How Much Are Binance Fees? Tips on How to Save on Trading Fees
How Much Are Binance Fees? Tips on How to Save on Trading Fees
Trading fees are a cost every trader must pay attention to. Especially if you trade frequently, accumulated fees can become a significant expense. Binance's fees are already considered quite low within the industry, but there are still many methods to reduce them further. First, visit the Binance Official Website to check the latest fee rates, and download the Binance Official App where you can view your current fee tier in the settings. Apple users, please refer to the iOS Installation Guide.
Binance Spot Trading Fees
Spot trading is the most fundamental trading type; both buying and selling cryptocurrencies fall under spot trading.
Basic Fee Rates
Binance's basic spot trading fee is 0.1%, which applies to both Maker and Taker orders:
- Maker: You place a limit order that does not execute immediately but instead goes on the order book waiting for someone else to fill it. In this case, you are providing liquidity, and the fee is 0.1%.
- Taker: Your order immediately matches an existing order on the order book. You are consuming liquidity, and the fee is 0.1%.
For example: If you purchase 10,000 USDT worth of Bitcoin, the fee would be 10,000 × 0.1% = 10 USDT.
VIP Tier Fee Rates
Binance has a VIP tier system; the higher your trading volume, the lower your fees:
| VIP Tier | 30-Day Trade Volume (BUSD equivalent) | Maker Fee | Taker Fee |
|---|---|---|---|
| Regular User | < 1 Million | 0.1% | 0.1% |
| VIP 1 | ≥ 1 Million | 0.09% | 0.1% |
| VIP 2 | ≥ 5 Million | 0.08% | 0.1% |
| VIP 3 | ≥ 20 Million | 0.07% | 0.09% |
| VIP 4 | ≥ 50 Million | 0.06% | 0.08% |
| VIP 5 | ≥ 100 Million | 0.05% | 0.07% |
For most regular users, achieving a high VIP tier might be difficult. However, don't worry—there are other methods to save on fees.
Futures Trading Fees
Futures trading fees are lower than spot trading fees. However, because futures trading typically involves leverage, the actual trading volume is much larger, meaning the absolute value of the fee could be higher.
USDⓈ-M Futures
- Maker Fee: 0.02%
- Taker Fee: 0.05%
COIN-M Futures
- Maker Fee: 0.01%
- Taker Fee: 0.05%
Futures trading fees are calculated based on your position size, not your margin. For instance, if you use 100 USDT margin to open a 10x leverage position, your actual position size is 1,000 USDT, and the fee is calculated based on 1,000 USDT.
P2P Trading Fees
The good news is that Binance P2P trading is completely free for buyers. This means if you buy USDT with fiat currency via P2P, you do not pay any fees to Binance.
Sellers (i.e., the merchants who post sell ads) need to pay a certain fee, but this is usually already factored into their quoted price.
This means depositing funds via P2P is one of the most cost-effective methods.
Deposit Fees
Depositing cryptocurrencies into Binance is generally free. Binance does not charge deposit fees, but when you transfer from another platform or wallet, you may need to pay the network fees charged by the sending party.
Withdrawal Fees
Withdrawing (transferring cryptocurrencies out of Binance) requires paying a network fee. The fees vary significantly depending on the coin and the blockchain network used:
| Coin | Network | Withdrawal Fee |
|---|---|---|
| BTC | Bitcoin | Approx. 0.0001-0.0005 BTC |
| ETH | ERC20 | Approx. 0.001-0.005 ETH |
| USDT | TRC20 | 1 USDT |
| USDT | BEP20 | 0.29 USDT |
| BNB | BEP20 | 0.0005 BNB |
As you can see, choosing different networks results in huge differences. For example, withdrawing USDT via the TRC20 network only costs 1 USDT, whereas using the ERC20 network could cost several dollars.
How to Save on Trading Fees
Method 1: Use BNB to Pay for Fees (Most Recommended)
This is the simplest and most effective way to save money. After enabling "Use BNB to pay for fees" in your Binance settings, your trading fees automatically get a 25% discount.
Operational steps:
- Open the Binance App.
- Go to the "Profile Center."
- Find the "Use BNB to pay for fees" option.
- Toggle it on.
Once enabled, you must ensure you have a certain amount of BNB in your account. During trades, the fee will be automatically deducted from your BNB balance, applying the 25% discount.
- The original 0.1% fee becomes 0.075%.
- If you are a VIP user, you will enjoy the BNB discount on top of your VIP discount.
Method 2: Register with a Referral Code
By registering on Binance using a referral code, you can receive trading fee kickbacks. Depending on the referral code, the kickback ratio is generally between 20% and 40%.
This kickback is permanent, meaning you enjoy the benefit on every single trade. If you haven't registered on Binance yet, make sure to use a referral code.
Method 3: Choose the Right Order Type
Maker and Taker fees differ across many VIP tiers, with Maker fees usually being lower. If you are not in a rush to execute a trade, you can choose to place a limit order instead of a market order, making you a Maker rather than a Taker.
Method 4: Select a Low-Fee Network When Withdrawing
When withdrawing, make sure to select a network with low fees. For example:
- Choose TRC20 or BEP20 for USDT withdrawals, not ERC20.
- If the recipient platform also supports BEP20, prioritize using BEP20.
However, you must absolutely confirm that the receiving address supports the network you select, otherwise, your assets may be lost.
Method 5: Upgrade Your VIP Tier
If your trading volume is large enough, the fee discounts brought by VIP tiers are very substantial. Besides trading volume, holding a certain amount of BNB can also help you upgrade your VIP tier.
Method 6: Keep an Eye on Promotions and Offers
Binance frequently rolls out various fee discount promotions, such as:
- Trading cashback for new users.
- Zero fees on specific trading pairs.
- Holiday promotional events.
Follow Binance's official announcements and social media so you don't miss out on these offers.
Fee Calculation Examples
Example 1: Beginner's Small Trade
John just registered on Binance, bought 1,000 USDT via P2P, and then used it to buy Bitcoin.
- P2P purchase of 1,000 USDT: Fee = 0 (P2P is free).
- Buying Bitcoin with 1,000 USDT: Fee = 1,000 × 0.1% = 1 USDT.
- If BNB discount is enabled: Fee = 1,000 × 0.075% = 0.75 USDT.
Total cost: 0.75 USDT, which is extremely cheap.
Example 2: Frequent Trader
Mike trades on Binance every day, with a monthly trading volume of around 500,000 USDT.
- Without any optimization: 500,000 × 0.1% × 2 (buy and sell) = 1,000 USDT.
- With BNB discount enabled: 500,000 × 0.075% × 2 = 750 USDT.
- With a 20% referral kickback: 750 × (1 - 20%) = 600 USDT.
He can save 400 USDT in one month, meaning 4,800 USDT in a year—a substantial amount of money.
Fee Comparison with Other Exchanges
| Exchange | Spot Taker Fee | After Platform Token Discount |
|---|---|---|
| Binance | 0.1% | 0.075% |
| OKX | 0.1% | 0.08% |
| Coinbase | 0.4%-0.6% | No discount |
| Bybit | 0.1% | No discount |
| Gate.io | 0.15% | 0.12% |
As you can see, Binance's fees, when utilizing the BNB discount, are the lowest among major exchanges.
Frequently Asked Questions (FAQ)
Where are Binance fees deducted from?
Spot trading fees are deducted from the coin you receive. For example, if you buy BTC with USDT, the fee is deducted from the BTC you get. If you enable the BNB discount, the fee will be deducted from your BNB balance instead.
Will the 25% BNB discount always be available?
This discount may be adjusted over time. It was initially a 50% discount and was later adjusted to 25% off. It's recommended to follow Binance's official announcements for the latest policies.
Can fees be refunded?
Kickbacks obtained by registering with a referral code are periodically refunded to your account. Additionally, if an issue occurs during a trade resulting in overcharged fees, you can contact customer support for resolution.
Why are my fees higher than 0.1%?
Under normal circumstances, it should not exceed 0.1%. If you notice abnormal fees, check if you are trading futures (where fee calculation methods differ) or if other fees have been bundled into the amount.
Is the futures funding rate considered a fee?
The funding rate is not a fee; it is part of the cost of holding a position. The funding rate is settled every 8 hours and can be positive (you pay the opposing party) or negative (the opposing party pays you), depending entirely on market conditions.
Are zero-fee trading pairs really free?
Yes, Binance occasionally launches zero-fee promotions for specific trading pairs. During the event period, trading these pairs genuinely incurs no fees. However, these promotions usually have a time limit.