UK Exchange Coinfloor Embraces 'No-Fee' Bitcoin Trading

[alyssa85]

http://www.coindesk.com/uk-exchange-coinfloor-embraces-no-fee-bitcoin-trading/

London-based digital currency exchange Coinfloor has announced it will adopt a 'no-fee' bitcoin trading policy beginning later this week.

With the move, Coinfloor, one of the larger players in bitcoin's still nascent GBP market, embraces a pricing strategy that is comparable to the industry's largest, though primarily China-based exchanges, which have long withheld fees on bitcoin-denominated trades.

Speaking to CoinDesk, exchange representatives indicated that the move is designed to boost liquidity at the exchange, the largest GBP bitcoin trading platform by volume, according to data from Bitcoinity.

...Coinfloor said it will continue to charge for bitcoin withdrawals, as well as GBP deposits and withdrawals.

My feeling is that this is just an introductory offer and when they have enough liquidity they will start charging fees for trading.

[1713256878]

1713256878

[1713256878]

1713256878

[notme]

http://www.coindesk.com/uk-exchange-coinfloor-embraces-no-fee-bitcoin-trading/

London-based digital currency exchange Coinfloor has announced it will adopt a 'no-fee' bitcoin trading policy beginning later this week.

With the move, Coinfloor, one of the larger players in bitcoin's still nascent GBP market, embraces a pricing strategy that is comparable to the industry's largest, though primarily China-based exchanges, which have long withheld fees on bitcoin-denominated trades.

Speaking to CoinDesk, exchange representatives indicated that the move is designed to boost liquidity at the exchange, the largest GBP bitcoin trading platform by volume, according to data from Bitcoinity.

...Coinfloor said it will continue to charge for bitcoin withdrawals, as well as GBP deposits and withdrawals.

My feeling is that this is just an introductory offer and when they have enough liquidity they will start charging fees for trading.

It is perfectly possible to cover their expenses with fees on "bitcoin withdrawals, as well as GBP deposits and withdrawals".  0 fees is a perfect environment for liquidity providing trading bots.  However a maker-taker fee structure that is free for makers can accomplish the same thing while preventing wash trades.

[Mark.L]

It is perfectly possible to cover their expenses with fees on "bitcoin withdrawals, as well as GBP deposits and withdrawals".  0 fees is a perfect environment for liquidity providing trading bots.  However a maker-taker fee structure that is free for makers can accomplish the same thing while preventing wash trades.

We are planning for this to be a long term, sustainable fee model. The fiat deposit/withdrawal fees are now percentage fees (in addition to banking / blockchain fees)  and we are investigating margin trading to earn revenue from loans. We have strong liquidity now, with consistent and reliable market makers. This isn't something we're doing purely to attract liquidity, it's something we're doing because we believe it's the best fee model - for us and our clients.

[sir.humus]

It is perfectly possible to cover their expenses with fees on "bitcoin withdrawals, as well as GBP deposits and withdrawals".  0 fees is a perfect environment for liquidity providing trading bots.  However a maker-taker fee structure that is free for makers can accomplish the same thing while preventing wash trades.

We are planning for this to be a long term, sustainable fee model. The fiat deposit/withdrawal fees are now percentage fees and we are planning to launch margin trading to earn revenue from loans. We have strong liquidity now, with consistent and reliable market makers. This isn't something we're doing purely to attract liquidity, it's something we're doing because we believe it's the best fee model - for us and our clients.

Welcome to the forum!

Are you a formal representative of Coinfloor?
You should post some more introduction post so poeple will know you, and so you'll gain some rank.
Then you'll be able to add a signature, but in the meantime try to manualy sign your posts.

[Serpens66]

It is perfectly possible to cover their expenses with fees on "bitcoin withdrawals, as well as GBP deposits and withdrawals".  0 fees is a perfect environment for liquidity providing trading bots.  However a maker-taker fee structure that is free for makers can accomplish the same thing while preventing wash trades.

We are planning for this to be a long term, sustainable fee model. The fiat deposit/withdrawal fees are now percentage fees (in addition to banking / blockchain fees)  and we are investigating margin trading to earn revenue from loans. We have strong liquidity now, with consistent and reliable market makers. This isn't something we're doing purely to attract liquidity, it's something we're doing because we believe it's the best fee model - for us and our clients.

You write you will introduce precentage fees on deposit withdrawal... is it the fee you can on the bottom of this page, so by default 0.38% ?!
https://www.coinfloor.co.uk/fees
0.38% is for every fiat deposit, EUR, GBP and USD ? How about Bitcoin deposit/withdrawal?

I personally don't thinki that this is a good strategy...
Most people are used to exchange trading fees, so they don't care about ~0.2% trading fee.
But at least EUR users are used to very small transfer fee (like you had previously 1.5€ per transfer). If you now increase it to 0.38%, there will be alot less users who will even consider to use your exchange, cause of the incredible high deposit/withdrawal fee.

If you will keep this strange fee modell, you should make seperate fees for each fiat currency. EUR is cheap for you and of course I won't deposit/withdraw some EUR at your exchange if it is that expensive.
To buy some bitcoins it is cheaper to deposit at another exchange and pay ~ 0.2% trading fee once, than depositing for 0.38% fee and pay 0 fee for trading.

And as you should already know from chinese exchanges, 0% fee is very good for "fake volume" so just some bots that trading the same btc thousand times.. so your exchange will be known as a "fake volume" exchange. As "notme" already mentioned, a 0% maker fee and x% taker fee would be better.

So to sum it up, I don't think it is a good decision. But maybe you can proove me wrong.


Edit:
But maybe I will try to sign up and deposit money before you introduce the high deposit fee...

[Miz4r]

And as you should already know from chinese exchanges, 0% fee is very good for "fake volume" so just some bots that trading the same btc thousand times.. so your exchange will be known as a "fake volume" exchange. As "notme" already mentioned, a 0% maker fee and x% taker fee would be better.

How does it hurt anyone if bots create a lot of 'fake volume'? If anything it's good as it creates a lot of liquidity, and it's also good for those of us making a lot of trades.

[Serpens66]

And as you should already know from chinese exchanges, 0% fee is very good for "fake volume" so just some bots that trading the same btc thousand times.. so your exchange will be known as a "fake volume" exchange. As "notme" already mentioned, a 0% maker fee and x% taker fee would be better.

How does it hurt anyone if bots create a lot of 'fake volume'? If anything it's good as it creates a lot of liquidity, and it's also good for those of us making a lot of trades.

Liquidity is not fake volume.
It is fake volume if bots trading the same bitcoins back and forth without the intention to trade.
So a normal user or trader won't profit in any way from this, cause these fake bots will only trade with themself, never with other users.
I don't say that there will be fake volume. But it is very likely and you can tell for sure, that you should not trust the volume, just because of this possibilty.

[Shiroslullaby]

No fees is actually huge if you trade a lot.
Hopefully the site will be able to sustain themselves and make a profit with their proposed model.
I will definitely be keeping an eye on this exchange. Best of luck to you!

[cakravothy]

coinfloor exchange is old exchanger
but not popular, iam first hear about coinfloor exchanger

and coinfloor still can charge fee
you can read in rule fee in coinfloor in here https://www.coinfloor.co.uk/fees

[eddie13]

It is perfectly possible to cover their expenses with fees on "bitcoin withdrawals, as well as GBP deposits and withdrawals".  0 fees is a perfect environment for liquidity providing trading bots.  However a maker-taker fee structure that is free for makers can accomplish the same thing while preventing wash trades.

We are planning for this to be a long term, sustainable fee model. The fiat deposit/withdrawal fees are now percentage fees (in addition to banking / blockchain fees)  and we are investigating margin trading to earn revenue from loans. We have strong liquidity now, with consistent and reliable market makers. This isn't something we're doing purely to attract liquidity, it's something we're doing because we believe it's the best fee model - for us and our clients.

No Americans allowed eh?
https://coinfloor.zendesk.com/hc/en-us/articles/201745793

[Wind_FURY]

Here we go again, another exchange with fake volume. The Chinese exchanges have been doing this and I still do not know how they make money if they have zero fees. Do they trade against their clients and customers? That should not be allowed because exchanges are supposed to be neutral. Manipulation could happen if they are not.

[pooya87]

well this exchange has no volume, it in fact has a very small percentage of the trading volume in the world. compared to the top volume it only has 2% of that.
so my guess is that it is mostly done to attract more customers and increase their volume then introduce more methods to make more money.
and even if they don't change their 0 fee policy, remember that Chinese exchanges have been making money for all these years with 0 fee. there are also shady ways

[NUFCrichard]

Sounds like a traders paradise, but a bit of a nightmare for 'normal' people!
If I decide I would like to sell 5 Bitcoins, when I withdraw my $4500, I pay 0.38% i.e. $17.1!

That is a lot to withdraw my money, a flat rate would never be that high, and the example given is only 5 Bitcoins
Traders should be welcomed, but I don't see why bots should trade for free, but people wanting to invest in Bitcoin should get screwed.

Good luck to them anyway, we'll see if it works out for them

[alyssa85]

Sounds like a traders paradise, but a bit of a nightmare for 'normal' people!
If I decide I would like to sell 5 Bitcoins, when I withdraw my $4500, I pay 0.38% i.e. $17.1!

That is a lot to withdraw my money, a flat rate would never be that high, and the example given is only 5 Bitcoins
Traders should be welcomed, but I don't see why bots should trade for free, but people wanting to invest in Bitcoin should get screwed.

Good luck to them anyway, we'll see if it works out for them

Yup, it's a lot of money, and the no fee model is only worth it for traders who trade constantly. No sure there are that many traders TBH, but there are a lot of ordinary bitcoiners like you who would like to sell only occasionally.

[LLec]

No fees. This doesn't look to promising because these never last too long and are looking to get people to put their money into their exchange as fast as they can so they can make a getaway even quicker.

[European Central Bank]

No fees. This doesn't look to promising because these never last too long and are looking to get people to put their money into their exchange as fast as they can so they can make a getaway even quicker.

they've been around for a long time and they're the only exchange which regularly publishes audits.

[alyssa85]

No fees. This doesn't look to promising because these never last too long and are looking to get people to put their money into their exchange as fast as they can so they can make a getaway even quicker.

they've been around for a long time and they're the only exchange which regularly publishes audits.

The bit about audits is very good to know.

[Wind_FURY]

well this exchange has no volume, it in fact has a very small percentage of the trading volume in the world. compared to the top volume it only has 2% of that.
so my guess is that it is mostly done to attract more customers and increase their volume then introduce more methods to make more money.
and even if they don't change their 0 fee policy, remember that Chinese exchanges have been making money for all these years with 0 fee. there are also shady ways

That will make the regulators and the authorities arrest the people behind the exchanges that deal in shady ways. I hope they have enough money saved to get a good lawyer. Or they could opt for the better way and that is to remain anonymous and most importantly honest just like how they run BTCe. They have been honest so far.

[Karpeles]

http://www.coindesk.com/uk-exchange-coinfloor-embraces-no-fee-bitcoin-trading/

London-based digital currency exchange Coinfloor has announced it will adopt a 'no-fee' bitcoin trading policy beginning later this week.

With the move, Coinfloor, one of the larger players in bitcoin's still nascent GBP market, embraces a pricing strategy that is comparable to the industry's largest, though primarily China-based exchanges, which have long withheld fees on bitcoin-denominated trades.

Speaking to CoinDesk, exchange representatives indicated that the move is designed to boost liquidity at the exchange, the largest GBP bitcoin trading platform by volume, according to data from Bitcoinity.

...Coinfloor said it will continue to charge for bitcoin withdrawals, as well as GBP deposits and withdrawals.

My feeling is that this is just an introductory offer and when they have enough liquidity they will start charging fees for trading.

It is perfectly possible to cover their expenses with fees on "bitcoin withdrawals, as well as GBP deposits and withdrawals".  0 fees is a perfect environment for liquidity providing trading bots.  However a maker-taker fee structure that is free for makers can accomplish the same thing while preventing wash trades.

of course cover the expenses with deposits and withdraws will be only a plausible excuse

they will get much more by trading their own coins, and maybe will try some market manipulation, like some people accuse the chinese exchanges to do.

at least the chinese won't be the only ones with 0% fees, if this exchange succeeds

[Redrose]

This is for me the best way to make profit : enable fee-free trades, so you can have a true free Bitcoin exchange, where people do not start with a negative profit just for a trade, and add a fee on deposits and withdrawal. That way you will also have lots of bots playing on the exchange, and this provides a welcome added fluidity.