Binance is a global cryptocurrency exchange and the most used trading platform by investors. Many users may not know how Binance fees are calculated, what the approximate fees for contracts, deposits, and withdrawals are. The following article will share the complete guide to Binance fee reductions: methods for calculating Binance contract, deposit, and withdrawal fees.
In the global cryptocurrency exchange market, Binance is undoubtedly a leading player. This article aims to help you fully understand Binance's fee structure, allowing you to become a savvy cryptocurrency investor.
Binance fee calculation: Discounts and BNB offsets.
New users who haven't downloaded or registered a Binance account can refer to this tutorial.
In Binance's spot market, the fee calculation method uses the Maker-Taker model. Simply put, the Maker is the order placer, and the Taker is the order taker.
Maker (the order placer): Provides market liquidity, usually incurs lower fees, and may have opportunities to reduce fees further through promotional mechanisms.
Taker (the order taker): Consumes market liquidity, incurs relatively higher fees, and has less room for cost control.
Under normal circumstances, the trading fee rate for spot trading on Binance is 0.1%. For example, suppose you are currently a VIP 0 level user, which is the regular user level on Binance, and want to trade the BTC/USDT pair:
Buying BTC: If you buy BTC worth 10,000 USDT with a market order (Taker), the fee rate is 0.1%, so you will be charged a fee of 10 USDT.
Selling BTC: If you sell BTC worth 10,000 USDT with a limit order (Maker), the fee rate is also 0.1%, so you will also be charged a fee of 10 USDT.
But don't worry! Binance offers many ways to reduce fees, allowing you to save more money:
Using BNB for offsets: As long as you hold Binance's issued platform token BNB, you can use it to pay for 'spot trading fees' and enjoy a 25% discount. This way, a fee of 10 USDT can instantly become 7.5 USDT!
Upgrading VIP level: Binance has a VIP level system. The larger your trading volume over 30 days and the more BNB you hold, the higher your VIP level, and the lower your fee rate will be. If you are a high-volume trader, this is definitely a good way to save money!
Participate in FDUSD zero-fee promotions: Binance periodically launches zero-fee promotions for certain trading pairs. For example, trading mainstream coins like BTC and ETH with the stablecoin FDUSD, the order fee directly becomes 0! If you frequently trade these coins, this is definitely good news!
Use a referral code: When joining a Binance account, using the referral code CS7MMKKE can enjoy fee cashback.
Binance contract fee calculation: High leverage also needs cost consideration!
The most exciting part of trading contracts is being able to use leverage, betting a small amount to win a large amount. But at the same time, be aware that the fee structure for contracts is different from spot trading and needs to be calculated more carefully.
Binance contract trading is mainly divided into U-based and coin-based types.
U-based contract: Uses USDT or USDC as margin, suitable for investors accustomed to fiat currency pricing.
Coin-based contract: Uses cryptocurrencies like BTC or ETH as margin, suitable for investors who hold these currencies long-term.
Generally speaking, the base fee rate for contracts is lower than that for spot trading. The Maker fee rate for U-based perpetual contracts is 0.02%, and the Taker fee rate is 0.05%. If you have BNB, you can also use it to offset 10% of the fees. For example, suppose you are currently trading U-based perpetual contracts and want to go long (buy) BTC/USDT:
Opening a position: If you open a position with a market order (Taker) worth 50,000 USDT for a BTC contract, the fee rate is 0.05%, so you will be charged a fee of 25 USDT.
Closing a position: If you close a position with a limit order (Maker) worth 50,000 USDT for a BTC contract, the fee rate is 0.02%, so you will be charged a fee of 10 USDT.
But be aware that trading contracts also has a hidden cost called the funding rate.
Funding rate: Binance charges or pays a funding rate every 8 hours to balance the ratio of long and short positions. If there are more bullish traders in the market, the funding rate is usually positive, meaning that those holding long positions need to pay funding fees to those holding short positions. Conversely, if there are more bearish traders, those holding short positions can receive funding fees.
Therefore, when trading contracts, in addition to monitoring the market and observing K lines, you also need to pay close attention to changes in the funding rate to avoid unnecessary losses!
Binance deposit fees: Which is the most cost-effective? Credit card, transfer, or wire transfer?
To trade on Binance, the first step is to deposit funds. Binance offers various deposit methods, but each method has different fees, so choosing the right one can save unnecessary expenses.
Credit card/debit card: The most convenient and fastest, but also the highest fees, around 3.5%. If you deposit 1,000 USDT with a credit card, the fee is approximately 35 USDT. If you are a small investor eager to enter the market, you might consider using a credit card, but remember to calculate the fees clearly!
Cryptocurrency transfer: Transferring cryptocurrency from other exchanges or wallets is relatively inexpensive. By routing through compliant exchanges in Taiwan, the comprehensive cost of depositing USDT can be compressed to 0.33-1.5%. For example, if you transfer USDT from MAX exchange to Binance, the fee is 1 USDT (TRC-20 network).
Wire transfer (temporarily unavailable): Suitable for large deposits, the fee is fixed, around 300-800 New Taiwan Dollars. If you wire transfer 10,000 USDT from a bank in Taiwan to Binance, the fee is approximately 300-800 New Taiwan Dollars. If you need to transfer a large sum at once, wire transfer may be more cost-effective, but Binance has currently suspended wire transfer deposit and withdrawal channels.
P2P over-the-counter trading: Buy coins directly from other users through Binance's P2P platform.
Binance withdrawal fees: Choose the right network to save money and be fast!
After finally making money on Binance, of course, you want to withdraw it quickly and put it in your own pocket! The main withdrawal method on Binance is also through cryptocurrency transfers, and the fees will vary depending on the currency and network you choose.
Currency recommendation network fee arrival time cost saving rate USDT TRC-20 $13 minutes 83% BTC Lightning 0.0002 BTC instant 79% ETH Arbitrum 0.00004 ETH 5 minutes 97% BNB BEP-20 0.0005 BNB 1 minute 95% XRP XRP Ledger 0.25 XRP 4 minutes 88%
Here's the key: Different blockchain networks have vastly different fees! For example:
USDT (TRC-20): Withdrawal of 1,000 USDT incurs a fee of 1 USDT.
BTC (Lightning): Withdrawal of 0.1 BTC incurs a fee of 0.0002 BTC.
ETH (Arbitrum): Withdrawal of 1 ETH incurs a fee of 0.00004 ETH.
Before withdrawing funds, make sure to check clearly; choosing the right network can save money!
Additionally, you can also sell coins to other users through Binance's C2C platform and directly exchange them for RMB. This method usually offers better exchange rates, but be careful of scams; remember to confirm that the other party has paid before releasing the coins!
Binance fee reduction guide: Multiple approaches to save more!
To summarize, if you want to save on fees at Binance, you can do the following:
Holding BNB long-term: In addition to being used to offset fees, you can also participate in Binance's Launchpool, new coin mining, and other activities to earn extra income.
Upgrade VIP level: The larger the trading volume, the lower the fees, and you can enjoy more exclusive VIP benefits.
Using FDUSD for trading: Binance often launches zero-fee promotions for FDUSD, and utilizing this can save quite a bit of money.
Choose the right deposit/withdrawal method: Compare the fees of various methods and choose the most cost-effective option.
Keep an eye on Binance's latest promotions: Binance regularly launches various fee discount promotions, so remember to stay updated to not miss out on saving opportunities.
Reminder: With the strengthening of regulatory efforts in various countries, it is recommended that users complete KYC 2.0 certification to avoid encountering account risk control when withdrawing funds.