a professional focus to crypto...

You have clearly put a lot of thought into this.  I'd like to contribute several hundred hours of labor and thousands of dollars in capital.  What will you contribute?

And if you have an API - how long until someone writes an app / www site that just bypasses your adverts ?

If you can find people who want to put the time and _money_ (hardware and bandwidth aint cheap ya know) - they sure go for it and lets see if it takes off - maybe I'll trade there :).

I see tomorrows wallets being more like today's exchanges. And today's exchanges might become super-exchanges...

How would this exchange maintain itself?

Do you have capital to begin this?

We need an exchange which is secure and reliable. Building a reliable exchange needs capital. You cannot expect an exchange to survive long term on ads alone. It must generate enough revenue to cover costs and reserve profits for expansion.

Do you have any imagination how much security costs for such an exchange? How much are servers etc. ? I think fees are there with a reason...

Also, with the way the law is in the USA, there are lots of potential legal issues when dealing with the exchange of USD.

As far as I use and at least as of now, ANXBTC is free for trading BTC. Also, Justcoin is free after 100 BTC trades. :D
Still not sure their revenue source.

Let me explain this better through a trading strategy.

I'm investing 10k in btce MT4 platform. They offer 1:3 leverage. with a big fee.
The smallest position size is 0.01 which costs 0.02 cents usd and a 0.10 position size will be 0.23 cents.

I buy a position size of 0.01 (cost of 2 cents) at 486.005 and close the position at 490.00 for a profit of 2 cents. BTC/usd moved up $4.00.
What happen in the trade?
BTCUSD moved Up in our favor $4.00
Our Trading Fee was 2 cents
Our profit is 2 cents after fee.

Without the broker fee I would make 2x the profit. A total of 4 cents of profit instead of 2 cents.

Now apply a position size of 0.10 with a fee of 23 cents per trade. I will use the same strategy of a BTCUSD Up move of $4.00 to generate 23 cents in total profits after the total 23 cent fee.
I placed 500 trades a month
Total fee is $115.00

And now lets get serious.
I will be trading with a position size of 0.49 and the cost is $1.00 in commission
I will place over 500 trades a month
Total fee is $500+ a month.
Cost of server and bandwidth is covered.

This will be a Trading exchange only. No Fiat deposit/withdrawal.

I don't want fees associated with the exchange therefore fiat must be eliminated.

Buyers must have the coins in storage then use this exchange for trading. The actual exchange isn't processing orders into the blockchain,  the server will just operate an efficient order matching engine.

If we can use cold storage escrow for deposits, we'll avoid regulation completely, and just be the liquidity engine for matching orders at millisecond speeds.

you have a great idea, but there is no chance this thing can reach 1% of global trade share without deposit/withdrawal option in FIAT, in other words, you would force people to get BTC out (think of effect to price, it would be similar to one from MtGox, when they didn't payout folks, so BTC there were worth more than on any other exchange).

First we need an Exchange with Zero Fees. Crypto exchanges are sprouting up like weeds and they're all the same. Poor API , poor desktop and mobile trading apps. exchange holds coins, and 0.2% fees.

If we have an exchange with zero fees it would add liquidity ( by providing an incentive to buy/sell on exchange) and offer better trading conditions for all traders ( more liquidity means more buyers and sellers are waiting to trade at their prices which decreases the spread between the Bid/Ask ).

Any Exchange with Zero fees?
If no, lets build one.

*********************
how to build one?
is it risk?
and how to make profit?

it is just for sometime or forvever?

There are some exchanges with zero fee. Look at my previous post. Unfortunately I don;t think it has help to raise the trading volume though. If you build your own, what do you think is the revenue source?

A project like that can't exist without huge investments

I've extended a trading platform to my site but putting my blood over the code for months!
Fighting every day against hacking or bug abusing to make it more secure and usefull

But today with a 0.2 fee I can barely pay the hosting costs

www.virtualcoin.biz (http://www.virtualcoin.biz/?page=trading)

For a start it could be exchange with lesser cost than it is now on major exchanges, and as you earn revenue from ads you can lower fees.

I hope you can create such a site, be sure to let me know if you have completed.

FinCEN has stated the exchange of virtual currencies for real currencies or other virtual currencies constitutes money transmission and requires registrations with FinCEN as a Money Service Business?  So you will be blocking US based customers correct?

I thought Huobi and OKcoin did not have trading fees

I believe they charge fees of deposits and withdraws.  More than one way to skin a cat.  I believe the OP's idea is to build the worlds best exchange with state of the art features, security, and speed without any revenue.

I propose exchange that pays me :D Each time I trade I get 0.03% :D

We also need poker without rake. I don't see that happening anywere around a business. You could try exchanging between friends and voila you have 0 fees.
Same way with poker, you only find home games with 0 rake, anytime you got an exchange or website you have to pay fees or rake.

Sounds like an unreal business model.  Exchange will never exist when it has no money to pay bills with

It should also have unparalleled customer support.  Since Bitcoin is global, they should be available 24x7, including holidays.  They should respond to all issues within 1 hour.  Where can we find a few dozen people who are willing to work long hours, doing a difficult and thankless job, with zero pay?

What's the point of making exchange with zero fee? It's non-profitable. Sorry, for comparison, but it's like letting other people to your toilet in your own office.

While it would be nice it is not a sustainable model to keep the exchange going unless you are doing it for charity.

What you need are exchanges paying rebates to traders for adding liquidity so you'll get flow and market making strategies getting run on the exchanges, which will tighten spreads, decrease volatility, increase liquidity, and generally make for a more robust stable and ordinary market. the exchange makes the difference between takes and adders fee, charge say 0.02% to take and pay 0.01% to add.  everybody wins

a fee free exchange ? well, very interesting, but i can't imagine how they get profit.
at least you could do like this, make ppl pay a 1 yr  trade memberships  8).
In the dreamland ads only will pay maintenance fee ....

NOT fee free, People who Buy at the ask, and sell at the bid (Takers of Liquidity) pay, for example a 0.02% commission, while people who add liquidity, market makers, by buying at the bid, below the ask, and sell at the ask, above the bid actually GET PAID what's called a rebate of, for example 0.01%.  So the exchange earns the difference, 0.02%-0.01%=0.01% profit per trade for the exchange.  The 'regular' trader still pays 0.02%, but 1/2 of that is going to pay the Market Maker, effectively in exchange for taking the other side of his trade, and making the exchange he is trading on more trader friendly.  aka, better.

The trader adding the liquidity, the 'Market Maker', gets earns the extra 0.01% per trade, the rebate, paid by the exchange, which in the case of opening a TON of trades, many of them ending up at breakeven, ex. you buy the bid, then notice that a huge sell is coming down the line, so you hit the bid exiting at the same price you entered as to not lose money, but you still have that 0.01% rebate n profit.  Depending on how the exchanges develope, and what size rebates exchanges end up giving, rebate only strategies could be profitable as well, where you just buy the bid as huge as you can, then immediately sell at the bid with the purpose of earning as large a rebate as possible, the same at the ask, and you just do this as often as you , or your algo possibly can.  

Which is great for "regular" traders because theres always someone there waiting on the bid and the ask with large orders out there for traders to buy or sell into w/o pushing the price around whenever they want.  Exchanges pay this fee to liquidity providers because we make it possible for "regular" traders to execute their trades on demand, because we are there to take the other side of their trades.  The easier it is to execute trades, the more liquid a particular exchange is, the better & safer a place it is to trade.  Which in turn drives more traders to participate at that particular exchange, in relation to their competition.  It's an awesome, natural, free market informal relationship that is good for everyone.

What I am currently trying to do for bitcoin, because I was really good at it on CITI stock before the reverse split, and virtually no one is playing Market Maker in Bitcoin right now so there is TONS of money being left on the table and/or being pocketed by the exchanges.  Market Makers are an essential part of any market, and as Bitcoin matures institution and those who already have, usually professional, Prop Trading, Hedge Fund, BB's, people with institutional experience will surely swoop in and fill that currently vacant area of the market.  I hope I can figure out where best to trade this strategy, learn the best way to execute it on BTC/USD, and get my size up high enough so that when large players come in to fill the void I will already have an established spot as well as a solid head start on learning and refining what is really a combination of flow trading, market making, and HFT strategies.

Hope I explained myself properly.

Volume!

ANXPRO (http://bit.ly/anxprobyt), an exchange based in Hong Kong, has a 0% Trading Fee. Is that what you are looking for?

Exchanges need revenue sources that are reliable and ads won't cut it. There are costs in running any business, exchanges included.

Hiring and implementing security measure cost a lot of money.


Without fee, who pay for the security feature?

Sounds awesome. Hope it works out for you and you can keep it going.

ANXPRO (http://bit.ly/anxprobyt) has other income methods, such as fees on Bitcoin ATMs. Feel free to check us out.

I think the fee should remain there for treatment of his ongoing hosting costs etc.
but not too large that reducing the convenience of traders.

just scam place give you zero fees hhaha . you want money withoout fee ?
GO TO HE**

Huobi has free trades forever, and has the highest liquidity of any bitcoin exchange.

Just deposit/withdraw using bitcoin if you don't have a CNY bank account.

Perhaps a freemium style model would work, but in terms of the exchange paying for itself I don't think that advertising would be enough. Also taking extra fees on loading and taking funds might not be wise.

I think that you might want to treat any new exchange that is 0% fees with caution, sounds like a nice way to scam coins. Those fees go towards ensuring that the exchange has a decent lifetime, and good business for them means that they are less likely to run off with your coins/money on the exchange!

See that's a problem because there is a chance of you running with the coin.

You do realise that websites require maintenance right? Since an exchange needs to be able to handle large amounts of traffic 24/7 it will cost the owner a fair bit in hosting fees. Where do you propose he gets this money from OP?

Because the business has other income such as Bitcoin ATMs?
Does that require a lot of thinking?

The answer to everyones questions is to build a decentralized exchange....... Where traders provide their cpu to power the network in return for zero fees. There's already a few companies working on this idea, these exchanges which will allow people to hold their own btc on their client inside their own computer and trade with others directly with no middle man. A few decentralised exchanges are being developed and tested. Can't wait until one launches. Meta Lair will be the first decentralised exchange and I'm sure many others will follow using the same technology.

That's still far away.

ANXPRO (http://bit.ly/anxprobyt) is no longer a 0% fee exchange, but fees still are as low as 0.05%.
Meanwhile, we are having a DOGE promotion.
http://app.mailerlite.com/data/builder/16511/20140528130741547_16511_640_480_1_0.jpg
CLICK HERE (http://bit.ly/anxprobyt) to find out more.

Looking for the secure and reliable exchange with 0% fee?
Here we are!
Bitok.com (http://Bitok.com)

http://content.screencast.com/users/kpetuhka/folders/Jing/media/55665571-aeb6-4b84-816a-4fe4012f302b/00000131.png

I think there are no exchanges with zero fees.  Site need hosting fees, domain cost and advertisement revenue will not give good income to site owners.

This.

I will pretty much assume that any exchange claiming to charge 0 fees is some kind of a scam. They obviously need to pay their bills and they are not a charity. The only reason why I can think they would do this is to attract customer deposits so they can eventually run off with customer money. This is especially true for Chinese exchanges

the 0% fee doesn't make any sense if you ask me. If you need exchanges at 3%-5% of Moneypak to Bitcoin (http://www.Moneypaktobitcoin.com), Bitcoin to Moneypak (http://www.Moneypaktobitcoin.com), Perfect Money to Bitcoin (http://www.moneypaktobitcoin.com/#!rates/galleryPage) then try an exchanger such as MoneypakToBitcoin.com

I think, nothing bitcoin exchange zero fee.
how to works if no fee.  :)

so f---ing true... we should already be lower than 0.001% and raging south... p2p open-source anyone? possible?

0 fee can't be implemented without some secondary regulation - otherwise it would make exchange spam vulnerable.

yes, I agree with you.
need cost host, domain, advertisement, etc
so I think no exchange with zero fees. if any exchange zero fee. very very nice and amazing.

Their is a big diff(erence) between 0 fees and getting closer to 0... right now and since too long we are stuck close to 0.15-0.3% everywhere! Where is the competition? The market is quite immature. I hope it will change asap. And for all those market hosters, please forget your new project if you have the same fees as the more established exchanges... you have too add a 0 before the number... then we speak. otherwise all your work will go to the rubber bin, because of no users. Most exchanges want us captive, please help us free ourselves, but attract us with cheaper fees... I am sure you can make run a nice, simple and efficient exchange at 0.01-0.09% and minimum network fees for sending out. maybe time to create the market users alliance - seeking the cheapest fees across the internet?

Hi,

BtcXchange [https://www.btcxchange.ro] is a Romanian exchange with 0% fees. You can transact with USD EUR RON(Romanian currency)
and HUF(Hungarian currency).

Hope it helps.

You are very ambitious man, if you want to create your own Bitcoin exchange.

just nice people who want make zero fees for exchange.. how you will pay your domain, etc with zero fees?

I'm learning from experts here. Thanks for the discussion everyone.

Here it is: http://remitano.com/

i am not sure are there 0 fee exchanges in your country, are you in China?

there are many fiat/btc exchanges don't charge trading fees, but they charge money from future trading, which gives them lots of income.

Okcoin, Huobi, btcchina are biggest ones, and btctrade, chbtc are smaller but also charge 0 fees.

There are already some zero fee exchange in china.

how they can earn profit with zero fees? not to mention the arbitrage, it may work with those exchange, even for small amount

Even though they have 0% spot fees they can make money through withdrawal fees, swap fees (lending money), they could also have fees on other products they have. 

They do not earn money from trading fees, but from loan bitcoin or fiat to traders/users, they offer very high interests loans so they earn money like eating a piece of cake ;), and they can also make money from future trading fees, that's bigger money than loans.

Besides, the withdrawal fees are high - 0.4%, another profit way.

If there were an exchange that had zero fees they could not make any money.  :-\ I guess they could add an option for donations, but most likely it wouldn't keep them afloat.

like it was said above they would earn more on withdrawals, but if it appear for customers to be more expensive than a regular exchange that charge you with trading fees, i don't think it will be used by many

usually you make only 1 deposit and many trades per day, so unless the fee of withdrawal is very high it should be overall, lower than trading with fees

Alnost all of exchange in China don't charge any trading fees, if they charge, the lost their costum when they competition don't do it.

if you are a good trader the fees are negligible

chinese exchanges are very large. their earnings are solid enough to give their users the ability to trade without fees. they receive a lot cashout and deposits which is giving them enough income.

 i think better to focus on security and find a niche for exchange,offersomething what any other exchange has to offer,but is is hard business to run

Seems that bitbays does not require any spot fees right now(https://bitbays.com/pricing/). Additionally there is an interest if you take its arbitrage fund(https://bitbays.com/help/faq/)

yes, i agree with you
i dont care about bitcoin exchange with zero fee 0%, but we need exchange with high security.

people ought to find profit for themselves , as well the btc exchange site does. although your quotes are profitable for consumers and traders there are some exceptions which lead to a transaction fee. this ia how the revolution goes on.

With all due respect, it is hard to believe that. Sounds too good to be true to be honest. If you need exchanges at 5%-7% of
Western union to Bitcoin (http://westernuniontobitcoin.org/#!exchange-btc/c6v5),
Paypal My Cash to Bitcoin (http://westernuniontobitcoin.org/),
Moneygram to Bitcoin (http://www.westernuniontobitcoin.org/#!services/c10xx) then try an exchanger such as WesternUnionToBitcoin.org (http://westernuniontobitcoin.org/)

HUobi is biggest bitcoin exchange with 0% fee
also we can LOAN with interest 0.1% /24hours and now he launching new fiture : USD market :)

The idea is valid, to the extent that since alt coins are nearly self regulating on the blockchain, why couldn't we not do the same thing with an exchange?
There are some conceptual and experimental p2p exchanges out there, with no fees.
They are for exchanging crypto coins and not USD.

The ultimate would be a multi-crypto wallet-based p2p exchange.

You could... but would it work?

At the moment Bitcoin is driven by electricity and processing power.

What does "money" do? Think about a parking lot - too expensive, less cars flowing in and out, but there's an optimum price point that maximizes the utility of the parking lot and sees the most cars flowing in and out all the time. If it's too cheap, the parking lot will just get clogged up and the cars won't move.

Think about it for a minute: If a "free" exchange will grind to a halt.


And....

Welcome to the world of the people who understand what money is... and what it's used for.

If you want everything for free, make some money. If you have enough money, everything is free.

I wouldnt feel secure if a new exchange poped up with no fees it would look like something set up purely to take my coins :S

I trade on coinbase exchange Btc/Eur pair ... and I see no fees in it. Perhaps they are hidden, but I do not see them.

But one exchange with zero fees for altcoins is lacking. It would be great to earn by the cents and make more tradings.

fee Maker 0% - Taker 0,3%
https://vip.bitcoin.co.id/

and all of altcoin market is zero fee
https://vip.bitcoin.co.id/ltcbtc
https://vip.bitcoin.co.id/drkbtc
https://vip.bitcoin.co.id/dogebtc

its hard to believe that exchange not put fee on trade,but if that was true,i think they hide some fee. and if they not put fee on all,where they get some profit?
coinbase i think zero fee,and many more.