TradeStation Crypto Inc., the crypto division of TradeStation Group, has announced a new reduced price plan that claims to reduce the fees by 50% as far as taker fees are concerned and additional maker fees.
This comes at a time when the competition between crypto exchanges is heating up for the acquisition of new users and clients as the crypto domain has been seeing a renewed and massive interest over the last few months. This has coincided with increased volatility in the crypto prices and with institutions also joining the fray, the race in trading fees has well and truly begun, to the benefit of the traders.
“TradeStation Crypto’s goal is to put the customer first, whether new to crypto or a seasoned crypto trader,” said James Putra, TradeStation Crypto’s Vice President, Product Strategy. “Not only do we not play games with hidden or embedded fees, but we also pay our crypto brokerage customers interest on eligible crypto assets in their accounts. We have one of the most competitive crypto offerings in the market.”
As the trading volumes begin to rise, so have the complaints about high fees and hidden fees charged by various crypto platforms. Some platforms claim to charge no fees but actually, the fees and commissions are added to the spread between the bid and ask, just like the FX markets. Many crypto exchanges also charge fees for deposits, withdrawals, and crypto custody as well.
TradeStation Crypto has said that it would not charge fees for deposits, withdrawals, and custody and this is likely to benefit the users in the long run as reduced fees would mean that scalping strategies would also do well in the crypto markets. For now, many of the strategies that depend on 5 or 10 point moves have become worthless due to the high costs involved.
TradeStation also says that it would be paying interest of up to 6% for the balance on certain types of crypto held in its accounts. This is another strategy adopted by many crypto exchanges to encourage the users to hold their balances with them and this is a win-win situation for the users and the exchange as well. Fiat currencies would not be able to fetch this kind of interest returns anywhere and hence this is an added attraction for the crypto markets.
The crypto exchanges, including TradeStation, are also adding to their liquidity streams in anticipation of large institutional flows in the coming months as the crypto market gains traction among HNIs and institutional investors as well.