Cryptocurrency investments are the way of the future. Many people see tremendous value in adding crypto to their investment portfolio, particularly Ethereum or ETH. While it can be a bit expensive compared to other crypto, it is still the second most popular form of cryptocurrency. The question is, can you buy ETH without fees?
Coinbase Pro is used to allow you to place limit orders for no fee, but this is no longer the case. Most platforms charge something to purchase ETH. Robinhood, Voyager, Binance.US, and eToro all offer ETH with no commissions. However, they do take a spread based on the difference between the ask and bid.
If you are ready to start purchasing ETH without losing money to fees, here is everything you need to know about the leading exchanges and brokers.
How to Buy ETH Without Fees: Coinbase Pro
When ETH first became popular, there were several ways that you could buy ETH without fees. Coinbase had a sister site known as GDAX that allowed you to place limit orders for free. About two years ago in 2019, GDAX was rebranded as Coinbase Pro. When this took place, the company got rid of the ability to place these limit orders for free.
Over the course of their first year under the rebranded name, they started to increase the fees required to trade crypto. Takers or those who place an order at market price that gets filled immediately are charged rates as high as 0.5 percent.
Makers may have the potential to pay zero fees on their ETH purchase. A maker is someone who places an order that is not immediately matched. The order gets placed on the order book. If another customer places a matching order, you will be considered a maker and face lower fees.
For those who purchase less than $10,000 in crypto, both makers and takers pay 0.5 percent. The fee decreases based on volume.
Makers who do more than $500 million in volume will pay 0 percent in fees.
If you are interested in paying nothing in fees, you might want to consider saving up and doing a larger volume. Even takers who place an order this size see a dramatic decrease in fees. They will pay 0.06 percent or less for volumes over $500 million.
Unfortunately, Coinbase Pro was the last exchange that allowed you to purchase crypto without fees. Now, it is a matter of finding the best platforms that charge the lowest rates so that you can hold on to more of your money.
eToro is another contender for those who want to invest in Ethereum with no fees. Much like some of the other platforms listed here, eToro makes their money based on the spread between the asking price and the bid price. They take a very small percentage of this number.
Check out over eToro vs Coinbase review here!
Remember that the spread can vary significantly in times of high market volatility and can vary based on market conditions.
They set different rates depending on the specific type of cryptocurrency you are investing in. Bitcoin has one of the lowest spreads, but Ethereum appears to be right in line with their other fees. Expect to pay 1.9 percent spread when purchasing through the easy platform on eToro.
When comparing eToro to other brokers, you have to consider that they do not charge a spread on both the buy and the sell of ETH. They charge only when you buy the asset and then adjust when you sell it. They have a $0 withdrawal fee with a minimum amount of $30.
Apart from this, eToro charges zero commissions and no hidden fees. You know exactly what you will get and how much it will cost you when purchasing ETH through them.
How to Buy ETH Without Fees: Robinhood and Voyager
If you want to buy ETH without fees, you might want to consider platforms like Robinhood and Voyager. Many people like Robinhood because it is extremely intuitive and easy to use. While many places charge a percentage on your transactions, Robinhood is completely free to buy and sell as often as you want.
However, they still have to make a profit somehow if they want to stay in business.
Instead of charging you on the transaction, you still have to pay the spread. In other words, you will be paying the difference between the bid and ask price. This price may be a bit higher than other platforms, but it could be worth it if you don’t want to worry about ever-changing commissions like those found on Coinbase Pro.
Voyager functions in much the same way as Robinhood. Their easy-to-use app allows you to purchase ETH with just a few taps of the screen. It is only available in an app format, a major drawback to someone who prefers to use their computer for these larger transactions.
Much like Robinhood, Voyager does not charge commission buying cryptocurrency. You can buy and sell as much you like. They make money off the difference between the bid and ask price.
Thanks to their Smart Order Routing System, they are often able to locate ETH at a lower price than originally quoted. When this happens, they receive a portion of the savings on the purchase. This allows them to make some money off your purchase, even though they do not charge any upfront commission fees.
If you are looking for a cheap place to buy ETH, you might want to consider Binance.US. They can facilitate purchases of Ethereum as well as fifty other types of cryptocurrency. Especially compared to sites like Coinbase, they have extremely low fees.
They charge a 0.1 percent spot trading fee which is one of the lowest in the industry. If you are in a hurry to add ETH to your digital wallet, you might want to take advantage of their instant buy or sell which comes with a 0.5 percent fee more in line with what Coinbase charges.
Keep in mind that you will want to plan ahead if you plan to purchase crypto from Binance.US. Debit card transfers will cost you an additional 4.5 percent which can add up when making large purchases.
On the other hand, there are no fees for cash deposits by ACH bank transfers. It can take a bit of time to process these types of deposits, so be prepared to wait if you need to make an ACH bank transfer to fund your purchase.
They do not accept credit card purchases, even with additional fees.
Buying ETH with No Fees
Unfortunately, Coinbase Pro was the last holdout that did not charge fees for ETH purchases when placing limit orders. When they dissolved this option, it now became more important to find brokers and exchanges with lower fees.
Robinhood and Voyager are two great options for straightforward purchases where you know exactly what you spend and receive in exchange. However, Binance.US and eToro also charge low fees. While it may not be possible to buy ETH without fees entirely, these platforms give a good alternative with low costs.