Zero-Fee Spot

Definition ∞ Zero-fee spot refers to trading an asset for immediate delivery without incurring any transaction fees from the exchange. This offering allows market participants to buy or sell cryptocurrencies at their current market price without paying commissions or trading fees on the spot market. While the exchange waives its direct trading fees, other costs such as network transaction fees (gas fees) or withdrawal fees may still apply. This strategy is often employed by exchanges to attract liquidity and increase trading volume, particularly for popular asset pairs.
Context ∞ Zero-fee spot trading is frequently reported in crypto news as a competitive strategy employed by exchanges to gain market share and appeal to retail and institutional traders. Discussions often analyze the sustainability of such models and how exchanges compensate for the waived fees, perhaps through other revenue streams like derivatives trading or premium services. A key debate involves the potential impact on market makers and overall market structure, as it can alter trading incentives.