Ethfinex revolutionises its trading fees
Ethfinex revolutionises its trading fees

Ethfinex revolutionises its trading fees

By Fabio Lugano - 17 Jan 2019

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Ethfinex, an exchange that is part of the Bitfinex group, has decided to remove trading fees.

From today, the cost of low liquidity tokens, i.e. with trades of less than $1.5 million in 30 days, will be subject to zero transaction fees.

Therefore, low liquidity trading pairs such as BAT/BTC, FUN/BTC and EDO/BTC can be traded at no cost.

The assessment of whether the limit for free transactions has been exceeded or not will be assessed on a daily basis, assessing the previous 30 days with the rolling method.

It is also interesting that Ethfinex traders will be able to continue to earn Nectar tokens (NEC), which are awarded to the exchange’s customers in order to build loyalty.

Currently, these assets are worth approximately $0.2 each, so trading on Ethfinex not only becomes free but even remunerated.

The obvious purpose is to bring back liquidity on less traded pairs by increasing trading activities and, therefore, to facilitate a more precise and correct definition of market prices.

If the operation will be successful the exchange will become more reliable in the evaluation of market values and some of these pairs will exceed the transaction volume of 1.5 million dollars in 30 days, returning to be a source of economic returns.

Ethfinex trades daily above $2 million with 227 pairs, of which 98 are currently trading volumes below $100 daily, achieving extremely low liquidity on a monthly horizon.

Therefore, only 7 pairs would have trading fees: Mobilego/USD, Mobilego/Eth, Omisego/USD, REP/BTC, ZRX/USD and REP/ETH.

Fabio Lugano
Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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