Binance trading fees and Binance Coin BNB explained

Binance Trading Fees and Binance Coin BNB Explained

Binance charges among the lowest fees of all the top Bitcoin trading sites.

In addition, you can get even lower rates than their default listed trading fees.

You can pay lower fees by paying the trading fees in the Binance native token, Binance coin (BNB). However, not all trading fees are applicable to pay with the Binance coin.

In this article, we will explain what fees Binance charges, how much they charges and how you can reduce them by using BNB.

To search for the lowest crypto trading fees can be very important for a crypto day trader. 

What are the different Binance trading fees?

Binance charges a lot of different trading fees and other fees. Below, we have listed all the different fees. Deposit and withdrawal fee is not related to trading but is listed here anyway.

  • Spot Trading Fee
  • Margin Borrow Interest Rate
  • USDT futures trading fee
  • COIN futures trading fee
  • Deposit and Withdrawal fee
  • Cross collateral interest rate
  • Leverage token fees
We will explain the different fees, one by one, later in this article. However, first you must know what Binance coin BNB is since this particular token can reduce your fees a lot.

What is Binance Coin BNB?

Binance coin, BNB, is a  cryptocurrency created by the Binance exchange.

Binance Coin powers the Binance ecosystem by having multiple use cases

  • Fueling transactions on the chain
  • Paying for transactions fees on Binance
  • Make in-store payments
  • And more

In this article, we will focus on how you can utilize the Binance coin to minimize your trading fees on Binance.

How to pay Binance fees with the Binance Coin BNB?

If you pay your Binance trading fees with the Binance Coin BNB, you will get -25% rebate on all spot trading fees charged by Binance. As you see in the screenshot below, you will also get -10% on the USD-M futures trading fees.

How to do this?

  1. Make sure you have a BNB balance. Otherwise, buy or trade to BNB
  2. Make sure to opt in to pay the fees in BNB. See the screenshot. You find this setting by click on “Fees” in the footer menu under the “Support” category.
How to pay Binance trading fees with the Binance Coin BNB

What is Binance Trading Fee?

Binance Bitcoin exchange charges a fee called a trading fee. This is taken from all exchanges you make on the bitcoin and crypto exchange. The most common fee structure to use is maker and taker fee. Read more about what maker and taker fee structure is in our article, Binance maker and taker fee VS Kraken, ByBit, KuCoin.

  • If you are not using BNB (Binance Coin) to pay your trading fees, each trade will carry a standard fee of 0.1%. See screenshot below.
  • Using BNB for transaction fees applies a discount to your trading fee. By default, if you hold BNB in your account, your trading fees will be automatically subtracted from your BNB balance. You can get 25% from your spot trading fees as you can see in the screenshot below. On top of that, you can receive further trading fee discounts if you refer friends.
The fees can be compared with Kraken that has a similar level scheme based on the last 30-day trading volume. For maker fee Kraken charges between 0-0.16% and for taker fee 0.10%-0.26%. Read more about Kraken in our Kraken review.
Binance maker and taker fee table for spot trading

Binance Referral Code: -20% on all commissions with our link

What is Binance Margin Borrow Interest rate?

Binance margin borrow interest rate is what you have pay for leveraging margin trading.

The margin borrower interest rates depends on you VIP level and on what cryptocurrency you borrow.

For detailed information, see the screenshot below. The interest rate is charged hourly but the information is given as daily interest rates. See the calculation formula below to convert daily interest rate to hourly interest rate.

Note that not all cryptocurrencies are listed in the screenshot. Also, only information for VIP level 0 is listed.

 

NOTE: If funds are borrowed for less than 1 hour, the interest rate will still be calculated as for assets borrowed for 1 hour.

If the daily interest rate is 0.02%, the hourly interest rate is calculated as 0.02%/24.

The calculation formula: I (interest) = P (borrowed money) * R (daily interest 0.02%/24) * T (in hours)

See our full article about what Binance margin trading is.

What are Binance USDT futures fees?

Binance USDT futures fees are based on maker and taker fee as you can see in the screenshot below.

Also, you can get 10% off from the trading fees if you pay with Binance coin, BNB.

What are Binance COIN futures fees?

Binance USDT futures fees are charged when you trade the COIN futures.

The maker fees goes from 0.015% to – 0.009% and taker fees ranges from 0.04% to 0.024%.

These trading fees can be compared to Bybit which charges -0.025% for maker orders and 0.075% for the taker. Bybit charges a flat fee and doesnt have VIP levels or other rebates. Read more about Bybit in our Bybit guide and review.

Binance deposit and withdrawal fee?

In general, a crypto deposit is free and Binance does not charge any fees for this. However, there are withdrawal costs. However, there is a fee associated with withdrawals and those are paid by users to cover the transaction costs of moving the cryptocurrency out of their Binance account. There are so many different cryptocurrencies and different prices so we can’t list them here but here you can see all the Binance crypto withdrawal prices.

What is the Binance VIP level?

Binance has 10 different VIP levels VIP0-VIP9. What VIP level you are in depends on

  1. Your trading volume on the spot exchange or,
  2. Your trading volume on the futures exchange or,
  3. Your BNB holdings

The trading volume is calculated as a cumulative 30-day trading volume and the BNB holding as your average 24-hour holdings.

As you can see in the screenshot below, you can reduce your maker fees from 0.1% to 0.02% if you go from VIP0 to VIP9. This is a 80% fee reduction. Further, you can reduce your fees even more if you use our referral link. Our Binance referral link will give you 20% on all fees ever charged by Binance.

Binance Referral Code: -20% on all commissions with our link

Binance Cross Colleteral Interest fees

Below you can see what Binance charges in cross collateral interest fees.

As you can see, the fees are different for each cryptocurrency and each VIP-level.

What are the fees charged for Binance leveraged tokens?

There are several fees associated with trading Leverage Tokens on Binance.

There are 2 different ways to buy leveraged tokens, you can either buy them in the market and you will pay the spot trading fee (Default is 0.1% for maker and taker).

The other way is to subscribe and pay the subscription fee which is 0.1%.

Also, there are 2 different ways to get out from the leveraged token position. You can either sell on the market and pay the spot trading fee or you can redeem and pay the redemption fee which is 0.1%.

Also, there is management fees of 0.01% charged for maintaining the position. This is for providing the service.

There is also a funding fee paid to the underlying fund based on the funding rate. This is not charged by Binance but directly between traders. This is because the leveraged tokens are leveraged products and therefor needs borrowed money.

Read more about Binance leveraged tokens.

Summary Binance Fees

Binance charges the lowest fees of all Bitcoin and crypto exchanges.

In this article, we did summarize all the different fees charged from Binance. Remember, you will get -20% of all fees when you use our referral code.

Binance.com doesn’t allow US customers and for US crypto traders we can recommend Coinbase or Kraken. Read more about Coinbase fees and Kraken as an alternative with lower fees.

Also, there is one crypto trading platform offering trading for ZERO fees. On top of this, they offer infinite liquidity. Read more about how to trade crypto for free with zero fees.

Facebook
Pinterest
Twitter
LinkedIn