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Defi fees can be cheaper than the very worst cex fees such as the ones you quoted, but only if you are trading huge size or not trading on Ethereum mainnet. Tra
by anonymoushn 5y ago
Defi fees can be cheaper than the very worst cex fees such as the ones you quoted, but only if you are trading huge size or not trading on Ethereum mainnet. Trading on Ethereum mainnet means the fixed fee of $100+ will probably dominate the exchange fee.
Robinhood Crypto does not guarantee you the NBBO because the NBBO doesn't exist.
- gruez 5y ago>Robinhood Crypto does not guarantee you the NBBO because the NBBO doesn't exist. Yeah sorry, I was pattern matching on "robinhood frontrunning" and didn't take the fact we're talking about crypto trading into account. With that in mind, they're not front running you, they're just providing worse rates and making money off the spread. It's basically how the "no commission" currency exchange places you see at airports works. They sell EUR to you at 1.15 EUR/USD, but they buy EUR from you at 1.10 EUR/USD.
- anonymoushn 5y agoI think it ends up being more complicated than that, because they don't operate their own clearing for crypto and they don't charge any fees, so some other party acts as a wholesaler, quotes huge spreads, and returns a lot of that money to RH as PFOF. But your post is directionally correct, and the differences are mostly marketing.