Many who trade in the crypto space may have heard the term 'rebate'; so is fee rebate in the crypto world real?
Fee rebates do exist in the crypto world. Many cryptocurrency trading platforms have rebate systems where users fill in relevant invitation codes during registration and trade to receive a certain percentage of fee rebates.
The specific rebate percentage and rules vary by platform. Generally, detailed explanations can be found on the platform's relevant policy or activity pages. However, users should also be wary of risks and avoid participating in illegal or dishonest activities.
High percentage rebates.
Some use high percentage rebates to lure users into registering and trading, but the actual returned percentage is often not as initially agreed upon. Common models include manual and automatic rebates, and the rules differ across platforms.
For manual rebates, you must verify the rebate data carefully; calculating it yourself will help you understand.
Fee calculation method: Position value × Fee rate.
Rebate calculation method: Fees incurred × Rebate percentage.
Automatic rebates can clearly show the returned fee data in the system.
The rebate has disappeared.
Some may initially return according to the agreed percentage, but after a while, it may decrease or stop altogether. Pay more attention to your rebate data.
If someone has no assets on Binance or is a high-frequency trader, are you sure they won't misappropriate your fees?
What we should focus on is the actual fee expenditure; after all, fee rebates are meant to reduce the fees incurred from trading and save users' trading expenses.
So we should first understand the fee rate of the platform we are on, which can usually be found in the fee level section.
Are the fees high?
You can't see much from a single transaction's fees; trading is long-term, and thus the fees accumulate over time. Let's calculate how much the fees actually are.
Taking Binance as an example:
Trader Xiao Yu uses 500 USDT, adjusts the leverage to 100 times (this is just a hypothesis, high leverage is not recommended), so the position value is 50,000 USDT.
It is known that the unilateral fee rate for Binance contracts is 0.02% (maker) and 0.04% (taker).
Fee calculation method: Position value × Fee rate.
A small trader incurs a fee of 20-40 USDT for a single trade (buy and sell). Based on market orders, the fees incurred are about 10% of the principal.
This is just the fee generated from a single transaction.
If market fluctuations are large and the frequency of opening orders is high, there will be quite a lot over a month.
With a trading volume of 10 million in a month, the fees incurred are 4,000 USDT (calculated based on taker fee rate), which is quite a considerable expense when converted to RMB.
On Binance, a rebate of 1400 USDT can be returned.
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Don't trade just for the sake of high percentage fee rebates. Before registering and trading, make sure to understand the platform's fee rates, rebate percentages, rebate methods, and rebate timings to ensure you can safely save on fees.
