The cryptocurrency exchange industry has emerged as one of the most profitable sectors in modern finance, drawing increasing attention from traditional financial institutions. With daily profits reaching staggering figures—some exceeding $28 million per day—it's no surprise that established players like Futu Securities and Tiger Brokers are now racing to enter the space.
As Bitcoin and other digital assets surge in value and adoption, exchanges have become the backbone of the crypto economy, generating massive revenue through trading fees, token buybacks, and ancillary services. This article explores the extraordinary profitability of crypto exchanges, compares them with traditional brokerage firms, and unpacks how new entrants plan to navigate global regulatory landscapes.
How Profitable Are Cryptocurrency Exchanges?
At the heart of the crypto ecosystem lies the exchange—a digital marketplace where users buy, sell, and trade digital assets. Unlike speculative traders or long-term investors, exchanges profit regardless of market direction. Their revenue model is simple: they earn fees on every transaction.
Take Coinbase, the largest U.S.-based crypto exchange. In Q1 2025, it reported a net profit of $771.5 million**, averaging **$8.6 million per day. While impressive, this pales in comparison to Binance, the world’s largest exchange by volume.
Binance does not publicly disclose its financials, but we can estimate its earnings using a unique mechanism: token burn data. The exchange commits to using 20% of its quarterly profits to buy back and destroy BNB tokens. In Q1 2025 alone, Binance burned approximately 1.1 million BNB tokens, valued at around $600 million.
Based on this, Binance’s quarterly profit was roughly $3 billion**, or **$33 million per day—over 200 million RMB daily. To put that in perspective, Binance’s quarterly earnings surpassed 40% of Tencent’s net profit during the same period, despite operating with a fraction of the workforce.
Other major exchanges follow similar models:
- Huobi uses 20% of profits to repurchase and burn HT tokens. In April 2025, it spent $104 million** on buybacks—implying monthly profits over **$500 million.
- OKX allocates 30% of spot trading fees to repurchase and burn OKB. Over a three-month period in early 2025, it spent $35.6 million, indicating significant fee generation.
These numbers highlight a key truth: the real wealth in crypto isn’t just in holding assets—it’s in facilitating trades.
Why Trading Fees Add Up So Quickly
Crypto exchanges earn money primarily through:
- Spot trading fees (buying/selling cryptocurrencies)
- Futures and derivatives trading
- Withdrawal fees
- Listing fees for new tokens
- Staking and lending services
While spot trading fees appear small—typically between 0.08% to 0.2% per trade—they accumulate rapidly due to high trading volumes.
For example:
- Binance charges 0.1% for most spot trades.
- Huobi charges 0.2%.
- OKX charges as low as 0.08%.
But here's where it gets interesting: futures contracts generate far higher margins than spot trades.
One insider from a top-tier exchange revealed that fewer than 1,000 active futures traders generated 60 million RMB ($8.3 million) in fees in just one month. Leverage amplifies both risk and reward—for traders and exchanges alike.
With millions of users globally and round-the-clock markets, even tiny fees compound into billions in annual revenue.
Traditional Brokers Enter the Fray
Seeing these profits, traditional online brokers like Futu Securities and Tiger Brokers are eager to expand into crypto.
Both companies have announced plans to launch cryptocurrency trading platforms, targeting international markets such as the U.S. and Singapore, where regulations allow licensed operations.
However, their current scale is dwarfed by crypto-native giants:
| Company | Q1 2025 Net Profit | Equivalent to Binance |
|---|---|---|
| Futu Securities | ¥929 million (~$129M) | Less than 4 days |
| Tiger Brokers | ¥133 million (~$18M) | Less than 1 day |
| Coinbase | $771.5 million | ~9 days |
| Binance | ~$3 billion | 90+ days |
Even combined, their quarterly profits don’t match Binance’s first month.
Yet, they bring advantages: established user bases, compliance experience, and trust among institutional investors. For them, entering crypto isn’t about reinvention—it’s about natural business expansion.
As blockchain expert Yu Jianing notes:
“Crypto assets are becoming mainstream. For firms like Futu and Tiger, offering digital asset trading is a logical next step—they already serve investors who demand access to Bitcoin, Ethereum, and other tokens.”
Navigating Global Compliance: The Path to Licensing
Since China prohibits domestic crypto trading, any expansion must occur overseas.
👉 Learn how global financial firms are securing licenses to legally operate in top crypto markets.
Two key jurisdictions stand out: the United States and Singapore.
United States: MSB License via FinCEN
To legally operate in the U.S., exchanges must register with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB). Requirements include:
- A legally registered U.S. entity
- Physical business address
- At least two responsible officers (one must be a director)
- Employer Identification Number (EIN)
- Proof of compliance framework and anti-money laundering (AML) policies
Exchanges like Coinbase go further by obtaining additional licenses such as New York’s BitLicense, enhancing credibility and market access.
Singapore: Payment Services Act (PSA)
Singapore’s Monetary Authority (MAS) regulates crypto under the Payment Services Act (PSA), requiring firms offering digital payment token services to apply for a license.
As of mid-2025, over 300 companies, including tech giants and crypto leaders like Binance, have applied. MAS emphasizes trustworthiness and operational resilience before approval.
“Granting such licenses carries significant responsibility,” said Sopnendu Mohanty, Chief FinTech Officer at MAS. “We ensure only reliable players gain access.”
FAQ: Your Questions Answered
🔹 Are cryptocurrency exchanges really more profitable than traditional brokers?
Yes. Due to high trading volumes and low operational costs, top crypto exchanges often outearn traditional brokers by orders of magnitude. Binance’s daily profit exceeds the entire quarterly net income of many publicly traded financial firms.
🔹 How do exchanges make money beyond trading fees?
Additional revenue streams include:
- Listing fees for new tokens
- Withdrawal and deposit processing
- Staking rewards (sharing yield with users)
- Launching native tokens (e.g., BNB, OKB) that appreciate in value
- Margin and futures trading with built-in funding rates
🔹 Can traditional brokers compete with native crypto exchanges?
They face challenges in technology, speed, and user expectations—but their strengths lie in compliance, institutional relationships, and brand trust. Success will depend on seamless integration and global licensing.
🔹 Is it safe to use large cryptocurrency exchanges?
Top-tier platforms like Coinbase, Binance, and OKX implement robust security measures including cold storage, insurance funds, two-factor authentication (2FA), and regular audits. However, users should always practice self-custody best practices.
🔹 What prevents more companies from launching exchanges?
Regulatory barriers are the biggest hurdle. Obtaining licenses in major jurisdictions requires substantial legal infrastructure, capital reserves, and ongoing compliance monitoring—making entry difficult without significant investment.
Final Thoughts: A New Era of Financial Convergence
The line between traditional finance and digital asset markets is blurring. With explosive growth in crypto adoption and institutional interest rising, it's inevitable that established financial players will deepen their involvement.
For Futu, Tiger Brokers, and others eyeing this space, the opportunity isn’t just about profit—it’s about staying relevant in an evolving financial landscape.
As blockchain reshapes how value moves globally, exchanges remain at the center of innovation—and profitability.
👉 See how the next generation of financial platforms is redefining wealth creation in the digital age.
Whether you're an investor, trader, or observer, understanding the mechanics behind these powerful platforms offers valuable insight into the future of money.
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