CNBC Crypto World Binance US chief reveals why the company dropped bitcoin trading fees

today avalanche adds native bitcoin support to its platform finance us ceo brian schroeder explainswhy the exchange decided to cut bitcoin trading fees to cnbc's crypto world i'm tanaya mchillmajor cryptocurrencies are trading flat today by noon eastern bitcoin was worth about 20 thousand dollars and ether traded just below 1100 meanwhile avalanche's avax tokens surged today the platform added native support for bitcoin and the move caused the platform's token to pop as much as seven percent after the announcement okay we're jumping right into our main story of the day crypto world's kate rooney caught up with finance u.s ceo brian schroeder to ask about the exchange's decision to cut bitcoin trading fees his reaction to crypto winter and more finance u.s so this is the American affiliate of the largest global crypto exchange offering zero free trading for bitcoin how's that gonna happen and how are you making money on this so i think that um you know we since our inception have been known as the low cost leaders in the space and with this announcement what we wanted to do is establish ourselves as the very clear world leaders in pricing and so um you know what is i think completely innovative about what we're doing is it's driving more value to our customers which is precisely.

CNBC Crypto World Binance US chief reveals why

the people that we had in mind when we made the announcement i think in the crypto space itself there is not a lot of user education around pricing right so not many people know that when they trade for example on coinbase's retail app using like a debit card or credit card to buy a bitcoin they could be charged up to four percent for that transaction uh now with finance us you are charged absolutely zero no hidden fee is just free and you know we we feel this is a very exciting time for us to come out and put that uh message out there and to uh drive new user growth so how is a company like coinbase been able to charge four percent is it because there's not other us-based options um why would somebody pay four percent on a crypto trade it's a it's a great question i feel like most people don't know that they're paying four percent and i think to answer your question of uh why i think you know coinbase has been around for over 10 years uh we launched our app uh in january 2020 so we're about two and a half years old uh we also have not done any marketing historically so you've never seen a binance us facebook ad or instagram ad um we've kind of plowed that into ensuring that we can keep our fees as low as possible and on the back end so i know robinhood is another stock exchange app or trading app .

CNBC Crypto World Binance US chief reveals why

that um doesn't charge fees and also has the same model on crypto but does sort of rebates on the back end is that the case here with finance are you making money back end no so um the robin hood model is very different because what they do is they effectively go out to the market they buy 98 dollars worth of bitcoin uh for themselves and then they sell it to the retail user for 100 right so they actually take a two dollar spread at finance us we actually have an open order book so if you download the binance us app and you actually look at the trading platform you can actually see all the open buy and sell orders and then the market price is you know when when the two match and so we as finance us actually don't get involved in the transaction at all so it's a finance us user transacting with a finance us user and for bitcoin uh it's now completely free so you guys are sort of the matchmaker in this and you don't take any you take nothing you take no spread here correct without question we are you knowthe best platform in the world to buy bitcoin for that reason because there's today avalanche adds native bitcoin support to its platform finance us ceo brian schroeder explains why the exchange decided to cut bitcoin trading fees to cnbc's crypto world i'm tanaya mchill major cryptocurrencies are trading flat today by noon eastern bitcoin was worth about 20 thousand dollars and ether traded just below 1100 meanwhile avalanche's avax tokens surged today.

CNBC Crypto World Binance US chief reveals why

the platform added native support for bitcoin and the move caused the platform's token to pop as much as seven percent after the announcement okay we're jumping right into our main story of the day crypto world's kate rooney caught up with finance u.s ceo brian schroeder to ask about the exchange's decision to cut bitcoin trading fees his reaction to crypto winter and more finance u.s so this is the American affiliate of the largest global crypto exchange offering zero free trading for bitcoin how's that gonna happen and how are you making money on this so i think that um you know we since our inception have been known as the low cost leaders in the space and with this announcement what we wanted to do is establish ourselves as the very clear world leaders in pricing and so um you know what is i think completely innovative about what we're doing is it's driving more value to our customers which is precisely the people that we had in mind when we made the announcement i think in the crypto space itself there is not a lot of user education around pricing right so not many people know that when they trade for example on coinbase's retail app using like a debit card or credit card to buy a bitcoin they could be charged up to four percent for that transaction uh now with finance us you are charged absolutely zero.