About Coinbase Futures

What is Coinbase?

Coinbase, founded in 2012 by former Airbnb engineer Brian Armstrong and ex-Goldman Sachs trader Fred Ehrsam, is a leading cryptocurrency exchange supporting over 280 digital assets. Its regulated derivatives unit, Coinbase Financial Markets (CFM), provides US traders access to nano Bitcoin (1/100th BTC) and nano Ether (1/10th ETH) futures, approved by the CFTC and NFA.

Internationally, Coinbase offers a perpetual futures exchange through Coinbase Advanced, featuring up to 20x leverage and USDC-based settlement. Traders can access over 90 perpetual markets, including the proprietary COIN50 Index perpetual, tracking 50 prominent crypto assets, with integrated USDC collateral rewards up to 12%.

Coinbase Futures Fee Schedule

Under the Coinbase Futures Fee Schedule, traders encounter the highest perpetual futures trading fees globally. Users trading below $10,000 monthly pay hefty fees of 0.60% (taker) and 0.40% (maker).

Although rates gradually decline at higher volumes, competitive pricing (0.05% taker and 0.00% maker) is only available beyond $400 million monthly. For most traders, Coinbase's fees remain significantly higher compared to other perpetual exchanges.

Coinbase Regulation & Licensing Explained

Coinbase holds several regulatory licenses and approvals from tier-1 jurisdictions, including Money Transmitter Licenses (46 U.S. states), BitLicense (New York), BMA (Bermuda), FCA (UK), BaFin (Germany), AUSTRAC (Australia), MPI (MAS, Singapore), and VASP registrations in multiple European countries such as Belgium, Cyprus, France, Ireland, Italy, Poland, Netherlands, and Spain.

Where is Coinbase Available?

Coinbase operates in more than 100 countries but excludes markets under U.S. sanctions or specific regulatory pressures. Notable restricted regions include Russia, Iran, Syria, North Korea, UAE, India, Pakistan, Bangladesh, Philippines, South Africa, Colombia, and Crimea.

Coinbase's derivatives exchange, offering perpetual futures through Coinbase International Exchange, is regulated by Bermuda’s Monetary Authority. However, perpetual futures trading isn't accessible to U.S. users or retail customers in the UK.

Eligibility may vary as regulations evolve, so traders should regularly confirm their status directly with Coinbase's Prohibited Regions support page.

Is Coinbase Safe and Legit?

Coinbase is widely recognized as the world's most trusted cryptocurrency exchange, publicly listed on NASDAQ since April 2021 (ticker: COIN). As a regulated, U.S.-based company, Coinbase adheres to strict transparency standards, providing quarterly financial reports and undergoing annual audits by independent third-party firms.

Customer assets on Coinbase are held on a strict 1:1 basis, ensuring they remain fully backed and untouched without explicit user consent. Coinbase utilizes advanced security measures, including cold storage for the majority of user funds, robust encryption protocols, automatic two-factor authentication (2FA), and additional protections like multi-approval withdrawals via Coinbase Vault.