How ShapeShift Trading Works

We reveal how trading in the ShapeShift Platform comes to life.

Interested in a peek behind the curtain at ShapeShift? We’ve revolutionized the trading game by introducing commission free trading with the launch of FOX tokens. Learn more about what goes on behind the scenes to get you the best rates out there.

First Things First — Free Trading

Well, most importantly, we don’t add any commission, spread, or trading fees to our rates. Our free trading sets us apart from any other crypto trading platform, not to mention you remain in control of your private keys. FOX is our loyalty ERC-20 token that makes free trading possible. When you create a verified account with ShapeShift, you earn 100 FOX tokens. Simply hold these in your wallet that’s connected to the ShapeShift Platform to enjoy $1,000 in free trade volume, on a rolling 30-day cycle. Don’t just take our word for it — compare our rates against other exchanges.

“If someone wants zero commissions and to maintain control of their keys, ShapeShift is really the only game in town” — Erik Voorhees, ShapeShift Founder and CEO.

We want to empower our users with self custody, free trading and transparent rates. Unlike other “free” trading crypto platforms that sell order flows or make money from holding a user’s assets in custody, your information and funds remain in your control. While trading is commission free, standard network miner fees still apply to each trade.

Not adding any spread to our rates is what we’re offering our users, but there’s a lot that goes on behind the scenes to get our competitive rates in the first place. Free trading is only beneficial to users if we can offer them better rates than anyone else. So how do we get those rates?

Where do we get our rates?

Our trading engine was rebuilt from the ground up this year to better source liquidity and execute more beneficial trades for our users.

When you trade with ShapeShift, we find the best available rate for you by acting as the gateway to institutional crypto trading for the retail user. We’re the counter-party to every trade — you’re trading directly with us — which means you never have to worry about thin order books or a lack of a bid.

Instead of tapping into only one partner for liquidity, we use a wide variety of liquidity sources. As a result, you have access to top-tier liquidity and don’t need to settle for an overpriced rate. Next, our powerful trading engine employs algorithmic strategies to minimize impact and manage risk behind the scenes.

Regardless of the method used to execute the trade, the rate we get is now the rate you get. All thanks to the fact that we add no spread or commission to the top. Now you can avoid the hassle of watching the markets, using order books, or analyzing different exchange prices. We do all that for you (for free) so you can trade confidently.

More Than Just Good Rates

Rates are arguably the most important factor in trading, but security and simplicity also factor into where to trade.

Most exchanges have Bitcoin and Ethereum available, but buying or selling less popular assets can quickly become complicated due to support and liquidity. You have to create and KYC multiple accounts at different exchanges, keep track of which coins are in which account and send funds back and forth to capitalize on the trades you want.

Meanwhile, ShapeShift supports dozens of assets, which makes it possible to trade between over 1,000 asset pairs, all with one login. Rather than juggling multiple accounts, you can diversify your portfolio in one place, with one click.

One Ethos to Rule them All

ShapeShift pioneered the self-custodial crypto model, which means we don’t hold or control your crypto. You control your private keys. Our new platform is built with wallet support for KeepKey, Trezor, and Portis, with Ledger support coming soon. We engineered the ShapeShift Platform to keep users in control of their crypto while providing a user-friendly web interface for managing digital assets, now complete with zero-commission trading.

Voorhees explains, “Our whole mission for the last five years has been to get people away from centralized exchanges, which has been a total uphill battle because people don’t like changing their behaviors.”