Coinbase is a major United States-based cryptocurrency exchange, the firm announced in a post on the 3rd of October that it will be adopting a new fee structure from the 7th of this month which would cause its maker trading fees $10,000 and below (low tier) to increase 233%.
The increment in Coinbase fees was met with outrage by the crypto community with some Coinbase users pointing out that the new fee structure is unfavorable for low tier traders but stock brokerages remain untouched, other users threatened to abandon the exchange.
Coinbase currently charges a 0.15% maker fee and a 0.25% taker fee to accounts trading under $100,000 since its surge in March 2019.
After the 7th of October, maker fees of $10,000 trades and below will see its price increase 233%, surging from 0.15% to 0.50% and taker fees will increase 100%, from 0.25 to 0.5%.
The firm explains that it uses a “maker-taker” fee model where the providers of liquidity and taker orders indicate those who receive liquidity.
Coinbase stated that those trading above $50,000 will see a reduction in trading fees or will not be charged. The firm explained that the new system is designed to increase market depth and liquidity.