[Black101]

Many Stock brokers like Webull let you buy crypto, but you can't transfer them to your wallet or use them to make purchases. Also, they claim no fees, but they add the fee to the spread (the spread is artificially increased to 1% both ways (2% total)) ... so it is like a hidden fee that ends up being more then what you pay on Coinbase, especially if you trade a substantial amount each month [1]. So Coinbase is still one of the best even though they can't handle the loads when the market get busy.

1. https://i.imgur.com/IohYn4o.png

[superfrank]

> Many Stock brokers like Webull let you buy crypto, but you can't transfer them to your wallet or use them to make purchases.

Fair, but I feel like most people I know aren't using crypto as a currency right now. They're more interested in holding or speculating on the price, so transferring to another wallet is a non-issue.

> Also, they claim no fees, but they add the fee to the spread (the spread is artificially increased to 1% both ways (2% total))

I'm not up to date on Coinbase's latest fee structure, but I think 2% still may be less than, or at least comparable, to what they are charging. Even if it isn't, the illusion of no fees will attract a certain amount of people.

> especially if you trade a substantial amount each month

Do people trade a lot using Coinbase (serious question)? I was under the impression that there were better platforms out there more suited to day/swing trading crypto.

[Black101]

The maximum that you can get charged at Coinbase is 1% for a buy & sell transaction pair (0.5% each way), if you don't trade much... so half of webull : https://i.imgur.com/IohYn4o.png

But it goes down quickly. It gets cut in half if you trade $50k/month and goes to down to 0% if you trade a lot.

[superfrank]

That's not including the credit and debit card fees though, right?

It's been a while since I've used Coinbase, but I feel if you want to just buy a small amount of crypto, the total fees can be up to like 10%.

[Alupis]

You mean Coinbase Pro, not Coinbase.

Coinbase charges 2.5% to purchase.

[tedunangst]

For reference, coinbase is currently quoting bid/ask for bitcoin at around 58/62...

[gruez]

That's their quote for casual users. You get much tighter spreads on coinbase pro.

[Black101]

I get $0.01 spread on Coinbase pro unless the market activity is going crazy.

[tedunangst]

I think that's the right comparison for webull or robinhood.

[Black101]

maybe they should add a 3rd option where you would pay 5% ....