What do you guys think about zero-fee crypto trading?

[Findingnemo]

Zero fee for the particular pair? No thanks, it is an attempt to pump the project I guess and they got paid for it already.

It is better to find the obvious ones like native tokens get discounts on fee or just pick the ones among the cheapest and also got the trading volume to handle the trades.

[Alphakilo]

Zero fee for the particular pair? No thanks, it is an attempt to pump the project I guess and they got paid for it already.

It is better to find the obvious ones like native tokens get discounts on fee or just pick the ones among the cheapest and also got the trading volume to handle the trades.

I would always appreciate when I trade, I pay my fees and do my transactions smoothly rather than look for zero fees trading and get stuck along the way because I believe volatility has a role to play here and am sure no exchange want to run out of business soon.

There are new regulations particularly in Europe that force the evolution of these zero fees models, but there always has to be a catch behind so no lose is incurred because some try to take advantage of the zero fees service.

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[gunhell16]

If there are exchanges that offer zero trading fees, there is still a trick behind it as part of their marketing strategy. I'm sure they won't do it for free; of course, they are building a community for their platform so that many traders will deposit funds into their exchange.

But that's not what they will do for a lifetime; it's more about attraction to get fish. That's all I see in that matter, actually. We just don't really notice or realize that,
but that's the truth in my opinion.

[Oluwa-btc]

But obviously, it’s not completely free.
So the cost is still there, just not as visible as a trading fee.

Just wondering - do you think zero-fee trading is actually sustainable, or is it more of a user acquisition strategy?

Even if the opportunity of zero fee on crypto trading is certain it'll last for for just sometime because such bonuses are given to users more like a mode of attraction ha havibg them hooked with trading significant figures.mostly alot of traders or users are always please with the such bonus offers cause they tend not to lose anything after all.

[Findingnemo]

Zero fee for the particular pair? No thanks, it is an attempt to pump the project I guess and they got paid for it already.

It is better to find the obvious ones like native tokens get discounts on fee or just pick the ones among the cheapest and also got the trading volume to handle the trades.

I would always appreciate when I trade, I pay my fees and do my transactions smoothly rather than look for zero fees trading and get stuck along the way because I believe volatility has a role to play here and am sure no exchange want to run out of business soon.

There are new regulations particularly in Europe that force the evolution of these zero fees models, but there always has to be a catch behind so no lose is incurred because some try to take advantage of the zero fees service.

Two ways that exchanges make most of their revenue are from trading fees and then withdrawal fee so when an exchange says zero trading fee or zero withdrawal fee then I am sure there will be some hidden catch behind it. Time to check everything clear even if it looks legitimate and make sure there is enough trading volume for the market price, and withdrawals are getting processed as it should be and anything further that doesn't delay the transaxtions.

[yhiaali3]

I do not believe in anything being absolutely free. Zero fees are a marketing strategy followed by some exchanges and other services to attract more investors, but in reality, they are either not real or are only temporary.

Trading may indeed have zero fees, but in return they raise price slippage, for example, or withdrawal fees or other features. This means that they take with their left hand what they give with their right. What is the point of creating exchanges if they are not going to make money?

[BRINIRHA]

Usually, this is only temporary and is really just a marketing strategy to attract more users to a particular platform. After all, we know that even if a platform offers one trading pair for free, they can still make a profit from other trading pairs. And typically, a trader doesn’t trade just one trading pair. Personally, I’m not particularly interested in platforms that offer zero trading fees. Because what matters most is the trust and security the platform provides. Mexc frequently runs great promotions. Sometimes they even offer trading fee vouchers, allowing us to trade various pairs without fees since the costs are covered by the vouchers. And that can be more helpful.

[Mpamaegbu]

But obviously, it’s not completely free.

Honestly, I don't expect it to be completely free. If it's, it won't be sustainable over a period of time. Except there's external funds coming in to cover for running cost of the exchange. Equipment and staffers have to be greased and maintained. It shouldn't be free. I know Binance did something like that when it started, I guess with transactions with the BNB token. It was in order to drive traffic to that token and I believe it worked. Outside of that, I don't think a complete zero trading fee will be a reasonable business strategy.

[uneng]

spread
slippage
and funding rates if you’re in futures

Then it's worst than having fees, because you don't know formally how much you are wasting on commissions to the platform. I prefer when the informations are clear and transparent, so we can calculate exactly how much profit is being made and how much the platform is grabbing for themselves.

I see zero-fee platforms are just using this as marketing to lure users into the false belief they aren't paying anything in order to trade, although we know isn't true. Hidden fees is always worse than having to pay fees...

[Dareo]

I would say that it is not really free, it seems like a slightly twisted system. 0% fee sounds nice, but the cost is covered in other ways like OP mentioned. I will say that the most important thing is that slippage means that the price you want to trade at may not actually be executed at that price. It depends on the liquidity and volatility of the market and increases your actual cost. So, it is not right to make a decision based on 0% fee alone. The real thing is the total cost that comes with the spread, slippage and execution. Many times when you look at these together a good exchange can be more profitable even with the fees.

[Arenga pinnata]

Normally, I wouldn’t be very interested. Besides, it’s only a fairly small amount in spot trading. But if we’re talking about futures trading, then I usually use it for some quick trades that I occasionally make, though very rarely. However, if that offer comes on another platform that I don’t usually use, I wouldn’t be interested at all. But what I prefer is the free withdrawal service with no fees, like the one the BEP20 network used to offer, which is now also being adopted by the PLASMA network. 

[Hamza2424]

Just wondering - do you think zero-fee trading is actually sustainable, or is it more of a user acquisition strategy?

Also curious if anyone here has compared execution quality on zero-fee pairs vs normal ones.

Hmm bro zero fee trading is the oldest trick, I mean it did look like we are not paying the transaction fee or like the exchange is not making the money in here by giving us the zero fee trading option. But in reality, they are taking money from the market makers like Robinhood, which launched zero commission stock trading and they charged from market makers while traders were not paying the fee, which instead was not visible.

Exchanges make money from trading fee, lending programs, listing fees etc, but this only works for high liquidity pairs. They can't make much from low pairs, but they do have ways for low pairs as well, and it can be expensive too.

Those who are trading a lot, have to pay a lot of fee combined and I think zero fee is a user acquisition strategy first then it is a business model.

[r_victory]

Responding to everyone who mentioned hidden fees. I've noticed this even when simply converting one cryptocurrency to another, not like the swap, for example, but in the "convert" option on Binance. I use it quite a bit to convert to my local currency. It explicitly states that there are no fees, but every time I convert, there's a difference in the final value. So far I haven't found where this difference comes from, because in fact the fee appears as zero.