Fidelity is offering retail investors commission-free trading. The company will initially focus on Bitcoin (BTC) and Ether (ETH). The broker will make money by charging a 1% spread on trades.
Fidelity Investments is expanding retail access to commission-free cryptocurrency trading services, a move meant to recognize the growing interest in digital assets. According to CNBC, Fidelity's new crypto offering will be backed by its subsidiary Fidelity Digital Assets. The new service, dubbed Fidelity Crypto, will give retail investors the ability to buy and sell Bitcoin and Ether with minimal fees. Instead of a commission, Fidelity Crypto will include a spread (the difference between the buying and selling price of an asset) of 1% on every trade.
Fidelity has not given a launch date for the new offering, but has opened an early access waiting list for users. The holding company said it is targeting retail investors for commission-free cryptocurrency trading as a significant portion of its clients have already invested in digital assets.
“A meaningful portion of Fidelity customers are already interested in and own crypto,” the asset manager told CNBC in a statement.
Fidelity Digital has expanded its institutional offerings by recently launching Ethereum storage and trading services for its wealthy clients. In April of this year, the asset manager announced plans to allow retirees to invest in Bitcoin directly through their 401(k) accounts.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.