How to Reduce Transaction Fees on Binance
Reducing fees on Binance can save you a considerable amount in the long run, especially if you trade frequently. Here are the most effective methods:
* Use BNB to Pay Trading Fees: This is the simplest and most common method.
* How to do it:
* Make sure you have BNB in your Binance spot wallet.
* Go to your dashboard (profile) on Binance.
* Look for the option "Use BNB to pay fees" or "Trading Fees" (this is often found in the "User Center" or "Dashboard" section).
* Activate this option.
* Advantage: You automatically get a 25% discount on your spot and margin trading fees, and 10% on futures fees.
* Become a Binance VIP User: The higher your trading volume and/or the more BNB you hold, the higher your VIP level will be, and the lower your fees.
* How to do it: This is automatic. Binance calculates your VIP level based on:
* Your 30-day trading volume (spot or futures)
* Your 30-day average BNB balance
* Advantage: VIP levels offer significant fee reductions, which increase with each level. You can check the fee tiers on the official Binance website in the "Fees" section.
* Use Limit Orders Instead of Market Orders:
* Explanation:
* A Market order is executed immediately at the best available price, and you are generally considered a "taker" (liquidity taker), which results in higher fees.
* A Limit order is placed in the order book and is only executed when the price reaches the level you specified. If your order is executed, you are generally considered a "maker" (liquidity provider), which results in lower fees.
* How to do it: When creating your trading order, select "Limit" instead of "Market."