While the early days of crypto trading were relatively simple and affordable due to fewer market participants and lower fees, it has become more convoluted and expensive as digital assets become closer to mainstream attention. Starkly contrasting the blockchain ethos, the crypto industry has started introducing increasing costs hidden behind layered fee structures. 

As more people have started using crypto for transactions and digital asset trading, fees associated with crypto trading have become more and more complicated —especially difficult for crypto newcomers to understand. Factors like the trade size, the payment method used, the liquidity, the volume of the selected platform and even your geolocation are being factored in for determining the trading fees.

Trading fees are coming right after security concerns as a major problem for crypto traders. Source: Statista 

High crypto trading fees are a problem 

Crypto traders see paying high trading fees as one of the biggest problems in the crypto industry —only second to security issues — according to a Statista survey. Over one-third of crypto traders are unhappy with the fees they pay for trading, and, according to another research, the fee amount is the second-most important parameter when picking a trading platform. 

The trading fee amount is the second-most important factor for users when picking a crypto exchange. Source: BDC Consulting

After all, higher fees can mean less crypto for the same amount of money. And this is where lower trading fees become a major competitive edge for crypto exchanges. Platforms that offer a transparent and simple fee structure have an easier time standing above the competition. 

Robinhood Crypto, a popular United States-based trading platform, aims to become the go-to place for traders. Robinhood is known for its commission-free stock trading, and the platform introduces the same approach to the crypto market.  

Commission-free crypto trading 

Robinhood’s recently launched cost dashboard shows the cost of some of the top U.S. crypto trading platforms from March 2024, claiming that users can get up to 3.5% more crypto on average with Robinhood Crypto thanks to its commission-free trading.

Robinhood Crypto pricing dashboard displays a cost comparison for crypto purchases of varying amounts. Source: Robinhood Crypto 

Having no commissions on a “typically” commission-based business seems counterintuitive. Robinhood Crypto explains that the platform generates revenue through volume rebates from trading venues. For every $100 of notional value for executed crypto orders, Robinhood receives $0.45 in rebates from its trading venues, the website reads. 

“Commission-free crypto trading isn’t a gimmick, marketing scheme or some limited-time offer, it’s core to our mission,” notes Robinhood’s initial announcement about commission-free crypto trading: 

“In the same way that many financial institutions now offer commission-free stock trading after Robinhood paved the way, we hope the same will become the norm for cryptocurrency.” 

Highlighting this trend, Robinhood saw a 75% monthly jump in crypto trading volume between October and December 2023. The company also recently launched crypto trading services in Europe.

Secure crypto trading 

Aside from low-cost trading, Robinhood Crypto aims to build a safe and trusted crypto trading environment. The platform has taken a relatively conservative approach to its listings to protect its users against less-trustworthy digital assets. 

Robinhood Crypto said that the platform doesn’t combine customer funds, which are mostly held in cold storage, with business funds other than for operating purposes. Its infrastructure is under constant surveillance, with its security team and third-party experts routinely reviewing and testing the platform for any vulnerabilities.  

Robinhood Crypto customers’ funds are also insured against potential losses caused by theft or cybersecurity breaches across the platform’s storage systems.  

Low-cost trading for further crypto adoption 

Robinhood’s commission-free trading model represents a shift toward making crypto trading more accessible and affordable for the general public, challenging traditional fee-based models and aligning with the original ethos of blockchain technology —democratizing access to financial services.  

Moreover, Robinhood’s focus on creating a secure trading environment complements its low-cost trading strategy, addressing two of the most critical concerns among crypto traders: cost and security. 

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