Bitfinex Launches Zero-Fee Perpetual Trading Amidst DEX Competition

The cryptocurrency exchange Bitfinex, which operates as a sister company to the stablecoin issuer Tether, has initiated the rollout of a zero-fee perpetual trading structure starting December 17, 2025. This move signifies a calculated strategic pivot by the exchange, aiming to aggressively capture greater market share in an increasingly competitive landscape, particularly against the backdrop of decentralized exchanges (DEXs).

This newly implemented fee structure encompasses the entirety of the exchange’s offerings. This includes spot and margin trading, derivatives, securities trading via Bitfinex Securities, and over-the-counter (OTC) operations. The adjustment applies universally to all qualifying customers without imposing prerequisites such as minimum trading volumes or the mandatory holding of specific tokens. Bitfinex, established in 2012 and operating under the iFinex Inc. umbrella, frames this decision as a long-term strategy, made viable by years of sustained profitability and a robust operational foundation.

As part of this transformation, the exchange has discontinued the trading fee discounts previously extended to holders of the UNUS SED LEO token. Furthermore, referral deductions that were tied to trading fees have also been eliminated. However, revenue streams derived from margin lending and financing activities remain intact. Paolo Ardoino, the Chief Technology Officer of Bitfinex and CEO of Tether, commented that the zero-fee initiative is designed to incentivize existing clientele while simultaneously attracting new users, which is expected to bolster overall trading volumes and deepen market liquidity.

The context surrounding this aggressive maneuver is closely linked to the surging activity observed in the DEX market. Average daily volumes across DEX platforms reached a high of approximately $50 billion in January 2025. By the time of recent reports leading up to December 2025, these volumes had settled around $11.63 billion. Bitfinex’s introduction of zero commissions directly targets the cost barrier that historically placed centralized exchanges (CEXs) at a disadvantage compared to certain DEX alternatives.

Bitfinex maintains that its revenue model remains sound, sustained by diverse income streams independent of trading commissions. These streams include fees associated with withdrawals, income generated from margin lending and financing, and charges levied from specialized capital market activities, such as peer-to-peer (P2P) lending markets. Paolo Ardoino, who has served as Tether’s CEO since December 2023 while also holding the CTO role at Bitfinex, has consistently emphasized that iFinex has maintained profitability through its diversified business approach.

The cessation of LEO token holder discounts signals a clear strategic shift away from token-based incentives toward direct price competition. Bitfinex is positioning itself as a premier platform aimed at drawing in professional and institutional traders who are highly sensitive to the cost of trade execution. In a broader strategic view, iFinex leadership, spearheaded by Ardoino, is also actively engaged in strategic ventures beyond pure exchange operations, including investments in sustainable energy and artificial intelligence infrastructure, showcasing the parent company's diversified interests.