A group of Finland-based traders has launched a cryptocurrency exchange, FinCCX, to allow users to exchange bitcoins for regular money and vice versa. FinCCX claims by offering lower fees and providing the chance for traders to earn commissions while trading, it delivers an improved user experience to bitcoin traders. Traders can exchange funds in bitcoin or regular currency.
FinCCX founders’ 20-plus years of trading experience in financial markets allowed them to identify a high demand for bitcoin trading and bitcoins in general among traders, according to Elena Umanets, the marketing manager.
A new fee structure
By analyzing the current marketplace, the FinCCX founders determined there was a need for a fee structure that allows traders to earn commission when trading bitcoins, Umanets said.
Since the exchange launched on Jan. 22, new accounts have opened daily.
“Most exchanges, at least to our knowledge, charge a commission from both the buyer and the seller. The fee is charged regardless if one is a price maker or a price taker, and regardless if one is buying or selling. Our exchange, on the other hand, charges only the price taker, not the price maker. This is typically offered to so-called market makers, but we offer it to regular traders too. Such a fee/commission structure is not offered by other exchanges.”
The price maker does not pay a fee but earns a fee of 0.05 percent. The price maker is someone trading with resting limit orders that are accepted and traded by someone else. FinCCX pays the commission. The price taker is someone trading with market orders (no limit price). The price taker pays FinCCX a commission of 0.35 percent.
Umanets offered the example of a trader acting as a price maker. Assuming the market price of BTC/USD 280, a trader (trader A) wants to sell one bitcoin at 285 and places a limit order to sell at that price. The price goes up, and trader B comes along and buys trader A’s bitcoin with a market order. In this case, trader A is acting as a price maker and trader B is the price taker. Hence, trader A will earn a commission and trader B will pay a commission.
Trader A’s proceeds from the sale are 285 USD + 0.05% = 285.1425 USD. Trader B’s total spending is 285 USD + 0.35% = 285.9975 USD.
Finland's protection rules
Being based in Finland, FinCCX offers clients the protection of Finnish law, Umanets said. The laws include commercial and consumer protection rules.
“Additionally, we provide a high level of security for all money transactions by using a reliable Austrian bank – Bank Raiffeisen.”
“Furthermore, the majority of our clients’ bitcoins are kept offline, in so-called cold storage, leaving the bitcoins inaccessible from the Internet,” Umanets said. “Also, all our clients have to pass our KYC (know your customer) and AML (anti-money laundering) procedures, and thus we can prevent any suspicious activity from happening on our exchange.”
Traders can create three types of orders: “market,” “limit” and “stop limit.” Market orders are executed instantly at the market price. “Limit orders” are executed at the price the trader sets for buying and selling bitcoins. A “stop limit order” allows the trader to set a trigger price and a limit price. When the market price reaches the trigger price, the limit order with the set limit price is triggered.
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