Coinbase Pro Raises Fees for Smaller Clients by 33% & Turns off Stop-Market Orders
Coinbase has struck yet another hammer on the crypto community as it made another statement. According to the latest announcement made on Friday, Coinbase has made a series of changes that involve Coinbase Pro implementing increased fees, new order increment sizes, updated order maximums, turning off stop market orders, and adding market order protection points.
“These changes are designed to increase liquidity, enable better price discovery for trades, and to make price movements smoother. This will lead to a more efficient market and increase trading opportunities for all of our customers.”
When it comes to the fee structure, that is apparently designed to increase the liquidity by “reducing the delta between maker and taker fees.” This new fee schedule is based on 30-day trading volume from the Bitcoin space's number one unicorn company as of today.
Crypto trader and economist Alex Kruger took to Twitter to share that while it is increasing the fees for smaller clients, the larger clients will have to pay lower fees. As Coinbase matches up to Kraken’s fees, he says it will be a good thing for Coinbase’s competitor Binance as clients will turn to them.
“Most Coinbase customers fall under the first tier, the one subsidizing larger clients. Now all US exchanges are a rip-off. Compare Coinbase's fees with Binance's. In a rational world, most Coinbase clients would now move to binance. Cz binance should be celebrating.”
Coinbase Pro raising fees for smaller clients by 33% while lowering fees for larger clients.
Reason: "to further optimize the market health of our platform". pic.twitter.com/zS3KMSPCND
— Alex Krüger (@krugermacro) March 15, 2019
“Quite likely most lower tier clients won't notice or do anything about this. Meanwhile, larger traders will increase trading volume. So Coinbase's liquidity may actually increase,” further commented Kruger.
Coinbase Pro and Prime will no longer be supporting stop market orders as from here on, “All stop orders must now be submitted as limit orders and include a limit price.” The cryptocurrency exchange will cancel all the open market orders on March 22 at 6:00 pm PDT.
The maximum order size that is designed to mitigate the impact of large orders on the market liquidity has also been updated along with the tick sizes which is the minimum increment between orders.
“We will be decreasing the tick size on the following 5 books: ETC-USD, ETC-EUR, ETC-GBP, LTC-BTC, ETC-BTC.”
Meanwhile, Coinbase will be introducing a 10 percent market protection points for all market orders. This means the market orders that are in excess of 10 percent of the price will not be executed and will return a partial fill.
Moreover, Coinbase has also announced the scheduled downtime on March 22 from 6:00 pm PDT to 6:30 pm PDT. The downtime will clear all the open market stop orders and all the changes would go into the effect as well when the market starts at 6:30 pm PDT.