Fidelity to open commission-free crypto trading to retail investors

Fidelity to open commission-free crypto trading to retail investors

A sign marks an office of Fidelity Investments in Boston, Massachusetts April 28, 2022.

Brian Snyder | Reuters

Fidelity Investments launches commission-free crypto trading product for retail investors.

The company, one of the largest brokerage firms in the world with assets of $9.9 trillion, opened an early access waiting list for users Thursday morning. The service, called Fidelity Crypto, allows investors to buy and sell Bitcoin and ether and use the custody and trading services provided by its subsidiary Fidelity Digital Assets. Users must maintain an account of at least $1.

“Where our clients invest is more important than ever,” Fidelity said in a statement shared with CNBC. “A significant portion of Fidelity customers are already interested in and own crypto. We provide them with tools to guide their choices so they can benefit from Fidelity education, research and technology.”

While trades with Fidelity Crypto are free of commission fees, the company says it will include a 1% spread in every trade execution price.

fidelity follows Robin Hood and Binance.US in offering commissionable crypto trading. The reveal comes at a time when investors are questioning the ability of coin base and other exchanges like it to generate revenue. In the past, they have relied on trading fees for revenue, but fee-free crypto trading has become an increasing inevitability.