Prolly nothing... https://www.cnbc.com/2022/11/03/fid...-free-crypto-trading-to-retail-investors.html Fidelity to open commission-free crypto trading to retail investors PUBLISHED THU, NOV 3 202210:05 AM EDT Tanaya Macheel@TANAYAMAC A sign marks a Fidelity Investments office in Boston, Massachusetts, April 28, 2022. Brian Snyder | Reuters Fidelity Investments is launching a commission-free crypto trading product for retail investors. The firm, one of the largest brokerages in the world handling $9.9 trillion in assets, opened an early-access waitlist to users Thursday morning. The service, called Fidelity Crypto, will allow investors to buy and sell bitcoin and ether and use custodial and trading services provided by its subsidiary Fidelity Digital Assets. Users will be required to maintain a $1 account minimum. “Where our customers invest matters more than ever,” Fidelity said in a statement shared with CNBC. “A meaningful portion of Fidelity customers are already interested in and own crypto. We are providing them with tools to support their choice, so they can benefit from Fidelity’s education, research, and technology.” While trades with Fidelity Crypto will be free of commission fees, the firm says it will factor in a 1% spread into every trade execution price. Fidelity follows Robinhood and Binance.US in offering commission-fee crypto trading. The reveal comes at a time when investors are questioning the ability of Coinbase and other exchanges like it to generate revenue. Historically they have leaned on trading fees for revenue, but fee-free trading in crypto has become an increasing inevitability.
While trades with Fidelity Crypto will be free of commission fees, the firm says it will factor in a 1% spread into every trade execution price. That's 2% per round trip. But it's commission free!!!
Exactly like CFDs and Spread Betting, they keep saying that is free until you see the spread. And surprise surprise, that spread is variable, so that 1% is just the base value.
Yea fees here are still too high ... but its ultimately a race to 0, just going to take time. I think the much bigger deal is that "regular" brokerages (IB and now Fidelity) are letting you buy real-deal crypto. Just makes it one less hurdle for people, they don't need a new account and they don't need to go to a crypto-only broker, which are new and let's be honest, shady (in many respects). On less hurdle for adoption!
I think there's difficulty and risk in making a market with limited circulating supply, unlike AAPL that has 15B shares outstanding If I buy 1,000 satoshis, I pay 10 satoshis in spread, that's 0.002 USD Buy 1,000 AAPL shares and see how much in slippage you'll pay Nocoiners always complaining. If Robinhood or IB can do it for less when they can do pfof, then you can complain about other things
Why would you compare BTC to a stock? The spread on AAPL is 2 cents. On 1000 shares thats 20 bucks. (trans = 140K) To buy 140K of bitcoin with a 1% spread is 1.4K (Hardly comparable)
AAPL has 15 Billions shares, btc has maybe 15M circulating supply, most likely less and on exchanges, there are less than 2M btc's, who knows how much Fidelity has in its inventory It's very difficult to make a market in btc, not so much in AAPL But this thread is about adoption something that does not concern nocoiners
Id guess fidelity custodies the bitcoin. I think most people should be fine and even happy with that tho. Its what we already do when we hold stocks/bonds/etc at the broker/financial institution right? I still think most people have no interest in keeping their own private keys as that can be a huge responsibility.