Cryptocurrency exchanges maintain a certain fee structure to remain profitable. At certain times, that structure needs to be updated to reflect the current market conditions. Users of Coinbase Pro will notice some crucial changes regarding their trading fee structure. It is not a bad change, yet the platform remains one of the more expensive ones to use at this time.
Higher Fees for Small Traders
As is usually the case where any business is concerned, small-scale users will notice financial changes a lot quicker compared to anyone else. For Coinbase Pro users, that situation is no different. Anyone trading less than $10,000 worth of cryptocurrency every month will pay a 0.5% fee for both maker and taker in the near future.
Those fees quickly drop off when users start to up their trading game, however, Even so, those who want to pay zero fees will have to accumulate a monthly trading volume of $50m or more. Even then, they still pay a 0.1% taker fee, which shows these companies deal with a lot of expenses that need to be covered in the process. Making this cheaper is not as easy as everyone may think or like.
More Expensive Than Most
It is evident that competition is heating up among cryptocurrency trading platforms. Customers can benefit from many different options, including the likes of Binance, Bitfinex, Bitstamp, and so forth. It all depends on which currencies one is looking for and how much volume a trader can generate in the process. Coinbase Pro is not an exchange catering to traditional users, as that is why Coinbase itself is still a separate entity.
Even so, it is evident that the new fees employed by Coinbase Pro make it one of the more expensive solutions. Their varying tiers may change that outlook a bit, depending on how much money is changing hands on a regular basis. Platforms such as Binance, Bitfinex, Coinspot, and Huobi seem to offer lower fees overall. On the other hand, Shakepay, Gemini, and BTCMarkets are a lot more expensive. It is difficult to find any middle ground in this industry.
Customers Aren’t too Amused
When changes like these are introduced, it is impossible to please everyone. That becomes all the more apparent when looking at the handful of comments provided in this blog post. A lot of users dislike the idea of raising trading fees, primarily because of the timing. the industry as a whole is still recovering from a brutal period of bearish pressure. One would expect lower fees to be introduced, as that can help attract more users for both branches of Coinbase alike.
There are also concerns as to why the lowest tier of users has to suffer a near 300% increase in both maker and taker fees. While Coinbase Pro confirms they have added more tiers below $100,000 in monthly volume to reduce these fees, it is not necessarily the best solution. For the company, these new fees will probably make a lot of sense. For the end user, however, the situation is very different. Whether or not there will be any real negative impact, remains to be determined.