Binance, a cryptocurrency exchange, has announced that it now provides zero-fee trading for Ethereum (ETH), the second most popular cryptocurrency. Starting on August 26, its customers will be able to trade ETH for free against the native Binance USD (BUSD) stablecoin.
For one month, Binance traders will be able to benefit from the fee reduction. In July, the world’s largest cryptocurrency exchange also reduced trading fees for several Bitcoin pairs to zero.
The change was timed to coincide with its fifth anniversary. Binance’s US-based affiliate first experimented with zero-fee trading in late June.
It removed fees for American traders in a bid to draw more customers and reduce Coinbase’s market share in the United States, where it retains the industry leader. Because of dropping pricing and waning interest in cryptocurrencies, exchanges are looking for new ways to keep their users.
It remains to be seen whether Binance will usher in a new era of cryptocurrency exchanges. The stock trading software Robinhood popularized the concept of no-fee trading. It compelled legacy players like Charles Schwab to adopt this method within a few years.
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