Binance, the largest cryptocurrency exchange by trading volume, has announced zero-fee trading for BTC/FDUSD and ETH/FDUSD pairs. Trading for these pairs will begin on August 4, 2023, at 08:00 UTC. Binance will also offer zero-fee spot and margin trading for the two pairs.
The zero-fee trading feature for BTC/FDUSD is part of Binance’s Zero-Fee Bitcoin Trading Program. During the promotion period, trading volume for BTC/FDUSD will not be included in the VIP tier volume calculation and other programs. BNB discounts and referral rebates will also not apply to these trading pairs.
Additionally, Binance is introducing zero maker fee for ETH/FDUSD through the FDUSD Zero Maker Fee Promotion. However, the standard taker fee will still apply based on a user’s VIP level.
Binance has set certain conditions for the promotion, including the right to disqualify trades that are considered wash trades or involve illegally bulk registered accounts. The exchange also has the power to disqualify trades that are deemed to be market manipulation or self-dealing.
This move comes after Binance ended zero-fee trading for BTC and terminated the zero-maker fee program for Binance USD (BUSD), replacing it with TrueUSD (TUSD). These changes have caused a decline in Binance’s market dominance and trading volume, leading to a decrease in liquidity and affecting cryptocurrency prices.
What is FDUSD?
FDUSD refers to First Digital USD, which is a stablecoin. Stablecoins are cryptocurrencies that are pegged to a stable asset, usually a fiat currency like the US dollar, to minimize price volatility.
What are spot and margin trading?
Spot trading involves buying or selling cryptocurrencies for immediate settlement using the current market price. Margin trading, on the other hand, allows traders to borrow funds to trade larger positions than their account balance would allow. It involves using leverage to amplify profits or losses.
What are BNB discounts?
BNB discounts refer to discounted trading fees available to Binance users who hold Binance Coin (BNB). Binance Coin is the native cryptocurrency of the Binance exchange.
How do VIP levels affect trading fees?
Binance has a tiered VIP program where users can unlock higher VIP levels based on their trading volume and BNB holdings. Higher VIP levels offer reduced trading fees.