Investing

Fidelity to open commission-free crypto trading to retail investors

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A sign marks a Fidelity Investments office in Boston, Massachusetts, April 28, 2022.
Brian Snyder | Reuters

Fidelity Investments is launching a commission-free crypto trading product for retail investors.

The firm, one of the largest brokerages in the world handling $9.9 trillion in assets, opened an early-access waitlist to users Thursday morning. The service, called Fidelity Crypto, will allow investors to buy and sell bitcoin and ether and use custodial and trading services provided by its subsidiary Fidelity Digital Assets. Users will be required to maintain a $1 account minimum.

“Where our customers invest matters more than ever,” Fidelity said in a statement shared with CNBC. “A meaningful portion of Fidelity customers are already interested in and own crypto. We are providing them with tools to support their choice, so they can benefit from Fidelity’s education, research, and technology.”

While trades with Fidelity Crypto will be free of commission fees, the firm says it will factor in a 1% spread into every trade execution price.

Fidelity follows Robinhood and Binance.US in offering commission-fee crypto trading. The reveal comes at a time when investors are questioning the ability of Coinbase and other exchanges like it to generate revenue. Historically they have leaned on trading fees for revenue, but fee-free trading in crypto has become an increasing inevitability.

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