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Understanding fees is a fundamental skill in trading. The fee structure on Binance is actually not complicated, but there are some nuances that, once understood, can save you a lot of money. First, go to the official Binance website to check the latest fee schedule, and then check your current fee tier in the official Binance APP. Apple users should first refer to the iOS installation guide to install the app.
Basic Concepts of Binance Fees
Trading on Binance involves three types of fees:
- Trading Fee: Charged every time you buy or sell cryptocurrencies.
- Withdrawal Fee: Charged when transferring coins from Binance to an external address.
- Deposit Fee: Binance does not charge for on-chain deposits (but the sending platform may charge).
Today we will focus on trading fees, as this is what you deal with most often.
Spot Trading Fees
Base Fee Rate
The default trading fee rate for Binance spot trading is 0.1%. This rate applies to both buying (Taker) and selling (Maker).
What does this mean? For example:
- You spend 10,000 USDT to buy BTC, fee = 10,000 × 0.1% = 10 USDT
- You sell BTC worth 10,000 USDT, fee = 10,000 × 0.1% = 10 USDT
If you buy and then sell (one complete round trip), the total fee is 20 USDT.
Difference Between Maker and Taker
Taker: Your order immediately matches with an existing order on the order book. For example, if you place a market order, or your limit order price is equal to or better than the current best price, it executes immediately.
Maker: Your order is placed on the order book waiting to be matched. For example, if you place a limit order and the price hasn't been reached yet, the order is waiting.
Usually, the Maker fee is lower than the Taker fee because Makers provide liquidity to the market. For regular users, both are 0.1%. But as your VIP level increases, the discount on Maker fees becomes greater.
VIP Tier Fee Schedule
Binance assigns your VIP tier based on your past 30-day trading volume and your BNB holdings; the higher the tier, the lower the fees:
| VIP Level | 30-Day Trading Volume | Maker Fee | Taker Fee |
|---|---|---|---|
| Regular User | < 1M USDT | 0.1% | 0.1% |
| VIP 1 | ≥ 1M USDT | 0.09% | 0.1% |
| VIP 2 | ≥ 5M USDT | 0.08% | 0.1% |
| VIP 3 | ≥ 20M USDT | 0.07% | 0.09% |
Higher VIP levels have even lower rates. However, for most individual investors, reaching VIP 1 or above is already quite good.
Futures Trading Fees
If you trade futures contracts (USDS-M or Coin-M futures), the fee rate is different from spot trading:
USDS-M Futures
| User Level | Maker | Taker |
|---|---|---|
| Regular User | 0.02% | 0.05% |
| VIP 1 | 0.016% | 0.04% |
The fee rate for futures trading looks lower than spot trading, but note: futures trading usually uses leverage, and the actual fee is calculated based on the notional value of your position, not the margin you put in.
For example, if you use 1,000 USDT with 10x leverage, the notional value of the position is 10,000 USDT. The fee = 10,000 × 0.05% = 5 USDT. Although the rate is low, because leverage amplifies the notional value, the actual fee amount might not be low.
Funding Rate
Futures trading also has a "funding rate," settled every 8 hours. This is not a fee paid to Binance, but a capital adjustment between longs and shorts. When the funding rate is positive, longs pay shorts; when negative, shorts pay longs. This fee requires special attention, as it can accumulate to a large amount when holding a position long-term.
How to Check Your Trading Fees
Check Fee Tier
Open the Binance APP → Profile Center → Fee Details. This will display your current VIP level, fee standards, and your 30-day trading volume.
Check Historical Fees
The fee record for each trade can be viewed in "Orders" → "Order History". Every trade record will show exactly how much fee was charged.
Fee Summary
On the assets page or the fee page, you can see how much you have paid in total fees over a past period.
Five Methods to Reduce Fees
Method 1: Use BNB to Pay for Fees
This is the most commonly used and effective method. After enabling "Use BNB to pay for fees" in Binance settings, fees will be deducted from your BNB holdings, and you will enjoy a discount.
Currently, using BNB to pay for spot trading fees gives you a 25% discount (i.e., 0.1% × 75% = 0.075%).
How to do it:
- Buy a small amount of BNB first (a few dozen dollars' worth is enough for a long time).
- APP → Profile Center → Fee Settings → Enable "Use BNB to pay for fees".
- Afterward, the fee for every trade will automatically be deducted from your BNB balance.
Method 2: Upgrade VIP Level
High-volume traders can naturally upgrade their VIP level to lower their fees. If your monthly trading volume can reach over 1 million USDT, you can enjoy VIP 1 discounted rates.
Method 3: Use Limit Orders
As mentioned earlier, Maker fees are usually lower than Taker fees. Using limit orders to become a Maker (instead of market orders to become a Taker) allows you to enjoy Maker rates.
Method 4: Hold BNB
Holding a certain amount of BNB not only allows you to pay for fees but is also one of the conditions for VIP tier evaluation. The more BNB you hold, the easier it is to upgrade your VIP level.
Method 5: Use Referral Kickbacks
Registering on Binance through a specific referral link can get you a partial refund of your trading fees. If you haven't registered yet, finding a referral link with a kickback to register can save you money in the long run.
Fee Calculation Examples
Let's calculate using a few practical examples:
Example 1: A Simple Buy Operation
You buy BTC at market price using 5,000 USDT.
- Default fee: 5,000 × 0.1% = 5 USDT
- With BNB deduction enabled: 5,000 × 0.075% = 3.75 USDT (equivalent in BNB)
- Saved 1.25 USDT in one operation.
Example 2: A Complete Buy and Sell Cycle
You use 10,000 USDT to buy BTC, and later BTC goes up by 10% and you sell for a profit.
- Buy fee: 10,000 × 0.075% = 7.5 USDT (BNB deduction)
- BTC value when selling is 11,000 USDT, fee: 11,000 × 0.075% = 8.25 USDT
- Total fees: 15.75 USDT
- Your gross profit: 1,000 USDT
- Net profit after deducting fees: 984.25 USDT
Example 3: A Frequent Trader
Assume you make 5 trades a day (a round trip counts as 10 transactions), each involving 1,000 USDT.
- Daily fees: 10 × 1,000 × 0.075% = 7.5 USDT
- Monthly fees: 7.5 × 30 = 225 USDT
This is why frequent traders need to pay special attention to fees—they can significantly eat into your profits.
Hidden Knowledge About Fees
Which Coin is the Fee Deducted From?
If the BNB deduction is not enabled, the fee will be deducted from the coin you receive from the trade. For example, if you buy BTC with USDT, the fee is deducted from the BTC you bought.
If the BNB deduction is enabled, the fee is deducted from the BNB you hold. When the BNB balance is insufficient, the system will revert to deducting from the traded coin.
The Impact of Decimal Places
Fee calculations may produce very small decimals. Binance will round it off to the smallest precision supported by that coin.
Fees Have Nothing to Do with Profit or Loss
Regardless of whether your trade makes or loses money, the fee is charged all the same. So if you frequently make trades with small margins, fees might eat up most or all of your profits.
Frequently Asked Questions (FAQ)
Q1: Where are Binance fees deducted from?
If the BNB deduction is enabled, they are deducted from your BNB balance. If not enabled, when buying, they are deducted from the coins you receive; when selling, they are deducted from the USDT you receive.
Q2: Is a 0.1% fee rate considered high?
Among cryptocurrency exchanges, 0.1% is considered relatively low. If you use BNB deduction to lower it to 0.075%, it becomes even more competitive. Commissions on traditional stock exchanges usually range from a few ten-thousandths to a few thousandths.
Q3: How are deposit and withdrawal fees calculated?
Depositing to Binance is free. The withdrawal fee is a fixed amount, not a percentage, and varies by coin and network. For example, withdrawing USDT via TRC20 charges a fixed 1 USDT, regardless of how much you withdraw.
Q4: Can fees be refunded?
Normally, fees are not refunded. However, if an abnormal fee deduction occurs due to a system failure, you can contact customer service to handle it. Additionally, for users who registered via a referral kickback link, part of the fees will be periodically returned to the account.
Q5: Why are my fees higher than others?
Possible reasons: you haven't enabled BNB deduction, different VIP levels, or different order types (Taker vs. Maker). It is recommended to check if the BNB deduction feature is enabled, as this is the fastest way to lower your fees.