When trading futures on Binance, there are three main types of fees that can impact your overall performance.

Since fees play a significant role in trading outcomes, it's crucial to understand how each one works before you get started.

In this article, we’ll break down the three key Binance Futures fees—trading fees, funding fees, and insurance clearance (liquidation) fees—explaining how they are calculated and when they are charged.

Whether you're already using Binance Futures or considering it, this guide will help you navigate the fee structure with confidence.

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🔹 Key Points Summary

  • Binance Futures has three main fee types: trading fees, funding fees, and insurance liquidation fees.

  • Fee rates vary depending on order type (maker/taker), contract type (USDⓈ-M or COIN-M), and your VIP level.

  • Funding fees are exchanged between long and short position holders—not paid to the exchange.

  • Insurance liquidation fees apply when a position is forcibly liquidated and are used to support the exchange’s insurance fund.

1. Binance Futures Trading Fees

Trading fees are charged each time an order is executed. These fees differ depending on whether you're a maker or a taker:

  • Makers provide liquidity by placing limit orders, and generally receive lower fees as an incentive.

  • Takers remove liquidity by executing against existing orders, so they pay higher fees.

Your VIP level on Binance also affects trading fees. Higher VIP levels receive discounted rates. To reach a higher VIP level, you need to meet certain trading volume thresholds and hold a minimum amount of BNB tokens in your account.

Tip: If you use BNB to pay your futures trading fees, Binance offers a 10% discount.

Another important point: trading fees are based on the notional value of your position, not just your margin. For instance, using $1,000 margin with 10x leverage opens a $10,000 position, and the fee is calculated based on that $10,000—not the $1,000 margin.

2. Funding Fees

Funding fees are unique to perpetual futures contracts and are exchanged between traders holding long and short positions. The purpose is to keep the futures price aligned with the underlying spot market price.

  • If the funding rate is positive, long positions pay shorts.

  • If the funding rate is negative, short positions pay longs.

Binance does not profit from funding fees—it only acts as an intermediary.

Funding is typically settled every 8 hours at 00:00, 08:00, and 16:00 UTC

3. Insurance Liquidation Fees

If your position is forcibly liquidated due to insufficient margin, an additional liquidation fee will be charged. This happens when your account balance falls below the required maintenance margin.

  • The liquidation fee ranges between 1.25% to 2% of the notional value of the position.

  • The fee is added to the Binance Insurance Fund.

The insurance fund is designed to protect traders and the exchange in extreme market conditions.

It covers losses when accounts fall below zero balance and helps reduce the chance of Auto-Deleveraging (ADL)—a process where profitable positions are automatically reduced to cover systemic risks when insurance funds are depleted.

Frequently Asked Questions (FAQ)

1. What is the maker vs taker fee on Binance Futures?

  • Maker fee is 0.02%, taker fee is 0.04% by default. Makers place limit orders, takers fill them.

2. Do I pay funding fees directly to Binance?

  • No. Funding fees are exchanged between long and short traders every 8 hours.

3. How do I lower my Binance trading fees?

  • Use BNB to pay fees for a 10% discount, and trade more to reach a higher VIP level.

4. When are funding fees charged in Korea time?

  • At 09:00, 17:00, and 01:00 daily (UTC+9).

5. What happens if I get liquidated on Binance Futures?

  • You will be charged a liquidation fee (1.25–2%) that goes to the insurance fund.

What’s Next?

If you're considering trading on Binance Futures, take time to fully understand the fee structure and how it might affect your strategy. Even small percentages can make a big difference over time, especially with leverage.

  • Explore the BNB fee discount program

  • Monitor your funding rate exposure

  • Avoid forced liquidation by managing margin levels closely

Understanding the cost of each trade will help you make smarter and more informed decisions.

In Closing

Binance Futures involves three core fees: trading fees, funding fees, and insurance liquidation fees. Each serves a different function in maintaining a fair and efficient trading environment.

By understanding how these fees work and how they’re applied, you’ll be better equipped to navigate futures trading with greater awareness and control.