On Friday, 15th March, Coinbase announced a new market structure for its professional trading platform, Coinbase Pro in a blog post.
From 22nd March, the changes will be implemented with the aim of increasing liquidity, enabling better price discovery for trades and making price movements smoother. The exchange believes this will lead to a more efficient market and increase trading opportunities for all of its customers.
The changes are as follows:
1. New fee structure that is designed to increase liquidity by reducing the delta between maker and taker fees
2. Updated order maximums designed to help protect customers from large price movements
3. New order increment (“tick”) sizes aimed at improving market structure
4. Turning off stop market orders
5. Adding market order protection points
Also, according to the announcement, Coinbase Pro and Coinbase Prime — the firm’s institutional trading platform — will cease their support for stop market orders and explains that all stop orders must now be submitted as limit orders and include a limit price.
On the other hand, the market protection points that will be introduced both to Coinbase Prime and Coinbase Pro users will amount to 10 percent for all market orders. The blog explains that market orders that move the price more than 10 percent will stop executing and return a partial fill.
This has been criticised by some crypto community members. For example, economist Alex Krüger complained on Twitter, “Coinbase Pro raising fees for smaller clients by 33% while lowering fees for larger clients,” and suggested that in a “rational world” users would move from Coinbase to Binance.
Another crypto trader on Twitter suggested that the new fee structure is apparently targeting new users, saying. “Pretty random day to hike all the fees up, Coinbase anticipating a new bull run perhaps?”