What Is GDAX Pro and How Does It Compare to Coinbase Pro?

GDAX Pro was the former name of what is now known as Coinbase Pro, a platform designed for advanced cryptocurrency trading. It offers features tailored to experienced traders, such as lower fees, detailed charting tools, and various order types. While both Coinbase and Coinbase Pro are operated by the same company, they serve different purposes—Coinbase is for beginners, while Coinbase Pro provides greater control over trades, making it more suitable for active traders.

Setting Up an Account

Creating an account on Coinbase Pro begins with registering through the official Coinbase website. Since Coinbase Pro is integrated with Coinbase, users with an existing Coinbase account can access the platform without creating a separate login. New users must provide an email address, set a secure password, and verify their identity using a government-issued ID for regulatory compliance.

After verification, users must enable two-factor authentication (2FA) for added security. This typically involves linking a mobile device for authentication codes. Coinbase Pro recommends authentication apps or hardware security keys instead of SMS-based 2FA, which is more vulnerable to phishing attacks.

Once the account is secured, users can link a bank account or debit card for funding. ACH transfers (for U.S. customers) and SEPA transfers (for European users) are common, while wire transfers are available for larger deposits. ACH transfers take three to five business days, while wire transfers are often completed within the same day.

Fee Tiers

Coinbase Pro uses a tiered fee structure based on a user’s 30-day trading volume. Higher trading activity results in lower fees. Fees are divided into maker and taker categories—makers add liquidity to the order book, while takers execute orders that match existing ones.

For traders with a monthly volume below $10,000, the taker fee is 0.60%, while the maker fee is 0.40%. As trading volume increases, fees decrease. For example, users trading between $50,000 and $100,000 in a 30-day period pay 0.25% as takers and 0.15% as makers. Those exceeding $1 million in volume see taker fees drop to 0.05%, while maker fees are eliminated.

Unlike Coinbase, which charges a flat or percentage-based fee, Coinbase Pro’s structure benefits active traders by reducing costs. A trader executing $500,000 in trades per month on Coinbase Pro would pay $1,250 in taker fees at a 0.25% rate, whereas the same volume on Coinbase could result in significantly higher fees due to its fixed pricing model.

Order Selection

Coinbase Pro offers multiple order types, allowing traders to execute transactions based on their strategies and risk tolerance. The three primary order types are market orders, limit orders, and stop orders.

Market Orders

A market order executes immediately at the best available price. This is useful when speed is prioritized over price control. For example, if Bitcoin is trading at $40,000 and a user places a market buy order, it will be matched with the lowest-priced sell order available.

Large market orders may be filled at multiple price points, leading to slippage—the difference between the expected and executed price. This is common in volatile markets where prices change rapidly. Since market orders remove liquidity, they incur taker fees, which are higher than maker fees. Traders should use market orders when they need to enter or exit a position quickly but should be aware of potential price discrepancies.

Limit Orders

A limit order allows traders to specify the exact price at which they want to buy or sell an asset. Unlike market orders, limit orders do not execute immediately; they only fill when the market reaches the designated price. For instance, if Ethereum is trading at $2,500 and a trader wants to buy at $2,450, they can place a limit buy order at that price. The order remains open until the market price matches the specified amount or the trader cancels it.

Limit orders provide price control, ensuring traders do not pay more or sell for less than their desired amount. They also contribute to market liquidity, classifying them as maker orders, which typically incur lower fees. However, there is no guarantee that a limit order will be executed, especially in fast-moving markets.

Stop Orders

A stop order triggers a market or limit order once an asset reaches a predetermined price. This is commonly used for risk management, helping traders protect profits or limit losses.

A stop-market order converts into a market order once the stop price is reached. For example, if Bitcoin is trading at $42,000 and a trader wants to sell if it drops to $40,000, they can place a stop-market sell order at $40,000. If the price falls to that level, the order executes at the best available market price. However, in volatile conditions, the execution price may be lower than expected due to slippage.

A stop-limit order sets both a stop price and a limit price. If a trader places a stop-limit sell order with a stop price of $40,000 and a limit price of $39,800, the order will only execute if the market price falls to $40,000 but will not sell for less than $39,800. This provides more control but carries the risk that the order may not be filled if the price moves too quickly past the limit price.

Available Currency Pairs

Coinbase Pro supports a wide range of cryptocurrency trading pairs, allowing users to trade digital assets against fiat currencies like the U.S. dollar (USD), euro (EUR), and British pound (GBP), as well as against other cryptocurrencies. The selection includes major assets such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), alongside a growing list of altcoins.

Liquidity plays a significant role in trading efficiency. High-volume pairs, such as BTC/USD or ETH/USD, typically have tighter bid-ask spreads, reducing transaction costs. Less frequently traded pairs, like smaller-cap altcoins, may experience wider spreads and lower liquidity, leading to greater price volatility. Institutional traders and market makers often focus on high-liquidity pairs to minimize slippage and improve order execution.

Regulatory considerations also affect the availability of certain trading pairs. Coinbase Pro complies with jurisdictional laws, meaning some cryptocurrencies may not be accessible in specific regions. For example, certain tokens listed in the U.S. may not be available to European users due to differing regulations. Traders should verify whether their preferred assets are supported in their location before initiating trades.

Deposits and Withdrawals

Users can fund their accounts using bank transfers, cryptocurrency deposits, or wire transfers, each with varying processing times and potential fees. Withdrawals follow a similar structure, with different options depending on the user’s location and preferred transfer method.

Depositing funds through ACH transfers (for U.S. customers) or SEPA transfers (for European users) is common due to their low cost. ACH deposits typically take three to five business days to clear, while SEPA transfers are usually processed within one business day. Wire transfers offer faster processing, often completing within the same day, but may incur higher fees. Cryptocurrency deposits allow users to transfer digital assets from external wallets, with processing times depending on network congestion and the specific cryptocurrency being transferred.

Withdrawals can be made via the same methods, though processing times and fees vary. ACH withdrawals generally take a few business days, while wire transfers provide same-day access to funds for a higher cost. Instant withdrawals to debit cards or PayPal are available in certain regions, offering immediate access to cash but at a slightly higher fee. Cryptocurrency withdrawals allow users to move assets to external wallets, though they must ensure they use the correct blockchain network to avoid losing funds. Security measures, such as withdrawal address whitelisting and two-factor authentication, help protect users from unauthorized transactions.