You're not adding an intermediary. The broker and the exchange do different jobs. Coinbase is an exchange and a brokerage firm. Under the current arrangement, Coinbase is providing its customers with both exchange and brokerage services, so Coinbase customers are paying for both. If Coinbase was providing exchange services to brokerage firms, and these brokerage firms were providing brokerage services to retail investors, these investors would still be paying for both services (directly or indirectly), but prices would be lower due to competition among brokerage firms.
In traditional stock markets you must do:
Retail -> Broker -> Exchange
Coinbase allows:
Retail -> Coinbase Exchange
Retail -> CB Broker -> CB Exchange
Retail -> Broker -> CB Exchange
How is this not better for retail than traditional finance? How can I get DMA at the NASDAQ as an individual?
"You can't, but it's for your own good" - Brokers
- custody of assets
- margin trading
- customer support