Introduction

Cryptocurrency trading has exploded in popularity over the last few years. With over no fee crypto exchange platforms to choose from, finding the right one can be a daunting task. Trading fees and commissions can quickly eat into profits, so choosing a no fee crypto exchange is critical. This article will examine the top no fee crypto exchange platforms, their key features, pros and cons, and other considerations to help you select the best option for your needs.

Why Use a No Fee Crypto Exchange?

The main benefit of using a no fee crypto exchange is avoiding trading commissions and fees. Most centralized exchanges like Coinbase and Gemini charge fees of 0.50% or more per trade. These fees can add up quickly, especially for active traders.

No fee crypto exchange platforms allow you to keep more of your investment capital working for you. You avoid nickel-and-diming your portfolio with fees on every buy and sell order. Over time, these savings compound to boost returns.

In addition to zero trading commissions, some no fee crypto exchange sites also offer:

• No deposit/withdrawal fees
• No account minimums
• No inactivity fees

This increases accessibility and reduces barriers to entry for new crypto traders.

Top 7 No Fee Crypto Exchanges

Here are the top platforms for no fee crypto exchange trading:

1. Robinhood

• Zero commission trading
• Intuitive mobile app
• Supports crypto and stocks
• Limited selection of just 7 coins
• Does not support crypto withdrawals

Robinhood pioneered commission-free stock trading. The app recently expanded into cryptocurrency. You can buy, sell, and hold Bitcoin, Ethereum, Dogecoin and other coins with no fees. The simple interface makes Robinhood ideal for beginners. But the inability to withdraw coins to a wallet and limited coin selection reduces its appeal to advanced users.

2. Webull

• No trading fees
• Advanced trading tools like limit/stop orders
• Supports 25+ cryptocurrencies
• Must maintain $1 account minimum
• No crypto withdrawals

Webull is a brokerage app that offers free stock and options trading. Webull recently added support for 25+ major cryptocurrencies. You can buy and sell coins fee-free, but must maintain a minimum $1 account balance. Like Robinhood, you cannot withdraw coins from Webull. So it’s best suited for investing rather than active trading/spending.

3. Public

• $0 commission trading
• Beginner friendly interface
• Social investing features
• Only supports Bitcoin and Ethereum
• $1 minimum balance

Public offers a simple, social approach to investing. The app allows fee-free trading of Bitcoin, Ethereum, and fractional stock shares. Social features let you share strategies and connect with other investors. Public requires a $1 account minimum but does let you withdraw cryptocurrency. Overall, Public is great for dabbling in crypto and stocks.

4. SoFi Invest

• $0 commission trading
• Supports 10 cryptocurrencies
• Integrated banking/lending services
• $1 minimum to open account
• No crypto withdrawals

SoFi Invest takes a one-stop approach to personal finance. In addition to fee-free stock and ETF trading, the platform offers no-fee access to 10 cryptocurrencies. You can buy, sell and hold coins alongside traditional investments. But you cannot withdraw crypto from SoFi. Bitcon, Ethereum, Litecoin available. Better for investing than active trading.

5. eToro

• No trading commissions
• Social trading features
• Supports 16 cryptocurrencies
• $10 minimum deposit required
• Allows crypto withdrawals

eToro considers itself a social trading network. The platform connects you with other traders to share strategies and insights. eToro offers commission-free trading for 16 major cryptocurrencies. You can withdraw coins to an external wallet. $10 minimum deposit required. Overall, great for buying and holding coins as a long-term investment.

6. Gemini

• 10 free crypto withdrawals/month
• Low 0.50% fee for active traders
• Excellent security and insurance
• Limited to fewer than 40 coins
• More advanced interface

Gemini is a popular, regulated cryptocurrency exchange based in New York. The platform charges 0.50% for active traders but allows 10 free crypto withdrawals per month. Gemini offers excellent security and insurance coverage. The exchange is designed for intermediate to advanced cryptocurrency traders.

7. FTX

• Free withdrawals/deposits
• Deep liquidity for large trades
• Leveraged trading options
• Complicated for beginners
• Limited payment methods

FTX is a fast-growing exchange launched in 2019. The Hong Kong-based company offers fee-free deposits and withdrawals. FTX focuses on derivatives and leveraged products for advanced cryptocurrency traders. The platform has a relatively complex interface ideal for intermediate to advanced traders.

How No Fee Exchanges Make Money

If you’re wondering how no fee crypto exchanges turn a profit, here are some of the ways they generate revenue while offering commission-free trading:

• Interest on cash balances – Exchanges earn interest on idle cash in your account through bank partnerships.
• Margin trading fees – Margin/leverage trading features earn interest rate spreads.
• Spreads – There’s often a small spread between the bid and ask prices on trades.
• Withdrawal fees – Some exchanges charge for withdrawals to cover mining fees.
• Interchange fees – Exchanges earn a cut of debit card transaction fees.
• Premium subscriptions – Optional, enhanced paid services like faster withdrawals.
• Staking rewards – Platforms earn a share of Proof-of-Stake mining rewards.

The free trading model works because exchanges make money through alternativerevenue streams. Active trading generates assets under management from which exchanges can profit.

Factors to Consider When Choosing a No Fee Exchange

Here are some key factors to evaluate when selecting a no fee crypto exchange:

• Security – How safely does the platform store assets? Look for robust measures like cold storage wallets.
• Insurance – Is participant crypto insured in case of breach or theft? Not all exchanges offer insurance.
• Supported coins – Are your desired cryptocurrencies available? Check that the platform has sufficient liquidity.
• Trading types – Does the exchange offer market, limit, and stop orders? Margin trading? Short selling? Options?
• Withdrawals – Can you withdraw coins to your own wallet? Some exchanges don’t allow withdrawals.
• Ease of use – Is the platform intuitive for your skill level? Some exchanges focus on advanced active traders.
• Payment methods – What deposit/withdrawal methods are supported? Ex: bank transfer, debit card, PayPal, etc.
• Geography – Where does the exchange operate? Some don’t serve US customers due to regulations.
• Reputation – Check reviews for any red flags like poor security or customer service.

Consider your personal priorities and needs to determine the best fit. Exchanges like Robinhood offer the greatest simplicity while others cater to advanced active traders.

Pros and Cons of No Fee Exchanges

Pros:

• Avoid fees that eat into your capital and profits
• Keep more of your investment gains
• Lower barriers to entry for new traders
• Encourage more active trading by eliminating commissions
• Platforms offer other money-generating services

Cons:

• Fewer advanced trading features on some platforms
• Limited coin selection on some exchanges
• Potential for hidden fees in spreads or withdrawal charges
• Exchanges generate less revenue for security/insurance investment
• Increased risks if holding coins long-term on exchange wallet

The pros of zero-fee trading generally outweigh the cons for buy-and-hold cryptocurrency investors and those new to crypto. Active traders may prefer an exchange with more robust trading tools and coin offerings, even if fees are involved.

No Fee Crypto Exchanges – The Bottom Line

No fee crypto exchange trading has clear benefits in terms of maximizing capital and increasing profit potential. Platforms like Robinhood, Webull, and Public offer an easy entry point for beginners. More advanced traders may prefer exchanges like Gemini and FTX for active trading tools and liquidity.

Consider your personal priorities, trading habits, and experience level when choosing a zero-fee exchange. Evaluate security measures, insurance protection, payment methods, supported coins, ease of use, and withdrawal flexibility as part of your selection process. Weigh the pros and cons and conduct thorough due diligence to find the best no fee crypto exchange for your needs.

Frequently Asked Questions

Are there really no fee crypto exchanges?

Yes, there are a growing number of platforms that offer commission-free cryptocurrency trading. Some of the most popular no fee crypto exchanges include Robinhood, Webull, Public, and SoFi Invest. These exchanges make money through other means like cash management and margin trading interest.

What’s the catch with no fee exchanges?

The “catch” is that some no fee crypto exchanges offer fewer features, limited coin selection, or no ability to withdraw coins off-platform. Others may have requirements like minimum balances. Compare offerings closely so you understand any limitations.

Are no fee exchanges safe to use?

Safety varies significantly across exchanges. Conduct due diligence into each platform’s reputation, security practices, insurance coverage, and regulatory compliance. Only use reputable exchanges that safely store assets in cold wallets and provide robust protection.

Can I really buy Bitcoin with no fees?

Many exchanges like Robinhood and Webull allow you to buy, sell, and hold Bitcoin with zero trading commissions or fees. You pay only the value of the Bitcoin itself. However, some platforms don’t allow Bitcoin withdrawals off the exchange.

What are the fees on Coinbase?

Coinbase charges a trading fee between 0.50% and 3.99% depending on volume. There are also fees for deposits and withdrawals using bank transfers or wires. Coinbase can serve as an on-ramp to crypto, but fees eat into profits from active trading.

Should I use Robinhood for crypto?

Robinhood offers a simple way to buy and hold crypto with no trading fees. However, you can’t withdraw coins to an external wallet and only 7 major coins are supported. It’s a good fit for beginners seeking basic Bitcoin and Ethereum exposure without fees.

Does Webull have a crypto wallet?

While you can trade 25+ coins commission-free on Webull, the platform does not currently offer an integrated crypto wallet or allow coin withdrawals. Your coins remain in Webull’s custodial account. This makes it better for investing than actively storing/transferring coins.