India’s Zebpay has made a big change to its fee structure. In fact, it has eliminated all standard fees, including maker, taker, and intraday special fees. You can see the Zebpay fee structure here, but it really is as simple as we’ve already stated. Zebpay is free to use, even if you want to buy Bitcoin with fiat.
In press materials, Zebpay admits that it has historically received 90% of its revenue from its former 0.25% trading fees (the same rate applied for both maker and taker). To drop this cash cow is a big decision for a major exchange, and it’s one that has some industry watchers scratching their heads. So what gives? Why is Zebpay going fee-free?
Free trading with Zebpay sounds awesome…and there doesn’t seem to be a catch.
To take Zebpay’s word for it, canceling fees is in the spirit of cryptocurrency itself. Crypto, they say, is about freedom and financial opportunity. Traders don’t want to be see their returns chipped away by frequent trading fees, however cheap, so nixing fees entirely will be good for the market and its denizens.
More likely, Zebpay sees feeless trading as a differentiator that could set it apart in the market. Even Binance with its 0.05% BNB trading rate can’t combat free, and Coinbase’s astronomical 3.99% starting rate seems like highway robbery in comparison.
It’s important to note here that Coinbase really is the more equal competitor here, as Zebpay is a fiat onramp exchange. Not even Gemini Exchange can approach fee-free trading, even though it’s much cheaper than Coinbase to buy Ethereum and the like.
We see Zebpay’s decision as a courageous move at this moment in cryptocurrency history. With the ongoing crypto bear market, many crypto traders have left the space. Those that remain can’t sustain hundreds of active crypto exchanges as they could during the markets’ busiest days.
Zebpay wants to make a power move in this environment, stealing on-the-fence users from Coinbase and other major providers. Even though Zebpay is Indian, they can possibly accomplish this goal. Zebpay is available in 131 countries, after all, so its reach (if not its current user base) is as significant as Coinbase.
With users leaving Coinbase by the thousand for security, privacy, and other complaints, Zebpay wants to prove that it is a safe new home. Zebpay has never had a major hacking incident, and it’s now cheaper than anywhere else. Accepting fiat is just the icing on the cake. More libertarian-minded Western crypto traders may also like the idea of dealing with a non-domestic exchange, as Coinbase has capitulated with IRS (Internal Revenue Service) demands for user data in recent years.
Whatever the reason for this move, it means amazing savings for crypto traders, so it’s definitely something we can get behind.
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