Definition ∞ Zero deposit fees refer to the absence of charges levied by a financial service provider or cryptocurrency exchange when users transfer funds into their accounts. This policy aims to reduce the cost barrier for new users and encourage capital inflow onto the platform. It is a common competitive strategy to attract and retain customers in various financial markets. Eliminating these fees enhances accessibility for participants.
Context ∞ Many cryptocurrency exchanges utilize zero deposit fees as a marketing strategy to attract retail and institutional investors, a practice often highlighted in industry news. While deposits may be free, platforms typically generate revenue through trading fees or withdrawal charges. This approach is particularly relevant in highly competitive markets where user acquisition costs are a significant consideration for service providers.