Definition ∞ Zero trading fee refers to a pricing model employed by some digital asset exchanges where users are not charged direct fees for executing trades. Instead, these platforms may generate revenue through other means, such as premium subscriptions, interest on lending, or spread capture. This model aims to attract a large user base and increase trading volume. It can significantly reduce the cost of frequent trading for market participants.
Context ∞ The zero trading fee model is a competitive strategy in the digital asset exchange landscape, often reported in news as platforms vie for market share. Discussions frequently concern the sustainability of such models and the hidden costs or alternative revenue streams employed by these exchanges. A key future development involves further innovation in business models, as platforms seek to balance user acquisition with profitability in a highly competitive environment.