Fidelity Investments, one of the leading brokerage companies globally handling more than $9.9 trillion in assets, has announced that it will be making crypto trading available to its retail investors at no commission. Last week the company allowed intending traders to join a waitlist of those who will be granted access first once the trading platform is opened for business.
Through Fidelity’s fully owned subsidiary, Fidelity Digital Assets, retail investors will be able to sell or buy Bitcoin as well as Ether, in addition to making use of the other trading and custodial services availed by Fidelity Digital Assets. Fidelity has named the crypto trading service Fidelity Crypto. Anyone using Fidelity Crypto will be required to maintain $1 as the minimum balance on their trading account. This is as close to a no-minimum balance requirement is it can get.
In a statement, Fidelity indicated that it cared where its clients invested their money, and that a sizeable portion of their current clients aren’t just interested in but also actually own crypto assets. The statement added that Fidelity was giving those customers the necessary tools to engage in crypto trading while also leveraging the company’s technology, research and education channels.
It should be noted that Fidelity will not be offering the Fidelity Crypto service at no cost to the user. While there will be no commission levied, the brokerage company intends to add 1% to the spread against the price at which a retail investor executes a crypto purchase or sell transaction.
The trend of offering traders commission-free trading services is gaining steam in the blockchain industry. Robinhood as well as Binance.US already offer this service, and many industry watchers are wondering whether companies that still depend on levying commissions, such as Coinbase, still have a place in the industry. With Fidelity joining those not asking for commissions, entities that generate revenue from trading commissions are likely to be muscled out of the industry since no trader will want to be charged a commission when there are platforms that don’t levy such a fee.
The crypto industry is still in its relative infancy, and it is hard to predict what innovations are yet to come. The existing companies that survive for the long haul ,such as Stronghold Digital Mining Inc. (NASDAQ: SDIG), are going to keep constantly innovating and improving their products so that they can remain not only relevant but also competitive as new players join the field and bring their own novel product offerings.
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